The company blog

Are smartphone chat apps taking over text messaging?

The moment has come, according to research carried out by Informa there were 19 billion OTT (Over-The-Top) messages sent each day in 2012 compared to 17.6 billion text messages.

Informa also say that by 2014 there will be 50 billion messages sent via chat apps compared to just 21 billion text messages sent.

What does this mean for text messaging? Well, in my opinion it means that the growth of text messaging will inevitably slow down, at least in the P2P (person to person) sector. Text messaging is still projected to grow, so it’s not as though chat apps are necessarily
replacing text messaging, but merely chat apps have a
different demographic and different use.

Chat apps, particularly the likes of WhatsApp, Viber, KiK and the like, effectively act like MSN messenger did a few years ago. People use them to chat to their friends, send pictures, videos and other media all for “free”; it doesn’t mean they are not still texting. Saying that each message sent from one of these chat apps replaces a text message is similar to saying an illegally downloaded song represents a lost sale. Who is to say that the song would have been purchased had pirating not been an option. Likewise, who can say that a particular message would have even been sent if only text messaging existed?

We, here at Esendex, are not worried about the claim that OTT will replace text messaging. In fact, we believe that text messaging is only just starting to see its golden years, as our CEO Julian Hucker explains, “in the next couple of years, we expect SMS to enter a ‘golden age’ for business communications.”

The growth of chat apps is inevitable and many network operators are starting to restructure their price plans, including making changes to data plans and making SMS more enticing for people to continue using. Many also believe that networks have an option to provide their own IP based communications service. They have access to a large subscriber base and could make a success of it, if done currently.

However, at the end of the day, SMS is the only ubiquitous messaging platform available on the mobile phone. The big problem with OTT messaging is that the recipient needs to have a smart phone, needs to have credit available or still within their data plan and needs to have the right app, otherwise you can’t guarantee the person will receive the message. With SMS, all they need is a signal.

40 years of the Mobile phone

A few days ago we celebrated 40 years of the mobile phone, which got me thinking about just how much has changed over the years.

In 1973 the first ever call was made from a mobile phone, by Martin Cooper of Motorola, cheekily it was made to a rival, Joel of Bell Labs. The mobile phone in question weighed 1 kilogram and only had 20 minutes of battery life, which puts complaining about the iPhone battery into perspective.

10 years later, in 1983, the Motorola DynaTAC was launched; it was the first ever mobile phone to be offered commercially. The list of features for this phone was very limited; you could simply talk, listen and dial. It could store 30 numbers and it measured in at 23cm x 13cm x 4cm. The battery life was improved upon but it still had just 35 minutes of talk time and 8 hours on standby. It also cost a whopping US$3,995, which is US$9,209 in today’s standards. Worst of all, it couldn’t even send and receive SMS!

Compare this to today’s mobile phones, which have HD/retina quality screens, 1080p video cameras, can access the internet, run games, play films, can be used as a SATNAV, manage daily tasks and do almost anything through downloading apps. The list seems almost endless. The phones today are, when you think about it, absolutely unbelievable.

The big question now is what does the next 40 years hold?

Why choose SMS with Esendex

Some people like to read, some people like to try and some people like to watch. For those people that fit into the latter category have a look at our new video. We shackled our in-house designer to a desk and she produced a great video we’re all very proud of.

We hope you enjoy…

Is SMS really dying?

In the news recently there have been claims that the popularity of SMS messaging has been declining. However, the distinction that needs to be made is between Peer to Peer and Application to Peer messaging because these markets tell very different stories.

Recent reports show Peer to Peer messages declining due to Over The Top, or OTT, applications such as BBM (Blackberry Messenger), Apple’s iMessage and WhatsApp. Chances are that your friendship group all have the same application, same types of phones and a network connection. Why pay for a message when you can send one for free?

However, Application to Peer or Business to Consumer messaging is different. Here’s why:

• Businesses cannot guarantee all their customers have a smart phone
• Businesses cannot guarantee all their customers have a particular application
• Their isn’t a standard platform for mass communication by social media

The ubiquity and directness of SMS is the reason why this market is growing in popularity and the reason why Esendex has grown by 25% in each quarter since starting in 2001. It doesn’t matter if the end-user has the latest smartphone or an old-fashioned Nokia 3210, if they have WhatsApp, are on Facebook or have an internet connection. They can all receive an SMS.

The only other communication channels that have the reach of SMS for a business are email, telephone and direct mail. Email suffers from channel noise, telephone calls are expensive and direct mail can be expensive and ineffective.

