SMS/Texting: The next arrow in pharma/healthcare marketers bag
SMS/Texting was a hot topic at a recent client meeting. Like many industries, pharmaceuticals and healthcare are also challenged with the tough economy and as such are adjusting their promotional activities and leveraging lower cost channels that align to customer preferences. SMS/Texting appears to have a place in this particular customer’s arsenal for several reasons:
- Segment focus: one of the most grow-able and valuable segments for this customer is teenagers. SMS/Texting is the preferred communication medium for teens with teenagers texting 7X the rate of phone calls.
- Cost: SMS/Texting is approx .15 cents per text. This is a fraction of the cost of an outbound call (estimated to be a minimum of $2.50 per interaction) or direct mail ($.19 postcard/.41c standard mail)
- Compliance: SMS/Texting follows similar pharma/healthcare industry regulations as other communications channels. This particular healthcare company is attuned and abides by the HIPPA and COPPA guidelines.
SMS/Texting does present several challenges for pharma and healthcare companies so it’s important that companies have a good understanding of SMS business and compliance requirements (see http://www.mmaglobal.com/bestpractices.pdf) and/or rely on outside agencies to assist them with SMS/Texting strategy and execution prior to incorporating SMS/Texting into their arsenal.
Key Challenges include:
- Opt & Preference Management Framework: SMS/Texting requires specific opt-in and sometimes "double opt-in". General opt-in for email, fax, phone or other channel interaction is not sufficient. Companies must determine the right strategy and then do what is necessary to "operationalize" the SMS/Texting Opt and Preference Management framework.
- Data Collection: In parallel to establishing an Opt & Preference Management framework, companies must determine how they are going to collect and store mobile phone numbers. In our experience most companies do not explicitly request mobile phone numbers during registration or other customer interactions. Instead numbers are often collected and stored as primary and secondary making it difficult to determine if a Text Message can be sent. The problem becomes more complex when promoting a brand to the pediatric market. In this instance marketers must get parental consent and then be able to identify the mobile phone number that aligns to the child vs. the parent. Marketers should work closely with their database manager to make the required database table changes; consider enhancing existing customer records via a mobile phone append; and perform a data cleansing exercise using a 3rd party company that can scrub your customer records and determine which phone numbers are land lines vs. mobile phones.
- Varying Carrier Policies: Verizon, Sprint, and others have different campaign approval processes, requirements, and time frames making SMS program management difficult and risky. As a way to minimize risk and costs, marketers should leverage vendors who provide Aggregator services.
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