Late last year the New York Times ran an article lauding the effectiveness of Mobile communications as a promotional vehicle and customer relations avenue.

The article began by stating “Mobile text messaging … may be the closest thing in the information-overloaded digital marketing world to a guaranteed read”

The numbers supported this with 97 percent of all SMS marketing messages opened (83 percent within one hour), according to their latest cell-carrier research.

- Impressive statistics.

NZ mobile phone ownership (there are officially more mobile phones than people), shows that this data could be a good indicator for the potency of our own SMS marketing. Certainly the indicators are there with high profile success of brand leader text campaigns and also the trickle down effect in evidence, with New Zealand government services using the medium to good effect.

It’s worth noting as the NY Times article highlights that “texting isn’t for kids anymore”. New Zealand’s self described “ICT research hub”  – iStart concurs citing that “among key advertiser demographics in the US, text messaging is used by 85 per cent of 18-29 year olds and 65 per cent of 30-49 year olds. However, in Europe, the average is 85 per cent across all ages.”

So – Effective: Yes. Always: No. As with any marketing strategy there’s a right and wrong way of doing things.

* Marketers need to keep in mind that “SMS is really more about long-term relationship building than the quick hit”. Have a clear strategy and know what your follow up will be.
* Rule of thumb is that it’s better to have customers’ text you to begin with. That’s old school “foot in the door”.
* If you do communicate first make it relevant and timely…the accepted wisdom is that it’s better to give them something. Examples might be a coupon, gym pass or discount.
* Simple stuff like how you communicate or pick your short code or codes count. If you include speech marks they’ll be texted. If you use certain combinations of letters you may get some nasty marketing surprises. A good technical advisor will help avoid these traps.
* Admit that you’re battling the cynics. People don’t give out their phone numbers without their reservations. Prove you deserve their trust. Don’t text them too much. Show you care what they think. Voting can work well.

The good news is that the space is still relatively uncluttered. iStart and MyMobile polled their subscriber bases and concluded that the New Zealand SMS market potential remains largely untapped.

Combined with a traditional marketing or used alone texting is an effective medium for building a customer database, is a direct line to an increasing fragmented marketplace and ultimately reaches people on the move. Great applications are at large scale events where mass texting can be used or as part of an ongoing service – I have enjoyed one day cricket updates in the past.

Magnet can deliver text to win campaigns and database management in-house.

Read the New York Times and iStart articles below:
http://www.istart.co.nz/index/HM20/PC0/PVC197/EX245/AR211450
http://www.nytimes.com/2009/09/24/business/smallbusiness/24texting.html?_r=1&pagewanted=2