5 Ways Klaviyo SMS Marketing Improves Customer Retention

Instead of continuously working to gain new customers, savvy marketers are turning their focus to higher customer retention rates. There’s still plenty of competition, but it’s much more cost-effective to retain a customer than to bring in a new one. It doesn’t take a big increase in retention to seriously boost profits, either. In fact, an increase in customer retention of just 5% can lead to more than a 25% increase in profits. 

That leaves marketers with an important question: How do you break through the noise and keep customer retention high?

The answer is SMS marketing, another name for marketing through text messages. It’s a simple, effective solution to traditional marketing problems. SMS stands for short message service, the official name for text messages. The shift to SMS marketing is in its early stages, but it’s happening, and it’s a growing customer retention strategy. 

You can get ahead of the SMS marketing curve today by working with tools like Klaviyo, a new platform that allows you to segment and automate your SMS marketing all in one place. Here are five ways that SMS marketing improves customer retention.

1. High Open and Response Rates

Out of every type of direct-message marketing, SMS marketing has some of the highest open and response rates. In fact, 97% of texts are opened and read in fewer than 15 minutes. Many customers find it all too easy to delete emails and toss out mail. Text messages, on the other hand, are easier to open than to ignore. Because most people have their phones nearby at all times, SMS marketing offers the best chance to impact any given customer’s day. 

These high text-opening rates lead to better customer engagement. A customer who engages with your brand a couple of times a week is much more likely to come to you first the next time they want to make a purchase. That’s excellent for customer retention. 

Another reason that SMS marketing and customer retention are so intertwined is the speed of texting. You can use SMS messages to provide flash sale notifications that rely on quick responses in a way that even email can’t achieve. 

2. Instantaneous Customer Interactions

The speed of SMS marketing gives it a unique benefit: It’s virtually instantaneous. In today’s interconnected world, it’s increasingly common for people to filter their online experience. This includes using features like the Gmail promotions folder or notification filters. Emails and app push notifications are continually becoming simpler to ignore. 

On the other hand, many people who filter their emails and notifications allow all of their text messages through. When these people receive your SMS marketing messages, they’ll get an instant notification. This helps you stand out from the pack because you’ve made it past their self-imposed barriers. 

3. Reduced Advertising Costs

Traditional marketing activities have some of the highest costs that businesses face. Using nontraditional, highly effective solutions like Klaviyo’s SMS marketing platform can help you save money while improving your communication. Simple, effective advertising is always a better alternative to expensive, hard-to-track options. 

Step back from the pressure to pay for ads, mailings, or the development of complex campaigns. Instead, by following cost-effective SMS marketing best practices, you can focus your budget on the things that matter. 

Building a better website, providing more customer support, or growing your offerings are all better ways to spend the money you might be wasting on ineffective physical or web-based advertising. When you support the things your customers need, they’ll stay loyal to your brand in a way that traditional advertising can never achieve. 

4. Convenient Customer Service

The same instantaneous interaction that makes SMS messaging great for marketing also makes it useful for customer service. Many consumers will avoid writing or sending emails to a company because response times are so slow. Calling customer service lines often leads to long hold times, which can keep people from calling. 

Text messages, on the other hand, can get customers answers in minutes. The impressive text response rates show just how fast you can provide information. When your audience can get answers whenever they need them, you build their trust and support for your brand. Just make sure you announce that texting may be used for support. Add this information to your website and send it in a message to new customers to ensure that everyone knows what’s available. 

5. Personalized Texts To Impress Customers

Finally, with effective market segmentation like Klaviyo provides, you can send individual, customized texts when they're relevant. Personalizing text messages helps each customer feel special and valued. SMS marketing opportunities include sending:

• Birthday rewards

• Customer loyalty rewards and coupons

• New customer greetings

• Requests for feedback after purchases

You can also use SMS messages to remind customers of the information you’ve sent out in individualized emails to emphasize your personal approach. 

When sending text messages like these, it never hurts to give consumers a way to opt out of receiving them. Making it clear that you don’t want to annoy customers builds loyalty. Plus, customers who choose not to opt out are the demographic that’s most loyal to your brand in the first place. This information is key to the design of future marketing campaigns. 

Finally, you can send texts asking for feedback after a customer makes a purchase. Not only will you get valuable information, but your customers will also feel respected and heard. 

Learn How SMS Marketing Can Help You Drive Sales

There’s more to SMS marketing benefits than just keeping your customer retention rates high. It can also help you drive more sales. If you want to learn more about how Klaviyo and SMS marketing can boost your sales numbers, check out our article “How Brands Are Increasing Sales with SMS Marketing.”

SMS marketing is growing, and it can help you increase customer loyalty, retention rates, and sales numbers. Take advantage of this opportunity today with Avex Designs and Klaviyo.