The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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Table of Contents 02 Table of Contents 03 Introduction 04 Favorable Circumstances for the SMS Marketing Prime 06 Statistics on SMS Marketing Performance • SMS Performance in General • Text Messaging Performance on Black Friday 08 The Benefits of SMS Marketing • Top 5 Benefits of Using SMS in Combination with Other Marketing Channels 10 5 Ways to Add Text Messaging to Your Existing Marketing Strategy • Repeatedly Approach Subscribers That Don’t Open the Initial Email Campaign • Tweak Your Automated Welcome Workflow • Launch an Automated Happy Birthday Workflow • Up-sell While Confirming Shipping • Start Re-activating Your Dormant Customers 15 Key Takeaways 16 Resources
Introduction 03 Introduction SMS text messages are experiencing a renaissance. Although this marketing channel has been available for several decades now and some retailers have been sending promotional campaigns for a while, SMS text messages have never been as versatile as they are now.
Favorable Circumstances for the SMS Marketing Prime 04 1. Favorable Circumstances for the SMS Marketing Prime In the early 2010s, marketers were forecasting expen- diture on mobile advertising for the upcoming decade. The part for SMS campaigns was so minor that almost invisible compared to display, search, and other mobile marketing means. Once, Stephen King said: “Sooner or later, everything old is new again.” Ten years ago, no one could even imagine that this would happen to SMS text messages, and that they would bring such stunning results. Bear in mind that text messaging has some of the highest reach as a marketing channel around the world with more than 5 billion daily users. SMS marketing has been underestimated for a long time without a reason. The spread of SMS technology Out of 7.5 billion people in the world, 5 billion (or 2/3) use SMS daily *Source: Techjury
Favorable Circumstances for the SMS Marketing Prime 05 So what has changed over the last decade? Several favorable circumstances helped text messaging to rise. 1. Instant messaging and chatbots have fostered the texting culture. Years ago, the main channel for companies to com- municate with their customers was email. That has now changed, and customers are eager to receive marketing messages and interact with brands instantly via more personal channels like chatbots, messengers, and SMS. 2. The rise of the omnichannel experience. Customers navigate among different media while searching for informa- tion, buying products, reach out to customer service and finally use brick-and-mortar self-service to pick up what they’ve acquired online. They expect a highly personalized, seamless customer experience while interacting with a brand. And that’s the reason why they are ready to share their personal data like a phone number to be reached out properly. 3. Customers no longer respond to generic bulk messages. Unlike a decade ago, they now expect personalized offers. And businesses are seeking ways to provide ones. In this context, SMS becomes a perfect fit to address custom- ers’ needs and valuable addition to your overall marketing toolkit.
Statistics on SMS Marketing Performance 06 2. Statistics on SMS Marketing Performance Most statistics in the industry come from SMS service providers that share their studies and survey results. However, the amount of sent messages allows us to glean valuable insights and compari- sons with other marketing channels. 2.1. SMS performance in general DTC brands and ecommerce retailers invest heavily in SMS for a reason. According to VoiceSage, over 90% of SMS messages are read within 3 minutes of receipt. What’s more, text messages have a whopping 98% open rate. In comparison to the email channel with an 18% open rate for ecommerce on average, your SMS has a significantly better chance to be read. About one-third of SMS recipients react to CTAs in the messages and 47% of those end up with a purchase. So you can expect about a 13% conversion rate from your SMS campaign. Quick SMS Statistics 98% SMS open rate 100% 90% read in first 90 seconds 75% 50% 29% engagement rate 25% 47% purchased from engaged users 0% *Source: Techjury
Statistics on SMS Marketing Performance 07 2.2. Text Messaging Performance on Black Friday While SMS was on the rise in 2018, the channel absolutely exploded in 2019. At Omnisend, ecommerce marketers sent more SMS campaigns on Black Friday 2019 than ever before, sending over 1 million campaigns over the week of Thanksgiving. SMS Campaigns Sent Retailers were right to follow their instincts, as SMS campaigns earned Before Black Friday Earn immense value in 2019. 75% Higher Order Rates than Cyber Monday On Black Friday alone, ecommerce brands earned a 14.03% click-through rate and received a 592% higher order rate than email. In average orders, SMS earned businesses 21% more orders per campaign than email on Black Friday. However, customers were already looking for deals by the middle of the week – often purchasing during pre-Black Friday promotions. Surprising- ly, omnichannel campaigns using SMS sent the Wednesday before Thanksgiving were also successful, earning 150% higher order rates than email-only campaigns that same day. Wednesday was even more successful than Cyber Monday in order rates, earning a 75% higher order rate via SMS. SMS vs. Email Performance During Black Friday Week 31.12% 21.3% 13.9% 13.8% 14.0% 12.5% 9.9% 8.5% 2.5% 2.3% 2.5% 2.4% 2.1% 1.4% 1.5% 1.5% Monday Tuesday Wednesday Thursday Black Friday Saturday Sunday Cyber Monday (Thanksgiving Day) Email Click rate SMS Click rate *Source: Omnisend Data
Benefits of SMS Marketing 08 3. The Benefits of SMS Marketing As a standalone channel, SMS marketing has robust benefits. Wide dispersion and great usability are only a few of them. So what are those advantages and how businesses can benefit from SMS mar- keting in synergy with other marketing channels? Top 5 Benefits of Using SMS in Combination with Other Marketing Channels 1. SMS marketing is cheaper than customer retargeting or social media marketing Although sending text messages is more expensive than emails, overall SMS marketing expenses are lower than boosting posts on social media or launching retargeting campaigns. If your customer base is extended, you can save some money and combine email and SMS, first approaching customers via email and then sending SMS only to those customers who have ignored your email. 2. SMS is fast SMS campaigns are received instantly, and most importantly, they’re read almost immediately as well. This makes SMS marketing campaigns great for hyper time-sensitive offers.
