SMS/Text Marketing: Friend or Foe?

Recently, I've been engaging in more and more discussion with other marketers about the use of SMS/Text messaging as an alternative/support marketing channel, referred to as Text Marketing.  From flu alerts to special offers/discount notifications to mobile viral promotions, text messaging as a marketing channel is growing in popularity.  However, Text Marketing is fundamentally different from other channels and marketers need to tread lightly when communicating with their customers via this very personal channel.  

This morning I came upon Davis Brewer's article Mobile Brings Value to Traditional Channels, where he discusses the use of text messaging as a support channel for traditional media to bring both interactivity and accountability to traditional (static) channels.  I couldn't agree more with Davis as I've been trying to convince my own clients to incorporate a Text Marketing component into their media plans using the same two arguments. 

Davis further cites Neilsen research stating that "77 percent of U.S. wireless phone users use text messaging. In a month, the average cell phone user sends and receives more text messages (357) than phone calls (204). The average age of those using text messaging is 35." 

The fact of the matter is this; text messaging is growing in popularity with US consumers and marketers are eager to open an additional channel to reach their target consumers.  However, it is important to note that consumers have preferred communications channels, where they may wish to hear from marketers; email, postal mail, phone AND text messaging.  Employing research and consumer insight, marketers should seek to optimize the customer journey by reaching their consumers via their preferred communications channels, which may or may not include text messaging.  

From a marketing perspective, Text Marketing can be placed into one of two categories: 

1.  Pull Text Marketing:  Consumers make a request via text message and a response is made by a marketer, referred to as demand-response.  Here's an example: A consumer sees McDonald's print advertisments that states: send the word "happymeal" to short-code "54321" to receive a $1 discount code toward your next purchase.  This is usually a one-time contact by the marketer with the consumer.

2.  Push Text Marketing: Consumer subscribes to alerts, special offers, discounts, etc. and agrees that the marketer can contact the consumer according to their agreement.  The marketer then pushes alerts or notifications to consumers at will.  Here's an example:  A consumer goes to Chevy.com and subscribes to be notified via text message of upcoming special offers or incentives.  Chevy then pushes incentives text messages to the consumer whenever they update their marketing programs.  It is important to note in this example that there is no end to these alerts unless the consumers replies with a "stop" message.

Pull Text Marketing is the less intrusive of the two tactics since the consumer made a specific request.  In short, consumers are expecting an immediate response from the marketer and actually sit and wait for the response. However, Push Text Marketing is where the waters become a bit murky as it feels more invasive to a consumer compared to its counterpart.

So, why is this?  Text messaging is more personal than any other communications channel.  I've often said that today, email is for business (impersonal), social networks are for friends or extended relationships (more personal) and text messaging is for very close or immediate relationships (very personal).  Additionally, there is a cost to the consumer to receive text messages, which is different from other communications channels.  When a marketer begins to employ Text Marketing tactics, even if previously invited, backlash against the brand can occur.  Here's an example of a recent experience:  I received a text alert from My Coke Rewards; apparently they missed me.  Though I opted-in to text alert notifications, I forgot about it since it was more than 6 months ago.  When I heard that familiar text notification sound on my Blackberry, I excitedly checked my text in-box in anticipation of hearing something like:  Wife: "what do you want to do for dinner?"  Friend: "are we still going skiing over Christmas?"  Another Friend: "what time are we meeting for the 5K this Sunday?"  As you can imagine, I was not expecting to hear: Coke "we miss you, come back to us."

That said, here are a couple of key take-aways with regard to setting-up and executing a Text Marketing program:  

1. Text Marketing is not email marketing; different consumer engagement rules apply.  Messaging should be timely and relevant; keep in mind that over time, consumers will forget that they subscribed to your alerts and will likely be annoyed regarding the contact.  Therefore, opt-in programs should be short with an expiration date.
2. Pull Text Marketing is a marketer's best friend as its: immediate and brings both interactivity and accountability to traditional vehicles such as Print, OOH, Broadcast, etc.
3. Text Marketing costs your consumers money.  Though many mobile plans include unlimited text messages, many still do not and consumers are charged for each incoming and outgoing email
4. You will need to partner with a mobile aggregator who will help you to set-up your program; obtain short-code, work across carriers, execute the program, etc.
5. Text Marketing limits communications to 160 characters, including spaces.  It is good marketing to engage in split or multivariate testing to optimize communications messages.
6. Keep in mind that cost of text marketing programs are variable.  Successful programs are great, but they are very hard to budget for.
7. As always, don't forget to measure and optimize the program.  With regard to a Pull Text Marketing program, it is optimal to use different codes or messages for different vehicles to allow you to measure a vehicle's contribution to overall program success.

I'm interested in hearing from you; please write to me and let me know if you have something to add to the above conversation: mail@keithrhodes.com