innovate arkansas

In today's IM world, information delivery must be quick and efficient.

One Little Rock startup understands. Sumotext is a mobile-marketing firm and Innovate Arkansas client that delivers information quickly and cleanly via SMS (short message service, i.e. text messaging).

For businesses that need to deliver time-sensitive information to targeted customers, Sumotext fits the bill.

"Until now, e-mail and direct mail have been the only channels for targeted marketing," said Sumotext founder Tim Miller. "With e-mail read-rates below 5 percent and the high costs and long lead times associated with direct mail and mass marketing, businesses need an efficient and effective channel to distribute time-sensitive information."

Sumotext uses SMS alerts to send information quick and fast to targeted audiences.

"I don't think enough people realize that SMS is the only protected marketing channel - completely free from spam," Miller said. "Do-not-call lists have never worked, and consumers have no way to protect their physical mailing addresses or e-mail accounts from becoming littered with offers from marketers. With SMS over short codes, the consumer remains in complete control. Consumers must first opt into a program to receive anything - and they can opt out at any time by replying ‘stop' to any message they receive."

Sumotext has amassed an impressive résumé of large, national clients such as the U.S. Naval Academy, Baylor University, L'Oreal USA, T. Boone Pickens and the Pickens Plan, and the National Republican Senatorial Committee. But its focus will always be on small business.

"We believe that mobile marketing is the most compelling when done on a local level," Miller said. "Big brands will always struggle to find relevance over mobile phones. However, local brands can make lasting connections that are more compelling and more mutually beneficial."

Sumotext has built its own SMS gateway and campaign management tools and maintains its own connections to all the major wireless carriers and even 33 regional carriers throughout the United States.

"We're not a re-seller," Miller said. "Since we sell directly to the client, we're able to offer superior support and control over enhancements and client-specific customizations. This also enables us to compete better on price while maintaining margins."

Schools are beginning to see that SMS alerts are the wave of the future, including Little Rock's Christ Lutheran School, a Sumotext client for two years.

"Schools use us for everything from emergency alerts to organizing volunteers to work the concession stands at sporting events," Miller said. "But in general, this sector is slow to adopt new technology. Once it's on their radar, they have to find an internal champion, write an RFP, evaluate vendors, choose the low-cost provider, submit a budget proposal and then wait for approval and funds. The good news is that SMS will eventually become the preferred communications channel - and all schools will eventually have to have some mobile alert program in place."

Arkansas' slow-to-emerge startup environment has presented challenges, Miller acknowledged, but Sumotext's relationship with Innovate Arkansas has been highly beneficial, he said.

"Innovate Arkansas has been a source of counsel and encouragement. If they don't have an answer, they know who to call," he said. "They have met with us regularly, stayed on top of our progress and needs and allowed us to share our story with potential investors."

Sumotext is poised for big things. Twitter floundered in obscurity for years before realizing its success. And Miller is quick to point out the differences and what he sees as the advantages of Sumotext over Twitter:

• With Twitter, customers can't opt in from their phone. Twitter forces customers to go online and create a Twitter account - find your business - then subscribe. This prevents customers from subscribing in‐store, in‐venue or when they see your ad.
• Twitter does not support interactive campaigns
• Twitter does not support Text‐2‐Join, Text‐2‐Win, Text‐2‐Vote, Text‐4‐Coupon, or any of the other proven strategies to help you build a database. Real text-message marketing platforms easily support these and many other fun, interactive features designed to identify, attract and reward your most valued customers.
• Twitter believes it owns your database.
• Not only could Twitter send your subscribers unsolicited text messages, it could rent your database to third parties. Also, due to the text-message fees that Twitter pays wireless network operators, it is widely believed that Twitter will soon begin adding third-party advertisements to your text messages or begin charging fees for its service.

Could Sumotext be the next Twitter, as in the next big thing? Miller thinks so.

"The Pareto Principle - also known as the Law of the Vital Few - suggests that 80 percent of your sales come from 20 percent of your customers," he said. "In a challenging economy, businesses need to be relying on their ‘regulars' to get them through. We can help them do that - for a fraction of the cost of mass marketing."

For more information, visit www.sumotext.com.