| Text marketing to those customers who want to | | | | 95% for mobile marketing messages. Conversion |
| buy from you and probably already have is the | | | | rates are even lower at less than 2% compared |
| most cost effective and produces the highest | | | | to an average 20% for mobile marketing. Direct |
| return on investment versus any other form of | | | | mail is also believed to continue its decline in 2010 |
| advertising. The cost to gain a new customer, no | | | | as postage rates increase and redemption rates |
| matter the market you are in is high versus the | | | | also average 2%. The time, money and labor |
| cost of keeping an existing customer. Business | | | | associated with direct mail compared to the |
| owners need to examine the life-time value of a | | | | instantaneous effect of mobile marketing make |
| customer and work to expand this time frame. | | | | communicating with your customers through the |
| Casinos are one industry that have known this for | | | | mobile channel and reaping instant rewards the |
| years and work very hard at keeping their | | | | clear choice for businesses. |
| current customer base. Casinos use the Pareto | | | | Text marketing allows you to build your customer |
| Principle which in marketing terms means 80% of | | | | database using a mobile call to action that invites |
| your sales will come from 20% of your | | | | customers to text your keyword to our five digit |
| customers. All casinos use this principle with the | | | | shortcode: 83936. They are instantly added and |
| Players Club. Casinos ask players to sign up for | | | | you as the business owner to not have to |
| their marketing database in exchange for a special | | | | maintain a list of hundreds or thousands of |
| offer, discount or coupon. | | | | customers. The lead time to send out a new |
| This is the same principal as building your text | | | | message and measure the response rate is |
| message marketing list. You will ask your | | | | minutes to type and send the message and you |
| customers to sign up for your list in exchange for | | | | will have new sales that same day. The lead time |
| a special offer or discount. These customers have | | | | for direct mail can not compete with text |
| a positive impression of your business, and are | | | | marketing and with email marketing the customer |
| most likely to spend money with you again. The | | | | has to find your message in an email inbox with |
| life time value of a customer is likely $15,000 | | | | dozens of other messages and print the offer to |
| depending on your business. Customers show a | | | | use it. |
| lower loyalty rate today versus years past. If you | | | | By using text marketing you are able to use |
| can give customer what they want from you | | | | text-2-reply keywords that build your customer |
| every month, you are less likely to loss them to | | | | database on auto-pilot and in turn allow you to |
| competitors and apathy. | | | | send messages, offers, discounts and other |
| Other strategies have been used for all business | | | | coupons that are all designed to bring business in |
| markets from restaurants to retail, politics to | | | | your doors immediately. |
| music. Previously only direct mail and email were | | | | Text message marketing averages a 20% |
| the only ways to take advantage of customer | | | | redemption rate based on the 80/20 rule. |
| databases for targeted one on one direct | | | | Marketing to your best customers, giving them |
| communication with your market. | | | | special offers, and your customers will reward |
| Email read rates are down to 20% compared to | | | | you with their business. |