Customer Relationship Management:SMS - An Excellent and Cost effective Enabler of Mobile CRM and Customer Loyalty

Guest Post by

Shanmugam Gnanasambandam, Principal Consultant, Enterprise Solutions, Infosys Technologies Ltd.

Building Customer Loyalty, should it always be a costly affair? Not really.

If the ultimate objective of CRM strategy of an Organization is Customer Loyalty, then they can effectively achieve this, by making best use of the mobile killer application, SMS or Short Message Service.

We as customers would like to receive timely information updates (based on our preferences), on our mobile phone (anywhere, anytime), from our service organizations, say banks, travel companies, book stores, movie halls, retail stores, news agencies, to name a few. This is possible through SMS, which is a simple, efficient and cost effective enabler of Mobile CRM. SMS based information communication helps organizations to build Customer Loyalty, in the long run, by providing the right information to the Customer, at the right time, consistently, based on their preferences, needs and requirements.

What really makes SMS a big success, are the following notable benefits:

It is a cost effective way of communication (bulk SMS costs less for the service companies)
SMS can be delivered even in basic mobile phone models (we do not need smart phones, internet/data connectivity), hence it is a simple means of communication to individuals or groups
SMS supports both, messages alerts to be sent from service organizations to Customers (Push) and Customers can also request for specific information (Pull), as per their needs and requirements
SMS can be delivered to the end users in their local languages (across countries and within a country), which is easily readable and understandable by them
It is a time proven technology and the best part is, the messages are delivered when your mobile is 'ON' and even if it is switched 'OFF' (for a short period), it is delivered when you again switch it 'ON'

Some of the SMS alert applications, which are successfully deployed by organizations to establish Customer Satisfaction, are,

Banks: SMS alerts to notify credit/debits to your savings bank account
Travel Agencies: Notifications of travel ticket confirmation, delay in departure/arrival (of flights, train etc)
News Agencies: Your favorite news update, be it current affairs, business, sports, entertainment...
Stores: SMS alters from your book stores or retail stores on the forthcoming events such as a book launch or bargain sale respectively
Schools: Key information updates to parents on school events and on the well being of their children

These are just a few examples and the range of SMS applications for Mobile CRM is just left to our own imagination based on our understanding of the Customer preferences and priorities.

Today, we are progressively moving from basic phone models to smart phones. Still, due to the key benefits of SMS, highlighted above, SMS will continue to be one of the most efficient and cost effective communication channels to enable Mobile CRM and Customer Loyalty. However, one key aspect to be considered is to provide the Customers only the information, which they wish to receive and not to disturbed them with unwanted information.

About the Author

Shanmugam has more than 18 years of experience in the Telecom/IT field, especially in the functional areas of Customer Service Support, Project Management, Product Development & Management, Consulting, and Competency Building. He has worked in various Technology areas such as Enterprise Voice/Telephone Solutions, CRM/ Contact Center/CTI Solutions, Telecom Network Management, Intelligent Networks, Billing & Traffic Performance Measurement Solutions for Carriers and Mobility Solutions. Shanmugam is passionate about teaching, mentoring and sharing his knowledge, in his areas of work.