The effectiveness of SMS Marketing: The proof is in the data
Mobile Commerce Daily just released a great article on the effectiveness of SMS Marketing, including a ton of great data points on best practices.
Here are a few of the more relevant data points for retailers:
- Engagement rates can be as high as 8 times that of email campaigns
- Conversion rates have reached 23% (yes, compare that to e-mail!) for retailers who: 1) use promotional messaging, 2) a limited time frame to redeem, and 3) a strong call-to-action
- Unsubscribe rates can drop depending on the frequency of SMS. The article recommends weekly during non-holiday periods, and no more than 2x/week during holiday periods. The article cites a 1% churn rate during the holiday period, and that unsubscribe rates jump during the weekends (mShopper Note: avoid sending unless incredibly relevant!)
- Database growth is typically the fastest during Q4 when retailers can expect their database to grow by 41% if promoted correctly
- The most effective method of growing an SMS database is to promote via in-store, web, email, print, and social
- The size of an SMS database is approximately 2-10% of the size of the email database. mShopper Note: This is a great target as you build your list
mShopper encourages its retailers to use the built-in SMS feature to increase their conversion rates even further and create a valuable marketing asset (the subscriber database) that can support all other marketing efforts.
Here are a few recent ways that mShopper retailers have effectively used their SMS messages to drive sales:
- Promote an upcoming show on TV or the web
- Encourage likes of a Facebook page
- Support a Father’s Day promotion with a mobile-only promo code
- Alert subscribers to an over-stocked item that needed to be sold quickly
- Announce an upcoming catalog drop in the mail
Contact mShopper if you’d like more information or to see the results of a recent survey of SMS subscribers.