Loehmann’s drives in-store traffic with SMS program

By Lauren Johnson

Department store Loehmann’s is using an SMS program to drive in-store traffic and sales.

Loehmann’s is rolling out the SMS program as part of a larger digital marketing strategy that includes social media, Web and email. The SMS program is also being used to give consumers in-store rewards and deals.

 

Loehmann’s did not respond to press inquiries.

Opted-in deals
The SMS program is part of Loehmann’s Loyalty Insider program.

Consumers can opt-in to Loehmann’s SMS program by texting the unique keyword.

As an incentive for signing up for the service, consumers are given a coupon for 10 percent off a purchase at Loehmann’s retail locations.

Consumers who opt-in to the program will be sent a maximum of five SMS messages per month from the department store.

Loehmann’s is promoting its SMS program through calls-to-action on multiple channels, including direct mail, digital and social, which are all main pillars of Loehmann’s marketing strategy.

SMS provides flexible tools that retailers can use to fill in slower traffic periods, geo-target customers on-the-go and most importantly, complement and enhance all the other marketing efforts for the brand.

Loehmann’s has a heavy social media strategy via Facebook and Twitter and is in the middle of launching its ecommerce Web site.

Loehmann’s has also tested digital catalogs by converting static print materials into digital PDFs.

Text nation
The company is not the only retailer using SMS to target specific consumers.

Most recently, Target used SMS to help recruit employees for the holidays.

Using SMS as a way to drive in-store traffic is a smart move by Loehmann’s.

Additionally, a coupon gives consumers a reason to visit a store and will further engagement in the future.

The immediacy of SMS allows a brand to deliver time-sensitive and location-specific offers to customers when they are most likely to act on them. Pairing SMS offerings with solid CRM knowledge and putting relevant content in the hands of your best customers will bring them back to your store and ring the register, plain and simple.

SMS: Thinking beyond the text message

By a MCD columnist

Llew Claasen

By Llew Claasen

There is no disputing the huge popularity of the SMS in the world today. People rarely go out without their mobile phone and, according to Portio Research, the global SMS market is expected to grow from $150 billion in 2009 to $233 billion by the end of 2014.

But it is also key to note that SMS is growing far beyond the simple text message.

Instead of social messages such as “See you at 8.30 tonight” or customer service messages including “Your dry cleaning is ready for pick up,” the world is seeing SMS become a powerful tool that extends beyond communication.

 

SMS is a tool that initiates transactions and carries them out, a tool that provides vital information on-demand, a tool that tracks things in real-time and a tool with unlimited possibilities.

Making things happen
The rapid rise of the smartphone and increasingly intuitive user interface has brought about a dramatic change in how users use and view their phones.

Even in this environment where users have begun to move their messaging to richer platforms, SMS still holds the sway of power because it is the perfect mate for applications reliant on a push notification to get things going in a timely fashion.

Typically, when an SMS message is sent, the message is received by the handset and by default is destined for the on-board SMS messaging inbox.

So, if users are looking for information on restaurants, locations, travel times or whatever it may be, they would generally send a message to a dedicated short code and receive the reply as a message in their inbox.

But where the SMS moves beyond messaging is in its configuration.

If an SMS is properly configured it can be sent to a sender designated port and processed by an application on the handset other than the SMS messaging client. This is done through the implementation of the UDH or User Data Header.

Now, instead of the user receiving the information as a ‘text message’ in their inbox, the received SMS will instead cause the users browser to open and navigate to a specific URL containing exactly the content for which they are looking. So no message, but lots of relevant content – provided by a timely, configured SMS.

Money transfers
Until now, the transfer of money through mobile phones was possible only if both the sender and the receiver held accounts with the same bank.

But this has all changed with an instant mobile payment system which allows transfers to be done using SMS – an SMS that is not a text message, but a payment and money-transfer tool.

This system has been quickly adopted by many banks, and is particularly successful in economically challenged countries as the technology does not require phones to be Internet-enabled.

