How to Choose the Incentive for Your SMS Marketing Opt-In Campaign

When you’re just starting out an SMS campaign, the main dilemma is what to use for an opt in. If it’s too “small” an offer, no one will bother. If it’s too “big”, then you might get lots of people who opt in, then opt out.
It reminds me of Goldilocks and the Three Bears. Daddy’s things were way too big and didn’t suit the child. While Mummy’s things weren’t quite right either. What you want to do for your offer is to find the “just right” size. The trouble is your customer is Goldilocks, and you won’t know what offer they like until you give them one, or a few, to try.
You may think it’s incredibly difficult and expensive to test out multiple offers. But it doesn’t have to be. Let’s say you go big (like Daddy’s bed). Your offer generates lots of opt ins, and then people opt out. That might not be so bad. I’ve found some evidence that says that the large incentive opt out rates only run 2-6%. That equates to just a few per hundred opt ins. While I’m not convinced that number holds true for most campaigns (as the source used a limited data set), it is a good starting place.
At the very least, it offers some evidence that going with an incredible (e.g. “Big”) initial opt in offer could be what Goldilocks, I mean your customer, wants.
Try It and See
Assuming you want to grow your list fast, create an amazing offer and see what happens. If your unsubscribe rate is too high, then you know it was Daddy size and not right for your customers (or rather, great for your customers, but not great for growing your list). But at least you hopefully made some money on that single promotion, even if your list size didn’t stay as big as you wanted it to.
Next, try something a little “smaller” like Mummy’s chair or bed (am I taking the analogy too far yet?). If you hit the sweet spot, you’ll likely get people on your list who will stick around and love your brand, product or service. And they’ll also be more likely take action on future messages.
Ideas To Get You Started
If you’re convinced you should start with a big incentive, you might still be wondering what that will be. So here are some ideas to help you narrow down your choices:
- What was the best promotion you ever ran? Could you use that exact offer again, just for people who sign up to your SMS list? If that’s not possible, maybe you can offer something that’s similar enough to draw people in.
- Make a list of the most popular offers you already run in other channels. You can take one of those directly, but consider tweaking it to be just a little better and more exclusive to your SMS list.
- Ask your customers. Send a survey out via other channels – email, or social media – and simply ask them what they’d expect in exchange for their mobile number. This is the best place to start if you have no idea what your customers actually like, or measurements on your other promotion’s performance. The bonus here is you might find out more information that you can use across in other aspects of your business, such as customer service or product development.
Once you decide on your offer and have it advertised anywhere and everywhere you can (but nowhere it can’t be easily changed), don’t get too complacent. Make sure you get right in there and check redemption rates, click through rates, and the unsubscribe rate. Make adjustments based on the results and keep on going. SMS marketing offers one of the highest ROIs you’ll find in mobile marketing – once you find what Goldilocks likes best.
Related Articles
Personalising Your SMS Marketing
Using people’s names in marketing is great. It does provide a certain level of personalisation that can get people more interested in what you’re sending them. Of course in text messaging, you don’t always have the room for a name, your message, and the required opt out information … usually there just isn’t enough room. So how can you make your marketing messages personal?
Do Your Customers Trust You?
I think for much of the last decade, people used the Internet and then mobile devices, without giving too much thought about what they were doing. Or more accurately, what other people were doing with their information. But then came Edward Snowden in 2013 who revealed governments were collecting and using our personal data in ways we hadn’t imagined.
Oops! What to do When You Send the Wrong Message
Sending a text message to the wrong person can be embarrassing. I've done it many times. Thankfully though, they were just simple messages like "be home soon" or "I'll tell you later". Innocuous, harmless and easily explained away. But what if you make a mistake with your business SMS messages?
Older Generations and SMS Messaging
50% of people between 55 and 64 own a smartphone and 18% of people over 65 do too. If you’re trying to reach out to these older demographics, it might be time to consider mobile marketing. But what kind should you choose?
Using SMS to support drive-to-web strategies
11 Benefits of Using SMS Messages in Your Network Marketing Strategy
Given that network marketing is very much dependent on communication, there are ways in which SMS marketing can be used to help increase recruitment, improve retention rates, create effective discussion, boost sales and motivate teams. Here's how...
5 SMS stats to excite any business about SMS
The Psychology of SMS Marketing
In marketing, everyone wants to be more influential and persuasive in order to build loyalty and return custom. To gain the highest ROI, businesses want their marketing campaigns to speak to every individual in such a way that makes them feel connected and yet, with every will in the world, an SMS marketing campaign is only going to achieve this high conversion and success if it manages to tap into consumer psychology.
SMS Marketing and Mobile Wallets
In one of my blogs last week, I talked about a marketing study by Vibes and what it said about SMS marketing. This week I wanted to take another look at it from the perspective of the mobile wallet industry, also covered in the report. It turns out there is a strong case for integrating your SMS marketing with mobile wallets. Let’s take a look.