Mobile text messaging, the same 160-character dispatches first popularized
by nimble-fingered teenagers, may be the closest thing in the
information-overloaded digital marketing world to a guaranteed read.
The use of text messaging, also called SMS (for short message service), has
exploded in this country. Some 3.5 billion text messages are sent and received
every day, according to CTIA, the wireless industry trade group. That is more
than the number of cellphone calls and a threefold jump from 2007, with some of
the biggest increases occurring in people over the age of 30.
Thanks to regulatory quirks, however, SMS is still a relatively uncluttered
and spam-free marketing channel. It’s also the one form of communication that
many people are tethered to 24/7. Which helps explain why, at a time when
in-boxes fill with hundreds of never-opened e-mail messages from direct
marketers, 97 percent of all SMS marketing messages are opened (83 percent
within one hour), according to the latest cell-carrier research.
“I like to think of it as the certified mail of digital communications,”
said Jeff Lee, president of Distributive
Networks, a text-messaging application and consulting firm based in
Washington. “When you want to be sure people see something, send it by
text.”
Mr. Lee’s company worked with the Obama campaign on its use of SMS in
August 2008 to announce Joe Biden as its pick for vice president. An estimated
2.9 million people registered to receive the text. (They were supposed to be
first to get the news, but CNN beat the release by two-and-a-half hours.) The
promotion generated millions of new mobile phone numbers, which the campaign
then used to send out more texts drumming up donations and volunteers.
A year later, in part inspired by the publicity over those efforts, sports
teams are using SMS to increase ticket sales, health clubs are using it to hand
out trial gym passes, and a luxury home-design chain plans to use it to enhance
the shopping experience for those in the market for a bidet.
Let’s review the rules for getting started:
1. Don’t even think about doing it the illegal way.
While SMS is less plagued by spam than e-mail, it’s not without its bottom
feeders. Spammers using automated dialers can hack into the nation’s SMS
infrastructure through the Web and blast out millions of texts to random
cellphone numbers. If you were considering hiring one of these firms to do your
marketing, don’t. Not only might it expose you to stiffened penalties pending
in Congress for text spam, but the vast majority of the messages will never
even get through, or through for long, before the cellphone carriers cut you
off.
2. You basically have three (legitimate) options.
When selecting a service provider, the choice comes down to how much you
want to spend and what you need your text-messaging service to do. The simplest
and cheapest option is to hire the text-messaging equivalent of the old Valpak
mailings. For example,
MobiQponsis an iPhone app with a geo-locator that automatically sends
people text coupons when they are shopping in the vicinity of participating
businesses; New York-focused 8Coupons
is a Web-based service that allows users to text themselves the coupons they
want.
This approach, which has become increasingly popular with neighborhood
boutiques, restaurants and the like, costs as little as several dollars a day.
One thing it won’t allow you to do is capture recipients’ cell numbers —
arguably the key feature of the most successful text-message marketing
campaigns. Another option is the custom approach specialized in by Distributive
Networks. This involves registering for your own proprietary “short code,”
the technical name for the five- or six-digit phone number that dialers use to
access a text marketing campaign.
The advantages here are that you can choose a vanity short code like OBAMA
(62262), and you have free rein over the type of standardized information —
like ZIP codes or birthdates — that you can solicit from callers.
Disadvantages are that it will take at least eight weeks for your registration
to be processed by the industry’s official short-code gatekeepers, and it
will run you thousands of dollars in licensing, activation and hosting fees.
That’s why a lot of small businesses start with an off-the-shelf platform
offered by companies like Mobile
Commons (another firm with deep roots in Democratic political organizing)
or HipCricket
(many of whose earliest clients were radio stations) that lets you share
a short code. Depending on whether you also hire an interactive agency to shape
your marketing strategy, you may be able to get up and going for as little as
$800 a month.
3. Text marketing can be supported by traditional
marketing.
Of course, to capture people’s cell numbers, you need some way to get
their attention. “I tell businesses to think about the resources they already
have at their disposal,” said Jed Alpert, the founder of Mobile Commons.