Benefits of SMS Marketing 09 3. SMS earns higher open rates than email Where customers have to consult their inbox for email messages, an SMS gives you an Marketers using three or more instant push notification on your phone. If channels in campaigns enjoy a customers don’t have push set up for their inboxes, your email campaign will have to wait. purchase and engagement rate Moreover, with text messages, you don’t need which is 250% higher than those to handle deliverability issues. using single-channel campaigns 4. SMS gets a higher engagement rate 20% SMS marketing campaigns are eye-catchers: 70% of customers say that SMS is an atten- tion-grabber. 15% An SMS is typically read even before it’s opened 10% 8.96% with the notification that appears on the screen. What’s more, SMS aren’t just opened more frequently, they also earn more clicks over 5% email on average. 2.56% 0% 5. You don’t need a graphic designer for an SMS campaign Single-channel Three or more marketers channels At this point again, SMS goes hand in hand with emails. It’s quick and easy to send the SMS campaign because it doesn’t require any 20% 18.96% concept or design. But it’s only text. We know how powerful images are while shopping 15% online, so by combining both channels for one campaign you can get the promised synergy and boost your campaign results. 10% 5.4% 5% 0% Single-channel Three or more marketers channels Purchase rate Engagement rate *Source: Omnisend Data
5 Ways to Add Text Messaging to our Existing Marketing Strategy 10 4. 5 Ways to Add Text Messaging to Your Existing Marketing Strategy There are multiple ways for businesses to use SMS in their strategies. Many of them send standalone SMS campaigns to boost sales. That’s not the worst scenario, but there are more possibilities to employ text messages. Bearing in mind that only 13% of merchants use this channel, the following 5 ideas can help you take advantage of this gap. Example of combining Campaign Booster and SMS 1. Repeatedly approach subscribers that don’t open the initial email campaign Usually, the email open rate for ecom- merce is around 18%. During the holiday rush, it might be even lower. So every time merchants send email campaigns, they have a lot of subscrib- ers that somehow miss their emails in their inboxes. One of the ways to save the campaign and improve its performance is to resend it to non-openers and then launch the SMS campaign to those customers who ignored the email channel. This workflow is cost-effective because a part of the audience is being reached via email, which is the most affordable of all channels. And merchants spend on text messages only to those subscribers that haven’t been reached via newsletter.
5 Ways to Add Text Messaging to our Existing Marketing Strategy 11 2. Tweak your automated Welcome workflow There is no doubt about the necessity of onboard- ing messages for new community members. 74% of all new subscribers expect to receive a welcome message. Nevertheless, welcome emails are good at converting subscribers into customers. Especially if businesses incentivize it somehow. Merchants can become even better at this by enriching a traditional welcome email workflow with a text message. Example of automated Welcome workflow Trigger Delay New signup Immediately Delay Email 5 days Subject line: Welcome! SMS Sender’s name: Basic Piece Hey! Thanks again for joining our crew! Your discount of 10% off for the 1st purchase expires tomorrow. Code: BASIC10OFF Link: omni.com/hfeuei End of workflow
5 Ways to Add Text Messaging to our Existing Marketing Strategy 12 3. Launch an automated Birthday workflow Personal attention to customers helps extend their buying life cycle. Automated Birthday workflows are one of the most effective in making customers stay with the brand for longer. Salesforce research revealed that 75% of companies that send these kinds of emails assess them as very effective. Example of automated Birthday workflow Trigger Delay Special occasion (Birthday) SPECIFIC TIME OF THE DAY 09:00 AM TRIGGER RULE(S): Greeting time is on exact day Delay SMS Immediately Sender’s name: Basic Piece Happy Birthday! We at Basic Piece are so excited for you and hope you have a great day. P.S. Email There’s a little surprise waiting for you in your email ;) Subject line: Happy Birthday! End of workflow
5 Ways to Add Text Messaging to our Existing Marketing Strategy 13 4. Up-sell While confirming shipping Shipping notifications are critical for every ecommerce store. It’s an automatic message with standard text sent just after the product has been shipped to the buyer. A shipping confirmation email has a very high open rate. So why not use it for upselling? Example of Shipping Comfirmation workflow Trigger Shipping confirmation TRIGGER RULE(S): Order Fulfillment Status is fulfilled SMS Sender’s name: Basic Piece Hi there! Great news: your order has just shipped. You can expect to get it in 3-5 days. Bonus: get 20% off your next purchase with code BP2020. See End of workflow
