Case Study
Choosing the right SMS provider is crucial to your success.
Boost Free Upgrades
The Phone Store, based in Leeds, needed to capitalized on their free upgrade allocation, which was not being fully used. They had approximately 700 free upgrade opportunities that they were not fully taking advantage of.Using Text Marketer Campaign, they uploaded a database of existing customers that were due for contract renewal in the next 2 months.
They sent these customers a message inviting them to a free handset upgrade whilst keeping their existing number and tariff. The message asked them to either, phone direct or upgrade on-line.
Results
Out of the 2000 (approx.) messages that were sent, a staggering 423 customers responded to the message, that's a response rate of over 21%. Their direct mailing campaigns generated just a 9% response rate and cost them 80% more!
Cost Savings
The management team at a large branch of The Word was exploring ways of reducing their marketing expenditure. With such a large database of customers, their communications spend for mailings and telemarketing ran into 10's of thousands a quarter. While the business remained extremely profitable they felt that there must be a way of reducing their costs.Some quick analysis revealed that they were spending $2,345.00 on postage every month, which represented contract renewal mailings to approximately 8685 customers.
They used Text Marketer Campaign to send out text message reminders to customers each month rather than letters. (Customers were given the option of also receiving letter reminders if they wished.)
Results
The customer mailings spend was slashed from $2,345.00 a month to just $635. That's a savings of $1,710 a month or $20,520.00 a year. Customer retention was also dramatically improved.
Data Cleansing
Having recently purchased a mobile phone business, Ben Leicester needed to know exactly how many of the existing customers could actually be considered 'live'. He suspected that many of the customer contracts had expired, lapsed or been terminated. The traditional way of finding out would be to painstakingly ring each number.Using the delivery report function within Text Marketer Campaign, he was able to track text messages sent right to the customers phone. This helped him to eliminate 'dead' numbers so that he could concentrate on tying in the live ones.
Results
Apart from the enormous amount of time saved, The business saved approximately $1,500 in phone calls to mobiles.
Customer Retention
Birmingham based, Talk Point needed to improve their customer retention without losing margins. In the fiercely competitive market, the business needed to offer his customers a real difference. With Text Marketer the Talk Point Text Club was launched.The service gave customers text message bulletins alerting them to all the latest product launches, tariff offers etc. Using the Text Marketer 2-Way System, members of the club were also entitled to enter a monthly prize draw, with the chance to win the latest Nokia handset and whole range of other prizes.
Results
Customer retention moved to 93% and customers felt a strong loyalty to the company, which in a customer survey was seen as 'innovative', 'attentive' and 'professional'.
Pub / Social places
A good case study which shows the benefits of sales promotion linked SMS is for a pub chain as follows:The brewery chain has 54 pubs and it wants to be able to generate foot flow at quieter times and also be able to keep customers informed of events that are happening, e.g. football fixtures.
This client has 2 key issues, 1. They do not have the mobile data for their customers, 2. They need to know which pubs they drink in for future campaigns.
The client created a promotional campaign in each of the pubs using posters, flyers and beer mats as the promotion vehicle asking customers to text in a promotional code, e.g. Bear txt in order to go in for a prize of winning free beer for as long as England stay in the world cup.
54 'campaigns' were set up all coming in through the same number. The system searches the incoming messages and looks for the code (which can be anything you like), e.g. in this case Bear txt relates to The White Bear pub. The system then captures the message and number and puts it into The White Bear database - each pub has a unique code. On the closing date the client can then choose a responded and call them to offer them the prize.
A system can also have an auto response facility (which doesn't have to be used) which can be tailored for each 'campaign', e.g. in this client's case the auto response is relevant to the pub, "Thanks for drinking at The White Bear, you have been entered in the competition. Good luck."
Once the campaigns are completed, your system would have all the data in, split into the categories (sources) you have pre-defined, so you can go into the system and very quickly send group messages to the various sources. Of course, at this point you could be embarking on another 2 way campaign.
This generated a greater foot flow for the chain of pubs and also resulted in the collection of mobile data for all their customers split by the pubs they drunk in.
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