ROI. How to improve your marketing ROI using SMS. How to improve your marketing ROI using SMS.

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1 How to improve your marketing Free prize draw today visit SMSisgreat.com or text to enter ROI 1

2 Contents Introduction Why use SMS How does SMS fit in with your industry? SMS FAQ s Conclusion

3 Introduction The use of SMS hasn t been dented by the popularity of any other mobile media, including mobile web, , applications, instant messaging or MMS. For most people, text is far more widely available and more affordable, plus, almost all mobile users know how to use SMS it will be a long time before that can be said of other mobile media. If we consider the stats below it s easy to see why SMS is a marketing ROI There are 5.8 billion mobile phone subscribers worldwide In 2011 SMS traffic exceeded 8 trillion SMS has the fastest read rate at 90% in 15 minutes SMS has a 97% open rate Hopefully those stats have whet your appetite to learn more about the benefits of SMS! In this guide I ll cover the reasons marketers will benefit from using SMS, industry examples and case studies of successful SMS campaigns as well as SMS FAQs. 3

4 Why use SMS? Convenience SMS doesn t require both parties to be available at the same time. Your marketing message can still be sent even when the recipient s phone is switched off or there is no network signal. It will be delivered when the phone becomes available and sits waiting in the inbox to be read when the recipient can read it and will stay there until the message is deleted. Guaranteed deliverability Put simply, with SMS marketing you are guaranteed deliverability. Whilst you still have to make sure your content is relevant and useful to the recipient, there is no junk folder or ISP to stand in your way. Your marketing message is likely to be read within moments One of the most unique aspects of SMS marketing is the ability to reach your recipients in seconds, and in the most personal of spaces. SMS messages nearly always get read by the recipient, it s almost a reflex reaction. You hear the tone; you reach for your phone. It s that instant turnaround that makes this such an effective marketing tool. We use event notification in marketing to be notified as soon as someone clicks because it s all about those hot leads SMS will give you that without the extra work, or tracking. It s the highest form of permission marketing If you re using offline shortcode marketing where the interested party has to send a text to a shortcode seen on a billboard, bar of chocolate, magazine etc this is the highest form of permission marketing. Your prospect is ASKING to receive a text from you; they re WAITING for a response from you. You have a captive audience. Simultaneously grow your database with each SMS campaign It doesn t stop at text messages, with each text you can also collect an address which will be fed into your marketing software, so growing your database at the same time. 4

5 Gain a better understanding of consumer behaviour You can learn a lot about your audience with SMS, you ll know where they were and what they were doing when they texted. It s a perfect introducer, promoter and indicator SMS marketing is an effective method to introduce a new product or service. One click can take the details of new product along with the website details direct to countless pockets across the country, the perfect method to promote the sale of a new product. It s a quick and easy way to send mass alerts or to indicate to customers/clients about the change of a business meeting or change of shop location. What can you expect in terms of ROI? Recent figures have shown that SMS marketing can be highly effective and provide significant ROI, here s what some of the latest stats can tell us: ROI 81% of recipients browse the internet immediately after receiving offers 32% of consumers respond to SMS promotions Mobile coupons/codes receive 10x the redemption rate of traditional coupons Mobile marketing offers, loyalty and couponing searches have grown by 800% in the last year And the sector specifics... Finance - 12% of all queries are coming through mobile internet. One million active banking users on mobile in the UK, and growing rapidly Retail In % of all queries were through mobile Travel experienced one of the biggest jumps from 4% in 2010 to 14% in 2011 In the next section we ll take a look at how different industries can benefit from SMS marketing in more detail. 5

6 How does SMS fit in with your industry? No matter what business you are in, you might be surprised at the number of SMS marketing ideas and ways you can integrate text messaging to add value to your business offering, generate increased sales and save you money from your advertising budget at the same time. Campaigns that include inter-activity with your target audience can be the most effective. Here are a few examples of how SMS can be used across different industries. Finance Mobile messaging is very popular in financial industries like banking and insurance. As well as keeping customers informed on latest products and industry updates, SMS is also used to alert people on many other aspects of the finance world. Banks can benefit from SMS services as a way for them to inform customers about new plans and policies. This service allows banks to operate certain banking services via SMS messaging. Mostly SMS can be broken down into two types of messages; push messages and pull messages. Push messages: These are the messages which are sent out by the bank to customers mobile phones without any prior request from the customer. Generally these messages are to alert customers of an event. Typical push message by banks includes: Report of account balance Credit details to the account Execution of a standing order Payment of cheque issued on the bank account Bulk amount of withdrawals on the account Large withdrawals via ATM Large volume of money spent via credit card Purchasing or payment to another country using credit card One-time pass word and certification 6

