| Mobile marketers welcome move to set up freephone SMS numbers |
| Wednesday, 03 September 2003 | |
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New Media Age, 4 September 2003 - The use of 0800 freephone numbers is an important part of brands CRM programmes, so a mobile equivalent, allowing customers to text in for free, would be a useful addition. But as operators move to introduce a 'freetext' shortcode, some advise caution. The next time you buy a chocolate bar, a can of deodorant or a tub of margarine, take a closer look at the packaging. On almost every consumer packaged product you'll find a freephone number urging you to call with your comments, complaints or questions. Quite why you'd want to comment on your favourite low-fat spread may remain a mystery to many, but there's no doubt this most basic form of CRM has rocketed in popularity in recent years. Now it's coming to SMS and the effects could be far-reaching.Text for free In the fixed-line world, 0800 telephone numbers have for years given companies a direct communications channel with their customers, whether for competition entry, simple CRM or interaction with TV shows. The brand bears the cost of the call, thereby driving both consumer take-up of the communication and customer loyalty. Last week NMA reported that UK mobile operators are finally agreeing commercial terms for an SMS version of the freephone number. The shortcodes will enable consumers to interact with brands without anything appearing on their bill. Today, only O2 remains unable to offer the product. However, a spokeswoman confirmed that the operator would be making an announcement, even though it could give no timescale. The move is a result of increased lobbying from companies like Aerodeon and WIN, and was welcomed widely throught the mobile marketing industry. Although premium shortcodes will continue to be crucial for mobile content providers such as media owners, which are lobbying for a higher price points, may feel brands no longer wish to charge their customers for marketing interaction. "This is really great news," says Enpocket co-founder Rob Lawson. "Brands like finance companies don't want to charge for account enquiries, and we've had one TV company that does a lot of interaction with freephone numbers unwilling to enter mobile due to lack of freetext numbers." Dr Michael Birkel, CEO of 12Snap, believes CRM - long touted as a perfect activity for mobile - is set for strong growth over the next year and that freetext will be a key driver of this. "Some players in the market really believe that mobile marketing should be premium, but we strongly feel that to prevent barriers to consumers taking part, it should be free," he says. Irish lessons Despite the bullishness, industry players also urge against getting players too excited just yet. While agreeing it's a positive, long overdue step, Flytxt CEO and Mobile Marketing Association chairman Lars Becker warns, "it won't explode overnight, as a lot of clients with shortcodes are still looking for revenues." In Ireland, a far more structured shortcode management regime has meant freetext numbers have been available since day one. Textus MD Paul Mooney points out, however, that companies have to date been slow on the uptake. "We're about to launch a campaign for an insurance company, and another had run before, but that's all," he says. "A lot of companies are only now finishing pilots evaluating whether text will work for them before they move to this new stage." The Ireland shortcode structure highlights one potential stumbling block for the introduction of freetext in the UK. In Ireland, freetext shortcodes are in the 50xxx range, standard numbers are 51xxx and so on. In the UK, the recent introduction of a new shortcode numbering range, primarily to establish a dedicated adult range, caused uproar in the industry, which worried that brands would be pushed off established shortcodes. Industry players are now concerned that the introduction of freetext numbers will mean nothing unless a dedicated range is set up, with accompanying consumer education. Paul Gill is head of marketing for News Corp-owned SMS and IVR provider Broadsystem. "We welcome the move, but counsel caution, so that consumers aren't confused by tariffs associated with premium shortcode prefixes," he says. "We don't want brands to be compromised by having to relinquish shorcodes to a freefone tarrif (such as 80xxx)if they've spent time and money obtaining brand equity, only to lose this when they have to use a new shortcode to charge for content. At the Mobile Data Association, responsible for the introduction of new shortcode rangesm chairman Mike Short says there are no immediate plans for an intoduction of dedicated freetext numbers. "But this is a natural innovation and follow on from 0800 numbers," he adds. "If there's a business need, I don't see why there shouldn't be an equivalent in the mobile arena." Easier relationships Such an introduction would undoubtedly give mobile marketers a powerful advantage in matching the success enjoyed by 0800 freephone numbers. But there are also areas in which freetext would provide unique mobile opportunities. One clear example is pointed out by Mooney in bringing automation to the CRM industry. "It would smooth out the call centre operation, as with freephone numbers the call must be answered live," he says. "With SMS you could send an automated reply saying 'thanks for your message, we'll get back to you within 24 hours'. As the end user is effectively doing their own data input, this could dramatially reduce call centre costs." Another area where freetext numbers could act as a significant catalyst is in mobile couponing. This is potentially one of the moste exciting areas for mobile marketers over the coming 12 months, but the cost today of interacting via text is a real stumbling block. "We're talking to a number of brands that would love to trial mobile couponing," says Aerodeon managing partner Chris Bourke. "But as things stand, consumers just aren't going to pay 10p to text to get a coupon giving 5p off. So, the next time you buy a tub of margarine, you will hopefully have a new way to tell the brand just how much you love it. © Copyright Flytxt Ltd 2006. Unauthorized use of any content constitutes a material breach. |
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