September 17th, 2007

Using social networks to increase SMS usage

By Nir Hakarmeli - Director of Consumer Marketing

Much has been said about the power of word of mouth marketing. The following example makes good use of this marketing tactic to increase traffic and revenues from messaging services.

A cellular provider sent an SMS to a small group of subscribers with a very high quantity of different destinations they sent messages to. The SMS offered a Happy Hour special at 50% off for each SMS, but in order to take advantage of the offer, the subscriber needed to sign up by sending a short SMS code. So essentially, any subscriber could take part in the special offer even if they didn’t receive the SMS invite. Since SMS is a service that encourages replying, along with the increase in usage noted among subscribers that signed up for the special, the number of messages received by each subscriber also increased. But since the reply messages were sent at full price, the special succeeded in creating an additional derivative income.

How does this work exactly?

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