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Mobile interaction services specialist, Michael Kowalzik argues that mobile should be a key part of the retail technology mix

Mobile interaction services specialist, Michael Kowalzik argues that mobile should be a key part of the retail technology mix

 

Whether its Tesco’s iPhone apps, now downloaded more than a million times, or one of the many mobile commerce (m-commerce) sites launched by the likes of Marks and Spencer, H&M or ASOS, mobile now sits alongside the web as a key channel, according to Michael Kowalzik, chief executive of tyntec.

 

However, he said, in the rush to develop ever more advanced mobile presences, some of the building blocks of mobile have been neglected. While apps and mobile websites are unquestionably a key part of the mobile mix, other technologies such as SMS have been ignored by some, despite their ability to deliver real customer benefit and return on investment.

 

“SMS has been a key retail marketing technology for many years,” said Kowalzik. “Retailers, and in particular supermarkets, were amongst the first to trial the early SMS marketing opportunities – whether it be simple SMS offer alerts or more advanced vouchering applications.

 

“SMS has many advantages. It is present on every handset, the GSM coverage that supports it is globally available and nearly everyone understands it. It also has a pro-active outreach capability – whilst you need to actively go and check a mobile web page or app, an SMS reaches out and invites you to interact with it. Moreover, it’s a simple technology for retailers to integrate into their processes.

 

Simplicity proves SMS advantages

 

“One of the clearest use cases for the technology is in the delivery process. For example, Argo introduced SMS reminders for its deliveries in 2009, telling order recipients approximately what time their products would be arriving. This functionality has a clear business case in reducing failed deliveries and a clear customer convenience benefit.

 

“This model can now be taken further,” he continued. “With new developments in the integration of SMS, the web and back-end systems it is now possible to create a two way dialogue using SMS. So, as well as giving people a reminder that their delivery is due, you can now allow them to reply to the text requesting a new delivery slot.

 

“Another area of SMS success in retail has been vouchering. Various forms of onscreen barcode and PIN-based systems have long been available to enable the simple distribution and redemption of offers. For example, fashion retailer Oasis this year rolled out SMS-based gift vouchers that enable customers to send vouchers to recipient’s mobile phones.

 

“Again, this is an area where new technologies in could enhance the way retailers use SMS. For example, new ‘number lookup’ technologies can be used to collect important information about a mobile phone before sending a text. So, for example, prior to sending an SMS voucher to a phone you can check that the number is valid, you can check it’s switched on and you can check whether it’s roaming internationally. In this way, you can allow contextual distribution – making sure that you’re sending to a valid number and that you’re not sending them when the recipient is on holiday.”

 

Helping to lock down security

 

Kowalzik added: “Another area where SMS is providing real value to transactional businesses is in user authentication. Recently adopted by PayPal amongst others, SMS authentication can offer strong security for remote purchases, whether online or on the phone. The process itself is simple – customers give their mobile number as part of the registration process and, on each subsequent transaction, a one-time password is sent to that mobile for the user to enter as part of the payment process.

 

“In a retail market where remote transactions are growing and fraudulent activity is increasing, a method like this that ties a user’s identity to a unique device can be hugely powerful in preventing fraud to retailers and protecting customer’s accounts.”

 

He concluded: “None of this is to say that apps and mobile websites aren’t important – for complex transactions on the go then they potentially have their place. What’s also important, however, is to remember that sometimes the simplest solutions can deliver value more effectively and efficiently.”