More People Prefer SMS Loyalty Programmes

Loyalty programmes come in all shapes and sizes. But the point of them all is to keep customers coming back to you rather than switching to a competitor. In order for it to work, customers need to see what your loyalty programme offers. To do that, you need those offers to cut through all the noise they have in their lives, in their email, and in their shopping. One of the best ways to do that is by using SMS messaging.
Customers Prefer It
Emarketer reported on a study of 3,500 US internet users who were asked various questions on loyalty programmes. As you can see in the image below, almost half of the respondents said they preferred SMS messaging for their loyalty programmes.
More than twice as many people preferred SMS over the next largest category, email. It isn’t hard to imagine why. I’ll use myself as an example. Over the years I’ve signed up for dozens, if not a hundred, email lists for stores that I’ve shopped at or was interested in. My Gmail inbox filters those emails into the “promotions” tab automatically (for the most part). So guess what? I never see them.
In fact, my eyes glaze over when I go into that section of my email. So usually I just use the search bar if I’m interested in seeing if a particular brand has a sale. Only their emails will pop up, and I can now see what’s there. Have I missed special members-only sales, point redemptions and deals this way? Yes, but I’d go crazy trying to sort through a hundred emails every day.
Could I unsubscribe to some of them? Yes, but I’m lazy. And so are most people when it comes to email. It’s much easier to just ignore the ones we don’t want than to bother with finding the options to unsubscribe – which, depending on the company, may not work right anyway.
Even for people who don’t use Gmail’s auto-sort feature, it’s difficult to review and find emails in all the clutter we get each day. Email just piles up, most of it never gets read.
So for the retailers I really care about, I sign up for their SMS message lists. Sometimes they come with loyalty programmes, sometimes it’s just a marketing list. Either way I know I’m seeing the deals that I want to see.
Benefits of Loyalty with SMS
That’s why SMS is preferred for loyalty programmes. If someone has signed up for a loyalty programme it means they care about the brand. They want to be sure they don’t miss any deals especially for loyal customers. And SMS is the only channel where you can guarantee the customer will receive and read the messages. It’s usually one of the easiest ways to redeem messages too.
Depending how a loyalty programme is set up, the customer can receive mobile coupon codes, or links to coupons they can then simply show at checkout. Or perhaps the company links to their mobile website where the coupon is already activated when customers click the link.
Some companies even take it a step farther and let customers request information about their reward account. Using keywords, they can ask for their point balance for example. This interaction creates a deeper connection between the customer and the retailer because it’s so easy for them to use. And even if it’s an automated answer, customer’s will feel like the company cares more than one who doesn’t offer the service.
I’ve seen different numbers floated about, but most people belong to at least twice as many loyalty programs as they actually use. By that I mean they sign up, but never redeem anything or make purchases from loyalty offers. Much of this is because of email overload. It’s also because the person may have signed up to get a deal at the time, but doesn’t feel any loyalty at all to the brand. But this probably happens less than you might think.
When you offer an SMS loyalty programme, you know the people who sign up are loyal customers. Yes, there will be some small percentage who sign up then either opt out or never participate. But that percentage will be lower than other channels. For now at least, most people place a value on their mobile number and won’t just give it out to anyone.
If you’re one of the lucky few who get their number, realise how special that is and keep them engaged with a great loyalty programme. And remember, they want you to use SMS messages. Why not oblige them?
Related Articles
How to Avoid Failing at SMS Marketing
For many businesses it's often a knee-jerk reaction to create an app, or to run mobile ads, or to start an SMS list. But without really understanding what it’s all about, you can waste a lot of time and money before realising what you actually need to do.
7 Tips for a Successful SMS Marketing Campaign
SMS marketing is still one of the most effective marketing channels available to businesses but is often overlooked in the pursuit of newer, more digitised technologies. When you include SMS marketing as part of the marketing mix, you're in a far greater position to increase engagement with your campaign, helping you generate a greater return on your investment. As with all channels, there are certain ways you can ensure your campaign is more effective, by following these simple steps.
How an SMS Customer Survey can Take Your Business to the Next Level
When it comes to small to medium sized businesses, however, a lot of companies believe that they don't have the time or resources to truly find out who their customers are. This often results in confused messaging, emails with low open rates and low conversion levels on their website. There is, however, a way that businesses can collect precious data from their customers which will not only help them engage with their customer base on a personal level but also result in data which can help power future marketing campaigns as well as improve aspects of the company.
Top Three Things Retailers Should Do to Keep Customers on Their SMS Opt-In List
You've run a successful SMS opt-in campaign for your retail store. Now that you have your list, do you have a plan to keep them from opting out? Wait, you mean there's more to this than just sending out coupon codes? There is if you want to keep your customers from opting out.
Beginners’ Guide to SMS Marketing – July 2016 Update
If you've considered SMS marketing to new and existing customers by text message but dismissed it, it really is time to think again. SMS continues to outperform and outreach all the newer models of communication designed to replace it. The latest competitor to run into difficulties against business text messaging is mobile internet advertising.
Growing Your Business with SMS Messaging
5 Reasons to Receive SMS Online
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.
Growing a Business Around Your Family Life? Here’s Why Mumpreneurs Need SMS Marketing
Mums are natural entrepreneurs. And now they're turning that entrepreneurial spirit towards running a business, using their organisational skills to turn a profit from franchises and hobbies, fundraisers and baking. Mumpreneurs are on the march and they need smart marketing strategies like SMS that fit around their busy lives.
Why SMS Marketing is Like Facebook Marketing, But Better
Facebook is a popular place. According to Statista, they had 1.44 billion active users in the first quarter of 2015. It’s no wonder then that businesses are flocking to advertise there. But big isn’t always better. SMS marketing is similar in many respects to Facebook advertising, and for some uses it is actually better. Let me explain and see if you agree.