SMS marketing

Why choose SMS marketing?

When starting something new or looking to improve an existing setup, it is sometimes necessary to take a brief look back at history. Did you know that the first text message was sent from a computer in December 1992 and simply read "Merry Christmas"? Much has changed since then, and text messaging—like other communication channels—has become an integral part of our daily lives. Every business needs to keep pace with the times and consider how to engage customers through the communication channels they find most convenient. This is a crucial factor shaping the future of commerce.

Different age groups serve as a good example. A client's preferences regarding service channels vary depending on their age. Young people under the age of 24 show a marked reluctance to call helplines that require navigating through various menu options, as this is time-consuming, whereas they are accustomed to obtaining relevant information quickly. This age group also tends not to check email every hour—or even every day—since they are more used to receiving news via attention-grabbing, easily digestible messages. As a result, the client either does not open the email containing the information, or the information is no longer current by the time the email is opened. However, different results are observed in the over-25 age group: here, email and SMS messages are equally popular, whereas for clients over the age of 45, email is the most popular service channel. Although chat usage remains relatively low, the popularity of this communication channel is growing rapidly, and future projections for it are quite promising.

Recognizing the importance of customer service, almost every business today offers multiple communication channels. Customer expectations are rising sharply, and if you cannot meet their needs, they will turn to your competitors. For instance, 72% of customers state that when contacting a company, they expect staff to know exactly who they are, what they have ordered previously, and the details of all past interactions. Having to explain an issue to multiple people is considered poor service. Furthermore, 66% of consumers state that they use up to three different communication channels when interacting with a service provider, while 48% expect to be treated specially—as a long-standing or valued customer.

The majority of customers (57%) state that they prefer to communicate with the company in writing. This highlights a difference in preferences that should be taken into account, given that almost all customers (96%) consider service to be one of the most important factors influencing their loyalty to the firm and their willingness not only to continue using its services but also to recommend them to others.

Given these figures, the inability to service all possible communication channels becomes a critical issue. More than 50% of companies have acknowledged this problem.

The financial aspect is equally important. Price is one thing, but the actual cost per customer service channel can only be determined by comparing the cost against the channel's real effectiveness. Although SMS messages are more expensive, they reach 98% of customers, whereas emails reach approximately 25%, despite being significantly cheaper. When comparing the cost of telephone calls, automated calls are significantly cheaper than those made by company staff. Moreover, only 7% of customers choose to speak with a representative. Therefore, when selecting a service channel, one should consider not only the cost but also the desired outcome, as the primary goal is to convey information to customers in a manner that is convenient for them.

To provide a clearer overview, a comparison was made between SMS messages and emails. The SMS channel demonstrates significantly higher customer reach rates. This may be attributed to notifications, which—in the case of SMS—most often remain enabled.

Moreover, when using their phones, customers spend twice as much time on SMS platforms compared to email. It is therefore not surprising that most people prefer SMS notifications for reminders regarding payments, appointments, product deliveries, and other information.

A similar comparison has also been made between SMS messages and phone calls. Three out of ten customers stated they would gladly forgo phone calls entirely in favor of SMS messages, and the majority already communicate via SMS much more frequently. At the same time, the phone call remains one of the most popular communication channels; however, these figures could soon be affected by the aforementioned preferences of young people, who favor written communication. A definite advantage of written communication is the time saved. After all, instead of calling each client individually and spending time conveying the same information repeatedly, you can send out countless personalized messages simultaneously. A text message remains as a notification on the mobile phone and can be opened at a more convenient time, whereas a call might be missed—and due to business hour constraints, it may prove impossible to call back, meaning the information never reaches the client at all.

The past and present have been examined in detail; now it is time to look into the future as well.

Surprisingly, forecasts predict that by 2025, cold calling—currently one of the most successful sales methods—will disappear. However, this applies only to the form of cold calling we know today. In the future, initial contact is expected to be established via text message or email, with a call being made only subsequently to a so-called "hot lead"—a prospect already interested in the specific topic. Regarding email, an increase in contact registrations is expected, as this communication channel remains effective, particularly in the B2B sector. SMS usage has quadrupled since 2013, and further substantial growth is anticipated, driven by high mobile phone usage and the rising popularity of text-based communication. As for chat services, rapid growth is evident, with an 87% increase observed over a short period of 12–18 months.

You might ask what all these communication channels have in common. The answer is the phone. Most applications also come with a mobile version. Statistics show that over three-quarters of the global population owns a mobile phone, and 89% of users say they always keep their phone close by. Consequently, messages are almost always noticed. Various smart devices are used for everyday communication, but phones account for 66% of usage, while the remaining 34% is split between laptops (15%), desktop computers (11%), and tablets (8%).

It is not only the popularity of communication channels that is growing, but also their functionality; this extends to SMS messaging—for instance, the use of two-way SMS systems is becoming increasingly common. This convenient tool automatically responds to customer SMS messages by providing information and offering the option to reply—either via SMS or by clicking a shortened link included in the message (for example, to participate in surveys). This tool enables a personalized approach when sending holiday greetings and notifications regarding the duration of the business relationship. Naturally, profit is crucial for any enterprise—and given the adage that "time is money"—sending reminders and notifications is highly significant. SMS messaging offers a quick way to remind clients about appointment times, dates, and locations, as well as payments, bookings, and delivery details. It also fosters client engagement; for instance, customers can confirm details by replying via SMS, clicking a provided link, or using an option to contact an operator.

There are many reasons why businesses should consider using SMS marketing as one of their communication channels:

• mass messages can be quickly and easily personalized—for instance, by addressing the client by name;
• contact lists can also be segmented based on various criteria, which is highly useful in many situations—such as on International Women's Day, when greeting messages need to be sent only to women;
• in addition to promotional content, the sender name can be customized—for example, to display the company name;
• the SMS portal allows you to view precise data on sent messages and their delivery status, complete with clear online statistics;
• advertising budget savings;
• SMS is the only text-only system accessible even on the simplest, older phones that lack an internet connection;
• if you have your own SMS messaging software, CSC Telecom offers integration with our service via an HTTP API.

To sum up, the key takeaway is that offering clients multiple communication channels is essential; this ensures they can use the option most convenient for them, making the interaction a pleasant one. It is equally important to guarantee consistent service quality and speed across all channels. Only by truly understanding our clients can we deliver the best possible service and reach the pinnacle of business success.

ELĪZA JUDZIKA, CSC Telecom KLIENTU ATTIECĪBU vadītāja.

“Tirdzniecības nākotne, sasniedzot klientu ar viņam vēlamo komunikācijas kanālu” BiSMART 26.11.2019.