How to Create a Low Cost Loyalty Scheme with SMS

25 Aug


Customer loyalty programs are one of the most effective drivers of sales. Few would disagree with that. But some businesses remain reticent to develop mobile marketing tactics that they believe – wrongly – are prohibitively expensive to set up.

This misconception is a hangover from the age of traditional advertising channels like television and radio, which have historically charged high premiums for ad space. Even with space bought and paid for, a compelling creative campaign from an agency could easily set you back $25,000. Add to that the hit taken by the loyalty promotion itself – be it coupons or other freebies – and a loyalty scheme could easily run into six figures. 

A mobile marketing campaign – and in particular an SMS messaging campaign – needn’t be in the same ballpark to be effective. In fact, small businesses on limited budgets can drive real growth with a modest, localized text message campaign. There are a few key steps to take if you’re looking to set up a low cost loyalty scheme. Let’s take a closer look…

Building a Database

One of the primary functions of a good mobile marketing campaign is to grow your user list. But you can make huge strides towards this goal before even engaging with the online world. Start in the right place by developing ads specifically for in-store visitors. Encourage them to sign up to receive future SMS messages (and the promise of rewards) – you might be surprised how many contacts you can build just from walk-in traffic.

Post-Click Experience

For a loyalty scheme to provide a decent ROI, you need to ensure it generates a healthy level of conversions. That means providing a great user experience from the moment they click on your ad. There are a number of ways to do this. You could direct users straight to a landing page or, if you have the budget, your mobile app. But if money is tight, there is still a lot you can do. Offer a survey or quiz, or another form of engaging content that will keep consumers’ eyes focused on you. Above all, offer an incentive for opting in. Sign-up discounts work well, and give new users the chance to sample your product without investing too much themselves. 

Ad Buys

There are basically two kinds of mobile ad networks: blind and premium. A blind network gives you little in the way of transparency in terms of where the ads appear – but that’s mitigated by the low cost of the campaign. Premium networks are more expensive, but they allow you to target your ads at apps more appropriate for your brand.

The key to executing a successful mobile marketing campaign is starting small but diverse in order to find out what works for your company. Try a few different approaches, track the success of each, and begin to focus only on the most rewarding strategies. True brand loyalty is a slow-burner: throw tonnes of cash and little thought at the task and your audience will see straight through it. It may well work for some, but others will be turned off. Start small, experiment, and you’ll soon carve out a space all of your own.

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