Benefits of SMS Marketing for E-commerce

5 Benefits of SMS Marketing for E-commerce Retailers

Text messages have around a 98% open rate and a 35% click-through rate, compared with just 20% and 2.5% for email marketing. SMS marketing is every marketer’s dream: engaging your customer where they are at, with the message they want to hear.

E-commerce SMS marketing clearly has a lot more benefits than just adding on another marketing channel to your strategy. It is a way to connect with customers in a personal way that increases loyalty, drive engagement, and boost revenue.

Benefits of SMS Marketing for E-commerce

1. High open rate & click-through rate

The #1 challenge for e-commerce brands is to get in front of the customer with the right message at the right time.

Email still ranks high on any marketer’s list as a valuable marketing channel. After all, customers have opted in and you can easily measure their engagement against your own internal benchmarks as well as that of the industry.

Yet, the average email open rates and click-through rates are way lower when compared to SMS open rates and CTRs.

  • Email marketing: 20% open rates for what is considered a good email, and a 2% to 2.5% click-through rate.
  • SMS marketing: For e-commerce SMS, upward of 98% open rates can be expected, with a 35% click-through rate.

Want to get in front of your customer faster and more frequently than you need to try text messages. It is the only channel with consistently high engagement rates.

2. Reduces cart abandonment

What would your brand look like if you had a 45% recovery rate on abandoned carts? That’s exactly what happened with Grunt Style after implementing SMS for abandoned carts.

The Grunt Style team saw a 25% CTR on abandoned cart SMS and a 45% recovery rate.

SMS marketing campaigns like this are can be set up easily in your SMS marketing tool.

3. 1:1 conversations with customers

In e-commerce, we often talk about customer loyalty as though it is a holy grail. And while it is very important, we often glaze over exactly what is meant by loyalty. To have a loyal audience, you need to have built a relationship with that audience.

The best way to build relationships with your target customers? Well, that’s 1:1 conversations.

Text messages are one of the only e-commerce marketing channels that allow for 1:1 communication, where it is already expected –– on smartphones.

Compare this with a potential 1:1 conversation via a chatbot on a site. After you get through the bot and finally to a person, there is still a difference in how you communicate. This person on the chatbot is here to help, often with an issue, rather than give you valuable information or insight.

4. SMS can be highly automated

Platforms like Wigzo have pre-built nurtures and flows that you can launch almost immediately to begin testing this marketing channel.

These flows are set up to manage to opt-in and opt-outs in a compliant way so any customers who decide they don’t want your text messages can easily stop them.

The biggest hurdle your brand might have is adding SMS messaging T&Cs to your website. Seriously, that’s it.

5. Customer Segmentation

E-commerce SMS marketing may be best used for your most loyal customers. Your super fans. These people are your ambassadors, and you should treat them as such. Give them exclusive discounts to drops. Invite them to your exclusive events.

Whatever you do, make it clear that not everyone gets this opportunity. And, make it fun and worth it. Notify them of the VIP sales via SMS, which makes sure they see the message and builds a habit around what type of messages your brand sends.

Conclusion

The time is now to get started with SMS marketing campaigns for your e-commerce brand. The numbers speak for themselves and the automation makes it easier to launch compared to an email campaign.

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