5 Ways to Add Text Messaging to our Existing Marketing Strategy 14 5. Start reactivating your Example of Customer dormant customers Reactivation workflow The value of existing customers is enormous, as they tend to buy and spend more. Trigger SMS The problem is that sometimes 30 days inactive Sender’s name: Basic Piece customers stop buying for any number of reasons. They become Hey! We miss you! We have a dormant. Every business has this surprise for you – check your inbox. happen, and while it’s hard to measure, there are guesses that dormant customers take about 30% of an online business data- base. Delay Email To address this issue, businesses 7 days Subject line: We miss you… are suggested to re-establish relationships with their customers by initiating customer reactivation campaigns. Delay Subject line: Haven’t heard from you lately Delay 7 days Email Subject line: Please, come back
Key Takeaways 15 Key Takeaways SMS marketing has been reborn and created new possibilities for ecommerce businesses. While it’s not a good idea to opt for SMS over other marketing channels completely, ecommerce marketers would get the most out of incorporating SMS in their bigger cam- paigns. 1. There isn’t yet a lot of competition in SMS marketing, and customers offering a phone number in addition to their email address are showing an even higher level of intent. 2. SMS marketing is more effective than the majority of other digital marketing channels so far. However, sending text messages is more expensive than email. Businesses can get the most out of SMS marketing by incorporating text messag- es in their automated workflows and mixing them with other channels. 3. Enrich your marketing strategy by sending SMS campaigns for your best promotions, which will earn you higher click through and order rates. 4. Using SMS on big shopping days like Black Friday is great, but using them on days where there’s less competition is even better. The Wednesday before Black Friday is an excellent day for SMS campaigns because customers are already getting excited about the shopping holiday. 5. The SMS marketing trend is expanding very quickly. More and more ecommerce businesses are employing text messages in their marketing. Take action not to fall behind. Talk to Omnisend and start making the shift to an omnichannel approach today.
Resources 16 Resources https://go.eztexting.com/hubfs/2019%20Text%20Communica- tion%20Report-%20EZ%20Texting.pdf https://techjury.net/stats-about/sms-marketing-statistics/ https://www.emarsys.com/app/uploads/2018/01/eBook-Mo- bile-First-AU-English.pdf https://www.omnisend.com/blog/black-friday-emails/ https://www.omnisend.com/blog/customer-retention/ https://www.omnisend.com/features/campaigns/cam- paign-booster/ https://www.omnisend.com/resources/reports/omnichan- nel-marketing-automation-statistics-2019/ https://www.salesforce.com/form/marketingcloud/con- f/2015-state-of-marketing/?conf-redirect=true https://www.statista.com/statistics/271980/mobile-advertis- ing-spending-in-the-us-by-format/ https://www.voicesage.com/blog/sms-compared-to-email-in- fograph/
Make Marketing Relevant 36. Triggered Emails: A form of marketing automation. Triggered emails with Omnisend are pre-scheduled by the marketer. They are sent whenever a specific event happens or a specific period of time has passed. Birthday emails would be an example of triggered emails. 37. Unique Clicks: This is how many individual subscribers have clicked Omnisendon theis a robust links all-in-one in your emails. It is moreomnichannel specific than the overall click-through rate, which just shows how many times your emails marketing automation platform that empowers were clicked. marketers 38. Unique toOpens: improveSometheir ROI, will subscribers increase theirmore than once. open an email sales, and Uniqueimprove opens showstheir howcustomer relationships. many individuals have opened your emails, not just how many times your emails were opened. 39. Unsubscribe Rate: A percentage that shows how often people are We help yououtstay opting connected of your to your email campaigns. customers, Unsubscribe rate is usually (but not always) no matter whatcalculated channelonthey a campaign by campaign use: email, SMS, basis. 40. Welcome emails / welcome series: An email message or a series of Facebookemail Messenger, messages sent to WhatsApp, new subscribers.and many more. With Omnisend’s marketing automation, you can integrate several channels into the same workflow that will shave hours off your week and keep your customers on the hook. High Growth Commerce Brands Choose Omnisend With thousands of 5-star reviews on G2Crowd, Capterra, and GetApp, our 50,000 customers love us, PRODUCTS FOR MARKETING and we think you will too.
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