Cost benefit analysis of using SMS

By Erick S. Kalugdan

Imagine running a business without a telephone, fax machine, or email address. Isn't it almost impossible to do business without them? Instead of being in business, you may fall out of business.

Now, imagine your business utilizing a very powerful, convenient, and cost-effective communication tool -- the Short Message Service (SMS) or popularly known as text messaging. Not only can SMS be used in sending personal messages, but with the advancements in computer software engineering, it is now possible for businesses to use SMS as an alternative communication medium in transacting with customers or coordinating with industry partners.

GiveMe Unlimited Inc. developed the InfoTXT Messaging Platform -- an SMS platform that any business can use to implement their business-specific SMS services. Using a GSM modem and an ordinary cellphone SIM card, InfoTXT can send and receive high volume SMS messages using a PC, provide information-on-demand services, and integrate SMS access to any ODBC-compliant database, any website or web application.

Without InfoTXT, companies may incur the following costs in business operations:

Qty	Particulars	Unit Price	SubTotal
5,000 pcs	Printing cost of fliers about a new product, service, event, or promo excluding cost of distributing them	2.00	10,000.00
5,000 pcs	Printing costs of raffle tickets for a raffle promo	2.00	10,000.00
2,000 pcs	Customers' Statement of Accounts or Bills printing and mailing costs	5.00	10,000.00
160 hrs	Manhours for accommodating inquiries over the phone	37.50	6,000.00
300 min	Cost of landline to cellphone calls for updating agents, follow ups, etc.	12.00	3,600.00
300 min	Cost of long distance phone calls for sending fax messages, updating agents, follow ups, reminders, etc.	5.00	1,500.00
TOTAL			41,100.00

By utilizing SMS using InfoTXT, companies may cut on operating costs such as:

Qty	Particulars	Unit Price	SubTotal
5,000	Cost of sending SMS about a new product, service, event or promo	0.50	2,500.00
5,000	Cost of sending SMS as raffle tickets for a raffle promo	0.50	2,500.00
2,000	Cost of sending key information (ex. Amount, date due, account number, etc.) in Statement of Accounts or Bills of customers via SMS	0.50	1,000.00
16 hrs	Manhours for accommodating inquiries over the phone	37.50	600.00
30 min	Cost of landline to cellphone calls for updating agents, follow ups, etc.	12.00	360.00
30 min	Cost of long distance phone calls for sending fax messages, updating agents, follow ups, reminders, etc.	5.00	150.00
TOTAL			7,110.00

The figures above are only indicative prices (in PHP) with the following assumptions:

• The company has only 5 mobile employees
• It has 2,000 members or clients who are billed on a monthly basis
• The company is running a raffle promo
• It accommodates inquiries over the phone
• The SIM card used is on a postpaid plan with at least a monthly fee of P1,200/month
• The required manhours, landline to cellphone calls, and long distance calls are minimized to 10% when using SMS
• InfoTXT's Info-On-Demand feature is used to accommodate most of the inquiries

In summary, a company may be able to significantly cut more than 80% of its operating costs by using the InfoTXT Messaging Platform to easily and cost-effectively implement customized SMS services in business operations.

For more information, please visit GiveMe Unlimited

Contact Erick S. Kalugdan
Cellphone +63917-894-3492
Email: erick@givemeunlimited.com

GIVEME UNLIMITED

The enterprise and wireless solutions provider, GiveMe Unlimited is a software development company specializing in wireless technologies namely SMS (short message service or text messaging) and WAP (wireless application protocol).

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GiveMe Unlimited provides the best value for money without compromising the quality of products and services. GiveMe Unlimited provides off-the-shelf and develops customized applications to suit clients business processes. GiveMe Unlimited is committed to total customer service by being constantly in contact with clients providing them full support before, during, and after implementation.

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