Business SMS use on the up

Johannesburg, 15 Feb 2008

Business use of SMS communication methods is fast replacing marketing as a driver of the market, according to Piet Streicher, MD of BulkSMS.

"A lot of companies have learnt the hard way that spamming customers with unsolicited SMSes is not just inappropriate, but ultimately damaging to the business and its brand. These days we are seeing the SMS channel being used in completely different ways," he explains.

Streicher notes that companies - and their advisors - are seeing SMS as less of a marketing tool than a business tool to communicate relevant details to customers.

"Take for instance the banking industry - SMSes are being used to warn against fraud. In insurance, it's often used to notify customers of the progress of applications through various processes or departments. And in schools it's being adopted as a parent notification system on things like absenteeism, issuing of reports and advising of parent meetings," he reveals.

However, Streicher admits that rogue elements continue to be a problem for the sector.

"We still see things like single SIM card spammers or companies acting on their own outside of best practices. However, professionals in this industry are governed by the Wireless Application Service Providers Association (WASPA). This body has played an important role in keeping companies within accepted practices, but those in the grey areas are hard to manage," he says.

Booming business

The more communication-driven usage of the SMS channel has not hurt business either, says Streicher.

"We have seen no slowdown whatsoever in SMS revenue. In fact, I am always surprised by how this sector continues to deliver such strong growth. Uptake for communications use has seen this side of this business exceed the numbers of marketing and entertainment."

For BulkSMS, this has highlighted an opportunity for expansion into the UK market. Three months ago, the company added a local office to provide better service to that market, as well as share some of its learnings from its South African market.