Now No One's Too Small to Blitz the Masses
A Web company lets you call 2,000 people at once
Admit it, entrepreneurs: Consumers may vilify those marketing calls that
always seem to come at dinnertime, but you'd carpet-bomb the market yourself if it
weren't so expensive and complicated, wouldn't you? Well, let your inner mass-marketer
go wild. A three-month-old Web-based service called MessageBlaster makes it possible
for even a solo entrepreneur to blitz as many as 2,000 people at a time with an automated message -- by phone call, E-mail, page, or fax -- from a PC.
MessageBlaster isn't the only way a small business can tap mass-marketing
technology. Alternatives can be costly, though. You can install automated-dialing
software -- like the programs big companies use -- on a PC and hire someone to
call prospects. Or you can contract with a phone company or call center. For
that, you'll likely spend several thousand dollars just to set up a campaign.
Plus there are monthly fees and minimums on the number of calls.
MessageBlaster's appeal is that it requires no investment, salary, or monthly
fee. Charges are per call, and an entrepreneur can launch a mini-marketing blitz
to a thousand people for as little as $150 in the time it takes to enter the customer
names. The service works best for lists of 2,000 names or less.
Alain Daste, chief executive and founder of the Billerica (Mass.) company,
shrugs off criticism that MessageBlaster is a consumer annoyance. Daste says he's
looking out for the entrepreneur competing against the marketing juggernauts of
big companies: Small businesses "need to close business faster," he says. "They
need to have a way to communicate with their clients or with a prospect quickly
and efficiently."
Marketing pros believe that MessageBlaster has few direct competitors, for
now. Technologically, it fits into the universe of unified messaging services
such as JFax.com, Ipost.net, and Efax.com. Unlike them, MessageBlaster sends out
messages. The other services gather incoming messages in various media (say, phone
mail, E-mail, and fax) and convert them so the recipient can retrieve them in
one place.
Here's how MessageBlaster works. First you compile the phone or fax numbers
or E-mail addresses of the people you want to reach. Go to www.messageblaster.com
and enter them at the site. Click "send new message," and type in the text. E-mail and
fax messages can be any length, but MessageBlaster recommends you keep phone calls under
one minute. Then, select names from your address book and indicate how you'd like to
reach them (phone, fax, etc.). MessageBlaster blasts off the message.
It's certainly fast. When we tested MessageBlaster in the office, the phone
rang within seconds. A chirpy electronic voice stated our message, but you can record a
message in your own voice. (We found MessageBlaster's own marketing pitch at
the beginning and end of the message a bit much.) E-mails and faxes arrived speedily
and in good order. The service also lets you pose a "yes/no" question and tallies the
responses. A summary page tells you if your message went through and whether an answering
machine or a person got it. Each phone call within the U.S. and Canada costs 15 cents
per minute. (They're free for up to three people.) Faxes cost 10 cents a page and pager
messages 15 cents per minute. International calls will be available at the end of the
month. E-mail will remain free. In October, MessageBlaster will let you mail postcards,
too. The company will transmit your text message to a print shop that stamps it on up to
1,000 cards (more by special arrangement) and ships them off. So far, MessageBlaster has
about 2,000 registered customers. Daste expects 100,000 regular users by the end of 2000.
Entrepreneurs may be tempted to go hog wild with this new toy. One marketing guru
says that could backfire. Seth Godin, vice-president for permission marketing at Yahoo!,
calls the entire approach a turnoff to consumers, who increasingly resent such
interruptions. Godin says businesses first need to ask their contacts if they mind being
reached this way. "If you do this without permission, if you just harvest addresses, it
will put you out of business because it is going to alienate the people you want to
market to," he asserts.
Another consideration: Unsolicited mass marketing may not be very effective for small
businesses. Data gathered by one major Net portal shows that, typically, less than 1% of
those contacted even respond to a direct pitch via phone or mail, and fewer still buy
something. That's why such campaigns tend to be the province of large companies with
immense lists.
Some early MessageBlaster users say they're all for it, though. Graham Rowe,
president of Concord Travel in Concord, Mass., says it's difficult to tell clients
about discounted last-minute seats on a timely basis via direct mail, and the
response rate is 3% at best. He recently tested MessageBlaster to contact 25 people
for one such offer and heard from 30% of them. "This is far more user-friendly than
the alternatives. It's easy for an individual to go onto the Web site and convey the
customer list and have done with it in a very short space of time," he says.
MessageBlaster can also be used for contacting people en masse for other purposes
than selling. Andrew D. Clapp is managing director of the eight-person Gateway
Financial Group Inc. in Boston and runs the $20 million Brook Venture Fund. He has
used the service for routine communications with his approximately 600 investors,
such as leaving phone reminders to confirm receipt of documents. In the past, the
task took a staffer several days.
Now Clapp plans to use MessageBlaster to make sales pitches to clients who have
given their O.K., he says. For once, the dinner interruption will be for something
they actually want to hear about.
By Jeremy Quittner in New York
jeremy_quittner@businessweek.com
To: ADVERTISING AND MARKETING
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