It was bound to happen:
A federal district court in Chicago recently held that SMS messages that are sent to consumers without their consent could violate the Telephone Consumer Protection Act.
The decision echoes many of the conclusions in a previous Ninth Circuit opinion and underscores the importance of getting express consent from consumers before sending SMS messages.
I’m glad to see this, particularly because as a very personal medium mobile phones present uniquely valuable opportunities, but at the same time it must be respected. Not only are unwanted messages annoying and a great way to turn off a target audience, they also cost consumers money. Most credible mobile solution providers have been following the Mobile Marketing Association’s Guidelines when it comes to opt-in practices, but as the market has expanded and technology has evolved, complaints about abuses of mobile phones for marketing purposes has been on a noticeable rise. Just take a look at the examples on the Complaints Board. The most common gripe is regarding unsolicited premium and text messages.
The Mobile Marketer article mentions “one company agreed to pay $7 million to settle accusations of sending unsolicited text messages.” While that’s certainly costly, nothing compares to the damage a company’s reputation suffers when it does something offensive to consumers. Once you shatter confidence and trust in your brand, it’s pretty hard to recover.
Last week I briefly mentioned that HP had used our services to drive traffic to their booth at the recent PMA 2010 conference. Today we issued a press release detailing PMA’s successful deployment of our platform, which included how exactly HP had taken advantage of it:
Moblico Solutions, a provider of integrated mobile offerings that support and extend customer relationships, today announced that the Photo Marketing Association (PMA) successfully leveraged Moblico’s mobile network solutions, providing “Up-to-the-Minute PMA News” at the PMA 2010 International Convention exhibit and trade show which took place at the Anaheim Convention Center from February 21 through February 23. By signing up for mobile alerts, attendees received important real-time updates that ensured notifications of program changes, on-the-fly activity alerts, and exclusive offers. Additionally, exhibitors took advantage of the service by sponsoring messages and sending personalized communications, enabling them to stand out above other competing exhibits. In particular, HP used the service to drive traffic to their booth while NHL player George Parros of the Anaheim Ducks was signing posters and posing for photos.
The show was a lot of fun and very informative, and HP’s promotion was a hit! Lots of people took advantage of the opportunity to get George Parros’s autograph and enter for a chance to win the hockey stick.
Anaheim Ducks' George Parros stopped by the HP PMA booth to take photos with consumers and show off the NHL licensed content through HP's Retail Publishing Solutions
Definitely one of PMA’s most successful events! I’m looking forward to the next one.
Yankee Group analyst Jon Paisner wrote a great piece about what will drive mobile payments that I found very intriguing. Here’s what caught my eye:
Initially, I began wondering whether SMB demand even existed for these merchant solutions. After speaking with fellow YG analyst Steve Hilton, the answer was yes and the discussion moved beyond SMB demand. Although these solutions have too many fees (interchange fees, monthly account fees, and setup fees) the fact that a field service worker does not invest in an expensive network connected payment terminal will force SMB’s to consider this solution. Assuming that these services fulfill all PCI compliance regulations, our discussion quickly evolved into one of consumer interest in this solution. While the merchants certainly would see the benefit of a portable credit card solution, would a consumer feel comfortable handling a credit card over to an electrician they found on Craigslist?
He went on to say, “This issue of consumer acceptance will plague the usage of these solutions.” Based on the work we’re doing with clients, I don’t feel it’s truly about consumer acceptance per se, but rather about offering something that is attractive and fulfills a need or makes life easier for the end-user. (i.e.- getting asway from the “if we build it, they will come” mentality, and instead create something from the perspective of a consumer) Also, it’s not as black and white as pecking in a credit card number to a phone and texting a receipt. There are many mobile solutions that can eliminate confusion or risks of having credit card numbers displayed such as using cameraphones as scanners, mobile wallet-types of applications, and mobile loyalty programs that customers sign up for that utilizes their info on-demand.
Jon’s piece started out discussing whether or not large retailers or SMBs would drive mobile payments. Both he and a colleague felt that SMBs would be the driver and I completely agree! Creating convenience and loyalty programs via mobile keeps customers tied in. When you add purchasing abilities to the equation, you’re closing the sales loop and opening an entirely new revenue channel. Afterall, any marketing and sales effort is meant to drive sales… how great is it that mobile has the ability to manage the sales process from end-to-end??
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