The second Interactive marketing tool that will be analised is SMS (Short Message Service) marketing.
A good example of a campaign that used this tool is O2’s priority moments when it originally launched as an SMS campaign (Cherry London 2012). Recently however the tool has developed to include a range of social media platforms and mobile applications Cherry London (2012), but this blog will only focus on the early use of SMS. The idea of the campaign was to create loyalty with customers by offering deals and free give aways that only O2 customers could receive. A text would be sent and the user would have to respond with either a text back or using a validation code (Cherry London 2012).
SMS with 3 dimensions of interactivity
With user navigation in mind this is one area where SMS marketing does fall short as a message is only text with a possible URL, this means users don’t have a wide span of control. This could be an advantage though as it could be argued by limiting what users can do it is more likely offers will be taken and more people respond. In terms of the O2 campaign most offers contain website URL’s to allows the user to learn more about the offer which helps them decide whether or not to take the offer up.
Direction of control
SMSP (no date) suggests that SMS marketing is a two way communication tool as it works on the principal that a text is sent to a customer and then the customer is expected to respond to the text with an action. In terms of O2 the user receives an offer from O2 and then has to reply with a code to validate the offer. This completes the 2 way communication.
Textmagic (no date) suggests it takes seconds for a text to arrive from a sender to the receiver. The advantage of this is if people aren’t responding to an offer a new one can be quickly sent out. In terms of the O2 priority moments campaign 5 offers were redeemed every minute of the day (Cherry London 2012).
How SMS demonstrates customer centricity
Again using the same value disciplines model from Treasey and Wiersema shows hoe SMS builds and demonstrates customer centricity.
Businesses build loyalty through customer intimacy (Treasey and Wiersema1992). This is where the O2 priority moments campaign as used as customers feel like they are getting something extra from the business with the free give aways and money off offers.
Services can be improved though product leadership innovation (Harvard Business Review nodate). Boundless (no date) suggests that SMS marketing is still in an innovation phase as new content is being created. Android central (2013) suggests provides are now able to send animated GIFs to customers. This shows customer centricity as the users’ experience is being improved. How well a service is delivered can be determined by its operational excellence (Treasey and Wiersema 1992). SMS marketing is extremely fast almost instant Ready to SMS (no date) which allows companies to choose the best time for customers to receive the message for example not when they are likely to be eating. This shows how businesses are customer centric as messages aren’t sent out at inappropriate times.
How SMS marketing impacts business
Again porter’s value chain is useful to show how the technology can impact a business but Chaffey et al (2003) suggests that using an adaptation of the model for modern technology will be more effective.
In terms of Market research SMS marketing can be used to send quick surveys to customers. App dragon (no date) suggests this is a cost effective way to reach customers. Also data can be collected from users about their interests from what offers they choose to download.
Managing fulfillment is easy with SMS marketing as a company can just out a personalised thank you message, this would be responded in a happy way and customers do appreciate the interaction.
New product services can also be send to customers via SMS which increases interactivity as users could even follow a link to try the new services out.
SMS marketing can be managed in the same way in which a Facebook campaign is using a digital platform to determine what is sent to who and when. This ensures the campaign is as efficient as it can be.
In conclusion both companies have taken a tool and implemented it effectively. However Renaults use of Facebook is truly innovative which is why it could be argued that it was the best campaign.
Mobile operators association (no date) suggests texting is decreasing and internet usage is increasing. Again this suggests that the Facebook campaign is more effective and similar campaigns in the future will be more successful.