Is sms better than Mobile apps?

55 replies
From Wired Magazine. I confess I know nothing about sms marketing. I have always thought it was local marketing. There are not many current learning ads on this subject either.
SMS Is Best: Your Mobile Priorities Might Be Overrated, Underperforming
BY STEVE FRENCH
The following statement could cause side effects including shock, confusion, anxiety or panic: The most effective engagement channel that enterprises will leverage over the next year is SMS messaging.

Mobile apps appear to have reached the "peak of inflated expectations" on Gartner's hype cycle. Enterprise executives are realizing that the resources invested into building and maintaining a mobile app is not providing the expected return on investment. This is compared with SMS or MMS, which in many use cases can achieve the same goals with lower costs, while utilizing distribution channels preferred by consumers and employees alike. By the end of 2014, expect the mobile app frenzy to fade as global enterprises increasingly rely on SMS due to its ubiquity, mobile phone interoperability, ease of use and global reach.

According to Forrester, individuals send or receive an average of 35 messages per day -- that's over 6 billion messages worldwide every 24 hours. Unlike mobile apps or over-the-top (OTT) messaging services, all mobile users -- regardless of phone type, geographic location or data plan -- can send and receive SMS messages. This represents three billion mobile users with whom enterprises can potentially engage (Source: GSMA).

Additionally, consumers actually favor communication provided by SMS -- both to receive information from brands, or to inquire to brands themselves. A recent survey, completed by Millward Brown Digital, found that consumers worldwide welcome engagement with companies via mobile messaging. They're even willing to provide personal data, including location, to get relevant offers. Moreover, the majority prefers SMS over other marketing channels, including video advertising, banners and email.

Enterprises also prefer SMS and MMS messaging. While mobile apps are all the rage, there are glaring limitations in their ability to drive business results and increase interactions with customers effectively. For example, studies show that achieving sustainable application use is more challenging than enterprises might expect.

One recent survey from mobile interaction specialist Tyntec, found after 20 days of downloading an app, less than five percent (5%) of customers are still actively using the application, while eventually 80-90 percent of business apps are deleted altogether. If a company's app reaches only five percent of a customer base, how effective can it actually be?

Enterprise preference for SMS is more prevalent than you might think. In fact, an August 2013 Forrester study reported that 70 percent of enterprises today consider SMS the number one mobile technology, with an additional 16 percent planning to utilize SMS in 2014. SMS usage far exceeded other technologies like QR codes, voice recognition and push notifications, which are closely linked to mobile apps.

Additionally, the top three priorities for enterprise mobile communication strategies were to increase customer engagement, improve customer satisfaction and finally, acquire new customers -- all of which SMS can help to achieve.

The uncoordinated or "renegade" IT spending on mobile initiatives is destined to catch the eye of CFOs, forcing CIOs to lower the cost of mobile communications. SMS is poised to become the cost-effective alternative to disparate, high-cost mobile app development projects that only reach a small segment of enterprise target audiences.

To further reduce costs, CIOs will need to reign in overlapping mobile initiatives throughout the enterprise, and leverage mobile platform providers to consolidate cross-department uses cases -- versus working with single-purpose solution providers for each and every use case.

Taking a holistic, cross-functional approach by partnering with mobile experts will enable enterprises to focus on the most impactful use cases, better utilize constrained resources, and gain enterprise wide synergies by working with a few strategic partners.

Steve French is Global Vice President of Product Management and Marketing of OpenMarket.
SMS Is Best: Your Mobile Priorities Might Be Overrated, Underperforming | Innovation Insights | Wired.com
#apps #mobile #sms
  • Profile picture of the author rjdoll77
    yes sms is better than mobile apps because apps dos not give the proper way but the sms will gives you the proper way
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    • Profile picture of the author sachin121
      Yes SMS is better than the mobile apps because sms dons't matter on mobile networks.
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  • Profile picture of the author Sarah Operman
    I agree with rjdoll77, sms is the best always works well. Apps can have issues.
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    • Profile picture of the author joe ferdinando
      The thing about mobile apps is a user can delete the app anytime and ignore the app on there phone if not deleted.

      SMS is a message service and its a true fact that people will open and look at a text within the first few minutes of getting a sms text message. sms comes in different forms of marketing. Like for example you can have and use an sms mobile phone App. There are loyalty Apps that keep control of savings discounts and visits and awards for local businesses and have sms service built into the App.

      There are also mobile websites that have sms opt in and opt out pages and the admin side has an sms message system to send messages.

      I found using just an sms service to have people opt in and you send messages containing discounts, promotions and savings are best to use because your not relying on a user to use an app!

