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Monday, November 1, 2010

How to mess up a customer relationship with SMS marketing

Mark Bridge writes:

Do you want to know how to foul up your customer relationships?  How to use mobile marketing to reduce customer loyalty?  Then gather around, dearly beloved, for I have a case study you're sure to appreciate.

This is a true story. I've not mentioned the company involved because I still hope they'll repent – but the facts remain exactly as I tell them.

A couple of years ago, I would occasionally go out for a meal with my lovely girlfriend. (She's since become my lovely wife; you don't need to worry about that part of the story). Once, when booking a local restaurant, they asked me for a contact number in case there was a problem. Perhaps unsurprisingly, I gave my mobile number.

When that restaurant sent me a promotional text message some weeks later, I wasn't happy. To start with, I hadn't given them permission to use my number for marketing. And it wasn't possible for me to opt out automatically. Instead of a telephone number or 'shortcode' number, the company name was shown as the sender of the message. That meant I wasn't able to reply with a 'STOP' message. So I phoned the restaurant and asked to be unsubscribed. I was given an apology and told they'd remove my number from their list.

It happened again. This time I wrote and asked to be removed from their contact list. And then nothing. Nothing for two whole years. I'd almost forgotten about them. Until last month, when I received a text message telling me not to worry about the spending cuts (!) and offering a homemade pie or burger in a deal "for tonight only".

Marketing text messageYou're probably not surprised to hear that I didn't tell my wife to grab her coat. (If we'd wanted a beer and a burger, we'd have walked to the local pub). And there was still no ability to opt-out of the SMS messages by replying STOP. Still no valid address to which opt-out requests could be sent.

I hadn't finished muttering under my breath when another message arrived six days later. Yes, nothing for two years, then two messages within a week. Followed by a third message the same day. "Bring your own bottle every Tuesday night". "Early Bird Special from 8am – 9am".

So I've written to the company again, this time – in a slightly grumpier style – pointing out that the Privacy and Electronic Communications Regulations 2003 are designed to prevent this kind of unwanted messaging.

Quite simply, you're not allowed to send marketing text messages without including some kind of reply option. "A person shall neither transmit, nor instigate the transmission of, a communication… where a valid address to which the recipient of the communication may send a request that such communications cease has not been provided".

And you're only allowed to send these messages to people who've been given the option of 'opting out' and haven't done so. "A person may send or instigate the sending of electronic mail for the purposes of direct marketing where… the recipient has been given a simple means of refusing the use of his contact details for the purposes of such direct marketing, at the time that the details were initially collected, and, where he did not initially refuse the use of the details, at the time of each subsequent communication".

So that's the story so far. I'll let you know what happens. As I mentioned earlier, I'm hoping for a happy(ish) ending - but I doubt I'll be going back to the restaurant.

[How to complain: Information Commissioner's Office (pdf)]

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Opinion Articles

A Sure Signal from Vodafone

Mark Bridge writes:

Today I've been using my mobile phone at home. For many people that’s not an unusual thing to do – but it is for me because, around here, coverage indoors isn’t particularly good. Downstairs it’s previously been non-existent. But this morning everything changed.

Author: The Fonecast
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Physician uses cell phones to bring health care to the poor

Natalia Ardanza of voanews.com writes:

In Africa there is another use for mobile phones. Public Health workers in Kenya are now using mobile phones to gather health information from patients in remote areas and upload it to the internet for instant analysis at distant centers. And it is all happening thanks to Dr Joel Selanikio.

Author: The Fonecast
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Making dumb touchscreen phones was a smart move

Mark Bridge writes:

I remember a report from last year that said ‘non-smart’ touchscreen handsets – generally those without a popular operating system – would be bad news for mobile operators.

Conventional touchscreen smartphones tended to result in higher-than-average ARPU thanks to their early-adopting tech-loving users, their web-friendly browsers, their email programs, their app-friendly operating systems and their fast 3G connectivity. However, dumber touchscreen devices – those with a manufacturer’s own proprietary OS and perhaps a clumsier browser – could generate 23% less ARPU than smarter phones. So, if touchscreen dumbphones weren’t good for networks… and weren’t really good for consumers either… manufacturers wouldn’t really bother with them. Right?

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"Hello Nexus One" I say...

James Rosewell writes:

Mark’s been encouraging me to write an opinion piece on the Nexus One for the last few days and I’m finally putting fingers to keyboard to share my experiences. It’s taken so long because this phone has so many features. On a positive note I could go into details about the gorgeous screen, the Android Marketplace that will out-sell Apple’s over the next 18 months, the built-in satellite navigation service and the speedy processor that makes everything run smoothly in real time. Or on a less positive note, the touch screen keyboard that sucks (think carefully about this if you’re a heavy texter or emailer, it’s even worse than the original iPhone), the lack of ActiveSync for Calendars and Tasks, no support for WMA music files or the clunky zoom functions on the web browser.

However I’m going to focus on voice dictation. Nexus One is the first phone I’ve used with this feature.

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The Amazon Kindle prepares to fight the Apple iPhone and Tablet

Mark Bridge writes:

Here’s a curious thing. Firstly, Amazon creates the Kindle. It starts selling the Kindle in the USA with a mobile deal that lets users download electronic books and newspapers wherever they are. Then it starts selling the Kindle to us in the UK, although – hang on a moment – it’s not talking about a UK mobile deal. Instead it still seems to be ‘roaming’ from the AT&T network. Next comes the larger-screen Kindle DX – also roaming away when it reaches our shores. And now Amazon is talking about third-party downloadable applications for the Kindle. Yes, a mobile device with downloadable apps. Hold that thought; I’ll be returning to it.

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