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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

T-Mobile and Orange isn't a big deal

Mark Bridge writes:

It’s the telecoms industry deal of the year. T-Mobile and Orange form a joint venture. The UK’s "big five" networks (or "big four", depending on your predilection for Hutchison 3G UK) will now be a "big four" (or "big three", if you don’t include 3. Confused yet?)

Everyone has an opinion. On Tuesday I was asked for mine.

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Here’s one for the laydeez

Mark Bridge writes:

Once upon a time, I’d probably have described myself as a feminist. These days I probably wouldn’t. Not because my opinions have changed, just because I’ve realised there are a lot of women who’d argue that I can’t be a feminist because of my male undercarriage. And me, by birth and possibly by education, therefore being part of the problem – not part of the solution.

Right, disclaimer over. I’ll get to the point. You want a mobile phone that’ll appeal to men...

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Mobile phones cause brain tumours?

Mark Bridge writes:

Mobile phones fry your brain. That’s been a warning from some people pretty much since the first cellphones appeared. And although the mobile phone industry has changed and the technology has advanced, the warnings haven’t gone away.

Ten years ago, the Independent Expert Group on Mobile Phones was set up to look at concerns about the possible health effects from the use of mobile phones, base stations and transmitters.

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Enthusiasm is my enemy!

Mark Bridge writes:

Enthusiasm is one of the great intangible powers of the world. It’s attractive, it’s compelling and sometimes it’s dangerous. And – yes, I’m going to try to keep this relevant – it sells mobile phones.

I was reminded of this the other day when I read a Sunday Times article about Apple’s Steve Jobs.

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A Blyk day

Mark Bridge writes:

Marketing, not unlike football, is a funny old game. I don’t claim to be an expert in either… but every so often something happens that starts sowing the seeds of doubt in my mind. And no, I’m not thinking about Liverpool's penalty claims in Sunday’s game at Tottenham. I’m thinking about Blyk.

Here at The Fonecast, we like Blyk. They shook up the industry and worried some of the big names when they arrived with their youth-focussed virtual mobile network two years ago. We interviewed their MD Shaun Gregory in May last year. And now they’re quitting the MVNO game in favour of arranging advertising deals for networks.

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