To start transferring money from their accounts, users first need to register with their banks. The banks then provide them with a Mobile Money Identifier (MMID) and a Mobile PIN (MPIN).

Once they have these, the customer is able to use SMS to transfer money to any account, making payments and transfers a simple matter of pressing a few buttons on a phone. It is both easy and fast, with transactions being done in as little as 15 to 20 seconds.

The service also eliminates a person directly handling cash, while saving on transaction costs and time.

An added bonus is that bankers claim that this system is foolproof and secure because all it involves from the sender’s end is a text message in defined format.

Real-time tracking
Another useful application of SMS is as a real-time tracking tool.

Machine-to-machine applications can be configured so that a mobile device automatically sends out real-time location information to a fixed machine. This is preferred over current GPS technology that only sends out periodic messages.

For trucking companies and other businesses that need constant updates to logistical information, SMS is the perfect location tool.

Future of SMS
No other messaging-based service has matched the simplicity, reach, price and reliability of SMS.

The popularity of SMS is growing further with new information services and unique value-added services being used by wireless carriers.

Going forward we will continue to see SMS retain its position as a premium messaging service, but we will also see growth in its ability to act as a useful mechanism for a host of innovative services over mobile networks.

Where the future of the SMS ultimately lies, is anybody’s guess, but it is certainly filled with potential.

 

SMS marketing lesson: One bad apple can spoil the bunch

By Dan Butcher

February 25, 2011

An angry mobile phone user

The United States Federal Trade Commission has singled out one bad actor that has allegedly been sending out tons of text messages to consumers that have not opted in. Will this hurt the vast majority of SMS marketers who play by the rules?

The FTC has filed an action in federal court seeking to shut down an operation that allegedly blasted consumers with millions of unlawful text messages and email messages without the recipients’ consent. Many of the messages advertised a mortgage modification Web site called “Loanmod-gov.net.”

“Over the years, Mobile Marketer has reported on a number of lawsuits involving unsolicited text messages,” said Gonzalo Mon, partner at Kelly Drye & Warren LLP, Washington. “Most of those cases have dealt with instances in which legitimate companies promoting legitimate services have gotten in trouble, either because they were not aware of certain legal requirements or because they failed to interpret those requirements correctly.

“If the FTC’s allegations are correct, this case is very different in that the underlying operation and offer themselves were unlawful and deceptive,” he said. “Although this case does once again illustrate the importance of getting consent before sending messages, the larger point is arguably the content of the messages sent by the defendant and the nature of the defendant’s campaign.

“Thus, the outcome of this case is unlikely to have a significant impact on legitimate mobile marketers that offer legitimate services to their customers.”

Consumers did not opt in to receive this text message, according to the FTC

Isolated incident?
According to the complaint, the defendant behind the operation, Phillip A. Flora, sent millions of text messages, pitching loan modification assistance, debt relief and other services.

In one 40-day period, Mr. Flora sent more than 5.5 million spam text messages, a “mind boggling” rate of about 85 per minute, every minute of every day. 

The complaint alleges four counts against Mr. Flora:

The FTC is policing the wireless space

First, the FTC argues that sending unsolicited text messages to consumers causes monetary harm to those who are forced to pay for messages they did not want, and that this violates the FTC Act. 

Second, the FTC argues that the use of “.gov” in the Web site URL, along with a U.S. flag on the landing page, falsely suggested that the Web site was affiliated with a government agency.

Third, the FTC argues that the failure to provide an opt-out mechanism in the emails violates the CAN SPAM Act.

Fourth, the FTC argues that the failure to include a valid physical postal address in the emails also violates CAN SPAM.

According to the FTC’s complaint, Mr. Flora collects information from consumers who respond to the text messages – even those asking him to stop sending messages. He then sells their contact information to marketers claiming they are “debt settlement leads.”

The FTC acknowledged the assistance it received from Verizon Wireless, AT&T and CTIA - The Wireless Association in this matter.

