SMS is the new black

A review of mass market mobile apps

Avoid burst pipes by text

Posted by Admin on December 28, 2008

I saw this post on Mobile Industry Review yesterday and it’s a brilliant use of text messaging from Direct Line. I presume they’re using Esendex or someone like that to send out the messages and give them all the tools they need.

Anyway, with thanks to Ewan at MIR, here’s the post in full.

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I got this text in a few days ago from my insurance provider, Direct Line. Smart. Not only does it deliver some ’seasonal greetings’, it also offers a top tip – don’t switch the heating off completely if you are away, to avoid burst pipes. Now, I wonder how much cash this will save them? It’s a very smart idea as I forgot about this – and I am going away for a few days. So assume that an average of 200 pounds per incident. Assume you have 500,000 customers, right? Assume 2 percent incident rate over the Seasonal period. That is 10,000 incidents at a cost of 2 million smackers. It will cost you 175k to send a text to every single customer – at 3.5p per text – but if you can reduce incidents to 0.5 percent, say 2,500 at 200 pounds cost each, you have saved yourself 1.3 million pounds. Just by sending a text message. That is no longer just mobile marketing, it’s a business critical cost control and profit booster!

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Or you can read it here.

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