When Viral Marketing Goes Too Far
A couple of years ago, our local newspaper, The Philadelphia Inquirer, ran a disturbing story about how a mortgage loan company in Phoenix had sent spam advertising messages which appeared on the screens of thousands of wireless phone customers. Not only were the messages not requested, but these customers had to pay to retrieve them.
In the United States, phone numbers are allocated to wireless companies in blocks of 9,999, all beginning with the same three-digit prefix following the area code. The text messaging address for each mobile phone is derived from the phone number assigned to each customer's handset and the wireless company's name. This means that an advertiser can simply choose any three digit prefix in an area code and send a message to 10,000 people by changing the last four digits after the prefix
One industry analyst noted that this is just the tip of the iceberg. This type of spam is cheap and easy for advertisers to use. Wireless text messaging is widely used in the U.S.; and, while some carriers are taking precautions to protect their customers from text message advertising, so far neither the direct marketing industry nor the federal government has been able to control this form of spam. As the president of the mortgage company noted, the advertising had brought in new clients and "There still isn't any rule against emailing." Online, the concept of "permission marketing" is similarly tossed aside each day with the receipt of unsolicited promotional emails.
We call this indiscriminate solicitation of prospective customers one variation of the "Casanova Complex" customer acquisition model, reflective of the 18th century Italian adventurer, perhaps best known for his many female "conquests." In the haste to bring in customers, companies can often forget to court the right customers, those who represent the best long-term revenue potential, or who won't overtax the company's customer service and support structure.
"Marketing Nuggets" will include observations regarding trends, and often study results, representing current, real-world issues of high importance to direct marketers. Those issues include omnichannel communication usage, mobile marketing, content, informal offline and online social communication, consumer behavior, message personalization, internal customer-centric processes and organization, strategic customer life cycle planning, proactive employee contribution, etc.