      It all come down to preference of the client and what they want to use for their business.

      Some clients like the idea of being different and having their own mobile App while others do not care!

      So we must be prepared and have in our toolbox the different solutions to offer the client!
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  • Profile picture of the author kzubiri15
    Originally Posted by seriousbiz View Post

    From Wired Magazine. I confess I know nothing about sms marketing. I have always thought it was local marketing. There are not many current learning ads on this subject either.
    Honestly, there are mobile application that is needed of the user,hence they more likely survive.but for small scale businesses like restaurants,clinics and such then they are the one that don't last only because of the maintenance cost(advisable to have mobile website instead).

    SMS is a good way of sending message now a days most especially to community niches.
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  • SMS all the way. I think the key component here is 2-way communication. We're exposed to advertisements all day everyday for products and services that we have no interest in. But if you're able to actually speak to a real human about a solution you have for their problem, they'll thank you instead of resenting you. Different marketing systems are starting to integrate SMS but it's only in the form of a blast like an email broadcast. So if you find a platform that also allows the consumer to ask questions via sms, you'll be better off.
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  • Profile picture of the author bonyrahman
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    • Profile picture of the author AUKev
      This is a senseless argument given the stated question.

      Is a hammer better than a flathead screwdriver?

      Same difference. It all comes down to what you are trying to accomplish. Every business does not need a mobile app. Every business does not need SMS. Some will need both.

      The cost of customer acquisition is a big factor in determining what might work best for them. I have apps with 10,000+ downloads (zero spent on marketing) just based on downloads from Google Play and iTunes. I can use Push Notifications to market to those customers. I cannot imagine the cost of getting 10,000 people on my SMS list, much less the cost for every SMS message sent.

      Give me a more specific hypothetical question and I think we can have a better discussion on whether SMS is better than mobile apps for THAT situation.
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      • Profile picture of the author Mo Goulet
        I've been using YadaText software since 2008 and have never had a problem and have never paid for a text message. I know all the arguments about smtp but if you search Google, you'll not find one complaint ...

        Verizon just recently printed an article teaching their customers how to send text messages from the computer. The main issue against mms markting (email to text format) is spam. YadaText solved that issue years ago.

        This is not a promotional reply since YadaText is now free to use and will soon be on download.com

        You can get your own copy from the website and test it for yourself. What Steve French has to say in the OP is absolutely true. I've worked closely with over 175 clients personally over the last 6 years who can testify to the simplicity of the program. I've always made more 100 times more money selling the service over selling the software which is why it is now free.

        Originally Posted by AUKev View Post

        This is a senseless argument given the stated question.

        I cannot imagine the cost of getting 10,000 people on my SMS list, much less the cost for every SMS message sent.

        Give me a more specific hypothetical question and I think we can have a better discussion on whether SMS is better than mobile apps for THAT situation.
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        • Profile picture of the author serryjw
          MO...I don't understand. IF the software is FREE, why does the merchant need to pay you for a service?
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          • Profile picture of the author Mo Goulet
            Originally Posted by serryjw View Post

            MO...I don't understand. IF the software is FREE, why does the merchant need to pay you for a service?
            They don't, if they want to download it, install it and set up the forms on their website, blogs and Facebook pages plus handle the administration of the program on their server.

            The YadaText Software was sold for the last 5 years. I just do not have the time to support users who do not understand basic html. FTP, databases and cron jobs. There is no money selling the software. You'll find most merchants will be happy to pay you to handle it for them. It's like SEO or Social Media Management. The merchant needs to manage their business and hire the right people to handle their IT.
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            • Profile picture of the author serryjw
              Ohhhhhhhhhhhhhhh, so you are doing what they COULD do, but are to lazy. It's been a long time since I have looked into SMS. What do you think of 2 way SMS?
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              • Profile picture of the author Mo Goulet
                Originally Posted by serryjw View Post

                Ohhhhhhhhhhhhhhh, so you are doing what they COULD do, but are to lazy. It's been a long time since I have looked into SMS. What do you think of 2 way SMS?
                I don't use 2-way...
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                • Profile picture of the author serryjw
                  MO...Is this something that is worthwhile?
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                  • Profile picture of the author Mo Goulet
                    Originally Posted by serryjw View Post

                    MO...Is this something that is worthwhile?
                    Have you been to the website?

                    Watch the videos and decide for yourself if you can do this.

