The grassroots movement is over. Short Messaging Service (SMS) has excelled from the few carriers which provided the service in the mid-90s and spread to virtually every cellular service provider on the planet. SMS, which originated in 1992 as a communication tool for business, has permeated society and made a large impact on the masses, growing into a multi-billion dollar industry. SMS has shown progress similar to the growth demonstrated by other digital communication technologies such as email and instant messaging. SMS has been a catalyst in helping improve business efficiency. Instant SMS messages provide businesses with up to the minute information on pricing while helping keep their staff connected and their customers in the loop. SMS has provided efficient, seamless and real-time communications that can be accessed anytime, from any location. This transformation of business culture has allowed for incredible growth as businesses can now spend more time concentrating on their core issues.
Simply stated, SMS is the transmission of short (160 character) messages to and from a mobile phone, fax machine or IP Address. Each message is held by the home location register (HLR) until the roaming customer is found. Once located, the message is either delivered or if the customer’s response is “inactive”, the message is kept until the user comes back to online or “active” status. Further improvements to the technology include Enhanced Message Service (EMS), which allow for longer transmissions that may also include data other than text – be it sound or graphics. In terms of business results, increased sizes of transmissions mean increased wireless communication – the consequence being greater mobility and efficiency all round.
SMS has become an invaluable tool for business and personal communication alike. Developments can be seen in industries geared at technology-oriented youth, SMS marketing, and personal communication in developing countries which make extensive use of SMS’s low cost. Compared to traditional forms of telecommunication, SMS is extremely cost efficient. This means that companies may keep in closer contact not only with each other, but also with their clients. SMS helps fuel customer relationship management as well as operational and promotional effectiveness – leaving time to focus on essentials, while improving efficiency and customer retention. An example would lie with shipping companies. While SMS allows the company to effectively manage and track the shipment, customers may access the status of their shipment by using an SMS access number. SMS may also change efficiencies in rural businesses such as farming. By giving the farmers the opportunity to access up to the minute commodity pricing, efficiencies are promoted, giving farmers a greater chance to extend their livelihood.
Existing SMS applications allow for many more uses than just messaging – providers are beginning to offer ‘interactive’ options. Current SMS campaigns have included Coca-Cola’s partnership with Siemens. For 40 days, cell phone users in Bejing were invited to text in the following days temperature – a correct guess entering them to win a new Siemens phone or a one-year supply of Coke. Those who didn’t win were given a chance to download the Coke ringtone. Needless to say the promotion was successful, as nearly four million messages were exchanged and 50, 000 people downloaded the ringtone. Newer technologies enable mobile phone subscribers a mode of wireless transfer, digital savings by coupon, as well as event-based messages – which allow a certain amount of interactivity by allowing subscribers to respond to several offers. Future developments will include use of SMS by persons with disabilities, as well as up-to-the-minute inventory and sales figures as shipping managers and mobile sales forces may use SMS to transfer and track information instantly.
