The benefits of SMS solutions in retail marketing

4 worthwhile benefits of SMS for retail marketing

Using SMS for retail marketing

As businesses continue to embrace a mobile-first approach, SMS has become an integral to successful marketing campaigns. 

Thanks to its cost-effectiveness, high open rates and quick delivery time, retailers are now relying on SMS messaging to optimize the customer experience and engage with potential buyers more efficiently. 

With more people shopping online and price checking heavily before purchasing anything, retailers need robust e-commerce strategies stay in business and have the edge over their competitors. That's why using SMS as your go-to communication tool is essential for any successful marketing campaign.

Today, we’re discussing four benefits of implementing SMS for e-commerce and sharing some examples to help you get started.

1. Retail SMS makes it easy to keep in touch with customers

SMS solutions have become a must-have for online retail outlets, primarily because of their high open rates and response rates! Plus, with smartphone ownership at unprecedented levels, the potential reach of e-marketers is nearly limitless. 

What’s more, SMS is a very versatile communications tool, allowing businesses to use it in various ways to engage with their customers. 

For example, a few ways businesses can use SMS include:

• Promoting new products or services

• Informing customers of discounts and sales

• Sending reminders and confirmations

• Requesting customer feedback

• Providing customer service

SMS is an easy-to-use tool that doesn't require much time or effort to set up and implement, making it perfect for busy businesses who want to get their message across without hassle.

2. SMS solutions are more cost-effective than other marketing tactics

SMS marketing is a cost-effective solution for businesses of all sizes, as it requires minimal investment in time and money. The cost of sending an SMS message is generally much lower than making a phone call or sending physical mail. This makes SMS an ideal marketing channel for businesses on a tight budget.

Another benefit of SMS marketing is its high open rate. According to Gartner, SMS has an open rate of 98%, which is significantly higher than that of email (20%). This means that a higher percentage of people who receive an SMS message will open it, increasing the likelihood of engagement and interaction.

SMS marketing also allows for targeted messaging, which can help you increase the efficiency of your marketing spend. For example, some businesses can segment their customer base using factors such as age, location, or purchase history, then send targeted messages to each segment. This helps companies reach the right people with the right message, further increasing the effectiveness of the marketing campaign.

Additionally, SMS marketing can be easily integrated with other marketing channels like email and social media, creating a cross-channel marketing strategy that can increase the reach and impact of your message. 

3. You’ll increase customer engagement

These days, nearly everyone has a mobile phone in their pocket, meaning customers are very likely to open and read your text. Not only is this effective for improving customer engagement, but you’ll also gain access to valuable insights about customer behavior. 

By understanding what messages resonate with your target audience, you can tailor your marketing strategies to make them more effective. 

Generally speaking, SMS can boost engagement by:

• Using customized, simple messages that are easy to respond to

• Generating automated notifications that remind customers about upcoming events or sales

• Creating exclusive coupon codes or deals exclusively designed for SMS contacts

• Leveraging two-way texting like “Reply Y/N” so customers have an immediate way to respond

• Making the messaging process more engaging by including images, videos and other multimedia elements.

4. You’ll be able to create personalized communication

Gone are the days of business owners sending out bulk text messages, hopeful that some of them would reach their intended audience. This generic “spray and pray” marketing approach now falls flat in an increasingly personalized world. 

These days, SMS solutions are far more sophisticated, intricate and intimate. How? Through big data. Brands can use customer purchase history and other relevant demographic information to establish customer profiles. So now, business owners can tailor a promotional SMS campaign to a specific audience. This audience has already consented to receive communication from the business and wants to be addressed by name. 

In short, SMS allows you to target your audience more effectively by:

• Segmenting contacts into predetermined groups and providing each group with tailored messages

• Sending targeted messages to contacts who have already interacted with your brand or website

• Automatically personalizing messages based on customer information like name, location or interests

For example, a restaurant could send an SMS offering dine-in discounts to customers who live in a particular area or visit at least once per month. This practice increases the likelihood that the recipient finds the message relevant, timely and in line with their current needs or interests. 

Explore how Clickatell can power your SMS strategy

SMS is a fantastic marketing tool with an unbeatable ROI. It’s fast, easy to personalize, and suitable for all kinds of businesses. 

If you’d like to know more about how SMS solutions can accelerate your business, get in touch with us! To learn more, read our article on why companies should use SMS to engage with their customers.