The medium is low cost (due to the elimination of production, printing and mailing) and its ability to target specific individuals has made SMS a crucial vehicle in the total communications mix. According to recent iLeo acceptability research where we asked respondents if they were open to receiving commercial SMS, and which medium they preferred most - email, mail, phone, or SMS - SMS acceptability and preference were the highest among all respondents, across all socio-economic levels.
However, SMS isn't the ideal medium when it comes to brand building, and brand image, as what's being communicated is often a short quick message, limited by the number of characteristics and often spoken in SMS language (u no wot I mean). Therefore to receive the full benefits from the medium, SMS is best used as a support mechanism, one that will reinforce a totally integrated campaign.
Filipinos have become habitual texters, it's a way of life, they're no longer able to just sit or stand still during a bus or jeepney ride, or walk down the street without texting at the same time. I can definitely relate to a current ad campaign for a local mobile network showing bandaged thumbs.
This also makes me wary. I can see history repeating itself with technology moving ahead of legislation and no laws governing proper use. The popularity has brought about an onslaught of campaigns, promotions-downloads, e-loads, text your favorite celebrity, free coupons. What started out as fun and interesting is now annoying. Problems are being experienced not only from a consumer point of view but also from a company's point of view.
We launched a promotion for a personal health care product, which rewarded you for referring the product to other mobile phone users. The eventual winners were four members of one family living in the same house who made a total of 9,192 referrals in one month, ensuring them several spots in the top five, and numerous grand prizes in the four weekly draws. There are now 'professional' texters who spend their days joining just about every promotion going.
It's been said over and over again that email was the greatest thing that ever happened to CRM. With barely two per cent computer penetration in this Third World country, I say that SMS is the greatest thing that ever happened to CRM in the Philippines. However, it should be used wisely lest it goes the way of junk mail and spamming, resulting in declining response rates as consumers become indifferent. Put yourself in your customers' shoes.