“If you’re a restaurant, you have tabletops. If you have a highly
trafficked Web site, or are running billboards or radio spots, those are all
good places to let people know about your texting campaign.”
John Mullin, founder of the New York interactive agency On
the Go Mobile + Media, designed a program for the Army in which the initial
invitation to text in appeared as part of its ads in digital jukeboxes in bars.
Another campaign considered by a national steakhouse chain would have
advertised text coupons for blooming onions in its “stadium” ads inside an
EA Sports video game.
The Shedd Aquarium, in Chicago, uses a combination of on-site signs,
end-of-aisle displays at local CVS stores with Coca-Cola as co-sponsor, and TV
advertising. “We even built in a control group,” said Jay Geneske,
assistant director of marketing. “For the promotion running on three local TV
stations, we just gave out our phone number and Web site. But on the Fox
affiliate we gave out our short code and asked people to text in to win. The
response to the Fox ad
was more than the other three combined.”
4. It is better to give than to receive.
“People’s mobile number may be the most guarded number they have after
their Social Security number,” Mr. Lee of Distributive Network points out.
“That’s why in that first call to action you need to change their mindset
from, ‘You’re going to hit me up with marketing,’ to ‘You’re going to
give me exclusive access to something,’ or ‘You value my opinion.’ Voting
for the new M&M color is probably the classic example.”
Free stuff also helps. Emitations,
an online retailer of costume jewelry, is about to start a texting campaign
promoting a new product line inspired by the “Twilight” vampire-themed book
and movie series. Users who text in to register will receive regular alerts
about new releases and sales on products tied to their favorite characters.
Just for taking part, though, they’ll receive a sampler modeled on the gift
bags handed out at Hollywood award dinners.
“Even with this group who’s so used to texting, I think it’s really
important to start by giving them something,” said Au-Co Mai, chief executive
of Emitations. “Otherwise, I think it could come across as spammy.”
5. Don’t waste your time with one-offs.
“SMS is really more about long-term relationship building than the quick
hit,” Mr. Lee said. He cites a program that Distributive Networks designed
for Armani Exchange, the national fashion retailer. The ARMANI (276264) short
code has become a ubiquitous part of the company’s branding — etched into
store windows, posted in dressing rooms and on the retailer’s Web site. The
first few coupon offers, though, served mainly to build the database of phone
numbers on file. Then, last fall, the company held a series of sales at its
flagship Manhattan store open only to its text-message clientele — with every
promotion resulting in lines out the door and near-record receipts.
Mobile Commons makes a point that its platform, when used correctly, becomes
as much an extension of a client’s customer relationship management system as
its marketing strategy. “You learn so much about your business when you look
at it systematically instead of anecdotally,” Mr. Alpert said, “and text
messaging provides a really powerful way to connect that information to your
clients.”
He offers the example of a dry cleaner who keeps track of his customers’
drop-off patterns, down to which customers typically bring in suits and shirts
and which a blanket and sweaters. “The system can then text out very
specialized discounts on shirts and suits just to the shirt-and-suit
customers,” he said. “Or if you know some people usually come in on Monday
and they don’t show for a few days, it can automatically text out a reminder:
‘Hi! We haven’t seen you for a few days.’ ”
6. Show restraint (and don’t get too cute).
“If you’re texting your customers more than five times a month, you
better have a really great reason,” Mr. Lee said. Some other lessons learned
in the course of sending and receiving tens of millions of texts in the course
of the Obama campaign: When writing out your short code in your ads, don’t
put quotes around the number — “12345” — because people will type them
in. “We’ve found they take instructions very literally,” Mr. Lee said.
Also, when devising the text messages, don’t make the mistake of thinking
that it should be steeped in youth-culture texting slang. “Stay away from
shorthand like ‘4u’ or ‘gr8,’ ” Mr. Lee said. “Even the folks
I know who work for Adidas, which has a big youth-oriented clientele, feel that
when that kind of language is used by a marketer, it comes across as
pandering.”