The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend

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The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
The Rise of
SMS Marketing
5 Tactics to Stay Ahead of the Curve
The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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
The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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.
The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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
The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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.
The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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
The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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
The Rise of SMS Marketing - 5 Tactics to Stay Ahead of the Curve - Omnisend
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.

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                                                                            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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