The business outlook for 2009 seems bleak. One report, which may get people reaching for a Prozac, is Grant Thornton's 2009 International Business Report. It found that South African business sentiment was pessimistic. In 2008, 75% of local businesses surveyed were optimistic; this year those with a positive outlook slumped to 35%. There were particularly low expectations for turnover, profitability and employment in the year ahead.
Common wisdom says during an economic slowdown, businesses should cut unnecessary spending, free up their cash flow, focus on customer retention strategies, and - above all -not stop marketing for their product or services. Each of these business activities require business communications, and SMS messaging offers some unique advantages when looking to increase staff productivity or streamline internal and external communications costs.
The SMS advantage is that these messages are short, relevant and targeted communications. Internet-based SMS messaging takes this further, allowing users to manage large contact lists from a computer and send to contact groups from a user's work desk.
Using SMS messaging during lean times
1. Work and spend smart
Regular information updates to customers or clients would simply not be possible without SMS. Telephoning a list of contacts takes many more working hours, especially when one has to call back when a client is not available, than simply sending out an SMS. An SMS delivered to a cellphone is always read, allowing employees to make contact and leave a message at the same time. SMS then frees up time for other important office tasks.
In cutting costs and re-evaluating budgets, companies should assess where they can save on telephony spend. Look at the business processes and see where a simple text message could replace a telephone conversation. Messaging is far cheaper than making telephone calls when all that is needed to do is convey important information to one or many persons. For example, instead of calling customers when their orders have arrived and are ready for collection, simply send them an SMS.
2. Liquidity is the aim
The SMS advantage is that these messages are short, relevant and targeted communications.
Dr Pieter Streicher is MD of BulkSMS.com.
One way to unlock cash flow is to set up a process to call in debts, especially long overdue account payments. SMS messaging is ideal in initiating this process. It allows businesses to make contact with debtors by sending out account reminders in a cost-effective manner and without burdening the administration team. Application-to-person messaging over the Internet from a computer enables users to easily manage contact groups or link to an existing debtors' database - be it in Pastel, SQL or any other dynamic data source. Internet-based SMS messaging costs from as little as 25 cents a message.
3. Incentivise and build relationship with existing customers
By engaging customers or clients with whom the company already has a business relationship will have several advantages. First, the principle that “twenty per cent of your customers generate eighty per cent of your business” is not to be sneezed at when strategising how to grow revenue.
Next, by seeking ways to provide additional value to an existing customer base, companies foster brand loyalty. One way to do so is to start a campaign where promotional messages are sent via SMS, with a unique digital voucher or one-time password (OTP). On purchasing goods or services, customers can then redeem a discount by displaying the text message to in-store staff or capturing the voucher's code during an online payment. A further point to consider when engaging with existing customers is that they are a company's best advocates if they are being offered real value, and are keeping the brand top of mind.
4. Marketing must be targeted
Sales-led marketing requires a promotional message that demonstrates the uniqueness of a brand, especially when the target market is busy cutting back on their spending. This means the focus should be only on the profitable areas of the business, and companies should spend money marketing those products or services rather than diversifying into new and uncharted areas.
This marketing spend should be invested in using Internet and mobile technologies that offer a lower per eyeball cost and higher reach to a targeted audience than traditional marketing channels. A mobile marketing campaign using an opt-in database enables companies to send short promotional messages directly to a relevant consumer demographic. This direct marketing channel will also ensure the brand remains visible in the market.
* Dr Pieter Streicher is MD of BulkSMS.com.
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