7 Pull messages: These messages are sent by banks on the request of customers. Typical pull message examples would be a request for balance, mini statement or any other account held information. The use of SMS banking has reduced the amount of times customers have to visit their bank. Thousands of insurance companies are likely to be targeting the same population around the world. It has become more important for insurance companies to stay unique and relevant and provide more hassle free services than their competitors. SMS messaging allow insurance companies to develop higher quality leads using short code services and allows sales teams to hold a two way communication channel. Retail Here are some quick examples of SMS messages the retail industry could send: Order confirmations Special offers Online account validation Validation of account details Personal Loyalty updates Limited offers Delivery confirmations Refund updates Customer satisfaction surveys Voucher codes Inventory management Stock updates You can use SMS to drive foot traffic and increase repeat sale by easily turning a one-time customer into a repeat customer. Mobile or SMS coupons are much more effective than paper or coupons as you don t need to print anything out or access an inbox. 7

8 Here s an example of how easy it is to set up: Choose a keyword Embed your mobile call-to-action into any of your existing marketing campaigns (Print Advertising, Signs, Flyer, Banners, Television, Radio, Web, , Catalog) Buyers see your ad and text your keyword to your short code to opt-in. Buyer receives a coupon or more info. Buyer redeems coupon at retail location AND you have all their details for further marketing opportunities and purchase follow ups. Entertainment Here are some quick examples of SMS messages the entertainment industry could send: Notifications of events Weather cancellations Confirmations of account set up Offers Shortcodes on websites or DM Limited offers Result updates Links to PR or photos Surveys 8

9 SMS in action - Hooters Recently Hooters held a contest where customers who sent the word KENNY to their short code were entered to win an all expense paid trip to Boston to see a Kenny Chesney concert. Hooters reported that the response was overwhelming, and the whole promotion was a huge success. Plus, they now have all those phone numbers to promote to in the future! SMS in action - McDonalds Just in time campaign In Australia, McDonald s tried an SMS campaign where customers could win vouchers for lunch by sending their name via SMS to a published number. To get them hooked in further, when customers received the meal coupon through SMS, they were asked to text back a Y and McDonald s would text them additional promotional discounts prior to the lunch hour a just-in-time marketing strategy. Logistics and travel Travel companies have a great opportunity to engage with businesses via SMS. If they ve just booked a holiday with you then why not send them a welcome message via text informing them of the helpline number should they have any problems or questions leading up to their holiday. Or send them a weather update a week before they go on holiday so they know what sort of clothes they might need to pack. There are lots of exciting possibilities for the travel and logistics industry, here are some other examples: Confirmation of bookings Reminder of bookings Welcome messages Notifications of events Weather Cancellations Confirmations of account set up Offers Weather updates Follow up offers Surveys Voucher codes 9

10 Using SMS as a B2B marketing tool SMS might not be the most obvious tool for B2B marketers but check out the stats below, they certainly are food for thought: Explosive adoption rates: Business markets have adopted mobile devices in droves - it really is the one device that never leaves the consumer s side It s been forecasted that there will be 5.8 billion mobile subscribers worldwide by 2013, ballooning from the current 4.3 billion mobile subscribers Business professionals not only use their mobile devices to stay connected but also rely on them to stay informed and make business decisions when on the move It s more and more common to see attendees at a conference to be engaging in conversations with other people whilst simultaneously texting those who couldn t attend to sorting out issues back at the office Business professionals are constantly connected to their mobile phones, so why not build a marketing strategy to connect your B2B brand to those devices and, in turn, to your business? Mobile tools such as SMS alerts, location-based services, downloadable applications, and widgets enable B2Bs to provide their audiences with entirely new sources of value. That value ranges from helping professionals stay informed of industry news and managing the locations of their sales meetings, to performing tasks more easily from their mobile phones and downloading apps that improve the experience of their business events. In exchange for the benefits provided, B2B professionals receive information and attention from their target audiences that they can then use to increase brand awareness and initiate new brand dialogues, with some of those relationships yielding new revenues for their organisations. The anytime/anywhere web demands more show, less tell. We now have larger amounts of information to manage on smaller screens. Business audiences need content in bite-sized chunks, and to be optimised to mobile environments via text. 10

