SMS: An Important Cost Savings and Revenue Generation Tool Sonali Shah Director, Corporate Development & Strategy Intuit’s Mobile Ecosystem Summit October 12, 2009
Objectives & Agenda Objectives: + ▪ Examine SMS market trends ▪ Demonstrate how the use of SMS can accelerate revenue generation and obtain cost savings Particular focus on areas of interest to Intuit: mobile payments and small & – medium businesses Agenda: + ▪ SMS in 2009 & Beyond ▪ Enterprise Use Cases ▪ What Next: SMS 2.0, MMS & the Mobile Web 2 CONFIDENTIAL: DO NOT DISTRIBUTE
SMS in 2009 & Beyond 3 CONFIDENTIAL: DO NOT DISTRIBUTE
2009 Volumes Indicate SMS May Be Recession Proof U.S. SMS Traffic Growth (in billions) YTD Highlights Weak Economy Weak Economy 2,000 1,900 - U.S. unemployment rate reaches - U.S. unemployment rate reaches 1,500 9.8% in August 2009, a 26 yr high. 9.8% in August 2009, a 26 yr high. 1,000 - Impact of federal stimulus package - Impact of federal stimulus package 1,000 and timing of recovery uncertain and timing of recovery uncertain 363 But Strong Wireless Sector But Strong Wireless Sector 500 159 81 -28% of handsets purchased in U.S. -28% of handsets purchased in U.S. 0 in Q2 ’09 were smartphones (47% in Q2 ’09 were smartphones (47% 2005 2006 2007 2008 2009 increase in share since Q2 2008)* increase in share since Q2 2008)* - Over 60% of cell phone owners - Over 60% of cell phone owners * 2005-2008 Datapoints from CTIA, 2009: VeriSign Estimate based on YTD traffic. use SMS, ~25% use the mobile web use SMS, ~25% use the mobile web ** SMS traffic includes intra/inter-carrier P2P/A2P messages Political & Commercial Weapon Political & Commercial Weapon of Choice of Choice SMS Usage Showed No Signs of Slowing Down - Obama sends highlights of Cairo VeriSign U.S. P2P SMS traffic for 2009 holidays: - Obama sends highlights of Cairo speech to subscribers in 150 speech to subscribers in 150 ▪ New Years Day: 1.1 billion countries in 4 languages via SMS countries in 4 languages via SMS ▪ Valentines Day: 0.99 billion - SMS use for mobile marketing - SMS use for mobile marketing ▪ Mothers Day: 1.0 billion continues, moving from trial to continues, moving from trial to mainstream mode mainstream mode ▪ June 25: 1.2 billion (day of Michael Jackson’s death) *NPD Group, 2009 4 CONFIDENTIAL: DO NOT DISTRIBUTE
Messaging Forecasts Mobile Data Activities on a Typical Day Number of Subscribers in N America (millions) (from cell phone) 350 45% 43% 40% 300 35% 31% 250 30% 200 25% 19% 20% 150 15% 15% 14% 15% 10% 100 8% 10% 7% 6% 50 5% 0% 0 Text Take a Email Access IM 2009 2010 2011 2012 Picture Web SMS MMS Email IM *Juniper 2009 *Pew, 2009 2007 2009 + All message types growing. Each one has its unique advantages. + Text messaging is most prevalent due to its widespread reach, low cost, and ease of use 5 CONFIDENTIAL: DO NOT DISTRIBUTE
A2P Messaging: The Next Wave of Growth The Facts Select Results Huntington Bank (Brandon McGee, SMS is supported by 100% mobile + + VP, Mobile Banking) phones and used by over 60% of ▪ mobile phone owners, making it the “The mobile banking customer—in particular the text mobile phone lowest common denominator to reach customer—is 13% more profitable mobile subscribers to the bank than the average SMS messages is typically read within client.” + an average of 15 minutes and Ashley Furniture Home Store + responded to within 60 minutes ▪ Sent 6,000 text message and Reduces call center costs: from $10 29,000 e-mails to promote a four- + day “secret sale.” per call to an agent or $0.40 per IVR ▪ call to approximately a $0.01-$0.02 For every ad dollar spent, the furniture chain generated per SMS to the customer approximately $122 with SMS and about $76 with email. Enterprises are increasingly using Subway mobile coupon trial in NY SMS in innovative ways to generate + revenue, lower costs, and deliver time ▪ Saw redemption rates of 8.8% with opt-out rates of only 1% sensitive information to customers ▪ Subway was able to pull customers and employees into its stores during slow periods. Sources: Experian Customer Research, Javelin Strategy & Research, Neilsen 6 CONFIDENTIAL: DO NOT DISTRIBUTE
Use Cases: Beyond Marketing and Banking 7 CONFIDENTIAL: DO NOT DISTRIBUTE
