Everyone is talking about SMS today. In Asia, Europe and many other parts of the world, short messaging service (SMS) is a must to include in direct marketing campaigns and has been for several years. In the U.S., we have been slower to implement SMS marketing. Advertisers are changing their mindset however as recent statistics are showing over 75 billion text messages are now sent monthly. This is a 250% growth from the same time last year. Text messaging is now coming into its own as a pivotal part of advertising recommendations in the U.S. marketplace for 2009 and beyond.
One channel within text messaging that performs well is the “pull marketing” approach to target new customers. Eighty-six percent of the U.S. population now own mobile phones and that number just keeps growing. Many American consumers have opted-in to receive specific promotions from advertisers. Currently there are 240 million text-enabled handsets nationwide. Advertisers are rapidly beginning to use this medium to drive traffic into stores, restaurants, health and sports clubs and more.
The idea is to alert these patrons and shoppers to current offers of interest to get them to come into a restaurant, store or service business. Pull marketing promotes active participation. It is an invitation to get involved. This is opposed to “push marketing” where the consumer has opted-in for general marketing endeavors — sometimes without their knowledge and sometimes without any level of interest in the brand, goods or service.
A strong example of pull marketing that is growing by leaps and bounds in the U.S. is in the quick service and casual dining categories. Food establishments send out text messages for specials or meals that are not from the regular menu. Customers would text to the short code provided by the restaurant and receive updates.
Realtors find this approach successful for promoting new homes to the market that meet the customers’ specifications and geographic area. Sporting events successfully use pull marketing to their advantage filling vacant seats at the last minute. Grocery stores are also jumping on the band wagon promoting in store discounts on a limited time basis.
Current statistics indicate 86% of mobile subscribers carry their phone with them at all times. Increasing numbers of households are giving up the home phone or landline and rely solely on their cellular service for day-to-day communications. It only stands to reason that marketers should go with this trend and communicate with prospective customers the way they want to be marketed to.
Pull marketing not only keeps existing clients engaged. It is also a successful vehicle to attract new customers and keep specific brands front of mind. Brand your business by including them with special promotions or giving them new offers not available via other marketing channels. Or incorporate text advertising into other marketing promotions for reinforcement.
An advantage of SMS text messaging is the consistently high view rate. Consistent research shows that over 90% of these messages are opened and read. With other modes of advertising, an impression on the Internet or in print does not necessarily mean the ad will be read or that a sale will be generated. It also may not reach the target market most interested in the product or service. With pull marketing, you know you have an interested party. You know they are interest in your product or service. Keep that in mind when evaluating the marketing campaign pricing. Your client’s ad is reaching a highly targeted prospect or already loyal customer.
Prospects and customers also promote viral marketing. When a family member or friend finds out that they can be the first to get special deals or news of an event, they too will want to sign up for this type of news. The value of the viral marketing effort can amplify any advertising campaign. Even if the person doesn’t sign up for marketing events, the receiver will often forward the ad to their friends and family.
Pull marketing response can be directly measured from each advertising campaign. Go back to the restaurant example. Filling tables on a down night or creating a buzz about the restaurant can have extended value. If people find that a restaurant is hot, they want to make sure they are one of the first to sample the hot spot. Or if daily specials can add more tables to a given night- even better.
Traditional direct mail campaigns will not go away, nor will e-mail. However, as other costs increase the SMS service is a powerful marketing channel with message opening rates averaging 90 % or higher. Recent studies also show that the hand held cell phone is rapidly replacing the common PC, especially for the younger generation.
As consumers get more technologically savvy and are more able to find value via the internet we will continue to see a change in the channels that we are promoting. E-mail marketing has already become a strong vehicle for both consumer retention and acquisition campaigns. Text messaging adds to that mix providing advertisers with another medium for communication. It also allows consumers an alternative communication pathway that they can access at their convenience.
Mary Jane Acito is vice president of multichannel marketing at List Bargains . Steve McFadden is president of Ameribase.
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