As more organizations begin to adopt mobile phones, many are looking for new ways to leverage mobile technology to improve the efficiency of marketing and customer-relationship-management communications.
It is important for organizations to understand the logical progression of leveraging short-message service (SMS) technology in enterprise environments and avoid the common misunderstandings in approaching the technology.
Working with organizations that specialize in developing managed SMS campaigns can streamline many of the steps involved in getting off the ground.
Below are some common questions and concerns companies have when considering SMS—and some simple answers to help them jump over the hurdles.
Short Codes vs. Long Codes
When approaching SMS-based messaging campaigns, it is important to start with the basics, such as differentiating between short and long codes.
A long code is just a way of referring to a regular 10-digit cell-phone number. Although many companies choose to use long codes, there are certain limitations with regard to message delivery to multiple numbers and carriers, billing management, and the capacity to send and receive messages.
Using long codes can be subject to multiple delays between SMS gateways and centers because the long codes are controlled by the carrier that assigns that specific phone number.
Short codes, on the other hand, are traditionally four- to six-digit numbers, and when combined with a keyword they provide enterprises with various features for their messaging campaign that long codes don't.
Short codes are more efficient because they route messages to a server rather than to one phone number, which means the server can manage, control, route, audit, and store everything associated with any messaging campaign, allowing you to capture a large amount of data.
Short codes are not only more efficient but also a more ubiquitous way to manage information quickly without intervention—by routing the message directly to your server rather than to the carrier's SMS center or gateway.
Moreover, short codes enable you to increase your margins, which means that added-value services such as personalized services, mobile wallets, and private data are managed by the enterprise and not the carrier.
Short Codes: Where Can I Buy One and for How Much?
In the United States, a group called the Common Short Code Association (CSCA) manages all short-code leasing. The CSCA offers two types of short codes, "random" and "vanity," the latter enabling companies to use branding in the code itself.
For example, Google owns 466453, which spells out "Google" on a standard cell- phone keypad. Although with the prevalence of QWERTY-style smartphones today, spelling out your brand now makes little sense.
To lease a short code, you must apply with the CSCA. Random short codes cost approximately $500 per month to lease, while vanities are about $1,000 per month.
Now That I Have My Short Code, What's Next?
Leasing the code is one thing. To put the code to use you must define, develop, and deploy a specific text application for your mobile campaign.
Once developed and operational (which can take months to complete), your specific text application with the response protocols and language must be submitted for certification and compliance by all the carriers on the networks of which you want your campaign to run.
The approval process can take anywhere from six to 18 months, making it the longest stage when using short codes as a method to deliver and process text campaigns.
SMS aggregators help with the certification process by simultaneously applying to all the carriers they are under contract with. Without an aggregator, an enterprise would have to contact all carriers individually for the certification of each application.
What About SMS Aggregators?
SMS aggregators have the ability to "sell" excess SMS text capacity to businesses from wireless carriers. That bulk messaging (high volumes of text messages) can use either long or short codes and is designed to gain access to a group of carrier networks and then collect responses to mobile campaigns.
SMS aggregators can also speed up the certification of your applications by facilitating communication with the various carriers, thereby speeding up the time to market of your campaign.
SMS aggregators have widely varying pricing models for their services, so it is important for your organization to shop around for the aggregator that fits your needs.
How Do International Campaigns Work?
There is no international equivalent of the CSCA governing the global system, so international SMS campaigns have different requirements.
For example, enterprises wishing to conduct international SMS campaigns must negotiate individual short codes and campaign terms with each international carrier. A limited number of international aggregators (mostly supplying long codes) can assist with the process, but their costs can be up to 10 times that of domestic aggregators.
One benefit of international messaging campaigns is that you are not charged for what we call mobile-terminated text messages. In other words, any text message you receive on your phone doesn't count against the end-user's message load.
That means enterprises sending marketing and advertising content are more readily accepted internationally because users are not charged for the incoming SMS text message. Unfortunately, the United States is the only country that charges for receiving mobile-terminated text messages.
What Role Does the MMA Play?
The Mobile Marketing Association (MMA) is an industry-sponsored association that oversees the conduct of enterprises and aggregators specific to mobile-messaging campaigns on wireless networks.
The MMA provides guidelines and suggestions on the proper protocol and language for all mobile campaigns. It has very strict guidelines on the type of content that can be sent via SMS; messaging-campaign managers are required to oversee and manage the content to make sure no illicit activities are taking place.
One of the most prominent guidelines is that all messaging campaigns be operated under a full-permission basis, meaning the user must initiate and approve the conversation as well as the removal of the cellular number from any database (i.e., opt-in and opt-out).
Permission-based protocols are necessary to control any spam going to users on wireless networks. It is very important to adhere to the guidelines, since the carriers may terminate your short or long codes for violating MMA guidelines.
Will MMS and Smartphones Make SMS Obsolete?
Multimedia Messaging Service (MMS) enables the sending of more complex Internet-based data, such as images, audio, and video along with text; but when considering messaging campaigns to reach mobile users, it is very important to understand the differences between MMS and SMS.
MMS requires capabilities that are not available on all standard cell phones, such as an Internet-enabled (and paid for) data connection. Only 12% of mobile users in the United States (and less than 9% in the world) have Internet data plans (which cost an additional $30-$50 per month).
Certainly businesses subsidize that cost for most employees; for the typical cell-phone user, however, the cost of the Internet and the device is economically prohibitive.
Second, MMS is delivered with various formats that may or may not be compatible with your cell phone or carrier. Today, there is no single MMS format that meets all carrier and handset interoperability requirements.
SMS is an integral and necessary part of any voice phone call on every cellular phone in the world. In other words, the use of SMS (via an overhead or paging channel) causes your phone to ring, to receive voice-mail information, provide caller ID, etc. SMS capability is required for every voice call you make and so works on any cellular phone.
Although iPhones and Blackberrys seem to be all over, the reality is that the marketing of those devices has been exceptional. More than 25 million Blackberrys and 12 million iPhones are on carrier networks in the United States.
Comparing those figures to the more than 280 million cell phones in the United States implies that Blackberrys account for some 9% of the market and iPhones account for 4%. The 30 million iPhone devices publicized include 18 million iTouch devices that do not operate on cellular carrier networks.
The bottom line: When considering going mobile, you must remember that a broader reach is your top priority. Two-way communications via voice or SMS is the lowest common denominator for every cellular phone in use today.
Therefore, if your mobile marketing and communications strategy plans to use only the most-advanced wireless capability (e.g., an iPhone or a Blackberry), you will have limited your reach significantly.
Your Final Checklist Before Launch
With the proliferation of mobile technology, launching a mobile-messaging campaign can add significant value to your organization's overall marketing strategies.
Once launched, the right mobile-communications technology can provide a very cost-effective method of outreach, with exponential potential.
But it is very important to be knowledgeable of the ecosystem you are entering and follow the specific guidelines that have been established. It is also critical to be well aware of various industry patents that have been approved, especially regarding mobile content delivered via SMS text.
Two-way mobile messaging is the next step in the evolution of your organization, but in the fast-paced world of mobile marketing only the most targeted and well-managed messaging campaigns that respect the end user have the ability to take your organization to the next level.