The commission’s complaint was filed in the U.S. District Court for the Central District of California.

Among other things, the FTC is asking the court to freeze the defendant’s assets while the case is pending.

Marketers and lawyers alike expressed shock that a company would so brazenly flaunt the rules and best-practice guidelines related to SMS and email marketing.

Rule No. 1: Always ask consumers to opt in before sending them a message. Marketers must have permission in advance before sending a text message to anyone.

“This is an extremely egregious case by someone who is clearly not a legitimate player, someone who clearly engaged in fraud,” said Ross Buntrock, attorney at Arent Fox LLP, Washington. “I don’t think the FTC pursing this claim has any impact on legitimate SMS marketers—make sure that you get consumers to opt in to receive text messages.

“I definitely think that specifically with regard to SMS, the FTC is paying attention to mobile marketing, and on a related note, the FTC is going to be looking into free applications that lead into paid content,” he said. “Mobile marketing of all stripes is coming under further scrutiny from the FTC and Congress, the SMS model is slowly losing favor in favor of application-based marketing models.

“All types of mobile marketing will be scrutinized as more and more people use their cell phones for every type of transaction and people try to reach them for marketing purposes—there will be scrutiny on every level.”

No tolerance for misbehavior
Adam Snukal, senior associate at Reed Smith LLP, New York, responding to an inquiry with the following statement:

The FTC's actions are consistent with the rigorous enforcement initiatives that are being undertaken on both a federal and state level within the financial services industry, and particularly with respect to mobile marketing. 

Between the FTC's near-zero tolerance for deceptive advertising of financially-regulated products and the recently created Consumer Financial Protection Bureau, mortgage companies, banks and other financial service firms must start to look inward at their advertising and marketing practices before it's too late. 

On the issue of mobile marketing, the takeaway is that text messages are being scrutinized, vetted and targeted as any other form of collateral or marketing and possibly even more so because of the personal nature inherent within mobile marketing. 

This trend is not unique to financial services, but to all industries and verticals.

How small businesses can take advantage of SMS

January 7, 2011

 

By Bryce Marshall, director of strategic services.

Mobile marketing may seem elusive, too far out of reach for many small and midsize businesses. There are so many digital and non-digital marketing channels in our modern fragmented media universe that a somewhat new-to-the-party medium such as mobile is overlooked amidst natural skepticism.

Not all businesses have the resources and budget to research, validate, trial and prove new methodologies for spending their marketing dollars.

But there are aspects of mobile – specifically, SMS text messaging – that have inherent value to a wide audience of consumers, which makes it a natural fit for all businesses.

Consider that SMS is a direct communications technology that millions of consumers across a wide range of demographic groups use every day.

Consider also the far greater potential reach of SMS – more than 270 million mobile devices nationwide – than mobile Web, applications or mobile advertising.

Finally consider that the costs for entry are relatively low, and the resources required to manage multiple successful programs can be low, too.

But arguments such as these only make sense hypothetically.

So how do small and midsize businesses leverage SMS effectively on a pragmatic day-to-day basis? How do they visibly affect customer relationships and drive bottom-line value?

SMS can be effective across a variety of business objectives and real-world applications. Here are some examples:

Customer acquisition
• Use SMS to leverage existing offline media and promotional campaigns. Get more out of your campaigns and drive foot and online traffic with a convenient direct-response component

• Give customers the opportunity to opt-in for ongoing communications such as upcoming promotions, discounts and event notices

• Given up on event marketing? Instead of trying to capture email addresses, let consumers opt-in quickly and easily with their mobile phone and deliver instant value with a text message discount that they can use today

Recurring revenue
• Remember, 160 characters can dramatically affect a consumer’s impression of a brand or product, and SMS is ideal for providing laser-precise timing for offers and updates directed to your customers in a highly personal channel

• By simply using a handful of different key words you can create very simple lists targeting distinct audiences.

