Tuesday, July 10, 2012

Text marketing has become an essential part of a brands marketing efforts. When executed properly, SMS marketing can yield impressive results. The ubiquitous usage of cell phones and the high text message open rates make text marketing an effective means of breaking through the clutter vying for a consumer’s attention. A well executed SMS marketing campaign requires a lot of planning and strategizing.

Before a brand can send one SMS message they have to secure a dedicated short code, or keyword on a shared short code, and receive opt-in consent from consumers to send text messages. Implementing a successful text marketing campaign can include a lot of leg work. The most challenging part of creating a SMS marketing campaign is getting consumers to opt-in to receiving text notifications from a brand’s dedicated or shared short code. A cell phone is a highly personal device, as such, there are a number of regulations prohibiting text marketing to a cell phone number that has not explicitly opted-in to receiving marketing related text messages. Getting opt-in consent from consumers requires some marketing creativity.

A case study of the Dunkin’ Donuts Coupon Drive provides great insights into a successful SMS marketing campaign. As part of a new campaign to introduce its new hot lattes to young adults in the Boston area, Dunkin Donuts delivered an SMS coupon for its $0.99 small hot latte to 7,500 targeted opted in consumers. Boston radio DJ’s invited participation; “text in to DD-123” each Thursday morning. In addition, 400,000 Mobile Internet (WAP) ads ran in Boston targeted content. Over 1,000 Dunkin’ Donuts franchise owners and workers were educated with marketing materials about how to help consumers redeem the SMS coupons. As a result of text marketing, targeted WAP, and radio promotions, Dunkin Donuts saw a 21 percent increase in store traffic and redemption of the mobile coupon. The SMS message promoted the viral element of the coupon—17 percent of participants, in fact forwarded or showed the message to a friend. Subsequent research showed 35 percent of the participants considered themselves more likely to buy lattes and coffee from Dunkin' Donuts. The Dunkin Donuts SMS marketing campaign illustrates the complexity of implementing a text marketing campaign and building an opt-in list. It also shows the tremendous returns that a text marketing campaign can yield when done properly. Here are some additional resources to learn about SMS text marketing: