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Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
Beginner's guide to Text Message Marketing
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Beginner's guide to Text Message Marketing

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  • 1. A BEGINNER’S GUIDE TO TEXT MESSAGE MARKETING
  • 2. Hello from Signal!We’ve been in the text message marketing industry for over half adecade. During that time we’ve learned a lot about what makes a textmessage marketing campaign successful, and we want to use thatknowledge to help make you successful.We know text message marketing works. It’s one of the most effectivetools marketers can use to grow an active customer base and drive sales.As an example, one of our customers recently launched a text-to-wincampaign which drew 30,000 responses in 30 days, with 81% of entrantschoosing to opt-in to get further marketing messages post-entry. That’sadding more than 800 subscribers each day to your marketing list!SMS means success. And we want to see that success happen for you.But you need a starting point.Our customers have asked us a lot of good questions about text messagemarketing over the years we’ve been in business -- questions on bestpractices, federal regulations, and even simple how-tos and tips on listbuilding. In response, we’ve assembled our collective knowledge intothis helpful guide. Enjoy!Contact us any time. hello@signalhq.com @signalOur monthly newsletter is filled with handy marketing tips andtricks. Sign up by texting NEWSLETTER TO 75309.Message and data rates may apply.
  • 3. INDEX 1 5 What is SMS marketing? Creating a campaign How does it work? SMS copywriting tips When is it most effective? Picking the best time to send How much does it cost? 6 2 Rules of the road Measuring successWhat you need to know before Delivery rates, opens, clicks getting started with SMS and other ways to measure SMS marketing results 3 7 Picking an SMS partner Building your mojoA list of things to think about when Establishing a frequency deciding on an SMS service Growing your program Tracking trends 4 8 Building your list Advanced tips and tricks Creative ways to expand your Collecting data reach and advertise your Targeting locations program Personalization
  • 4. 1 INTRO TO SMS MARKETINGGetting to know the landscape
  • 5. What is SMS marketing?At its core, SMS marketing is sendingtext-message advertisements toconsumers. When industry bestp r a c t i c e s a re f o l l o w e d , S M Smarketing is one of the simplest andmost effective ways for businesses tocommunicate with customers. It canbe a powerful tool for driving salesand deepening relationships with amotivated customer base. How does text-message marketing work? How muchHow do companies use SMS does it cost?marketing? When is it most Text marketing messages originate effective? from a short code, a five- or six-digitCompanies began using SMS to send number companies must use toshort, timely messages to customers communicate advertising messagesin the early 2000s. It started with cell to customers via SMS. Leasing andphone carriers, who use texts to provisioning your own short codecustomers billing and ser vice can be time-consuming (60-90 daysupdates. Today, companies around to set up) and expensive ($500-$1500the world use SMS marketing to send per month). For this reason, manycustomer alerts, updates, coupons s m a l l bu s i n e s s e s u s e a n S M Sand discounts, as well as to collect marketing provider to gain access tovaluable customer information. shared short codes. This makes text messaging affordable and accessibleOn average, text messages are read for businesses of all sizes.within four minutes ° of their receipt,so SMS campaigns are most effective Companies offering text-marketingwhen the messages you services on a shared short codecommunicate are immediate, useful usually charge either a small per-to the customer, and carry a clear message fee or a flat monthly rate.call-to-action. ° Source: http://en.wikipedia.org/wiki/Mobile_marketing#SMS_marketing
  • 6. How does text differ from email?Text-message marketing is much like email marketing in that businesses canuse a service to send bulk, one-time messages to their subscribers, createautoresponders and drip campaigns, separate customers into lists, andpersonalize content. But text-message marketing differs from email marketingin a number of ways. Text-message marketing is more closely regulated than email marketing. List advertisements and opt-in 1 confirmations, for example, must contain certain language in order to be in compliance or marketers risk fines. So it is important to keep up to date with best practices and adhere to them always. (We’ll cover these regulations a little later.) Text-marketing messages are limited to 160 plain-text 2 characters and do not contain images. The only way to include visuals is to link to mobile-optimized landing pages with more information. Text messaging costs more to send, but offers open and response rates that are dramatically higher than email 3 (90% for SMS ° vs. 48% for the highest average industry open rate for email˘). ° Source: http://designtaxi.com/news/31968/Conversational-Advertising-Emergent-Trend-in-Mobile-Advertising/ ˘ Source: h"p://mailchimp.com/resources/research/email-­‐marke3ng-­‐benchmarks-­‐by-­‐industry/