                    It sounds to me that you do not understand enough about text message marketing.
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                    • Profile picture of the author serryjw
                      sorry, will do!
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  • Profile picture of the author Irishplay
    If the customer base for the business is local or regional then SMS is the way to go. If their customers are across the US. Then look to the details of the campaign. Apps can take the upper hand.
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  • Profile picture of the author TrumpiaTim
    SMS in my opinion allows for businesses to cast a wider net as only their loyal customers will be interested enough to download their app. For everyone else, they will have a higher chance of having the customer opt in via mobile keyword to receive some sort of instore coupon.
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  • Profile picture of the author MobiDev
    Don't you think that sms are considered to be spam nowadays?
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    • Profile picture of the author lilskip
      Originally Posted by MobiDev View Post

      Don't you think that sms are considered to be spam nowadays?
      That's what I was thinking too. At first sight, SMS is better because it is direct and it's right there for the person to read it, while the app requires an additional effort.

      However, it depends on the business profile, and sometimes they both work well just fine.
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    • Profile picture of the author DonaldRivers
      Originally Posted by MobiDev View Post

      Don't you think that sms are considered to be spam nowadays?
      I agree with you. I think Apps are better than messages. Apps give more soffisticated way to establish your thoughts with others.
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  • Profile picture of the author MYS
    Both are different tools. Not sure one can compare this. SMS is low cost, high & instant reach. It is kind of "DIRECT" Tool . Where as app is more brand extension created on mobile as well , where your customers are spending time. Eg: Newspaper , if they do not create apps , the customer will move to another newspaper apps. thus other corporation will have ability to market other extensions. This is kind of Television. Small Biz with help of APPS has as ability to reach mass audience. Cost will again dependent upon the tools you have used. HTML apps can be cost effective in comparison to Native apps.

    Amit
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  • Profile picture of the author Philpennington
    SMS is far better. just think the people who dont use smartphones so, no app at all. This is the reason with SMS you can reach at your potential customer end.
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  • Profile picture of the author Emily Abbes
    Hi,

    I'd say apps. Sms marketing used to be an effective tool (it still is), but now trends are shifting to app(s). Nowadays brands are taking it seriously.

    You can count on it.
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  • Profile picture of the author mix87
    My vote is for SMS. I'm using it for my business. I found a great company which can offer me cheap but reliable SMS service
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  • Profile picture of the author smithstone
    yes i think that mobile massage is better than mobile applications.main factor is that in mobile applications cell have not enough memory but applications are more heavy.and i think that sms service is much better than other
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  • Profile picture of the author Humbee360
    Here is why a lot of companies are moving toward APPS, instead of SMS.

    1. The Telephone Consumer Protection Act source

    The Telephone Consumer Protection Act (TCPA) regulates any means "to communicate with or try to get into communication with a person by telephone."

    TCPA has some strict-opt in requirements--namely, that consent must:
    • be in writing
    • come from the owner of the device
    • identify the advertiser and all companies that will have access to the customer's phone number
    • make clear the type of text messages the consumer is signing up for (consenting to event updates is not the same as consenting to ads)
    • state that standard messaging fees may apply
    • include how the subscriber can opt out at any time
    • Once consent is given, it can't be transferred between affiliates or by sale or other contract.

    People may bring suit for up to $1,500 per message (yikes).
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    • Profile picture of the author Mo Goulet
      Again this all refers to spam. The act itself was written in 1991 and the words sms and text were not even listed until the recent additions were added in October 2013. Here is the link the that...- New TCPA Rules Effective October 16, 2013

      You have nothing to worry about as long as your customers have opted in and requested to be added to your list. YadaText has been doing it for hundreds of people in 14 states since 2008. Redbox does it as well as many of the largest companies in the world. Text message marketing is only getting bigger.

      When you read the report it states that online forms are the same as " in writing."

      Originally Posted by Humbee360 View Post

      Here is why a lot of companies are moving toward APPS, instead of SMS.

      1. The Telephone Consumer Protection Act source

      The Telephone Consumer Protection Act (TCPA) regulates any means "to communicate with or try to get into communication with a person by telephone."

      TCPA has some strict-opt in requirements--namely, that consent must:
      • be in writing
      • come from the owner of the device
      • identify the advertiser and all companies that will have access to the customer's phone number
      • make clear the type of text messages the consumer is signing up for (consenting to event updates is not the same as consenting to ads)
      • state that standard messaging fees may apply
      • include how the subscriber can opt out at any time
      • Once consent is given, it can't be transferred between affiliates or by sale or other contract.

