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Where Does SMS Fit in the [Social] World?

I wanted to see if I could write an entire post using an iPhone, for some reason, it seemed an interesting way to think about SMS, (the protocol behind text messaging) as a channel communication.  I did get the first 250 words ‘penned’ on the device, but failed to complete the task. I wanted to learn more about SMS, both technically and culturally. SMS/texting is a bit Jekyll and Hyde, as it seems to be among the most private form of communication available, yet, at the same time it is extremely social (ask a teenager), there in lies the intrigue. During my journey, the most consistent thing I found, was inconsistency! In my current role with Sword Ciboodle, spending time thinking about intelligence in the contact center consumes a lot of my time – Where does SMS fit? Do you have the answer?

I started my exploration with a query on Twitter. My simple question was “If someone hands you a business card, there is implied permission to call/email. What about texting? Why?” As some responses began to come in, my curiosity was piqued and I began to wonder about  the broader SMS topic as well as where this peculiar channel fits into the customer service as well as the Social CRM realm. I then began to think about forms (requests for data online and off) and wondered if by giving a mobile number, there is an implied permission to use SMS. I expanded my research to the usual places (Google and Wikipedia) as well as to request the assistance of a few good friends.

SMS is often like ‘phoning from under the table’. Were you ever in a meeting and it was running over time, and you had to SMS your next meeting, or SMS the person chairing the meeting so you could get out? That’s the sort of back channel, back door to the main conversation that SMS enabled. It’s not the main conversation, it augments the main conversation. Kids do this all the time.  Five kids in a huddle are talking to one another face to face, and another ten people via SMS, at the same time, and they are often in the same conversation. –  Paul Sweeney, Friend and Head of Innovation VoiceSage

Paul’s comments really struck a nerve, mostly on the wide and varied use of SMS. His point on ‘augmenting’ the main conversation is a good and important one. In this case, it is like a back channel, with urgency and immediacy attached. I am not sure about your phone, but SMS seems to take priority, popping up and interrupting everything else. That said, I  fear that we are no closer to defining how exactly SMS fits into a channel, social or communication strategy. Still struggling, I decided to reach out to another friend, Barry Dalton, Senior Vice President of Technology, for Telerx. Barry hit on a couple of  excellent points, and finally I can being to see how the pieces fit together:

When I call you, whether you’re a business acquaintance or dear friend, you have the option of picking up or letting the call go to vm [voice mail].  SMS does not afford the receiver the same control.  Have you ever sent a text and not gotten a response?  What was your feeling?  The sender knows the text went through.  The expectation is that it will be responded to, pretty immediately.  Whereas a voice mail left has a lesser expectation of immediate, or any, response.  So, in that sense, with that expectation from the sender, I think it is viewed as more invasive and thus more personal.  As for the person to company, its not so much the intimacy as it is the expectation of immediate response.

One particular point struck me, and that is that SMS is more invasive, it is not only push, but it is push NOW! As Barry highlights, there is a bit of uncertainty associated with not receiving a reply to a text. With family, the order is; Are they ok? Is the phone off? Am I being ignored, how rude! With business associates, it is the same list, just in reverse. As Paul stated “It retains those characteristics of being “of the moment”, thus the etiquette that has evolved.” Though I am not quite sure what the etiquette has evolved to, that is the question. Barry added some great and important points. As I mentioned in a previous post, I did spend some time on a Skype call with Graham Hill on this topic and Graham was of like mind here – “When you give out your mobile number, there is not an expectation that people will initiate the conversation via text”.

A bit of background and some data

According to Wikipedia, SMS / text messaging is the most widely used data application in the world, with 2.4 billion active users, or 74% of all mobile phone subscribers. Yes, that is both bigger than Facebook, Twitter and YouTube combined and more far reaching. The popularity is greater in emerging markets as well.

Starting with a little compare and contrast:

  • For India: Mobile phone usage is (752 Million as of Feb 2011, with a 65% penetration) larger than the Internet usage which is (100 Million as of December 2010, 8.5% penetration). Various sources suggest that SMS usage in India is about 60% **.
  • For the United States: Mobile phone usage sits at about 293 Million mobile phone users, with a 93% penetration. The number of Internet users is about 240 Million, with about a 77% penetration. Percentage of US subscribers who use SMS (versus number of messages) is unclear to me at this time.
  • Both countries have about 40% Internet usage from their mobile devices, but the raw numbers are obviously quite different.

Getting back to SMS, while mobile phone talk usage use increased 1.8x between June 2005 to June 2010, the number of text messages sent in the US increased 37x in the same time period (CTIA). As I alluded to above, I believe SMS usage is skewed, especially in the US and hard to put percentages around, unless you slice and dice the data across many variables (age, gender, education, location, business…) SMS has an interesting history as well. SMS is sent over the control channel required between the mobile handset & the tower, which is the basis of the 163 character limitation. “SMS is sent over the control channel required between the mobile handset & the tower. This is a channel that the telecom operators need to have, its sine qua non – an inescapable cost thats already written off.” (Prem Kumar) The control channel is something that is needed, existed already, is underutilized bandwidth and did not cost the carriers anything extra – think about that when you consider your bill.