  • 7. 2RULES OF THE ROADThings to know before getting started
  • 8. About the Mobile Marketing Association The Mobile Marketing Association (MMA) is the global nonprofit organization responsible for establishing mobile marketing best practices and standards. The MMA works jointly with the CTIA (the wireless communications industry’s trade association) to enforce these standards. CTIA violations usually result in a warning and a reminder to fix noncompliant aspects of your SMS campaign. But continued violations can result in the suspension of your campaign or revocation of your short code. In addition to these industry players, governments also create and enforce laws, such as the CAN-SPAM Act in the U.S., that regulate the content and requirements for text-message marketing. Basic rules for keeping in compliance Include the phrase “message and data rates may apply” in your keyword advertising and initial SMS welcome message (this can be abbreviated as msg & data rates may apply”) Include your business or program name, intended frequency of messaging, and HELP and STOP (opt-out) options in your keyword advertising and your SMS welcome message Include a link to your terms and conditions (or those of your SMS provider) in all keyword advertising and in your welcome message for contests and promotions Always identify your business or program name when communicating via SMSWelcome to the Zippy Car Wash Coupon Club! Msg&data rates may apply.4 msgs/mo. Text HELP for info, STOP to quit.
  • 9. 3PICKING AN SMS PARTNER What to look for whenselecting your text message marketing platform
  • 10. YOUR MOBILE MARKETING PARTNER SHOULD:Be able to send SMS messages to all mobile carriers.There are many carriers in the U.S. and Canada, and not all serviceswork with all carriers. Your SMS partner should work with a tier 1aggregator, which typically has access to all mobile carriers withreliable deliverability.Be aggregator agnostic.Your SMS provider should have relationships with multipleaggregators, since this can significantly streamline the process oftransferring short codes from other vendors. This is important if youplan to commission your own short code.Provide support in provisioning new short codes.It typically takes 8-12 weeks to get a short code ready for use. Yourprovider should be familiar with the process and that have therelationships to make it quick and painless, especially if you’re on atimeline to launch a new marketing campaign.Support the use of multiple shared short codes.If you want to separate your text marketing campaigns for differentbrands, having different short codes can help you accomplish this.Mobile partners that support a handful of shared short codes giveyou this option.Have a thorough knowledge of industry rules and regulations.The MMA offers guidelines for text-message marketing that allreputable providers follow. It’s critical that your provider has an in-depth understanding of these policies to ensure your campaigns orshort codes do not get interrupted or shut down by carriers.
  • 11. Support autoresponders and timed messages in addition to one-time messaging.In addition to outgoing messaging, your mobile partner shouldsupport autoresponders, which automate the process of providinginformation in response to a text. Your provider should also supporttimed messages, which allow you to send subscribers automated,one-time or multi-message text campaigns at preset intervals afterthey opt-in.Support the collection of customer data via text message.You can gain keen insights into your customer base by collectinginformation from them via text, whether it’s by asking fordemographic information or by collecting customer sentimentthrough a poll. Your mobile partner should support this functionality,so you can use this data to improve future marketing efforts.Allow you to customize the content and sequence of themessages you send when people opt in or out of your lists.Regulations do require that customers receive both opt-in and opt-out confirmations with some mandated language. But you shouldalso retain the ability to control the tone of these messages to matchyour company’s branding.Support personalization or “merge tags.”Merge tags are the bit of code you can insert into a mass message topersonalize it for each recipient. As long as you have the informationproperly stored in your SMS platform database, you can include allkinds of personalized information, from a customer’s first name totheir last date of purchase.Provide tools to help with support and troubleshooting.Sometimes customers will have questions or concerns about textmessages they receive from your company. Having the ability tosearch your message database by phone number, short code ormessage content makes it easy to address these customer concerns.
  • 12. 4BUILDING YOUR LISTAdvertising your program andgrowing your subscriber base
  • 13. Once you’ve found a partner to work with, it’s time to start building yourtext-marketing list.Picking a keywordBuilding your database starts with picking the keyword users will text toyour short code to join your list. Some things to consider when picking your keyword: Make it easy to remember and spell so that customers can easily recall and enter it. Avoid using special or confusing characters. For example, a lowercase “L” can look very much like an uppercase “I” or the numeral 1 in certain fonts. Keep it short. One-word keywords are best. Avoid homonyms, those tricky words that sound the same but have different meanings and spellings. They might work in a print campaign, but in a radio call-to-action you’ll end up confusing potential subscribers. (“Did he say to text ‘walk’ or text ‘wok’?”)
  • 14. Promote your listAdvertising your keyword is as simple as this phrase:Text {{KEYWORD}} to {{SHORT CODE}} to {{your call-to-action}} Text DANCE to 839863 for more information and a schedule of upcoming Dance Academy events. Text COFFEE to 75309 to sign up for exclusive ACME BROTHERS COFFEE text alerts and coupons. Text KITCHEN to 75309 for an instant 20% off your Renee Bennett order and to sign up for future deals.Just as with an email list, there are hundreds of places you can advertisea call to action (CTA) to join your list, including: In-store signage Direct mail Product packaging Billboards Transit and print advertising Receipts Social media Branded fleets Email Shaved into the side of your Business cards hair Table tents, menus Television and radio ads An important note on one-time versus recurring message campaigns: Campaigns set up as sweepstakes, autoresponders, surveys and polls are all considered one- time communications. Customers texting your business for these purposes are not considered SMS subscribers unless you explicitly ask them to opt in to your marketing list. Therefore, since you have not obtained permission to communicate with them on a regular basis, you can’t do so without risking fines. If you want to add mobile numbers to a marketing list you’ll use on a recurring basis, you must use all appropriate opt-in language or ask subscribers to confirm (double opt-in) by responding on their mobile device. One-time communications should still contain the phrase “message and data rates may apply” on all advertisements.
  • 15. Maintain complianceWherever you advertise your keyword, you must stay in compliance with MMAbest practices. Your call-to-action must include a description of the program(e.g., “Doughnut Lover’s Club”), the phrase “message and data rates may apply,”the intended frequency of messaging, and opt-out and HELP instructions. Text KITCHEN to 75309 for an instant 20% off your Renee Bennett order and to sign up for future deals. 3-4 texts/month. Message and data rates may apply. Text HELP for info and STOP to quit.When collecting SMS contacts: DO Publish compliance language in your keyword advertising and welcome messages Encourage users to utilize the single opt-in option by texting your keyword to join (single opt-in) or Use a web-based system that collects mobile numbers and automates a confirmation message to their mobile device (double opt-in) DON’T Collect mobile numbers on paper or verbally as most SMS providers will not allow you to create subscriptions for SMS contacts who don’t opt in digitally Contact mobile numbers collected as part of a sweepstakes or with an autoresponder (this is considered one-time messaging) unless they have explicitly opted in to your list per MMA guidelines
  • 16. 5CREATING A CAMPAIGN Copywriting tips and when to send
  • 17. Writing your text-message copySMS messages are limited to 160 characters. Brevity and clarity arecritical in SMS marketing, but each message should still include: Your company or campaign name somewhere in the body of your text to properly identify yourself, especially if you are on a shared short code A clear and relevant call-to-action (how can subscribers act on this information now?) Outbound links if more information is necessary (it helps to use a URL shortener) Remember to text subscribers no more frequently than you said you would upon opt-in. Texting more often violates MMA guidelines and can put your short code at risk.THREE WAYS TO INCLUDE YOUR COMPANY NAME IN EACH TEXT ACME SPORTS: 50% off this weekend! Use code 12345 to redeem. 50% off this weekend at ACME SPORTS. Use code 12345 to redeem. 50% off this weekend! Use code 12345 to redeem. -- ACME SPORTS
  • 18. Picking the best time to sendThe optimal time of day to text your subscribers depends on yourparticular business or industry. Fast-food restaurants might try to catchpeople at dinner time on the way home from work, for example. Beforeyou send, ask yourself: When am I likely to reach people at the timethey’re making a purchase decision about my product?You should not send text messages while the majority of your subscriberswill be asleep. As a general rule, you should send them between 9 a.m.and 9 p.m. And, note that depending on the size of your SMS list and yourSMS provider’s throughput rates, it might take a few hours for yourmessage to be deployed to your full subscriber base.
  • 19. 6MEASURING SUCCESS Analyzing the results of your text campaigns
  • 20. Analyzing resultsNow that you’ve sent your campaign, how can you determine whether ornot it was successful? Let’s take a look at the basic metrics for SMScampaigns. DELIVERY RATE Unlike email, with SMS you may not have an immediate picture of delivery. Some larger carriers provide delivery receipts right away. Others take longer to report back — sometimes overnight. Only after all carriers have reported back will your SMS provider be able to report fully accurate stats on delivery rates. Keep in mind that delivery rates indicate only that a text message was delivered. They do not indicate that a text was opened or read. Low delivery rates indicate poor list health and can be an indication that subscribers on your list may not have opted in. Sending too many times to a list with low delivery rates can compromise your short code privileges and may result in its revocation or suspension. LIST HEALTH INDICATORS Delivery rates vary across industry and depending on list size, but as a general rule: 99-100% - Golden 98-99% - Great 94-97% - Good 90-93% - Acceptable 80-89% - Warning Under 80% - Red flag
  • 21. OPEN RATES Carriers do not report open rates for SMS messages, though it’s a commonly held industry belief that 90% of SMS recipients read their text messages within three minutes.° CLICKS Clicks can be measured at the campaign level when you include trackable short URLs in the content of your text message. After your campaign is sent, you can refer back to your short URL metrics see how many people clicked your link. (The short URLs you link to in an SMS message should always link to a mobile- optimized website. And, if you want to keep your short URL tracking limited to a particular text, don’t publish that unique short URL anywhere else.) COUPON REDEMPTIONS AND SWEEPSTAKES ENTRIES If you’re sending a coupon or promoting a sweepstakes via text, you can track engagement using your coupon redemption rates or by tracking the number of sweepstakes entries you’ve received.° Source: http://designtaxi.com/news/31968/Conversational-Advertising-Emergent-Trend-in-Mobile-Advertising/
  • 22. A special note on offers and promo codesIf you’re a retailer, text is a greatway to promote offer codes that TRAIN YOUR STAFF ON REDEMPTIONcan be tracked at the point of sale. Your point-of-sale staff should beTex t - m e s s a ge o f f e r s c a n b e aware of your text message alertsd e l i v e r e d i m m e d i a t e l y, and coupon offers, and know howpersonalized with unique offer to redeem them before you launchcodes for each individual a text message coupon campaign.recipient, and configured with It also helps to ask your staff todynamic expiration dates so you subscribe to the same text alertsh a v e u l t i m a t e c o n t ro l ov e r customers receive so they’ll beredemption. However, there are able to anticipate offers and askseveral things to consider when any questions before customersdeciding which kind of SMS offer begin the redemption process.to distribute. INCLUDE REDEMPTION INSTRUCT-WEB OR TEXT-BASED COUPONS? IONS IN THE BODY OF THE TEXTWith SMS you can send plain textoffers (personalized or generic You can include special staffcoupon codes), or you can include queues in the body of your texta short URL linking to a mobile- message offers (“Offer only valido p t i m i ze d c o u p o n i n c l u d i n g on large size coffee SKU #454516”)i m a ge s a n d eve n s c a n n a bl e to help clarify your offers andbarcodes. So you can include speed the redemption process.whichever kind of offer integratesbest with your POS system. Witheither type of offer, you have theoption of controlling view limitsand expiration dates based onindividual open dates and times.
