Don’t Believe The Myth of The “Cashless Shopper”
Sometimes bloggers or journalists get a bit carried away. They see some data or fact, and run off to declare there’s a trend you need to know about.
The latest one I’ve seen is all about how to reach the generation of “cashless shoppers”. The argument goes that you need to use SMS messaging to reach customers because they are all shopping online – where you obviously can’t pay in cash.
The particular article I’m thinking of uses the fact that the UK spent £114 billion online last year as proof there’s a generation of shoppers who don’t use cash. I checked their facts, and it’s true. The UK spent a ton of money shopping online.
Maybe I’m nit-picking, but I don’t see how that translates to a special group of people who are “cashless shoppers”. So I did what everyone who has a question does these days. I googled about it.
The Facts
According to a report on the BBC, digital payments exceeded cash payments in 2015. That bundles together debit cards, cheques, contactless and mobile payments. The article goes on to predict that cash payments will drop another 14% by 2024.
But not all sectors are equal. In the same article it says that 83.9% of payments at pubs are in cash. And 78.5% of convenience store payments are in cash. Discount stores receive cash 68% of the time. Travel and transport receive 59% cash. Those numbers are from 2014, the latest I could find with the sectors broken out. Obviously things may have changed some in the last year and a half, but probably not drastically.
Looking into things further, I read a Bank of England report that said while digital payments are increasing, so is the value of the Bank of England notes in circulation. They even created a short video to go along with the report that makes it clear they don’t expect cash to disappear at all. In fact, it may increase as they release new notes in the next few years.
SMS Isn't Just For Online Shopping
Getting back to my original question – whether the article I read about cashless shoppers is correct – I’d have to say I debunked the concept as a whole. Yes, people are buying more online. Yes, some people are using debit cards more frequently than cash, but not everywhere.
And by ignoring the sectors where cash still dominates, the article is potentially leaving the impression that only online retailers can benefit from SMS messaging.
That certainly isn’t true.
Online retailers can make great use of SMS messaging. But so can pubs, discount stores, travel businesses, and virtually any sector of business. Let’s take a look at how:
- Pubs can send “two for one”, “free appetisers with entrée”, or a percentage off coupon to customers via SMS messaging. Why let customers go to the pub down the road when you can give them a great deal in yours? So they pay in cash, that’s great! They also carry their mobiles wherever they go and love to get a deal from their favourite pub.
- Discount stores can alert customers of new stock, flash sales, or special events in store to increase foot traffic. Many shoppers still prefer to see what they’re buying in a store. These shoppers also carry their mobile everywhere and will see your SMS message virtually the instant you send it. That can entice them to stop by. So what if they pay in cash? It’s more money in your business’ pocket no matter how it looks.
- Travel agents, private hire, and other transport businesses can utilise SMS messaging in a variety of ways. Travel agents can raise awareness of new travel opportunities by sending messages to previous customers. Private hires can send messages to let their fare know when they will arrive. Transport companies can use SMS messaging to track and communicate with their fleet, or let customers know when they’ll be there to pick up packages.
The more you look, the more ways you’ll find to use SMS messaging in every sector. Cash, debit, credit or even bitcoin doesn’t matter. SMS messaging is a tool you can use in your business because just about everyone uses a mobile in the UK. Nearly 77% of Brits will have a smartphone in 2016 and some small percentage have basic phones. By the end of 2017, over 81% will have smartphones.
In the end it doesn’t matter how they pay, so much as how the live. We’re a mobile society now, and SMS messaging is still the best way to reach almost everyone quickly and inexpensively. See, now I’m getting carried away! Of course, I’m doing it deliberately to make a point.
We’d love to hear how you feel about cash versus digital payments. Do you still use mobile coupons if you pay in cash? Let us know in the comments.
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.
Why Your Startup Needs to be Using SMS Marketing
Are startups afraid of using SMS marketing? Is it because they’re afraid of annoying customers and breaking the regulations? I don’t think so. If your startup isn’t using SMS marketing already, it’s probably because you don’t know all the facts. Find out why SMS is actually perfect for startups.
5 SMS or Mobile Facts You Need to Know
So many of us are used to having our mobiles around nearly 24 hours a day that it’s easy to forget it’s still a growing industry. And though SMS has been around for over two decades, the ways we use it and people’s willingness to use it continues to grow. So for this blog I picked out five facts about mobile and SMS that really make the case that SMS for business has come of age. Let’s see if you agree.
How SMS Messaging Can Help Get Buyers Back
E-commerce businesses have a huge problem. Consumers fill up their shopping carts, then rudely abandon them before completing a purchase. Of course, they don't mean to be rude, they have their reasons for leaving a full cart behind. But what if it were possible to get some of those sales back?
Build Brand Loyalty with SMS Messaging
In a world where your competition can be found in just a few seconds, instilling brand loyalty in customers is a greater challenge than ever. One way to proactively reach out to customers is via SMS. The personal nature of SMS messages, combined with high read rates, gives you the opportunity to develop relationships with each customer.
In Store SMS Service Could Improve Sales
Have you ever been inside a Walmart or ASDA Supercentre? If you have, you’ll appreciate the possibility of what I’ll share in a moment. If you haven’t, try imagining walking into a store so big you can barely see one end from the other, where the shelves are packed with everything you might ever need, and staff who are often less than helpful (not everywhere mind you, but often). The point is you can get lost or frustrated if you’re trying to find a certain item that you need, or is on sale. Finding the right section is sometimes challenging, and even if you think you’re in the right spot you might not be.
How 2017 Will Change SMS Marketing
Setting New Year's resolutions for your business can be risky since it feels like you're only really setting yourself up to fail. It's much better instead to try and focus on one achievable goal and do everything to succeed and improve in that area. With its meteoric rise to popularity and outstanding success in 2016, businesses should be using 2017's welcome reprise to integrate SMS marketing into their business development strategy.
SMS Marketing For The Equestrian Sector
The British Equestrian Trade Association’s findings from their National Equestrian Survey 2015 put the economic value of the equestrian sector at £4.3 billion of consumer spending across a wide range of goods and services, with the average spend per horse during the same year at £3600. It is an incredibly varied industry encompassing all types of businesses from sole traders making a living in remote areas to multinational companies. Their customer base typically tends to be busy people who lead largely outdoor lifestyles so the obvious and most effective means of communicating with them is by mobile phone, yet very few equestrian businesses appear to be utilising SMS text messaging marketing. So how could businesses in this sector benefit from this method of marketing?
4 Tips for SMS Marketing Success
SMS marketing is one of the most effective and efficient marketing channels currently available, enabling businesses to directly communicate with their target customers. If you're considering building your first SMS marketing campaign, or you have already ran a campaign but achieved limited success, read on to see how you can build an effective SMS marketing campaign to achieve your business objectives.
Do This One Thing and You’ll Improve Your SMS Marketing ROI
SMS marketing is not quite like most other marketing. You have such a limited space to get your point across, just 160 characters, more or less. It’s not unlike having to create a print advert for a small space, but somehow it can seem more intimidating. That’s why sometimes it seems like marketers forget one basic rule about writing offers: Always lead with the offer! Sounds simple, right?