With the mobile Internet continuing to expand (thanks to the iPhone and other Smartphone devices) one would expect SMS messaging to be losing ground against mobile social networking social networking sites and other social media applications. But far from losing its foothold, SMS is growing in popularity as a preferred communications mechanism, according to Ofcom’s most recent market report and SMS is still proving to be one of the most successful data revenue streams for operators and service providers.
According to industry statistics, more than 100 billion text messages were sent in the UK during 2009, which is equivalent to more than 1700 per person. Mobile penetration, particularly in developing countries, means that SMS is no longer just a peer-to peer communications mechanism. SMS is being increasingly used in business as an effective communications channel and for machine to machine communication to facilitate support.
In the financial industry, global mobile banking services will be generating approximately 90 billion text messages per annum by 2015 (according to Juniper Research) as banks and other financial institutions seek to utilise SMS as a means of enhancing customer communications.
Below is a list of some of the key reasons why SMS is increasingly being used for business marketing applications:
- Improved conversion rates: - Research has shown that while we tend to ignore emails and voicemail, the majority of us do read our text messages
- Cost effective – Business SMS campaigns are much more cost effective than other e-marketing campaigns because companies can buy SMS messages in bilk from SMS gateway providers
- Easy to manage – Carrying out Business SMS campaigns is simple and straightforward, particularly if you use text online facilities. Multiple messages can be prepared and delivered quickly and efficiently
- Targeted – Mobile phones are very personal to the individual, so provided you understand your customers and your markets, SMS allows you to run very targeted campaigns with successful results
- Time sensitive – Unlike other communications methods, SMS is the best way to promote time sensitive sales promotions because we always have our phone with us
- Interaction – SMS provides your customers with a really easy response mechanism which in turn provides you with invaluable feedback and helps you prepare for future campaigns
- Vast business reach – Global mobile penetration means the marketing potential for business SMS is enormous
- Unobtrusive – SMS messages are more concise than emails and don’t rely on your customers having implement an image facility
- Eco-friendly – Having train or cinema tickets delivered directly to your mobile phone as an SMS message will help you reduce your carbon footprint
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