Whether it’s dealing with inflation, job insecurity, tighter credit, or the political climate — you name it — consumers now more than ever are focused on making sure their dollars go as far as possible when it comes making retail purchases.
At the same time, according to August 2024 data from YCharts, ecommerce accounted for 16% of retail sales in the United States during Q2 2024. That’s an average growth rate of nearly 14.2%.
Ecommerce is for all intents and purposes *the* growth engine for brands, especially challenger brands. Couple that with the fact that consumers are primed to take advantage of sales and special offers, SMS marketing — with its inherent high engagement and personal “why me, why now” focus — is positioned to help drive revenue across digital channels including direct-to-consumer websites and branded apps.
SMS Marketing: A Huge Opportunity for Ecommerce Sales
While tried-and-true digital strategies like email campaigns, paid social, display, and search engine marketing (SEM) hold their value for driving ecommerce revenue, SMS (short message service) marketing — aka text message marketing — is a powerful tool that brands can’t afford to overlook.
With its ability to reach customers directly and instantly, SMS marketing offers ecommerce retailers a unique edge. In fact, the top two reasons US marketers use SMS to promote offers to their audiences are higher customer engagement (60.5% of marketers) and higher open and click-through rates (53.5% of marketers), according to SimpleTexting data. See the chart at right.
3 Reasons Why SMS Marketing Works
- High open rates. SMS campaigns have a 98% open rate — a stat that’s 5x the average email open rate of 20%. (SMSComparison)
Simply put, SMS stands out as a quick and easy way to cut through the noise and engage your audience directly. This is especially true during busy promotional periods, including the holidays, back-to-school, moms/dads/grads, and more.
- Instant communication. 95% of SMS messages are read within three minutes of being received and click-through rates for ecommerce brands can be as high as 36%. (SMSComparison)
If you’ve ever planned or implemented revenue-driving tactics such as flash sales, last-minute discounts, and/or reminding customers of an expiring coupon, SMS marketing can ensure your message reaches your customers exactly when it needs to be received. - It’s personal. With SMS marketing, brands can — and should — personalize messages to specific segments of their audience. It’s the key to standing out.
SMS campaigns can include personalized offers and upsells, product recommendations based on past purchases, and even pull-in zero-party data (data points shared by customers such as the name of a pet, the make of a car, a birthday or anniversary, etc.) for enhanced personalization.
READY TO EMBRACE SMS MARKETING?
how to Build — and Grow — Your SMS Marketing Subscriber List
- Offer exclusive discounts or perks. Entice customers by offering a one-time discount, a free gift, or early access to sales in exchange for opting into SMS marketing. Promote this offer on your website’s homepage, during the checkout process, and through pop-ups. Emphasize that subscribers will receive exclusive deals to make it feel like a VIP club.
- Leverage social media and email. Use your social media platforms and email lists to reach existing fans and customers. Encourage them to join the SMS list by highlighting the benefits, such as real-time updates on restocks, flash sales, or special offers. Include a clear call-to-action and link directly to the sign-up form.
- Incorporate SMS sign-up at checkout or during account creation. When customers are already engaged in the purchase process or signing up for an account, offer an easy opt-in checkbox for SMS updates. Since they’re already interested in your brand, this is a natural opportunity to convert them into SMS subscribers.
3 Examples for How You Can Use SMS Marketing
Exclusive promotions — Customers love feeling like VIPs. Reward your SMS subscribers with short and sweet specials and/or exclusive offers. This could be early access to Black Friday deals during the holidays, special bundles to kick off the summer season, or unique coupon codes that aren’t available elsewhere.
EXAMPLE: Tiny Bully partner Blue-9 Pet Products invited SMS subscribers to take advantage of early-access Black Friday deals on their ecommerce site — sent the Tuesday prior to Thanksgiving — to drive excitement and revenue.
Flash sales and countdown deals — The urgency of flash sales can be amplified with SMS marketing. Send quick messages about limited time offers or hourly deals to create excitement and drive impulse purchases. Include countdowns or reminders for expiring offers to keep customers engaged and motivated to act fast.
EXAMPLE: Blue-9 Pet Products introduced a three-day flash sale — with a deep 30% discount offer — to generate additional ecommerce revenue that helped them hit their revenue goals .
Abandoned cart reminders — Cart abandonment is a year-round fact of life for ecommerce retailers. SMS reminders as a supplement to email flows can nudge customers to return and finish their purchase. Offering a small discount or free shipping in these reminders can be an effective strategy to seal the deal.
EXAMPLE: Tiny Bully partner SpotOn Fence promoted an upgraded discount to potential customers 30 minutes after cart abandonment. To help convert the sale, the message included a link to return to the cart along with a special coupon code.
Make SMS Marketing Work For Your Brand
SMS marketing is an indispensable tool for brands looking to maximize ecommerce throughout the year, whether during promotional periods or just rolling along with evergreen marketing programs.
SMS marketing’s immediacy, high engagement rates, and ability to deliver personalized, timely messages make it a no-brainer for ecommerce sellers. And by implementing SMS marketing as part of your overall strategy, you can build stronger relationships with your customers, drive more conversions, and ultimately boost sales year-round.