Why Businesses are Increasingly Using the SMS Gateway

Businesses are increasingly using the SMS gateway to up their game. Here’s why they use it (and what you can do to get the same edge).

More and more businesses in South Africa are using the SMS gateway. As a technology previously restricted to large corporates, smaller businesses are now also increasingly making use of bulk SMS messaging through the SMS gateway. And if you want proof, just Google a simple phrase like “receive SMS updates” and restrict your search to “Pages from South Africa”. The most recent search provided 7,710 results with the first couple of pages indicating a mix of businesses all offering their customers the ability to receive alerts and notifications through SMS.

So why are businesses opting for 160-character communication with their customers? Well, the reasons are both numerous and pretty straight forward, with the most obvious being:

• Cell phone penetration in South Africa is rapidly increasing. While many sources reflect that South Africa has already reached 100% cell phone penetration rates, the number of actual mobile devices in use could be a few percentage points lower.
• Globally mobile phone penetration is expected to reach 74% by the end of 2010. This is good news for businesses looking for a cost-efficient yet very effective way to stay in touch with international clients.
• As a result of the competition in the SMS Gateway industry, rates per message sent are dropping drastically – sending bulk SMS messages is often much cheaper than individual messages.
• SMS Gateway technologies are becoming easier to integrate into everyday software packages, making it more accessible to the average business owner.
• On average 94% of all text messages are read. And as a result of the personal  nature of the cell phone, response rates to campaigns, etc. are much higher.

But perhaps most importantly of all…

• Consumers are expecting it – the cell phone is more than just a communications device, it’s portable ‘living’ information. And since it’s free to receive an SMS in South Africa, it won’t deplete airtime or data limit.

That’s why businesses are using the SMS gateway to stay in touch with customers, and why they’re reaping the rewards, too.

Educate yourself about the various technologies involved and give yourself the advantage. Read more on our SMS Gateway page today!

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