The Connection Between SMS Rate Updates and Changes In Usage

By Nir Hakarmeli - Director of Consumer Marketing

Once you have determined the Optimal Price for Messaging Services in order for your promotion to succeed you need to take your customers’ perception of the new state of affairs into account at every stage of the game. In this post we’ll be talking about other issues influencing a promotion beyond the rate itself, such as how changes are made, the timing of the changes, and how the changes are perceived. So even in cases where the current rate is far from the optimal SMS rate, much can be attributed to the power and timing of the change. When increasing the price of the service for example, it is recommended to do that in a gradual manner so as not to dramatically influence the customers’ perception and bring about a sharp decrease in usage as a result of raising rates.