The Task at hand, Where Does SMS Fit?

I am not talking about ‘Social’ everthing , I am talking about communications, protocol and etiquette. When someone hands you a business card, the current standard is phone and email. Often, there are two or more phone numbers, office, mobile and maybe fax. More sophisticated folks may use Google voice, or some such technology, giving only one number. When a business has your mobile number they need explicit permission to use it for marketing purposes. According to Graham, businesses have not fully grasped the potential of SMS. My perspective, is that they are focusing on all of the other applications which sit higher on the stack of the mobile device. SMS is a perfect medium to drive a call to action. The character limitation is a perfect ‘excuse’ not to include details, because you cannot actually do it.

Where and how should SMS fit into the overall customer experience? SMS seems like a powerful yet simplistic communication protocol, which everyone with a mobile device has access to (though in the US there is an extra charge). It is fast, and works through walls (you know, those building where phones barely work, yes SMS works). There are some fantastic uses of SMS:

  • Your car is ready, please come by and pick it up, thank you for your business
  • You are nearing the limit on your <insert many things>, would you like to add to the balance now?
  • We are running a special on double mocha lattes, please stop by, show the attached code
  • Here is your boarding card sir/madam, just use the attached QR code to board your flight.

Notice that the main use is outbound, SMS, in the context of business to consumer does not appear to be (not in the US anyway) a synchronous, by directional form of customer communications. I would like to hear a good example of a customer using an inbound SMS to take action. Send ’em if you got ’em! What are the boundaries of your mobile number? Would you expect a new acquaintance to send you a text message?  What if an online form asks for a mobile number? Say for your kids school, the cable company, the electric company? Is the answer the same?

Yes, I am asking a lot questions in this particular post. Some friends made some interesting comments when I asked the question on Twitter the other night. Barry suggested that Customer Service has skipped SMS, which I’m some industries is true. But, there is value. A special thanks for friends listed below as well as those through Twitter who offered feedback during my exploration. I would like hear your thoughts!

Comments on this entry are closed.

  • scorpfromhell February 27, 2011, 11:41 PM

    As I was reading this post I could not help being reminded of this post I read a year back on Communities Dominate Brands, about the importance of SMS in US midterm elections in 2010.

    Also, I truly believe that you guys have a lot to learn from India where it comes to SMS. 😉 And as our friend Sameer Patel reminded us, its probably not as much a cultural thing as a technology adoption maturity thats the difference here.

    Finally, thanks for including me in the discussion Mitch. :)

    • Mitch Lieberman February 28, 2011, 4:33 AM

      Prem,

      Thanks for stopping by and participating. It is funny to think about this as a technology adoption issue. It is correct, but SMS, by comparison is much older than many other technologies which are passing it in adoption rates. If you take a look at the numbers of Internet users and penetration, I would ask the question of whether SMS will reach the same level of use and adoption as other location based, or communication applications (protocols) – or not? My sense is that SMS in the US will always lag ROW and will always be a bit different.

      A fun conversation for sure.

      Mitch

  • Steve Chipman February 28, 2011, 12:21 AM

    I’m glad that you brought up some of the questions that you’ve asked in this post. As you note, SMS has massive and growing global adoption — yet I’ve heard it called “old technology” next to smart phone apps.

    We’ve made some effort to tie SMS to social media, by putting our social media management platform in between those texting and the likes of Twitter and Facebook. Here’s a hypothetical use case we developed that also explains how the technologies are integrated:

    http://www.youtube.com/watch?v=EYWe3uSjEsY

    • Mitch Lieberman February 28, 2011, 4:36 AM

      Steve,

      Thanks for stopping by and for sharing the video/use case. This is a very nice example of integrating SMS into the shopping experience. Much appreciated.

      Mitch

  • nedkumar1 March 6, 2011, 4:09 PM

    Hi Mitch,
    Great post and I agree with you on the many uses of SMS. One thing I do see however is a broader use of SMS in Asian countries – compared with US & Europe. And I am saying this mainly from a privacy standpoint. More and more FTC and other governing bodies are pushing for stricter laws when it comes to cookies, privacy, sms spamming etc.

    Having said that I do agree with you that SMS is a great channel to compliment your existing ones not just for customer service but even for customer acquisition, retention etc. (it can even reduce the ‘stress’ on the email campaigns that a company sends out). What firms should do (I think) is to proactively take a permission-based marketing approach and ensure they have a good list of customers approved for SMS communications. This will reduce possible impacts from any regulations and also provide them with a pool to start out with.

    Enjoyed the read.

    Best,
    Ned

    • Mitch Lieberman March 6, 2011, 6:36 PM

      Ned,

      Thanks for stopping by, glad you enjoyed the post. I think SMS is going to be an interesting channel for a long time. It will be fun to watch it as it grows and as adoption alters (younger generation definitely use this very different, I just watch my kids).

      Mitch