Gfc Drives Business Sms Boom

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25th November 2009, 04:25pm - Views: 1041







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.”


# COPY ENDS


Media contact:


Adam Sawell

NestPR

0401 096 507

03 9689 0902

adam@nestpr.com.au






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