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SAP Study Shows Consumer Demand for Simplicity of SMS to Cut Through Icon Overload

September 9, 2014 by SAP News 0

LAS VEGAS — SAP SE today announced results of a study conducted across 12 countries with 2,700 adults aged 18 and older on how consumers respond to mobile engagement with enterprises and the mobile technologies that are most effective across the “Three A’s”* of customer engagement: Acquisition, Activation and Engagement, and Assurance. The results highlight consumer demand for enterprises to use SMS communication in their mobile interactions. The announcement was made at Super Mobility Week powered by CTIA, being held September 9-11 in Las Vegas.

The research shows that consumer mobile app consumption is maturing and that consumers have discerning preferences for how they communicate with brands, with eight out of 10 (81 percent) expressing that sometimes they just need a simple process like SMS rather than use a mobile app. In addition, 70 percent of respondents say that SMS is a good way for a company to get their attention and 64 percent say that organizations should use SMS-based engagement more often. The results indicate an opportunity for companies to incorporate SMS communication into their multichannel strategy to attract and retain customers.

The research found that consumers are looking for simplification in how they interact with brands and enterprises. Following a pervasive wave of application use consumers are taking stock of the “icon overload” on devices with nearly three-quarters (74 percent) of respondents expressing that they should uninstall a number of apps on their phones due to lack of use and 68 percent expressing that they have more apps on their smartphones than they need. In addition, 71 percent say that it is annoying to have different conversations in different apps with not all messages in one place. SMS is viewed by consumers as a quick (67 percent) and convenient (56 percent) way for companies to communicate.

“We are seeing a clear maturity in the way consumers are using their mobile phones,” said Sethu M., president, SAP Mobile Services, a division of SAP. “We are moving away from customers asking, ‘Is there an app for that?’, to asking ‘Is there an SMS for that?’ Consumers want to engage with brands and enterprises on their own terms. They want simplicity and to use the mobile channel that best meets their needs at that time. As this study shows, in many situations SMS wins out and this is a clear opportunity for enterprises to make use of the SMS advantage.”

Enterprises Benefit from SMS Interaction

The study pinpoints clear benefits for enterprises using SMS for mobile customer engagement. Three-quarters of respondents feel that SMS interactions serve to improve the overall brand experience saying that it makes them feel in control of a service when interacting with logistics businesses (81 percent), banks (78 percent) and transport businesses (76 percent); and they feel that the organization wants to make their lives easier when receiving SMS from logistics businesses (82 percent), banks (80 percent), transport businesses (79 percent), and social networks (72 percent).

Customer assurance engagement is viewed as the most effective use of SMS and the financial services and transport industries are rated highest with 78 percent of respondents expressing that banks using SMS show care for the security of data, identity and money; and 77 percent of respondents expressing that transport updates via SMS show an organization cares about their safety and getting them to their destination on time.

SAP Mobile Services is a global leader in mobile interconnection, network and mobile engagement services. It provides mobile operators with unparalleled capabilities in global messaging interconnect, data roaming and an array of IPX-based services, and enables enterprises to connect with their consumers through innovative mobile engagement solutions. SAP Mobile Services processes more than 1.8 billion messages per day, reaching more than 1,040 operators and 6.1 billion connections across 210 countries.

To learn more, download the full report here: www.sap.com/sms-advantage. For more information, visit the SAP News Center. Follow SAP on Twitter at @sapnews.

About the Research

Interviews were conducted with 2,700 adults aged 18+ who own a smartphone, across 12 countries: USA, UK, France, Germany, Spain, Italy, Australia, Hong Kong, China, Malaysia, Singapore and UAE. Respondents completed an online survey in June and July 2014. Research was conducted by Loudhouse Consultancy, an independent research agency based in London.

*The ‘Three A’s” of customer engagement: Acquisition (gaining new customers), Activation and Engagement (encouraging use of the service) and Assurance (providing/increasing security of the service).

Media Contact(s):
Tara Verrek, +44 7977 257 004, tara.verrek@sap.com, BST
Julia Fargel, +1 (650) 276-8964, julia.fargel@sap.com, PDT

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