Thursday, 27 May 2010

Why Businesses Can’t Afford To Ignore SMS Text Message Marketing

Why you cant afford to ignore SMS Text Message Marketing
People all over the world at the moment are saying SMS Text Message Advertising is a new kid on the block, however, a little unknown fact is that SMS Text Message Marketing first came on the scene ten years ago in the year 2000, when a free daily newspaper headline service in Finland sent by SMS text messaging and was sponsored by advertising.

Until the past few years SMS Text based advertising was low on the marketers agenda, however with recent research showing SMS/MMS ads spending up 26% percent from 2008 to 2009 is showing that this ‘relatively new’ channel is finally coming into its own.

So why should businesses look at SMS Text Message Marketing?
Following on from my previous article, 67% of Brits want more SMS reminders, I went into the forum and asked what the members of 4N thought. Do you want to be text by your supplier / business contact?

All said they would love to receive more reminders and alert from suppliers and business contacts.

More Responsive
Bulk SMS text messaging is a new channel at our finger tips, but even more importantly, according to the Mobile Marketing Association, this channel is 5 times more responsive than direct mail, which the Internet Advertising Bureau UK with PwC says is due to its exceptional targeting, immediacy and return on investment.

That brings us nicely onto our second reason, Time efficiency. You could write, send, and have your target market receive an SMS in the fraction of the time it would take you to write and send a direct mail piece, and more importantly it takes less time for them to respond and frees up yours or an employee’s time to spend on more productive activities!

Affordability, Cost Effective and ROI
Affordability is a clear reason SMS Text Message Marketing is getting used more and more. Sending an SMS text message will cost businesses as little as 8p per text, a lot cheaper than printing packaging and postage costs of direct mail, and with response rates far better than email you’ll get a great return on your marketing investment.

Increase Attendance at Events and Create last minute appointments
A simple, yet very effective way of ensuring people attend events or appointments are through text message reminders.

If you work with appointments it can also help you refill last minute cancelations as you can easily and very quickly can send out a quick text saying “Late Deals at (company name), first person to book a treatment at 4pm will receive a 25% discount”. This will help you re-fill the time slot and make money where it could have been lost.

Increase Positive Customer Perception & Loyalty
Using a text message personalised to the contact can do wonders for your business. Sending out promotional material, vouchers and discounts or simply keeping them up to date with the latest news can be good for businesses but it’s the added touch that helps you achieve that perception and loyalty. Sending SMS Text Message Birthday messages for example, this could also include a time related offer. They will love you for remembering their birthday!

Vast Reach of a Text Message
A major benefit of a Text Messages is the vast reach as it can reach the contact no matter where they are. Latest stats show our mobile phones are with us over 80% of every day. By sending a text message to direct to their phone means that they can receive your message where ever they are, they don’t have to be listening to the radio, reading a newspaper, watching TV, near a computer or even in the country!

Viral Potential
One of the biggest things we want is our message to reach as many people as possible, hence the large amount of money spent on viral market each and every year. However, with the ease of which SMS Text Messages can be shared also increases the chances of your message being shown or forwarded to additional people at no extra cost to you or your business.

Green Credentials that saves you money!
Usually going green costs you money somewhere, but this actually saves you money from the start. SMS Text message marketing is a green way of communicating with your contacts. For every 10,000 pieces of A4 paper that your company uses, you consume 2.5 mature trees.

We all know we can not stop sending mail altogether, but using SMS in certain cases can save us large amounts of money. Think of it as sending a piece of information to 1000 contacts.

Through Mail
Cost to send 50p each (printing, postage and packaging)- Total £500
Average response of 2%
Cost per response = £25

Through SMS
Cost to send 8p each - Total £80
Average response = 10%
Cost per response = £0.80

Thats a great saving of £420 plus, a far better response rate bringing you cheaper response costs!

Even applying Mail Response at 2% you still get the £420 saving with a cost per response of £4

Wow factor whilst having a Competitive Edge
The SMS Text message marketing channel still relatively new in the UK and vast amounts of potential customers not yet seen it firsthand, which is great news for businesses likes yours!

Read More
So there are some great reasons why you cant afford to ignore SMS Text Message Marketing.

1 - Do my contacts want me to text them?
2 - What are the benefits of Business SMS texting?
3 - How to write effective business marketing text messages?

This article was first posted on PPD Computing website 9 Reasons Why Businesses Can’t Afford To Ignore SMS Text Message Marketing

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