SMSWhy SMS Marketing is Critical for Your eCommerce Brand?

By LitExtension

When most people think about marketing, it usually doesn’t include text messages. But the reality is that SMS marketing for eCommerce is one of the most viral forms of advertising that a brand can do… and for many solid reasons, too.

If you’re selling online and your business has yet to tap into the SMS revolution, I’ll give you plenty of reasons to consider why you really ought to add this form of internal growth marketing to your toolbox as soon as possible.

SMS Messages Have A High Open Rate

No other type of marketing method has as high a saturation rate as SMS does. But just how many people are opening these text messages that your eCommerce brand could prospectively send out to consumers?

Emerging research finds that text messages for eCommerce have an insanely high open rate of 99% — with most consumers opening the text message within 90 seconds of receiving it.

Email Marketing vs SMS Marketing: Open & Response Rates

If you knew that your brand could reach almost 100% of opt-in shoppers with a simple text message … Well, you can imagine how attractive this type of reach can be. Whether you’re just sending a confirmation or if you’re offering a flash sale or coupon code, nothing has better engagement than a friendly text message.

Your Customers Want To Hear From You

Many other forms of marketing gauge reach and saturation of how attractive your message is to consumers. And most of which are just becoming acquainted with your brand. But opt-in consumers are already familiar with your brand… and they love hearing from you!

In fact, studies show that 75% of consumers who have made a purchase from your brand want to hear from you… and often. Around half your audience would prefer that you just shoot them a text with any updates, promotions or special offers.

And remember that they get opened about 99% of the time, and in less than 3 minutes of receipt, to boot.

You can also expect to hear back from customers who get these messages, with about 45% happily responding to your business about the message they received. And the number of U.S. consumers who have opted in for SMS notifications (as of 2020) is impressive, standing at about 49 million, which means that most people don’t mind getting these types of messages on their smartphones.

Who’s Clicking & Opening Them?

When considering adding SMS campaigns to your eCommerce business, you’re going to want to know what your average open rate and click-through rate are. After all, the purpose of these types of messages is to inform, engage and grow your relationship with new and existing customers. The trickle-down effect is repeat business, increased loyalty and improved branding.

SMS Marketing vs Email Marketing: Click-through rates & Time to open

Where email marketing used to be king, the text message has effectively dethroned it. For example, SMS messages reach more people because 73% of consumers always have their mobile devices with them. And most people use their phones between 3–5 hours per day.

What’s more? Unlike emails, which have a lengthy 354 minutes that pass to the average open, the average consumer will open a text message within 90 seconds or fewer if receipt. Even better is the click-through ratio. Consumers only click through emails about 7% of the time. But text messages boast a 12% click-through rate, giving your eCommerce business a better return on investment.

The ROI Is Lucrative

When considering any marketing strategy, one of the first things that likely crosses your mind is the cost versus the return. I’ve got some good news for you: SMS marketing for eCommerce has one of the healthiest ROIs.

Culling some helpful data from various sources, I’ve found that the RIO for text message marketing can eclipse 500% — that’s a $500 return for every $1 you invest. To be more realistic, let’s just say the ROI was only 150%. Under this example, you’d still be getting a fantastic return for the marketing money you’re putting into the project.

Promotional Offers Convert Often

The goal of sending marketing messages is to generate engagement, entice the recipient, create a cause for action and earn repeat business. As it relates to eCommerce, this is found in the variety of different messages you can send to consumers who have already made a purchase from your business.

What’s the conversion rate like for this type of marketing? SMS messages have a healthy conversion rate of 29% overall, as compared to email marketing, which only has a 3.26% conversion rate.

Imagine this: If a welcome email to an eCommerce customer with a cross-promotional offer in it — like “get 10% off your next order” — converts nearly 52% of the time, you can imagine how much higher this rate would be if you were to send a similar message via text to a new customer. It’s that impressive.

Sending SMS Is Cost-Effective

It’s hard to overlook the cost-efficiency of eCommerce SMS marketing. From one perspective, you’re not buying lists or being forced to use expensive software (in fact most text message marketing software for eCommerce is rather affordable). Rather, you’re marketing to opt-in customers who have made a purchase from your online store in the past. A quick Google search reveals that several competing services offer affordable rates on getting the message out to your loyal audience.

Combined with a healthy ROI, an industry-best open and click-through rate, it’s hard to overlook the cost efficiency of SMS marketing. All said and done, it’s perhaps the most inexpensive yet effective form of digital marketing your business can undertake in the present day.

Five More Reasons To Use It

The reality is that SMS marketing is going to be a big part of the future of digital marketing. Billions of people own a phone and that the average person spends 3 or more hours per day on their phone. That’s why the best way to reach them is via a text message.

As mobile devices are becoming more popular, consumers will also expect that they’re getting the updates they want on purchases, shipping and returns via mobile alerts.

What follows are five more reasons you’ll want to consider using this marketing method to promote your online store:

  1. Your competition already is. You can bet that your competitors have already figured this out. And while you might be fashionably late to the game, there’s no time like the present to catch up to your rivals and integrate your own unique SMS remarketing strategy.
  2. The return justifies the means. As explained above, SMS marketing for eCommerce has an estimated 500% return. There are few other marketing methods that you can use that offer this type of lucrative ROI.
  3. It should have already been in your playbook. Now that you know how effective this marketing method is, you may wish that you had been using it all the while. Thankfully, it’s not that hard to integrate. And the minute you do, you’ll start engaging with new and existing customers like never.
  4. The numbers don’t lie. The SMS eCommerce marketing statistics that I’ve provided for you here deliver clear-cut proof that it’s a viral form of proven advertising. But you can only take advantage of it if you’re using it to grow your business.
  5. It’s not technical to implement. Regardless of the service you plan on using, all of the ones that I have demoed or tried out are insanely easy to use. They’re user-friendly, feature-rich and cost-effective. You certainly won’t require technical or coding skills whatsoever.

It’s Time To Take Action!

Now that you know just how powerful SMS promotions can be for your online store. It’s time to take action and integrate your new marketing plan. Hopefully the tips and insights I’ve offered here can help you proactively improve customer engagement, brand saturation, loyalty and retention.

This post is contributed by Michael Lazar from ReadyCloud.

About the Author:

Michael Lazar is an Executive at ReadyCloud Suite, a CRM, shipping, returns and growth marketing suite designed for eCommerce. The company specializes in helping retailers see beyond the BUY button with a variety of tools including eCommerce text message marketing software called Action Alerts.

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