  • 23. 7BUILDING YOUR MOJO Finding what works for you and capitalizing on it
  • 24. Establishing cadenceYou’ll want to establish and stick to a frequency in your SMS campaignfrom the outset. This is important for customer anticipation andsatisfaction. You don’t want to contact them too much, or so infrequentlythat they’re confused when they do receive an SMS message from you.It’s also important because the MMA requires that businesses statetheir intended frequency at the time customers opt in to your mobilemarketing list. INDUSTRY CONTENT FREQUENCY Restaurants and Bars Updates on food specials 3-4 times/week and coupons Media outlets Breaking news alerts 2-3 times/week Government Service updates and 1-2 times/month alerts Health and fitness Notes on membership 10-12 times/year specials Non-profit Program and fundraising 10-12 times/year updates Retail and sales Alerts and coupons 1-2 times/month Sports Team updates/injury 2-3 times/week, or scores reports at the end of each quarter/gameWhat is the optimal frequency for a mobile marketing campaign? Thatdepends on your type of business. Here are some very general examplesof frequency in different industries. Again, your frequency depends notjust on your industry, but on your overall communication strategy.The ultimate answer to how frequently you should send your SMSmessages is that it depends on your audience. Always measure and testyour campaigns to note the impact of a change in frequency. Where youcan, compare to others in the industry by networking and exchangingnotes at conferences and social networking sites like LinkedIn and Quora.
  • 25. Troubleshooting issuesHIGHER-THAN-AVERAGE CHURN RATESOccasionally you may see a spike in the amount of people leaving your listover a given period. Here are three potential causes: You’ve advertised your list in a way that doesn’t accurately represent the provided content 1 If customers aren’t getting the kind of information or messages they expected when they opted in, they’re likely to unsubscribe. You dramatically increased the frequency of your 2 messaging in a short time period Are you sending messages more frequently to promote an event or boost sales? Customers expect to be contacted only as frequently as stated at the time of their opt-in. Straying from that initial frequency can lead to mistrust, annoyance and opt-outs. 3 You had a higher-than-usual increase in subscribers over the same time period You might, at times, experience a dramatic uptick in the amount of subscriptions after an event or advertising campaign. If this is the case, and afterward you see a higher-than-average drop-off rate, it’s usually not something to worry about (unless you’re guilty of #1, above).DELIVERY RATE DROP-OFFS If your SMS subscribers are opted-in properly and you’re experiencing steady, organic list growth, you shouldn’t see a dramatic decrease in your delivery rates. A drop in delivery rates might indicate a problem with your provider. It’s important to keep monitoring your delivery rates to make sure you’re not experiencing any technical issues with sending.
  • 26. Tracking successesYOUR MOST SUCCESSFUL CAMPAIGNEvery few months, take a moment to review metrics that indicate standoutcampaigns. Perhaps you had higher-than-usual coupon redemption or astellar response rate on a particular message. Keep notes on whichcampaigns were most successful, and try to identify what made that campaignstand out. Was it the time you sent it? Did it contain useful content? Standoutcampaigns should be noted and their success used as an indication of how tocommunicate with customers in the future.LISTENING TO FEEDBACK FROM YOUR CUSTOMERSNothing gives you more insight into your campaign health than getting actualfeedback from customers. You can gather feedback via forums, social media,email, and even by sending SMS surveys to get an idea of what customerslike best and least about your SMS campaigns and what they’d like to receivein the future.LEARN FROM YOUR INDUSTRY PEERSAs the list of companies incorporating SMS into their marketing efforts grows,so does the pool of information — both official and anecdotal — on what itmeans to be a successful SMS marketer. You can use sites like Quora to searchfor questions and answers related to text-message marketing campaigns(e.g., “What’s an average coupon redemption rate for video rental servicessending SMS coupons?”). SMS marketers populate a long list of groups onLinkedIn, where they share information, statistics, success stories and more.LIST GROWTH OVER TIMEYour SMS partner should be able to provide you with a comprehensive reportthat shows your list growth over a specific time period. Hopefully, you’ll seewhat all marketers like to see when viewing your list trends: a steady lineheading up and to the right. But youre most likely to see plateaus and dips assubscriber levels fluctuate.Keep close track of your marketing efforts and analyze those fluctuationsagainst your marketing activity. If you see a list plateau, you might be able tomatch that to a period when you spent less on advertising. Or you mightcorrelate a dramatic increase with the month you advertised your SMSprogram on your product packaging. A subscriber drop-off could reflect achange in the content or frequency of your messaging.