11 Even when business professionals are working off-site, they re still looking for information that will inform their work, improve their efficiency, and influence their purchasing decisions. Since blogging sites like Twitter launched, we ve all got a lot better at creating short succinct messages to tease the reader into finding out more. The same rules apply here. SMS FAQs Why can my SMS message only contain 160 Characters? You can thank Friedhelm Hillebrand, father of the text message. Through endless typing and calculating lengths of sentences, Hillerbrand worked out that the average sentence was around 160 characters, and very few postcards ever exceeded this length, therefore this amount was deemed the right amount. When twitter launched they always planned for the possibility of users being able to update their tweets via text and needed to account for the user name being added and to avoid the possibility of multiple texts being sent, they limited tweets to 140 characters. Twitter users will testify that 140 characters is enough to tantalise the reader to click through to a link, or just attract attention. These days we re experts in communicating, and receiving communication in bite size, concise chunks anything longer and we re likely to lose interest. I really want to start marketing via SMS, how can I get a mobile database? We strongly advise against purchasing lists. There s been a lot of bad press in the news lately about people receiving unwanted text messages, most commonly from insurance companies we ve already talked about what a personal channel SMS marketing is, to ensure you don t anger your recipients and delight them instead, make sure you have their explicit permission to send them text messages. Not only will this prevent any chance of you breaking the law, but will also ensure a much higher ROI. 11

12 No one wants to receive text messages from someone they don t know no matter how great your offer is. What you need is a list of loyal followers who are genuinely interested in your product or service, you can start by asking people. If you own a restaurant, ask your diners. If you own a shop, ask everyone who comes in. If you own a hotel, ask everyone who stays over. You get the idea. If you ask you ll be surprised how quick you build a list of people who are genuinely interested in what you have to offer. Not only is this a free way to get mobile numbers but they are people who are already interested in what you have, so when you market to them they are more likely to respond. If you send SMS to people who are actually interested in your product then a 3% response rate is easy, it wouldn t even be a surprise to hear you getting above 50%. Other ways you can collect mobile numbers are: Interactive SMS campaigns on bill-boards, magazines, TV etc. Asking people to text a short code followed by their address to take part in a promotional offer, to request information. You then have their mobile number and their address added to your database too. Collect mobile numbers on your usual sign up form, making sure you re clear on what you intend to do with their number once they ve hit submit. Why not use MMS, surely it s a far more advanced way to communicate my marketing messages? SMS marketing is the most common type of text message consumers receive. MMS, or Multimedia Messaging Service, refers to the ability to send text messages that include embedded images, video, or audio content without being limited to the constraints of the standard 160 character text message. If you are considering using MMS then you will need to bare the following in mind: 12

13 SMS messages have a much higher send rate (100+ messages per second) when compared to MMS (5-10 messagees per second) MMS messages are much slower and may take up to a minute to arrive while SMS typically arrives instantly MMS messages are a lot more expensive to send and receive compared to SMS MMS messages will have a size limit which limits the length of a video and constrains picture quality. Sending an SMS with a link to a video is far more effective as they ll be taken to the web page where they can view any length video or media in all it s glory MMS campaign content need to be thoroughly tested across multiple devices and carriers to ensure proper encoding and compression before sending a live campaign Although MMS messaging is a fun and engaging way for businesses to connect with consumers, for now it can t yet compete with SMS in terms of ease of use and ROI. Conclusion I hope this guide has provided you with some food for thought regarding how you could use SMS marketing as an integral part of your marketing mix. My final top tips are; Ask for repeat opt-in to kick start future marketing campaigns Analyse recipient behaviour with unique keywords Offer incentives based on subscriber behaviour For the foreseeable future SMS will remain the second most used mobile application after voice calling, so make sure you are reaping the benefits of it. 13

14 Author of this guide, Maria Khoury is one of the many talented and experienced people who make up the team at Pure360. Pure360 is an & SMS marketing provider who specialise in helping businesses get the best results from their campaigns. Pure360 work with over 1000 organisations including brands such as Rightmove, Virgin and innocent drinks. Our customers stay with us through choice, not contract, and they tell their friends about us but never their competitors! We ll work with you to improve your marketing and SMS results. You ll get the best from your campaigns without being tied into a long contract, because your success is our success. You ll get full training, support and regular free advice supported by marketing and SMS software that s developed in-line with customer feedback. Pure360 customers have access to the largest UK-based customer support team of all marketing providers because our whole focus is on improving your results by working together. Members of the DMA, we ve recorded a 10% higher open rate for our customers than the DMA average, leading to higher clicks and conversions for your marketing campaigns. You can find the team working to improve our customers campaigns, down in Brighton, pop in or give us a call on to discuss how we can help you get excellent results from your & SMS campaigns. Or us at contact@pure360.com We re also on Twitter (@pure360) or sign up for our newsletter online 14

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