Transactional SMS allows immediate two-way communication via mobile devices such as mobile phones and PDAs. With a 97% delivery and read rate, SMS messaging is increasingly gaining recognition as the perfect customer communication tool.
In order to receive transactional SMS messages such as requests for information, alerts, or other types of notifications-the subscriber must give permission, or “opt in.” Permission can be granted by phone, in writing, through a website, or, of course, an SMS. In order to avoid big trouble with cell phone carriers, SMS marketers must obtain permission prior to transmitting commercial or even transactional messages. There are no exceptions here.
Transactional SMS may be defined in a variety of applications. For example, an airline might send SMS alerts when a flight is canceled or delayed. An individual may use them to receive stock quotes, health tips, or to vote their preferences in contests.
In addition, many companies now utilize this popular communication tool to boost sales. An auto dealership’s service department could generate substantial add-on revenues by sending scheduled SMS notifications for services such as oil changes. Transactional SMS payment reminders are an extremely popular and cost-effective method of communication used in Europe and Asia.
AbsoluteROI, a multi-channel marketing services company, recently conducted a case study with a payday lender that integrated transactional SMS messaging. AROI’s triggering platform was set to pull from the database the mobile numbers of borrowers in good standing and sent them a real-time transactional message directing those borrowers to a website where they could fill out an application for a second loan. In 41 weeks of testing the transactional SMS campaign, it produced the following results:
o 132,726 texts sent
o 18,255 visits to the application website
o 2,065 loans funded
During the testing period, $110,628 net revenue was generated, with the lender incurring a $13,272 cost to send the text messages. Overall, the lender realized a 833% return on investment. Staggering compared to traditional methods.
Cell phone messaging can be applied, implemented, or integrated into almost any business that communicates with their customers. The ability to obtain opt-in mobile numbers and meet FCC and carrier compliance requirements is the key to a successful transactional SMS program.
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