How Does Mobile Marketing Work?
Mobile marketing / coupon campaigns typically begin with the brands creating a database of opt-in users. For example, a fast food restaurant might hang signage near the waiting lines. Customers can then send a text message to a short code (e.g., text SUBWAY to 12345) and immediately receive a text message that provides some value, such as a discount coupon, or entry into a sweepstakes of sorts.
Once a brand has built up its database of opt ins, they can then begin to send out their promotions, typically once or twice per week. The frequency of messaging depends on the nature of the brand, and the expiration date of the coupons.
A consumer may opt-out of any mobile-marketing campaign simply by replying “STOP” to the text message received. According to Anthony Wayne of the Text Message Blog, the opt-out rate for mobile coupons is only 3%.
Also attractive to consumers is the ease of use in joining an SMS program. There’s no form to fill out, no website to visit. All that’s needed is to use that little device that everyone has, their cell phone, and send a quick text message.
Once someone opts into your program, their cell phone becomes your billboard, as your brand and promotions are steadily displayed on their phone. Your business has just bought the most expensive advertising space; a direct touch-point to your market, enticing new and repeat customers with your promotions.
SMS is not for all businesses, but when it does apply, the response rates dwarf those of traditional advertising. No matter what size business you are, you can become a mobile marketer within hours and start using a shared short code. So what do you have to lose? Try it out and see what works
Why start an SMS program?
Response rates for Text (SMS) Marketing have been proven to consistently outperform all other marketing media, some rates as high as 70%.
People who subscribe to your SMS Marketing program do so because they like your product. These subscribers are asking you to provide them with your promotions. They want you to give them reasons for buying your product.
Offers that are sent to your SMS Marketing program subscribers are delivered in a timely fashion. No more receiving email coupons that have expired.
SMS Marketing Benefits:
Speed: Text messages are received virtually immediately, making it the ideal solution for distributing information, whether that information is coupons for products, time-sensitive information, or anything else than can benefit a business through timely delivery.
Readability: As 94% of all text messages are read, your marketing message will be seen by virtually all of the subscribers in your SMS program.
Qualified Recipients: Since your subscribers have opted-in to receiving your offers and promotional messages, you know they have an active interest in your business, and your products.
Flexibility: With text messages sent and received within minutes of starting your campaign, you can use mobile marketing for ad-hoc purposes, such as driving traffic to your store on slow nights (“Make a purchase within x hours, and receive a xx % discount!”), or clearing out overstock items before end of month. This is the new “Blue Light Special”!
Range of Use:Mobile marketing can be used for a wide range of purposes: announcing new product, one-day specials, new store openings, special events…etc. Subscribers can be treated as an exclusive group for offers and information that only they have access to, increasing loyalty, purchases, and speed of communications.
What Can Mobile Marketing Be Used For
Mobile marketing can be used for almost all retail operations, with the primary objective being increasing customer traffic, patronage and REVENUE. SMS messaging is an unprecedented form of communication. No other channel in the history of marketing has the immediacy of SMS.
National brands such as Subway have embraced the use of mobile coupons. What they like best about their mobile programs is the fact that they can reach their audience when they’re most likely to purchase their product.