How Brands Are Increasing Sales with SMS Marketing
Quick Summary Are you using a marketing medium that offers a 98% open rate and reaches customers wherever they are? If not, it’s time to look into e-commerce SMS marketing.
Are you using a marketing medium that offers a 98% open rate and reaches customers wherever they are? If not, it’s time to look into e-commerce SMS marketing.
Also known as text message marketing, SMS marketing gives e-commerce retailers a unique way to make personal connections with customers and promote them in an effective, affordable way. With a few tips, you can quickly create an impactful SMS campaign that drives conversions and strengthens your customer relationships.
Why Are D2C Brands Using SMS Marketing?
The main reason D2C brands use SMS marketing is simple: because it works.
Over 54% of online shopping is expected to take place on mobile in 2021, highlighting the importance for brands to create mobile-driven strategies. With consumers' mobile phones being the window into their world, brands need to start using SMS marketing to engage with their shoppers and cut through the noise. In fact, Yotpo saw a 124% year-over-year increase in the number of text messages being sent from brands using SMS marketing on the Yotpo platform.
Consider these statistics around customer engagement and SMS marketing:
- Mobile users read 98% of text messages by the end of each day.
- A full 32% of consumers say they have responded to a retailer’s promotional text message.
- Almost half of US consumers say they prefer SMS loyalty communication over direct mail, email, or apps.
- 76% of loyalty program members will opt-in to communicate with their favorite brand through SMS.
- Over 48% of consumers have already signed up to receive texts from a brand.
- SMS response rates are eight times higher than email response rates.
- SMS has a conversion rate of 45%.
7 Ways D2C Brands Use SMS Marketing Strategies to Increase Sales
These seven methods are among the most common — and most successful — uses of SMS marketing by brands. Try as many or as few feels right for your business, and remember that there aren’t any hard and fast rules when it comes to creating SMS marketing content. Your approach should match your goals as well as your customers’ preferences and behavior.
1. Post-Purchase Follow-Up
Post-purchase follow-up texts are a great way to collect feedback and learn more about your customers for future personalized communications. Post-purchase messages can also include valuable information about assembly or ideas for using a product.
2. Shipping Notifications and Alerts
Improve customer experience by offering SMS shipping and alert notifications. This is a simple way to add value to the customer experience at virtually no cost to you. It’s non-intrusive and reduces inbound customer contact for order inquiries.
3. Upsell Opportunities
Upselling via SMS can be quite effective. After a customer receives your product, follow up with a text to ask how they are enjoying the product, and direct them to a special offer on accessories or related items.
4. Subscriptions
Text messaging is an ideal partner for D2C subscription-based retailers. Weekly reminders can let customers know when it’s time to order fresh meal delivery services or skincare kits, for example. For less frequent subscriptions, SMS messages can keep communication flowing between shipments, so customers feel connected to the brand.
5. Promotions
SMS promotions are highly effective for getting an urgent brand message in front of customers. Because they are so short and tailored to each customer, SMS messages promote a sense of urgency. The customer is one tap away from the purchase window, even when they are away from home.
“Brands who use promotions in their SMS strategy see an increase of 47% in their overall revenue. Many of our brands set up SMS promotions in the form of SMS-only offers, creating an exclusive experience that keeps shoppers engaged both with your brand and SMS as a channel.” –Kim Winter, Yotpo
6. New Customer Acquisition
Text messaging can help acquisition by quickly establishing a personal conversation with a potential customer. New customers will take notice when they get a text message from you, especially if you use the message to remind them about unused store credit or an abandoned cart.
7. Rewards and Loyalty Programs
“Insider” texts can enhance your relationship with D2C customers who are part of your rewards or loyalty programs. You can also use SMS to promote participation in these programs.
“VIP customers are a brand’s most engaged group of shoppers. Therefore, it’s essential to engage them with tailored messages based on real-time events that speak to their loyalty benefits and to integrate your SMS Strategy with your Loyalty Program. We recommend anything from VIP Exclusive offers and Loyalty Birthday Reward to Double Points Campaigns and regular Points Balance Updates. In fact, 76% of loyalty members want to receive personalized updates directly through SMS to stay in touch with their favorite brands.” –Kim Winter, Yotpo
Blast out occasional rewards-member exclusive deals via text, or send updates on how many loyalty points a customer needs to reach the next loyalty tier or redemption option.
Which D2C Brands Use SMS Marketing?
SMS marketing for e-commerce is a largely underutilized strategy, but several popular brands have made the most of the tactic, with impressive results.
Magic Spoon
Magic Spoon sells keto-friendly cereal that has inspired such a degree of customer loyalty that new flavors often sell out within days. Magic Spoon uses SMS marketing to offer returning customers access to new flavors before the general public.
Cratejoy
Cratejoy is a company that offers curated monthly hobby-box subscriptions. During the widespread shutdowns caused by the 2020 pandemic, Cratejoy built much of their messaging around the context of social distancing. The brand’s SMS marketing focuses on promotions, new arrivals, and ongoing engagement while an order is being shipped.
Other Examples
Other D2C brands making use of SMS marketing include:
Even beyond D2C, just about every major retailer is using SMS to some degree.
Key Takeaways
SMS is still a relatively untapped marketing medium, which means you have an opportunity to stand out from other brands. Text messages are direct, easy to create, and, best of all, effective. In many cases, customers can simply tap a link and make a purchase within just a few minutes.
“With over 25x ROI, the most successful e-commerce brands are looking to SMS marketing to engage their customers and drive conversions. Getting started is easy and only requires a few steps, making SMS e-commerce brands’ new favorite channel of communication.” –Kim Winter, Yotpo
Before you get started, be sure to look into local and international laws about customer contact. In most cases, you’ll need customers to agree to receive marketing messages before you start sending them.
Reach out to us to learn more about incorporating D2C SMS marketing and optimizing your approach.
