From a consumer point of view, the nicest aspect of SMS marketing is that it is completely permission-based. That means the consumer “opts in” to receive communications only from companies or organizations in which they are interested. Unlike Groupon or other similarly structured “deals of the day” services, consumers will only get deals that interest them. With those other services, a construction worker may wake up to find that his “deal of the day,” if he decides to use it, is a half-price trip to the salon on a Brazilian Wax instead of the gourmet lunch. special that he hoped to obtain. Through an SMS service, he simply needs to subscribe to places from which he wants to receive special offers.
So how do companies build their databases? That’s the biggest challenge in implementing an SMS marketing program, but it’s not as hard as it sounds. The most common way is to create a fabulous offer that is only available by text message. Let’s say you’re a deli owner who wants to increase your lunch traffic. Put up signs in your window and around your deli that say, “Text ‘deli name’ to 90210 to receive a FREE bag of chips.” People will do it because they love getting free stuff. Once they do, they are in your database. Now you can send text messages to alert them about future deals and special offers that they will only receive by text message. There’s also a viral aspect to this, as those who text will likely tell any of their friends who might be interested. A similar program will also be effective for restaurants, beauty salons, hotels, golf courses, retail stores, and various other types of businesses.
The approach is different for real estate and car dealers. The main way they can build their databases is to offer information. A prospective homebuyer can text from a sign to get information about a specific property. The agent will be notified that someone is interested in that property. They can then call the potential customer, send information about similar listings, or notify them via text of an open house for the listing. Whether there are 10 people in the database or 10,000,000, the process for the agent remains the same. The method is pretty much the same for car dealers. Buyers can text for information about a particular model, and the dealer can use that information to send relevant information about that vehicle or anything similar that comes onto the lot.
Another way to build a database is to hold a raffle. A radio station could give away a flat-screen TV by asking people to send a text message during its broadcast for a chance to win. Just about anyone who hears your offer will want a shot at that TV. Their database will grow and they can use those numbers to send text alerts about broadcasts or special events the radio station might be involved with.
There is also the text option to vote. American Idol uses this. They offer people at home the opportunity to participate by voting by text message. The network can then send text messages about upcoming shows or to remind people to tune in and see who wins.
The best way for a nonprofit organization to build its database is through a text donation program. The American Red Cross used this program with great success after the earthquake in Haiti. Three million unique donors helped the organization raise more than $32 million in less than two months. Additionally, a large percentage of those donors opted in to receive future communications from the Red Cross to be notified of fundraising events and other events benefiting the Red Cross.
Creative minds are coming up with new methods of building databases every day. Companies are having fun with the program and seeing phenomenal results. The only limit is your imagination.