When businesses need to be sure that the message has got through – be it confirming a delivery or the status of a mortgage application – you can’t beat SMS for cost-effectiveness and reliability.

Here’s some examples of how our customers use SMS:

Sales Promotion
SMS messages can be sent and read within seconds, can include many different calls to action such as webpages, directions and phone numbers. Not only can this be done in-house, saving media overheads, there is no time lag between sending a communication and being able to analyse its effectiveness.

Improve customer service
Order status updates can be used to prevent incoming calls; delivery notifications can be used to make sure the customer is in to receive the goods and SMS surveys can be used to close off the experience and get feedback. All of these examples not only help to improve communication and therefore customer service but they can also help to reduce overheads.

Increase staff effectiveness
SMS are used to communicate directly with field-based employees with instructions on where to go for their next job, appointment cancellations or to inform staff of available shifts. All without relying on complex and expensive telecommunications systems.

Communicate in a crisis
A message can be reliably broadcast within minutes no matter where the recipients are or what time of day it is. We have customers that send server system alerts, alarm system alerts and for adverse weather conditions for schools.

Reduce operating costs
Creating efficiencies with human resource or working capital has presented opportunities for our customers to redistribute resource to other areas of their business. Examples include sending confirmations and reminders to customers to reduce no shows and usine SMS to replace paper based or telephone communications.

Overall, SMS presents a very viable communication channel for businesses to get their voice heard in a quick and cost effective manner. Using SMS is increasingly becoming the communication of choice which is why Esendex has grown every quarter since establishing itself in 2001.

Quality Improvements at Esendex

Our service quality and reliability are the guiding principles that underpin our promise of “every message matters”. We pride ourselves on providing high quality business messaging services from marketing messages for small independent operations to mission critical messages for large multinationals. We never compromise our service promise, and whilst continuing to exceed our SLA’s is always at the forefront of our minds we’ll never compromise on quality just to speed things up.

Recently, we’ve been focusing not just on reliability but on improving the performance of our API and responsiveness of our online messaging application Echo. We’ve listened intently to the feedback you, our customers, have given us and targeted a few key areas that you have told us are most valuable to you and your workflow.

So what’s changed?

• Viewing sent messages is over 8 x faster – This means that you can navigate to any of your sent messages instantly
• Looking at individual messages is now over 30 x faster – If you send or receive a large number of messages and spend a lot of time going from message to message you’ll appreciate drilling into the detail faster than ever before
• Viewing your inbox messages is nearly 3 x faster – See your new messages arriving instantly with the improved inbox load times – invaluable if you’re constantly monitoring your inbox

So how did we do it?

It’s really down to a combination of factors. We’ve been investing heavily in our core infrastructure and have been able to take advantage of the benefits this cutting edge technology can bring. We’re also a fastidious bunch always looking to improve ourselves and the systems we work with. And with over 10 years’ experience, we’ve been able to apply our knowledge to address some of the problems and bottlenecks our rapid growth would pose to more traditional messaging systems; ensuring these performance improvements are here to stay.

But, as you’d expect, it doesn’t stop there! We’re already pursuing further enhancements through a combination of strategic improvement and system maintenance programmes.

Esendex building quality connections…

One of the key characteristics of working with Esendex is that you are assured a quality level of service. In every aspect of our work we strive to beat our own high expectations whether that’s customer support, website usability, API connectivity or up-time of our in-house built platform. We believe it’s this quality that sets us apart from our closest competitor.

This drive for quality has lead us to spend time establishing direct connections with major networks in around the world as well as Australasia such as Telstra and Vodafone. Whether you need to send a message to stakeholders in Australia, New Zealand or London you can be assured your message will pass through a quality connection.

Direct connections are all very well and good but what does it mean for me?

• Your message gets delivered quicker which is essential for businesses sending large volume or critical messages
• Using fewer network providers or avoiding aggregators decreases the likelihood of failures as there are less points of potential failure along the message journey
• In the unlikely event that failures happen it will take less time to identify and get support for the problem
• Multiple redundant direct connections means that if a network experiences problems our in-house built platform automatically switches to an alternative network so that your service is not effected

Having confidence in our Network partners helps us deliver the highest level of service to our customers regardless of cost. But developing these direct connections is only a small part of a large focus on quality for Esendex.

Welcome to Hary Milas our latest team member!

