the new business advantage 05 24_2010

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The New Business Advantage The Benefits of Mobile (SMS) Marketing

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Page 1: The new business advantage 05 24_2010

The New Business Advantage

The Benefits of Mobile (SMS) Marketing

Page 2: The new business advantage 05 24_2010

Customer Initiated, Customer Generated

• Customers have to request promos/offers to get them

• Customers will not cry “SPAM!”• If they weren’t interested, they wouldn’t have

texted in• Customers can “opt out” at any time by simply

replying “STOP” to any message

Page 3: The new business advantage 05 24_2010
Page 4: The new business advantage 05 24_2010

The Business

SMS Gateway (Aggregator)

(companies that are certified to provision the SMS gateway from multiple carriers)

Sprint

AT&T Verizon

Mobile Marketing Provider (Harness Mobile)

Participating Businesses

End User (Customer)

Page 5: The new business advantage 05 24_2010

Types of Gateways (Aggregators)

• Tier 1 – Has agreements/software in place that communicates with all major and most minor wireless carriers (Open Market, MX Telcom, Motricity, mBlox)

• Tier 2 – Has agreements/software in place that communicates with most major and minor carriers

• Tier 3 – Has some agreements in place…

Page 6: The new business advantage 05 24_2010

Short Codes

• Dedicated Short Codes purchase for one business- (i.e., Walmart, Pepsi)

• Dedicated short code(s) to be shared. (HMobile, Hip Cricket, Sumotext)

• Resellers of shared shortcodes- (buy rights to sell keywords to clients.) – Cookie cutter applications, non-modifyable.– Smaller margins, usually more expensive

Page 7: The new business advantage 05 24_2010

Why Harness Mobile?

• HM is run through a Tier 1 Gateway, Open Market

• HM owns a dedicated (5 digit) short code. • HM has a completely customizable, scalable

software/application platform that will grow with and adapt to the changing market.

Page 8: The new business advantage 05 24_2010

The Market

• The secret is out, mobile marketing is the new platform for effective customer contact

• # of text messages doubled from the June 08 to June 09 in the US

• 53% of texters are 35+• 25-49 age group, 72% use text messages• 18-24 age group…just about everyone!

Page 9: The new business advantage 05 24_2010

Easily Build A Strong Client Database

• Re-market to existing opted in customers• New customers constantly opting in• Develop customer profiles by sending

identifying questions to respond to• A strong or creative/fun offer will spark a viral

response ( forwarding your offer to friends/family)

Page 10: The new business advantage 05 24_2010

Track/Measure Existing Marketing and Advertising Efforts

• Mobile Couponing, Text2Win, Polling, VIP Clubs, Customer Loyalty Programs, Trivia, etc.

• Individual keywords for each marketing effort– “Text PIZZA1 to 27922 for instant coupons” (in the local paper)– “Text PIZZA2 to 27922 for instant coupons” (on a flyer)– “Text PIZZA3 to 27922 for instant coupons” (in ValPak)

Page 11: The new business advantage 05 24_2010

Real Time Marketing Messages Based on Real Time Market Conditions

• Slow Day? Send out a great special to get customers in the door.

• Surplus of Inventory? Send a BOGO offer• Send out lunch specials at 11:30• Send out Happy Hour Specials at 4:30• Static ads are now interactive and

modifiable at a seconds notice

Page 12: The new business advantage 05 24_2010

Your Messages WILL get Read!

• Junk email? Filters? Spam folders? • No such thing with SMS

• 160 character limit- you will get to the point quickly• You customer wanted them in the first place!

Page 13: The new business advantage 05 24_2010

Higher Conversion Rates

• Text messages have a 94-98% read rate (in comparison, click through B2C promotional email marketing campaigns often range from about 2% to 12%. – Lyris)

• 30-40% average conversion rates– Why?

• Leave a paper coupon at home, it stays at home. Leave you cell at home, you go back and get it!

• Customers get messages while they are already out and more likely to purchase

• Customer always knows where to find the coupon

Page 14: The new business advantage 05 24_2010

“Green Marketing”

• No additional paper• No “coupon cutting”