Five things you need to know about interactive SMS

2010 seems to be 'the year for mobile marketing', with a boom of handset capabilities, brands apps, and flat data plans, but reality is contrasted. Mobile is a fragmented industry in which the share of smartphone is still below seven per cent and most pre-paid users don't surf the mobile web. 

1. Interactive SMS enables a true marketing dialogue on the mobile phone

Interactive SMS is a text message pushed to any mobile handset, with an open space for answers or multiple choices. It is silent, pops up, non-intrusive and does not pile up in the inbox. Most of the time, users can interact with a single click which means the hassle of dialing a short code or going online is removed.

Like any other direct marketing tool, the user needs to opt-in first, which means they will only receive ads if they have given prior consent. This dramatically improves the response rate since it generates trust between the user and the sender as privacy is preserved and offers targeted to preferences. Google has stated that three to four times as many people customise their profiles as those who opt out.

2. Permission + Dialogue = Relationship

Response on both sides is immediate which generates a dialogue that can be adapted for different purposes, including interactive promotions where the user selects a coupon in a pop-up list or database qualification questions ranging from simple demographic data collection to needs, interests and preferences.

Once the user has opted-in and sent out their information, the mobile operator can offer targeted services, location-based deals or coupons from brands in the particular areas of interest. Interactive SMS is also versatile as interest and preference settings can be changed by the user anytime. These pop-ups can be customised for different actions, including SMS, call, USSD, WAP session etc.

3. Multiply your return on investment (ROI) by six

Through targeted and relatively simple campaigns, interactive SMS delivers response rates that are on average six times higher than that of a regular SMS. As soon as the operator provides campaign results and feedback via the CRM system, improvements can be made on-the-fly to optimise response rates consistently over time.

It is a virtual cycle of improving relevance, and therefore the click-through rate (CTR), boosting the usage of the mobile as an advertising channel. For the business owner and marketer, it´s a cheap performance-based solution, which gives better ROI compared to, for instance, Facebook ads – which are not permission based.
 
4.    A unique communication channel with iPad users

The iPad is the first notebook that holds a SIM card. Interestingly, the iPad does not allow receipt of a regular SMS, but the SIM card can handle the delivery of an interactive SMS. It´s the only way operators can keep in touch with iPad SIM users. Interactive SMS allows operators to collect subscriber preferences and opt-in, activate subscriptions and push low balance and prepaid reload alerts. For the operators it´s a unique and simple tool for teasing users to top-up credits for internet browsing, and up-selling services.
 
5.    Supported by 100 per cent of handsets

Interactive SMS dramatically improves the user-experience of mobile campaigns and puts them in control of their mobile marketing experience. The tradeoff is clear from the beginning and the idea is for users to select their preferences and receive customised services and offers.