Text Messaging Featured Article

According to the Pew (News - Alert) Internet Project, research related to mobile technology, as of May 2013, 91 percent of American adults have cell phones, while 56 percent have smartphones. Although many businesses are gearing up their operations to address smartphone owners – because of the multiple ways it engages the consumer – organizations have to remember that there are still millions of cell phone owners who can be reached using existing technology on their devices.

The best tool is texting, and the same Pew research indicated that 79 percent of cell phone owners use text messaging, while at the same time 69 percent said they received unwanted spam and text messages. If applied properly, texting can be used to conduct financial transactions and marketing, and deliver healthcare and broadcasting messages by public organizations.

Insurance companies are introducing new services to provide the 45 percent of consumers who still don't have smartphones with text message payment. This is one of the solutions that will give the industry an added layer of convenience to its customers. Customers can have a text message delivered whenever the payment is due, and they can make the payment when they have the funds directly from their phone. Unlike electronic fund transfers that make the payment automatically whether the funds are available or not, text message payments gives the consumer more control, thus avoiding penalties and the associated fees.

Short message service (SMS) marketing has received negative press, but when used correctly it has resulted in response rates that are five times better than direct mail because campaigns can be targeted. This type of precision provides better return on investment with immediate response. A text message takes very little time to read and decisions are generally made in the moment by consumers.

Using SMS marketing is also much cheaper than direct mail and has better response rates than email. According to Nielson Mobile, 51 percent of U.S. mobile subscribers said they have responded to a mobile ad in some manner, making it a powerful medium for reaching an audience that can be targeted.

Texting technology has been used for financial services in developing countries successfully for several years. The lack of financial infrastructure such as banks has forced these countries to implement mobile banking and payment systems using cellular phones, thus introducing banking for the first time in their communities. Financial organizations in developed countries have also started using texting to engage their customers by offering services for checking balances and making payments.

Using SMS also benefits the environment, because it is a green technology that eliminates the need to print on paper and all the associated waste to deliver the content.

Depending on the demographic the average number of text mobile phone owners receive can go as high as 88 or more per day. Whether the user is on a smartphone or a traditional cell phone, texting is an affordable solution that can be used to provide a variety of services without having to invest a great deal of money.