Proof SMS Messaging Gets Results: Increase Sales
One of the most consistent results I see with SMS messaging is an increase in sales. Retailers can use different methods in the messages – coupons or limited time sales for example – but the result is almost always a bump in sales (assuming the campaign is done well, following best practices).
In this entry of the Results Series, I’ll share examples of just how big, and fast, those bumps can be.
By the Numbers
The sales numbers I list below come from businesses across the UK, US and Canada. It doesn’t seem to matter what country it’s used in, SMS gets great results.
Here are some of the best sales results published to date:
- A specialty home improvement store had a 32% increase in sales within one day of sending its first campaign.
- A pizza restaurant saw a 33% increase in sales in three weeks.
- A beauty salon and spa had $196,000 in sales in 30 days from one SMS campaign.
- Sales turnover increased between 30-50% for a travel agency after ditching PPC and email for SMS marketing.
It’s hard to argue with sales numbers like these. But not every company is ready to dive in all at once. An international cosmetics company launched a pilot program to test the effectiveness of SMS marketing with their customers. The pilot ran for six months. They found that by the end of the test period, 73% of their SMS list had made an in-store purchase based on their SMS campaigns. Wow!
In the case of the pizza restaurant listed above, they found that the people who acted on the initial mobile offer ended up spending 500% more than regular customers who were not on the SMS list. That is an incredible comparison.
Sales Led to Amazing ROI
The good news doesn’t end for that pizza company either. That same campaign ended up making them 4,200% ROI. That’s not an error. I really mean forty-two hundred percent! That sort of number is possible because SMS messaging is one of the most affordable channels.
It costs just a few pence per message. So it doesn’t take too many customers acting on a promotion to break even with such a low cost. That makes it easy to see how the sales increases can result in unbelievably high ROI numbers.
Did you notice that the travel agency above achieved their increase in sales by going all in with SMS messaging? This particular company decided that their results were so good with SMS that they no longer needed to invest as much in PPC campaigns or email marketing. In just 12 months they completely changed how they interacted with their customers.
In fact, their SMS campaigns get them about 100 well-qualified leads per week for their travel offers. Using it has completely changed their business and led to growth opportunities. If you want to see how SMS helps businesses grow and with customer service, come back for the rest of The Results Series. Or, if you missed out on the other posts in the series, you can start at the beginning with Free Account.
SMS messaging can be a one-way, or a two-way affair. Sending coupons, sale notifications, or event announcements are all one-way messaging. The recipient doesn’t need to reply in order to use the information sent. In two-way messaging though, recipients can reply to your messages. And that makes it much more interesting, engaging, and potentially a lot more work to manage.
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.
Executed properly, SMS direct marketing is a hugely effective and successful means of building customer loyalty and improving sales. But even genuine and honest marketing companies can suffer huge damage to reputation or even break the law through simply lacking knowledge or not double-checking before releasing campaigns. Read this article to learn more about the definitions of spamming and harassment, current UK law and how to avoid simple but costly mistakes.
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It seems that reports of the death of SMS have been greatly exaggerated. When once the text message seemed dead in the water thanks to the rise of the app, the SMS business is set to grow to $71.60 billion by 2021 whilst smartphone users are downloading fewer and fewer apps, and the life expectancy of an app on the average smartphone is now around 72 minutes.
Getting to grips with the underlying psychology of how audiences react both consciously and subconsciously to your message is key to achieving the maximum effect in any type of marketing. All kinds of things come into play with different media, from colours and shapes to images and videos. Even the way things move can have a powerful effect on a viewer. Unlike many other forms of marketing, however, SMS marketing is unique in that the only tool you have is words - and not many of them. But armed with a basic knowledge of consumer psychology, 456 characters is more than enough to get the desired effect. In this article, we present our six top tips to take advantage of the psychology of SMS messaging.