At an online marketing conference this week, one of the speakers shared a Twitter case study, a campaign focused on building foot traffic to the West End of London.  They sent out tweets about celebrity signings and discounts in shops to entice people to linger in the West End rather then head home.  There were no metrics associated with the campaign, after all, as the speaker noted, ‘we can’t exactly install turnstiles in the West End to measure a spike in foot traffic.’  Nonetheless, all marketers seek metrics and the agency was pleased with the 7,000+ retweets in the initial phase of the campaign.  An audience member suggested that they offer a voucher that could be printed and presented to West End merchants.  A voucher to be printed?  Why not SMS?  Not only does SMS give audiences an easy way to redeem an offer, but it also gives the sponsoring organization a means by which to engage with ongoing dialogue - it turns a campaign into an ongoing marketing channel.

In the hype around iPhone Apps, Twitter and location-based services, SMS has become lost in the fray.  Indeed, SMS marketing should be implemented with consideration.  After all, as featured in recent Forrester blog by Nate Elliot, more than twice as many people use SMS as use the mobile internet or any other mobile service.

So what’s the problem?

The advantages of SMS marketing - direct targeting on a personal device - also create challenges.  How many times have you received a spam and quickly deleted it or more alternatively become a little angry at receiving it?  Not good for brands who want to engender positive communications with customers.

That being said, by following the basic tenets of direct marketing - opt-in, easy opt-out, offer something of value - SMS can be very effective.  It’s got reach, it’s personal and according to Forrester, it’s effective as a mobile marketing channel - garnering response rates of 5% to 25%.

Beyond mobile marketing, companies should consider SMS as an opportunity to engage in dialogue with customers.  A company I’m working with - Datasquirt - offers software called CONTACT which enables companies to interact with customers via SMS and other non-voice channels including email, webchat and e-fax.  The solution has been highly effective in marketing and also for industry specific needs, such as debt collection, voter enrollment and customer service, to name just a few.  Companies using CONTACT are seeing impressive ROI in the form of improved productivity, reductions in avoidable input, higher throughput, greatly enhanced levels of service and often reductions in headcount - all of which are great benefits, especially in these recessionary times.

Receiving an SMS from a bank lender to acknowledge receipt of documents or approval of a loan is a win-win for both the lender and the customer.  It also opens the door for richer communications and more robust banking applications with the mobile internet.

SMS - it can drive results now and pave the way for all those more engaging iPhone apps, location-based services and the mobile internet.  Why not include it in the mix?