Think of the difference between families at sporting events and community fundraisers, as opposed to college students at a nearby campus. Now you can target the right information and offers to the right people at the right time. News flash: college students keep different hours and spending habits than families

• SMS is great way for encouraging customers to trial new products and visit new locations. If a customer likes a certain brand of clothing or soap, for example, send an SMS letting her know when you have new products that she might be interested in

Differentiated customer experience
• In-store SMS campaigns allow for on-demand access to information and savings. Provide the customer with an instant coupon for use in-store or simply allow the customer to receive more information about a product

• Provide alerts and reminders for key events such as payment dates, account balances and status, delivery status and appointment reminders

• Stimulate engagement with polls, surveys and simple games or trivia, and reward those who participate

Small and midsize businesses can take advantage of these SMS opportunities today.

The cost of entry is low, and the resources to manage successful programs are budget-friendly.

This does not mean that marketers can afford to tip-toe into mobile marketing or launch poorly executed, short-term trial campaigns. This approach will yield underwhelming results.

Commitment is necessary. But the prospect of reaching a diverse and receptive audience of 234-million plus consumers should be the natural incentive.

SMS only reliable communications channel during significant events

April 14, 2010

William Dudley

Working here gives us a unique perspective into the SMS traffic patterns from around the world – in fact, SMS traffic patterns from and to almost 900 wireless carriers.

When some significant event occurs somewhere in the world, regardless of it being a local, regional or global event, it can and does affect text messaging to and from that locale. Why is this? Does SMS work when a simple “pick-up-the-phone-and-call” does not? 

The simple answer is yes, it does. 

When the immensely strong earthquake occurred in Chile on Feb. 27, SMS traffic for the carriers’ networks that were not initially damaged surged to as much as ten times the normal hourly volumes for the first 24 hours or so.  

Since that time, international SMS traffic from all Chilean carriers has remained at double the levels before the earthquake. Each time there is a significant aftershock, SMS surges again for a few hours afterwards –  as it did March 11 after that morning’s three 6.9, 6.7 and 6.0 aftershocks. 

In areas such as Chile where significant events are occurring, people find that it is easier to communicate by using SMS than making a voice call. The same was true for people trying to call areas prior to the Pacific-wide tsunami warning that was issued after the Feb. 27 earthquake.

The Haiti earthquake generated similar traffic results once the mobile networks were operational.

My wife and I actually had close friends that were vacationing in Hawaii at the time. We managed to get a voice call to them around noon, Eastern time, Saturday, but soon after that, were unable to reach them due to network overload. For the rest of the day, we communicated via SMS without issue.

Mobile networks’ radio networks are divided between control channels and traffic channels.

Control channels are a small part of the radio frequency or bandwidth that are used to send information about call setups. SMS uses the control channels for delivery. 

The control channel also provides information about the traffic channels such as availability. Have you ever tried to initiate a mobile call and received a “network busy” signal or notification? That is where there is no available room on the traffic channels for a particular tower. 

Traffic channels have significantly more bandwidth than do the control channels, but control channels are not held up as long as traffic channels.

So when multiple calls are in progress, as when there is some event, the traffic channels are allocated. However, there is almost always control channel room for SMS traffic.

Even if there is no network capacity to deliver the message immediately, SMS messages are stored by the carrier’s SMSC, so when the network capacity is available, the message is then delivered.

The reason SMS traffic continues at higher rates after the event, than before, is because people realize how easy, inexpensive and effective it is to send quick texts and these events literally cause converts.

Also, in many areas, voice capacity may remain at diminished levels, thus SMS becomes the only reliable way to communicate.

Whether the event is a once-in-a-lifetime disaster, a football game or concert, an election, a significant news event or simply a popular holiday, SMS traffic is affected. But many times, SMS becomes one of the only reliable means of mobile, consumer communications during and after.  

So remember, if you need to reach someone – do not forget that SMS may be your only reliable channel.