Commentary

Short Messages Rise Up

According to SAP Mobile Services, a division of SAP, with Loudhouse Research, mobile users’ app consumption is maturing and customers have discerning preferences for how they communicate with brands, subject to need. The SMS Advantage survey highlights consumer benefits and challenges in relation to mobile apps, SMS, and other interactions between service providers and customers. The research focused on the mobile environment as a transactional channel for customers

Short Message Service (SMS) is a text messaging service component of phone, Web, or mobile communication systems. It uses standardized communications protocols to allow fixed line or mobile phone devices to exchange short text messages… Wikipedia

Consumers are acclimatized to frequent, habitual interaction with smartphones. 68% of respondents check handsets at least every hour, with 20% checking phones every ten minutes or more often, says the report.

The research concludes that the rise of the smartphone and mobile apps has changed how brands and enterprises engage with consumers. The survey demonstrates that consumers have clear opinions on what and how they want to communicate. Organizations must take this into account and use it as an opportunity to increase loyalty, customer experience and value.

Some consumers are using smartphones to obsessive levels. In the 18-24 year old age group 37% of respondents check their handsets at least every 10 minutes. Only 9% of respondents in the 55-64 year old age group do the same.

Frequency Of Checking Smartphone For New Messages Or Activity In A Typical Day

Frequency

% of Respondents

Every 5 minutes or more often

8%

Every 10 minutes

12%

Every 20 minutes

10%

Every 30 minutes

17%

Every hour

21%

Every 2-3 hours

15%

Every 4-5 hours

5%

Twice a day

6%

Once a day

4%

Source:SAP/Loudhouse, September 2014

74% of respondents state they should uninstall apps they don’t use, with 68% stating they have apps they don’t need. 81% believe sometimes a simple SMS is preferable to mobile app use. A key finding from the data in this study points towards application use maturing, following a pervasive wave of applications use, says the report.

Mobile applications have formed a huge part of consumer activity, spend, and preferences over the past 5 years. Gartner estimates global mobile application downloads in 2013 to have been around $102 billion, generating $26bn in sales. In the US, Nielsen published data in July 2014 suggesting that the average US Android and iPhone user used 26.8 applications per month, says the report.

Three quarters of respondents state that SMS serves to improve the overall brand experience when communicating with businesses. 76% feel that SMS makes them feel in control of a service when interacting with transport businesses, 81% with logistics businesses and 78% with banks.

74% of respondents agreed that SMS customer interactions improved their overall experience of the business when interfacing with the Transport sector, 81% in the Logistics sector, 78% in the Banking sector and 71% when dealing with Social Networks. Customers also stated that SMS services helped them to ‘feel that they are cared about’ and ‘feel in control’ of the services they received.

Agreement with statements about sending/receiving SMS when dealing with company types (% of respondents agreeing) 

 

Transport

Logistics

Banks

Social Networks 

I feel that they want to make my life easier 

79%

82%

80%

72%

It improved my experience of the organization overall

74%

81%

78%

71%

My data and identity will be protected

66%

70%

74%

63%

I feel in control/organized 

76%

81%

78%

70%

I feel that they care about safety and security 

77%

83%

78%

66%

These types of companies can improve the way that they communicate with me

78%

78%

78%

74%

Source:SAP/Loudhouse, September 2014

64% of consumers believe that businesses should use SMS to interact with customers more often than they do currently. Attitudes to using SMS to communicate with organizations:

  • Organizations should make it easy as possible for me to communicate with them   (82%)
  • I’m more likely to read a message sooner if it’s an SMS/text message than if it’s an email   (76% 
  • Using SMS/text message is a good way for an organization to get my attention    (70%) 
  • I think that organizations should use SMS/text messages more than they currently do  (64%) 
  • I’d like to use SMS/text messages more to communicate with organizations   (62%)

Consumers have the greatest appetite to use SMS more in future for services aligned to assurance needs, such as identity and security. Specifically, this was associated most strongly with receiving ‘peace of mind’ about their identity and data (39%) and receiving a quality service (36%).

With each sector, the rationale for using SMS is different, as are the implications for the customer. Purchase tracking, alerts and notifications, as well as monetary transactions via SMS, are all high value and important aspects of a service or overall brand. Evidently, simple messages with key information at critical times are very important for consumers and have positive implications for businesses if those interactions are managed well.

Concluding, the report says that every interaction on a smartphone directly with a customer is an opportunity to build brand, add value to the customer experience or buy and sell to a smartphone user, balancing security, service & sales. 

For more information from SAP, please visit here.

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