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 Wayne Dyer Inspired SMS Messaging
If you’re tuned into the self-help industry at all, you know who Wayne Dyer was. He spent decades writing transformational books to help people improve their lives and find happiness. He died summer 2015 at his home in Maui at the age of 75. It’s probably an understatement to say he inspired millions of people. So when I came across an article about a publisher using SMS messaging to let people know about a new book discussing his legacy I wasn’t too surprised. Not at first anyway.
Attention! The mCommerce Summit is Happening Now
Mobile Marketer is holding the mCommerce Summit: State of Mobile Commerce 2016 today in New York City. And you'll get to find out what happens when I get back and write about it next week. But today, I'm going to give you a sneak peak at what I'm seeing in New York at this moment. Before I do though, be sure to check our fastsms Twitter feed throughout the day. I'll be sharing the best tidbits as they come up in each session as they happen.
8 Key Reasons SMS Marketing is So Effective
You might not have run an SMS marketing campaign yourself, but you are likely to have received some form of SMS communication from a business. Whether that's a commercial brand running a competition or a healthcare provider, such as your GP or dental practice, sending you an appointment reminder. If you have run an SMS marketing campaign before, you're likely to already be aware of the effectiveness of the platform for communicating with customers, but might need help justifying your use of SMS messaging to other people or departments in your business. Here, we've listed out the key reasons SMS marketing is so effective.
SMS Marketing for the Domestic Pets Market
With consumer spending on Britain's 57 million furry friends valued at over £4.5 Million and all the signs showing that this is only going to increase, there has never been a better time for the sector to invest in marketing - and SMS marketing should be top priority. As pet owners spend more and more time pampering their pets and investing in pet paraphernalia, the opportunities are infinite. SMS marketing is one of the best ways to ensure that your offers get seen - and in most cases, instantly. With its low costs, exceptionally high open rates and above average response rates, SMS Marketing offers huge potential for ROI.
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.
How Text Messages Help Small Shop Owners Build Business
If you are the owner-manager of a UK retail business, then you will know that it’s vital to use every weapon you have available to battle with the big guns on the high street and online. That must include embracing all the advantages modern technology provides, including a communications campaign based on the Short Message Service (SMS) – better known as text messages. Not sure what SMS is about and how it will work for your shop? Then read on, because you are missing a golden opportunity to give your small shop a much bigger presence and outreach.
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.
Retailers Can Use SMS Marketing For More Than Just Coupons
Discount codes, limited time sales, special exclusive pricing...you may have seen, or used, all of these in a text message campaign. For retailers, it is the most obvious and direct use of SMS marketing. It works and it's cost effective. But are there other ways you can put your SMS channel to work for you?
Out-Of-The-Box Thinking in SMS Marketing
Do you know what your customer’s want? Would you ever offer something other than coupons, discounts, or other deals in your SMS marketing? At least one company is giving it a try, and differentiating themselves from the competition. Read the blog for details.