Why are companies still using SMS in 2018?

The use of SMS is being actively employed in business across the globe. The aim is to increase loyalty and engagement of consumers and audience in a non-intrusive way.

Companies can employ SMS to:

• Spread brand awareness

• Construct intent to purchase

• Promote timely and incentivized offers

• Improve customer service

• Lessen the cost of the call Centre volume

The following case studies depict how different companies are making use of SMS in their business to improve their communication:

1. Mobile Banking and Financial Services

Financial servers like bank are integrating SMS into their business to save advertisement cost and for communicating with their current, potential customers.

Research commissioned by Juniper asserts that mobile banking usage will be doubled in the next three years and more than 400 million consumers will reap benefits of the mobile baking worldwide. Banks are making use of SMS in their business not only to serve existing customers, but on the other hand to attract the new ones. It is an easy and cost-effective way to enhance their business. Research postulates that mobile banking has dramatically increased the customer acquisition by 60 percent.

There is an array of SMS transaction which different financial institutions, banks and credit unions can employ to make their communication services better for their services and future prospects.

2. Call Centers

Across the globe call centers are using an SMS service to defer the support cost by proffering their clients with an opportunity to self-serve their needs. Text messaging can be proactively employed in call centers to contact consumers and to allow them to send in their requests in texts.

Different companies can use SMS services to connect themselves to their potential clients and to interact with the existing ones. SMS helps consumers to build deeper brand awareness in their clients. This not only helps them increase their traffic but also ultimately enhance customer conversion.

3. Healthcare

SMS service helps healthcare centers lessen their cost and increase their work and customer efficiency. It also assists people in making their health better. Healthcare companies are currently employing SMS service in their business to communicate better

with people. They text the results and treatment advices to their patients along with billing information.

SMS are also helpful for appointment reminders and medication or alerts about the availability of prescriptions

4. Travel, Transport and Ticketing

With the initiating of Mobile ticketing the stack of paper tickets is not there anymore. Passengers are free of printing and paper receipts and mobile tickets is an instant way to get your ticket even it is the last-minute off sale.

Mobile ticketing has become quite famous among people and they are using their phone more than other mediums for getting tickets like call, printing or emails. Many mobile companies have also introduced the service of travel alert which allows their customers to know about delays, cancellations and itinerary changes. Secondly, mobile communication is also being used to distribute boarding tickets which have reduced the cost of call operations to a great extent. SMS has not only improved the consumer service, it has also been very beneficial for the environment.

Contemporarily, travel and transport operators are using mobile communication as a convenient and quick payment method.

5. Retail

Retailers employ the use of SMS to spread brand awareness and to increase their sales. Mobile channeling is a highly effective way to promote personalized offers immediately. It is the easiest way to increase loyalty of consumer through communication via their personal mobile devices.

Through SMS retailers promote themselves to increase their basket size and to achieve their market objectives. They build opt-in databases to communicate with their consumers in no time. Retailers use coupons for the sake of promotion they can also combine SMS coupons with location-based SMS due to which they can target their consumers anywhere they want.

SMS is a very effective and powerful mechanism, which allows the retailer to drive consumer traffic in an inexpensive way. Research commissioned by Forrester Research Inc. in 2010 surveyed 109 major retailers postulated that 74 percent of these 109 retailers had a plan to implement on mobile strategy to promote their business. Report also posited that one in every five retailer was already using SMS service to drive consumer traffic.



The compatibility of SMS with virtually all of the five billion mobile phones in use across the world today makes it an inseparable component for any kind of business marketing and customer interaction strategies. Its immediacy and interactional capacity is unprecedented in any other channel. Financial pressures have always been at the heart of business related

problems. In such circumstances, SMS no doubt is the best strategy which enables the companies to increase ROI, efficiency, and to control cost dents.

The uniqueness of SMS is because of its immediacy, accessibility and the resultant effectiveness. It helps companies to impart meaningful information to their customers; the information tailored to provide the latter with personalized offers. It also helps in creating brand awareness and reinforcing its effectiveness. It enables the companies/ marketers differentiate their services and serve their customers in better ways. Its seemingly unprecedented reach coupled with its ability to provide one to one experience makes it the best marketing tool.

The complementary nature of SMS to other mobile channels, including traditional as well as the novel ones, is also very important. Its ability to integrate with other marketing channels like television, radio, print etc. gives it a unique status in the world of interactions.

It is because of its simplicity and accessibility that its popularity is multiplying, providing brands a series of novel ways to reach and target an extremely diversified and scattered audience. SMS can be your engagement strategy as well!

3/29/2017 1:08:00 PM |Categories: SMS
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