MessageMedia news release – GFC drives business SMS boom
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MessageMedia news release
GFC drives business SMS boom
WEDNESDAY 25 NOVEMBER 2009
The economic slowdown of the past 18 months has led to Australian companies turning to
business SMS in droves according to MessageMedia, Australia’s largest business SMS
provider.
Business SMS utilises text messaging to provide a fast and simple way for businesses to
communicate essential or requested information directly to customers, clients, staff and
other defined groups.
Over the last 18 months MessageMedia has seen message volumes increase by over
100%. Its clients have identified an increased focus on adopting cost efficiencies across all
business areas, efforts to enhance customer service and communication and a desire to
position themselves well for the recovery as the three main drivers for increasing business
SMS use.
Grant Rule, CEO of MessageMedia, says: “While use of business SMS services has grown
steadily since 2000, with the first reports of the global financial crisis and the slowing of the
Australian economy last year, sector growth increased markedly.
“What is interesting is that this growth has been fairly uniform across all sizes of business,
from independent hairdressers, gyms and dentists looking for simple appointment reminder
solutions to major multinationals looking to integrate business SMS into complex CRM and
customer retention programs or reduce call centre costs.”
Use of business SMS has also increased due to its inherent customer service benefits, says
Grant Rule.
“The biggest driver of business SMS traffic is not marketing, but cost-savings. After the
internet SMS represents the next wave for business efficiency improvements, and unlike
many cost-saving measures SMS actually improves the customer experience.”
Another reason cited by MessageMedia clients for utilising business SMS is its almost
universal acceptance across all age groups. This is particularly true in Australia with almost
23 million mobiles equating to 108% penetration. Over 10 billion mobile messages were
sent within Australia in 2008, with predictions that this figure will top 11.2 billion by 2011.¹
Research from Tomi Ahonen Consulting shows that text messaging is the most widely used
data application on the planet, with 3 billion active users and 76% of all mobile phone
subscribers sending and receiving text messages. Data also shows that 95% of all text
messages are read and acknowledged.²
1
Gartner Research (2008)
2
Tomi Ahonen Consulting (2009)
MessageMedia news release – GFC drives business SMS boom
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According to Grant Rule, the focus of the business sector on achieving ever greater ROI
(return on investment) is set to see the business SMS trend established during the downturn
continue during the forecast economic growth of the next few years.
“One of the positives to come out of the GFC was the focus of business on improving ROI in
all activities,” says Mr Rule.
“From fire crews and emergency response teams using our services, who derive their ROI
from improved response times and communication capabilities, to businesses that have
reduced telephone, other traditional communication and additional staff costs while
improving customer service and retention, the consensus is that business SMS is here to
stay. ”
For Message Media, growth in the sector is now very much being driven by customers, with
business SMS being considered in a range of new areas. Where real-time information is
provided to customers via business SMS many businesses have reduced the need for
customer interaction with call centres and interactive voice response systems, to the benefit
of both organisation and client.
“Such is the acceptance of these services, that many of our clients are reporting that it is
their customers’ request for SMS notification and services that led to them looking at
business SMS for the first time.”
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Media contact:
Adam Sawell
NestPR
0401 096 507
03 9689 0902
adam@nestpr.com.au
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