Hary has had bags of experience building both on and offline businesses from the ground up and knows what it takes for new businesses to succeed in today’s challenging market.

Over the years Hary has worked hard growing businesses specialising in supplying niche products to the Australian market. We know that this experience and business acumen will be a great asset to our growing customer base and overall service offering. But it’s not all hard work! Hary is also keen on sports so when he’s not applying his vast knowledge he’s out on the pitch refereeing for international football matches!

Hary took up this hobby 16 years ago when he decided to chip in and help his two sons get involved in the local club. Since then Hary has moved on a great deal gaining a Level one FIFA accreditation and ref’ing some big games including a A-League Semi Final, Homeless World Cup Final and most recently the Homeless World Cup in Mexico! Hary had this to say about the event:

“It was an awesome experience, 72 Countries in all, and a great Final between the home favourites Mexico v Chile. Chile won with a convincing display of fine football.”

Hary is a much needed member of Esendex and his years of experience, business acumen and personality will be a great asset to our growing team here in Melbourne. Welcome Hary!

Mobile communication in business

Everyone knows that mobile phones are a key part of ensuring effective personal communication around the world. Andrew Jacobs, General Manager of the mobile media consultant Snakk Media, has given a number of tips and insights regarding the mobile-side of business communication that every company should consider.

When it comes to presence and communication, the first piece of advice that Jacobs offers is to ‘think in terms of screen’. With smartphones, computers, tablets and new tech devices being launched in the market every year, he points out that what really matters in business communication with clients is to deliver the best experience via these screens.

“Mobile devices such as tablets and smartphones are rapidly becoming our preferred screens for internet access, and while the computer is far from dead, leading brands will be focusing on mobile first and scaling up from there,” he says.

“By considering the most accessible devices first, you can do away with unnecessary design and refocus on the changing demands of a more mobile consumer,” he added.

Mobile communication needs a different approach

Another factor to keep in mind is that each of those ‘screens’ needs to be treated differently.

In the specific case of mobile communication, Jacobs says that those need to be approached differently than other devices due to the unique characteristics involved.

Mobile phones have a smaller screen, which requires the message to be shorter and accordingly adapted. Any business that relies on mobile communication must keep in mind further mobile tools, such as touch screens, that can bring users an additional positive experience by improving interaction.

Andrew Jacobs also encourages businesses to make the most of each of the smartphones features, including SMS or location awareness via GPS.

Finally, the mobile media consultant manager advises businesses and entrepreneurs to set mobile search and display as their starting goals.

“Global research has found that more people notice and click on mobile ads than traditional desktop ads. They make consumers five times more likely to want to buy products than desktop ads, and four times as likely to favour your brand,” added Jacob.

Fire SMS alerts will reach only six in ten Victorians

Only 58% of Victoria’s mobile users will be able to access targeted bushfire texts, as the new warning text message system will only work on the Telestra network. This will mean that one in four will miss out on the vital SMS warnings in the event of a fire.

The new fire alerts systems will be introduced in December, but not all Victorians will be able to benefit from it as it is restricted to those who have the Telestra network.

The systems will reach and send SMS messages based on people’s mobile locations, instead of their billing address. “The towers will be able to identify where you are and send a message to your phone,” said the Victoria’s Fire Services Commissioner, Craig Lapsley.

As Lapsley pointed out, however, networks such as Optus and Vodafone still do not have the required software to support this specific system.

Although Victoria’s Fire Services Commissioner said that they are working to find a solution to this problem and include more carriers on the system, more than 40% of Victorians won’t be able to benefit from the SMS alerts in the meantime. “Negotiations are continuing… the office of the Emergency Services Commissioner is pursuing that,” said Lapsley.

Breaking News: Sheep Use SMS To Warn Of Wolves

A special collar has been created by a scientist in Switzerland that will detect when a sheep’s heart rate rises. The increased heart rate that remains raised for a long time is a signal of distress. When a sheep becomes distressed, the collar will send a text message to shepherds.

The concept could be used as a replacement for sheepdogs, which are more costly to maintain in a world where just about everyone carries a mobile phone.

In a recent trial, the gadget was fitted to to the collars of 12 sheep. When they were exposed to muzzled Czechoslovakian Wolfdogs, the sheep’s hearts jumped from around 60-80 beats per minute to around 230.

Dr Landry told the BBC that the first collars would be produced in the autumn.

We’re always really interested in the creative uses of SMS. If you’ve got a story we’d love to hear from you, please email hannah.giles@esendex.com