With its high open rates and quick delivery, SMS marketing can offer an impressive return on investment (ROI). However, to truly maximize ROI, it’s essential for businesses to employ effective strategies to reduce SMS...
Is It Worth Your Time to Audit Carrier Surcharges for Your SMS Invoice?
A quick answer is, yes!
Carriers are charging “surcharges” in addition to the cost of message fees. When you get an invoice, you will see the breakdown by carriers for their own surcharge rates. Sprint has the highest surcharge rate of $0.005 and it can impact your total bill if the percentage of Sprint traffic is skewed. These are the things you should know and check for potential mistakes:
• Look at the total traffic of major carriers (AT&T, Verizon, Sprint, and T-Mobile) in terms of a percentage of overall traffic.
• If you have over 70% coming from the major carriers, you may want to look further as “failed” messages consist of 5~18% of the total traffic and you should not see over 70% of the traffic from the major carriers
• There are over 30 carriers in the US and the major carrier’s traffic does not represent 90%
• Pay attention to Sprint traffic % – this costs $0.005 per message and every percentage skewed will cost you dearly
• Carriers are not perfect and they do make mistakes more often than not. It will be worth your time to review the bills and be proactive
By paying close attention to the 6 areas above, you can save a ton of money. If you don’t detect these mistakes carriers will continue to overcharge you and you may end up paying thousands of dollars every month for a long time.
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