  • 27. 8ADVANCED TIPS AND TRICKSPowerful tools at your fingertips
  • 28. Targeting locations Collecting dataIf you’re operating a multiple- Unlike email, SMS isn’t designedlocation business you may want to give customers a direct way toto give customers the ability to respond to your business after asubscribe only to a certain message is deployed. T hislocation’s updates, and that’s doesn’t mean you can’t set up apossible with a good SMS conversation between yourplatform. Locations can be company and the customer usingtargeted by zip code during a text, or collect information fromcustomer’s subscription prompt, your recipients, however. Textsuggested to the user based on d o e s o f f e r s o m e t wo - w a ytheir proximity to their preferred communication options.location. SMS even allowscustomers to “work” through a This capability varies with yourlist of suggested locations by SMS provider, but look forreplying Y or N until they reach providers that offer surveys,the location they’d like to polls and data collection viasubscribe to. text. This means your SMS communication system can bePersonalization configured to ask questions of an audience and anticipate certainAs with email, you can use responses. Those responses canmerge data tags in your text then be recorded and collectedmessages to personalize content. in a database for use in futureThis means you can include campaigns.information like a customer’sfirst name, date of last purchase,favorite menu item, or whateverdata you’ve collected to makeyour SMS messages feel morepersonal and relevant.
  • 29. Triggered and timed messagingIt’s possible to set up a series of timed messages with SMS.Timed messages start deploying at the time a subscriberjoins your list, and are triggered on the schedule youspecify. They allow you to “set and forget” campaigns thatrun automatically using a series of messages that arecommunicated over a period of time, from a few days to afull year or more.Marketers use SMS timed messages for a number ofreasons: • Educational programs • Sending lists • Creating reminders • Communicating instructions or tips after a purchaseKeep in mind that timed messages aren’t subscriptions inthe sense that you don’t control when each customer getswhich message. A new subscriber to your timed messagelist might be receiving message one while on the sameday an older subscriber is receiving his eighth message.AutorespondersAutoresponders are put in place to offer one-timemessages with quick tips and information. Marketers usethem to communicate everything from store hours tonutritional information about menu items. Autorespondersare deployed on a one-to-one basis the moment acustomer texts a keyword to a short code. Autorespondersare not used to build marketing lists, as you shouldn’t useany contact information collected from autoresponders forrecurring marketing campaigns.
  • 30. Coupons and promo codesText-message marketing is a great way to incentivize immediatepurchase decisions. What better way to do than with a discount code ora coupon? According to the MMA, mobile coupons get 10 times theredemption rate of traditional coupons.°You can deploy coupons and discount codes in a number of differentways using text. Uploading a .csv with a list of unique discount codes to be deployed to individual subscribers Creating a generic discount code that can be used by anyone receiving the text Using a short URL to link to a landing page that contains a web coupon ° Source:  h"p://blog.sitewire.com/2010/06/21/20-­‐sta3s3cs-­‐you-­‐need-­‐to-­‐know-­‐about-­‐mobile-­‐marke3ng/
  • 31. Well, that’s about it.We hope that you’ve found this to be a helpful read andcan walk away with some actionable next steps. From ourstandpoint, this is just the tip of the iceberg. Our plan is toupdate this guide regularly, so if you have any feedbackor suggestions please send them our way.Drop us a line. hello@signalhq.com @signal

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