      People may bring suit for up to $1,500 per message (yikes).
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      • Profile picture of the author gigiswealth
        I am an affiliate marketer and I have been looking for effective ways to get my product out to my target market. After reading everyone's input on witch is better "sms" or "apps". I have decided to test out both the SMS (staying within the guidelines of the spamming laws) and the apps to see witch on yields the best results.

        Thanks to everyone here on this form.
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        • Profile picture of the author shaunwilliams
          Hi

          A 2 way sms platform with cell phone verified leads is the way to go .
          Here's some Mobile Statistics to consider:

          → 97% of text messages are opened vs. 5% of emails

          → 83% of text messages are opened immediately

          → 91% of adults keep their smartphones within arm's reach.

          → 82% of Americans don't leave home without their
          cell phones

          → There are 6.8 billion people on the planet at present, & 4 billion own mobile phones. (But only 3.5 million use a toothbrush!

          → Over 82 percent of U.S. adults own a cellphone!

          → 4.1 Billion text messages are sent daily

          → Mobile users will out number PC users by 2013

          Marketers, the numbers don't lie! So...Will these Facts influence your decisions to Go Mobile during 2014 and beyond?


          Thanks


          Shaun
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  • Profile picture of the author Justin Ford
    Absolutely i will suggest you for SMS. Because SMS is less expensive than other mobile apps. You may choose it right way..
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  • Profile picture of the author Agryd
    Of-course message is the best because it can be sent and received from any mobile phone while mobile app can not do this.
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  • Profile picture of the author Tim Franklin
    Definitely something to consider here is how effective will SMS continue to be.

    The FTC, has seriously restricted SMS marketing, by simply doing one thing.

    Requiring in Writing, (electronic signatures is not in writing)

    An agreement with the recipient of the SMS.

    Meaning that you would need to get it in writing, that you are allowed to send out an SMS message, (now that is in the US) since this forum is international, some of you will likely not be affected by this marketing nightmare.

    In an Application, you have many more opportunities, since Push Notifications are not regulated, in the same was as SMS, (at least not yet)

    Then at least in the US, that makes an application much more viable.

    Take it one step further,

    In an Application, you can encrypt and store, information on the device, meaning you have the opportunity to actually build a place to do business on that users device.

    (If your application is useful and valuable to the end user, then you can market just about anything)

    If your application is a nuisance of little value and does not provide content that is useful to the consumer then your app will probably not stay around long.

    Its really all about what you do with the opportunity you have.
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  • Profile picture of the author Bruha
    In regards to the prior written consent form of this discussion, here is a line taken from the FCC website:

    Telephone Consumer Protection Act of 1991 | FCC.gov

    "The Commission also concluded that consent obtained in compliance
    with the E-SIGN Act will satisfy the requirements of its revised rule, including permission obtained via an email, website form, text message, telephone keypress, or voice recording."

    To me this is stating that when you have your customer opt in and then confirm that they are opting in, that would satisfy the requirement of written consent. I'm not a lawyer, so please check with your attorney before taking action on this.

    Just trying to provide some additional info to the conversation.
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  • Profile picture of the author Neuveville
    Well, In Peru, my country at the first sing of an sms with advertisement we delete it.
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  • Profile picture of the author RaymondB
    seriousbiz what is better is you combine both as they have different benefits.
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  • Profile picture of the author toddchaney
    SMS is better as it reliably notifies the customers.
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  • Profile picture of the author webbo83
    I cant see SMS being better, infact I hate SMS marketing, I feel less in control and reply with the STOP reply straight away. If your apps add some use to the user then apps is the way for sure
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  • Profile picture of the author Saidheddadi
    SMS is a message service and its a true fact that people will open and look at a text within the first few minutes of getting a sms text message. sms comes in different forms of marketing. Like for example you can have and use an sms mobile phone App. There are loyalty Apps that keep control of savings discounts and visits and awards for local businesses and have sms service built into the App.

    There are also mobile websites that have sms opt in and opt out pages and the admin side has an sms message system to send messages.
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  • Profile picture of the author JTV
    AUKev has got the right idea - it isn't so much about "which is better" as it is about "what do you want to accomplish?"

    It might not be possible to reach as many people (like, 10,000) with SMS, whereas you could do that with an app. On the other hand, probably only a very small amount of the people who receive the app advertisement will make you money - the people who have opted-in to the SMS service are interested in received advertising and information about new products, services, deals, offers, etc.