Mobile Payments Case Study: Citibank India SMS used to trigger bill payment Citi India: Text to Pay Bill Benefits + VeriSign sends more than 40 pre- defined alerts to Citibank India customers, including balance alerts, fraud alerts, and payment reminders. + 50% of online customers use the mobile banking services + Mobile can be used to pay mobile, landline, electricity, water and insurance bills. + Consumers are informed when bill is due. Able to pay via SMS by responding to the Bill Pay Alert. Funds debited from Citibank account. + Citibank benefits from faster money collection, and reduced need for phone and in branch customer service representatives + Creates stickiness and more loyal customers. * VeriSign recently launched Western Union’s pilot program in the U.S. for actionable payment alerts. 8 CONFIDENTIAL: DO NOT DISTRIBUTE
Mobile Payments Case Study: Abu Dhabi Taxi Text to pay for good or service Q-Link Taxis SMS Payment Service Benefits + In Abu Dhabi, Q-Link Taxis and Q-Cash launched a mobile + Added convenience and payment service enabling riders to use SMS to pay their fares. safety for taxi drivers + Riders send a SMS with the taxi number and the amount to a • No longer need to carry shortcode. A confirmation text message is then sent to both cash the customer and the taxi driver. • No additional hardware + Funds are deducted from the riders Q-Cash account and can required (as in the case be recharged through their bank accounts. of credit cards) Shortcode + Added convenience for To: 83753 From: 83753 From: 83753 passengers as they no $20 sent to $20 has been Taxi # 345. deposited. longer need to carry cash 345 $20 Taxi # $10.25 April 3, 2009 remaining in 13:45pm + Electronic confirmations Q-Cash acct Amount make end of the day reconciliation easier Customer Customer Taxi Driver 9 CONFIDENTIAL: DO NOT DISTRIBUTE
Consumer Services Case Study: North Karelia Central Hospital, Finland SMS facilitates appointment scheduling and confirmation Karelia Central Hospital: Scheduling Benefits + Approximately every fourth appointment was + Overall cancellations rescheduled or cancelled in this Finnish Hospital. reduced 20% + Hospital implemented an interactive SMS solution to + At the pediatric support the appointment confirmation and patient outpatient clinic, the total reminder processes number of phone calls + Similar solutions implemented in hospitals, doctors dropped by 33% and offices, and car repair shops across Europe phone calls regarding rescheduling dropped by over 60% From: 14325 + Increased efficiency Appointment with Dr Jonas results in increased at 10 am on profits 15 Oct Reply YES to + Enhanced customer confirm satisfaction 10 CONFIDENTIAL: DO NOT DISTRIBUTE
Retail Sector Case Study: Local Flower Shop SMS used for inventory and sales management Local Florist: SMS delivers Efficiency Benefits + Small business owners often use their website to + Receive selected communicate with customers and schedule services information in real time, wherever you are + In the example of this local florist, she is owner, decorator, and deliverer, and is rarely at her computer + Especially useful for + SMS, integrated with her website, can play a key role in businesses or workers on helping her manage sales and inventory the go + For example, she can be alerted if she is low on roses + Reduced need for full time or if she receives an urgent same day order staff to monitor and manage website and businesses activity New order for same day + Can be combined with delivery SMS mobile marketing – Text DETAILS for i.e. last minute coupons for more information slow sales days + Higher customer satisfaction 11 CONFIDENTIAL: DO NOT DISTRIBUTE
Enterprise Mobilized IT Help Desk: MSNBC SMS enables efficient and cost effective internal communication Program Description Benefits + MSNBC implemented a SMS-based, work order ticketing + Improved worker solution for it’s IT division. productivity and + Employees requiring technical support submit a work utilization order through their internal system. Based on prescribed + Improve prioritization rules, text messages are then sent to specific IT and distribution of professionals. mission critical + By distributing work orders via SMS, IT professionals no assignments longer need to race back to their desk to check the status queue or sift through voice messages. + Higher employee satisfaction From: 8482 From: 8482 + Cost effective: no No Internet Printer jam. Connectivity. Still additional hardware Terminal: A5, outstanding. 3 rd Floor required 12 CONFIDENTIAL: DO NOT DISTRIBUTE
What Next? 13 CONFIDENTIAL: DO NOT DISTRIBUTE
Recommend
More recommend
