Mobile Text Campaigns Are Boosting Retail ROI

With SMS open rates remaining steadily above 90% and opt-in text lists more than doubling each year, retail stores are quickly realizing the value of retail mobile marketing. In fact, a recent UK study from Textlocal revealed a 38% increase of people opting into retail SMS lists, with a projection of 7.18 million users opting in to retail messaging by 2015. Consumers, especially in younger demographics, are becoming ever more tech savvy, now searching for products and retail stores primarily via mobile phones. So it’s no wonder retail SMS marketing is affording tremendous success for multiple stores, especially with regards to repeat business. Research shows that repeat customers spend 67% more than first-timers, and SMS marketing is a fantastic way to engage with current clients.

Mobile Text Campaigns Are Boosting Retail ROI

Retail Mobile Marketing Success Story

Pete’s Ace Hardware store in Castro Valley, California, has had huge success with mobile coupons through SMS marketing. The store text blasted four mobile coupons during the first two weeks in July; customers who responded to the texts with the word PETES were signed up for the mobile coupon club, after which they received further mobile coupons. During this fist campaign, 49% of consumers who received the message actually redeemed the coupon for purchases. Coupon redeemers bought an average of $72 worth of merchandise, increasing the average customer cart size by 411% as a result of the campaign. Additionally, Pete’s received 190 new customers who signed up for their mobile coupon SMS campaigns after the first month. When assessing its ROI, Pete’s discovered that it generated approximately 13 times the cost of the mobile marketing campaign. Since the success, more than 20 other Ace Hardware franchises have begun using retail SMS marketing as well. 

Common Uses for Retail SMS Marketing

SMS Marketing campaigns are a great method of engaging past retail clients, drawing in new consumers, and retaining or upselling current customers. Here are a few ways retailers are effectively using SMS marketing:

  • Entice customers to return to the store with exclusive mobile coupons
    Example: Show this text to the cashier for 15% off your next purchase. Applies to new & used items. Exp 6/30.

  • Notify customers about new products and services with text alerts
    Example: Food Lover’s Alert! Our Famous Pumpkin Pie now available. During the month of October only!

  • Let customers know when their product is available with custom text notifications
    Example: Mr. Smith: Your order has arrived and is ready for pickup between 9AM-5PM. Thx for choosing Joe’s!

  • Announce sales events with SMS Blasts
    Example: Wild Winter Sale! This week only, all snowboards and boots are 20% off!

  • Cross-Channel SMS Marketing for Retail
    Example: Thanks for shopping in our store! Scan the bar code on your dress now to see which in-stock belts and bags go with your purchase! Plus see other coupons available in-store today only.

SMS Equals Results

With retail SMS marketing, retailers have an efficient and cost-effective way of communicating with their entire customer base. Adding value to customer experiences, through personalized mobile marketing, creates brand awareness, store loyalty, and thus generally better customer relationships. Whether you’re trying to grow your brand with new consumers or gain repeat business from loyal customers, it pays to implement retail mobile marketing as a central part of your overall marketing and branding strategy.