The Tendo View

Much has been said about the benefits of using social networks such as Facebook, Twitter, and MySpace for connecting with customers. However, there’s another much-less-touted although equally valuable vehicle for reaching customers—SMS or text-based messaging.

Nowadays, most of us probably receive text messages from someone with whom we do business; for example, a message from your bank regarding some questionable activity on an account or an appointment confirmation from your doctor. Currently, retailers have made the most use of SMS to engage their customers.

There’s a wealth of opportunity for marketers in other industries to incorporate text messaging into their communications strategy, not only to improve customer relationships but also to boost sales.

There’s no denying that mobile usage is up. In 2008 sales of mobile devices outpaced those of PCs 4-to-1. Because a majority of cell phones have text capabilities, SMS provides an ideal opportunity for communicating with your customers, especially when so many are inundated with email and may be missing your message entirely.

In its Mobile Market Survey 2009, Netsize reports on how some companies are using mobile as part of their marketing strategy to attract and keep customers:

“The vast majority of respondents (56%) currently use mobile to acquire new customers. But that will change as respondents follow through on their plans to boost customer retention and loyalty through mobile marketing (64%), streamline transactions (37%) and enable commerce and sales using a mobile device (37%).”

In addition to strengthening relationships with current customers and attracting new customers, text messaging provides a way to increase brand awareness. For example, Clorox ran a national promotion to connect its brand with Keith Urban fans by offering the chance to win a backyard BBQ with the singer.

At the end of the campaign, Clorox experienced total mobile activity of more than 300,000, and 6% of those participants opted in to ongoing Clorox brand promotions. And that’s one of the key benefits of SMS: You’re reaching your customers on their terms and at their request.

The simplicity of text-based messaging, though, creates the possibility for overexposure. You don’t want to abuse the privilege of having your customers’ permission to communicate with them. According to a recent Nielsen report, sending too many texts or not targeting them appropriately can adversely affect your ability to connect with your customers.

As with any social medium, SMS is another way to engage your customers in a conversation. As with all marketing activities, though, make sure that an SMS strategy fits in with your overall business goals.