How to Have Your SMS Messaging Pay for Itself
SMS messaging has become a line item in many businesses budgets. It’s a marketing expense for some, part of customer support, or basic utility costs like access to the Internet for others. But for many, offering SMS messages to customers could actually make them money rather than cost them.
Here’s the idea behind it: your business or organisation offers an SMS service as an add-on to what you already do – for a fee. I’m not talking about premium messaging where someone pays a fixed fee per message or a transaction which is then charged and collected by the mobile provider. What I am talking about is your ability to offer a service directly to a customer who then pays you for it. Let’s just jump into some examples.
It's all in the timing
The first example is not something for the everyday person, but it demonstrates how impactful SMS messages can be – and why people would pay to get them.
Have you ever heard of day trading? A day trader is someone who buys and sells stocks quickly, usually on the same day, to turn a profit. To be successful they need to get their timing exactly right.
By all reports, day trading is intense. You need to be tied (pretty much) to a computer with special software and consistent access to the Internet. But I’ve found some services that support more casual traders using SMS messaging.
It usually starts with a group of day traders (loosely formed or an actual company) who offer access to their buying and selling choices to those who want to invest but don’t want to spend their days doing it. People can sign up to get a certain number of alerts based on how often they want to buy or sell during the week.
Now, the day traders are doing what they always do. But they are selling access to their information via SMS messages. No other communication method would work because of how time sensitive the business is.
And the access doesn’t come cheap. The base cost of one example I found runs over £3,300 per month for anyone looking to hook up on a few trades. Oh, and only people who are members of their service already are eligible to purchase this SMS add-on service. You can imagine that the cost of messages sent to each subscriber is easily covered by that monthly fee!
More common examples
It’s not likely that too many people are either day traders or interested in purchasing that sort of service (but just Google it if you are!). So here are a few more common examples to help you understand how your business could use the add-on service model to pay for your SMS messaging:
- Recruitment – In very competitive job markets, getting notified of openings is critical for recruiters. The quickness of SMS messaging could give an advantage to their candidates.
- Real Estate – Fast moving real estate markets need a quick notification system. Estate agents need to know about the properties as soon as possible. And their clients also need to know.
- Travel – Travellers expect some communication from their agents. But timely SMS messages could be something extra.
- Personal Coaches – Life coaches, financial coaches, or anyone who helps people improve their lives could also offer daily encouragement, reminders, or instructions over SMS.
- Fitness Coaches – Personal trainers, nutritionists, or specialised trainers can’t always be with their clients. SMS messages could help keep them on track.
These are great examples for using SMS messaging, but how do you make money from it? There’s one of two ways: Include it in your flat pricing and advertise it as a value added service (even though the cost is built-in), or itemise it as an add-on customers or clients can choose to use for a fee.
Whichever of those two ways you use, the fee can cover the actual cost of the messaging (which isn’t likely to be very high), and anything above that would be additional income.
It won't work for everything
This sort of use case won’t apply to every application of SMS messaging. You aren’t likely to find anyone who will pay to receive marketing messages for example (though they will spend money when they get them!).
Companies who use it for internal communication can’t expect their employees to pay. Likewise, schools using it may not be able to convince parents or students to pay for messages.
But as the examples above show, certain service type businesses or even financial ones can consider a business model where SMS messages are a source of income rather than an expense item.
Related Articles
Proof SMS Messaging Gets Results: Increase Traffic
One retailer increased their online mobile traffic by 93% year over year using SMS messaging. Another increased foot traffic by 21% after adding mobile coupons to their marketing. Do you want to know how? Find out in our blog on increasing traffic with SMS messaging.
How 2017 Will Change SMS Marketing
Setting New Year's resolutions for your business can be risky since it feels like you're only really setting yourself up to fail. It's much better instead to try and focus on one achievable goal and do everything to succeed and improve in that area. With its meteoric rise to popularity and outstanding success in 2016, businesses should be using 2017's welcome reprise to integrate SMS marketing into their business development strategy.
How SMS Marketing can Save Workplace Training Providers Time & Money
How work based education providers can take advantage of SMS Messaging to boost attendance and reduce the time and costs associated with arranging and re-arranging training sessions. Read this article to learn how private education and training companies can benefit from simple SMS confirmations and reminders with some illustrative examples. We also briefly explore the possibilities offered by automated responses using SMS keywords in conjunction with a virtual mobile number.
SMS Mаrkеtіng fоr Indереndеnt Fаѕhіоn Retailers
SMS Remarketing: What It’s All About
You’ve seen or heard about remarketing online. But did you know you can use SMS to remarket to visitors who abandon their cart in your ecommerce store? According to one study, using it can double your conversion rates. Check out the blog to see the details.
9 Reasons SMS Marketing Works [Infographic]
5 Reasons You Want to Use SMS Messaging in Your Business
Are you looking to grow your business? Get more customers? Have larger profits? Of course you are. Isn't every business looking to improve, grow and generate more sales? More and more businesses are realising how SMS messaging can help them do all those things. But it's nice to have some facts to back up what most people seem to assume is true.
SMS Marketing Ideas for Campsite and Touring Park Operators
Right now it is peak season for camping and caravan sites; it's the middle of summer and the school holidays have begun. Even the great British weather has been relatively kind this year so far. With what is the busiest time of the year for camping and caravanning parks, marketing strategies are often not priority, especially for the many small owner run businesses within the industry and those who are reliant on returning customers. SMS text message marketing, however, can benefit campsite and touring park operators by offering a simple, cost effective and time efficient way to reach both existing and new customers to promote your business by direct contact to their mobile phone. Read on for eight proven text message marketing and promotional ideas to help fill those final pitches.
Marketing Review for 2015 Holiday Season
Comparing SMS and email marketing results for the 2015 holiday season, this article taps into reports from Expedia and Adobe to share important insights.
5 SMS Myths You Shouldn’t Believe
SMS messaging is a popular topic. The growth of mobile has everyone jumping on board the SMS waggon and they all have something to say. I've compiled a list of five topics that I've seen written about that just aren't true, or at the very least are potentially misleading enough to be called myths. I'm going to try and offer some insight into why these myths exist and what the truth is, as I see it anyway!