    But I think SMS marketing is a very powerful tool regardless.
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  • Profile picture of the author TrumpiaTim
    With the TCPA regulations, they are coming down very hard on SPAM via SMS. At fines of $1,500 per unsolicited text message for not opting in their recipients, most spammers have been turned away and the thought of the hefty fines for running a sms mobile text marketing campaign to numbers that have not opted in properly.
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    • Profile picture of the author Mo Goulet
      Originally Posted by TrumpiaTim View Post

      With the TCPA regulations, they are coming down very hard on SPAM via SMS. At fines of $1,500 per unsolicited text message for not opting in their recipients, most spammers have been turned away and the thought of the hefty fines for running a sms mobile text marketing campaign to numbers that have not opted in properly.
      Since January of 2013 (almost 2 years now) The FTC has investigated a total of 8 companies for SPAM via SMS. All of them were know to send over 100 million spam messages by text. There have been ZERO investigations into small business type modeling. There are millions of these small companies using SMS. There is ZERO chance of anyone who is on this forum in the small business community who faces the remote possibility of their being investigated.

      ALSO, the FTC has no power to determine your guilt or levy a fine. The only function they have is to levy a complaint. The complaint is not a finding or ruling that the defendant has actually violated the law. The cases will be decided by the court. If you are reading this, the odds are again about 1 in a million you will ever be noticed. It takes hundreds of complaints before someone even thinks about looking at it.

      I'm not putting a stamp of approval on SPAM by any means. I just do not think anyone who is on this forum has any need to be concerned. Most all of us use a system that far exceeds the fair practice rule.
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      • Profile picture of the author James Gordon
        Developing mobile app is a great way to increase the business sales. So according to me, Mobil app is better than SMS
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  • Profile picture of the author JTV
    Even if you don't get "caught" by the FTC, it's nevertheless wise to ask yourself what you hope to gain by spamming people with text messages. Really, you could earn much more by taking a bit more time to craft a legitimate, opted-in list of people who WANT to receive your text messages. Spam is shit, to be honest. And it makes the person sending it feel like scum, if they have a moral compass.
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  • Profile picture of the author clevelandslim
    Text messaging has greater reach than mobile apps. That’s because mobile apps lack a vital feature of text messaging: simplicity. There are thousands of mobile apps. But none of them will get in touch with an individual in the same personable manner as a text message.
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  • Profile picture of the author Gaurav36
    Text Marketing allows timely delivery of information. Happy hours or discount coupons are some of the best offers can be provided to the customers. Promotions,Schedules,QR codes and contests are the best things to do.
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  • Profile picture of the author johnjcallanan
    I know a few people who are doing well selling apps to businesses but how many apps can a person have on their phone? After awhile, people start deleting them from their phones unless they truly love the company that the app is connected with. Now as far as SMS marketing, I believe that's the future. I love email marketing and will always build my lists, but I believe we will see a surge on platforms that build an SMS data base for sure.
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  • Profile picture of the author RaymondB
    they both have different value.
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    • Profile picture of the author fanjie
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      • Profile picture of the author John Matthew
        Sending SMS regularly will make your clients irritate. But by allowing to see your store through mobile app as per their wish will increase the sales of your business. So Mobile App is better the SMS.
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  • Profile picture of the author bbrmckinney
    For me mobile app works better. First it can strengthen and keeps your brand stay on top. Second you can track and control the data through internet which gives you quick results.
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  • Profile picture of the author JTV
    The only issue that I have come across before is that an SMS seems 'invasive' to some users whereas others feel as though an app is something they installed themselves, therefore it should not be a problem to provide them with more information about your service or product. But yeah, you cannot beat SMS for effectiveness.
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  • Profile picture of the author Jimmy James
    Yea SMS has way more benefits some examples:
    -Text messaging has a wider reach
    -Text messaging has more flexibility and Text messaging is a conversation

    ...It is The Future!!
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  • Profile picture of the author nickjen
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    • Profile picture of the author James Gordon
      Using Mobile app is better than sending SMS. Choose a perfect mobile app and acquire full benefits.
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  • Profile picture of the author PressureCooker
    My vote goes to sms because you can reach more people - even if they don't have smartphones they can still likely get text messages on even basic cell phones.
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    • Profile picture of the author mcfcok
      Depends what the local business owner wants.
      If it's just messages into peoples cell phones the SMS will work well.

      An app gives businesses great branding differentiating themselves the opportunity for there customers to reserve tables book an hair appointment, book a round of golf, purchase products via the app a takeaway can have people order food to their home and make payment via the app. Engage with social media via the app create loyalty programmes have users upload images to the app have a fan wall plus lots more...

      It all depends what the business is looking for imo.
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  • Profile picture of the author stan farrier
    I believe that the sms is actually better than the mobile apps because they are more immediate and easier to see!
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