SMS has a 98% open rate and 90% of messages are opened within the first 3 minutes, according to Greg Murphy, Salesforce Mobile Product Manager BUT here’s two other reasons you should have an SMS strategy in place.
Huge Conversion Rate
- A Pure360 report on SMS marketing quotes 32 percent of recipients respond to SMS offers, with texted coupons redeemed 10 times more often than traditional coupons. This compares to around a 3% conversion rate for email marketing.
- Dynmark reports that 29 percent of SMS marketing recipients click on links in SMS messages they receive, and 47 percent of those go on to make a purchase. That’s nearly 14 percent conversion!
- Online cosmetics company Julep reported a 10.7 percent redemption rate for an offer sent via SMS.
- SMS campaigns support other channels too. For example, Smart Insights reports that sending a simple follow-up message, “Have you read our email?” (to people who opted-in for that type of SMS) increases email open rates by 20-30 percent.
- Smart Insight also says that SMS-based surveys enjoy high conversion, with 31 percent of consumers responding to such invitations, on average within five minutes.
Incredibly High ROI and Retention Rate
- British motor racing circuit Silverstone sent a text message to 45,000 people in their database, inviting them to purchase tickets for an upcoming Formula 1 race. That single message delivered to Silverstone an ROI of 680 percent!
- Julep, mentioned above, reported a 99 percent retention rate for its SMS subscribers!
Here are some real life case study examples of how SMS has helped an array of businesses improve their customer service and interactions for the benefit of all parties:
A contact lens company (with a customer base of five million globally) sought to improve their processes and expedite orders to enhance customer service. This meant finding a better way to achieve prompt prescription refills than their current practice of processing orders via telephone or online. To speed the process and improve customer satisfaction, the company began processing orders using SMS and MMS messaging over a single integrated, multi-channel platform. The result of this was that customer satisfaction skyrocketed, orders were completed more quickly, and customer care phone calls were greatly reduced – resulting in better employee output.
This case study refers to a global provider of integrated revenue management services and systems for mass transit. It involves five countries, forty markets, and well over one and a half thousand employees. The company wished to increase response rates and improve overall customer service. To achieve this, they incorporated SMS systems that were interactive, two-way, and that allowed consumers to receive balance alerts, purchase transit passes, and avoid waiting in lines. Customers could access information instantly and make purchases without fuss, with less reliance on printed schedules. The company is now working to incorporate MMS as a part of its strategy for enhanced customer service, and to introduce mobile coupons for fast and easy redemption.
A gold standard restaurant needs to consistently provide an unparalleled experience to its patrons and guests. With SMS solutions, this is even better, with customer service that is second to none. SMS marketing can effectively promote specials and prompt subscribers to make a reservation. Reservation confirmations and reminders are delivered instantly and are not intrusive at all. Guests can even be advised via SMS when their table is ready during busy periods – allowing them to relax and enjoy a drink in the bar prior to being seated.
Alternatively, a take-away restaurant can improve customer service by sending a text message when orders are ready for collection.
The company in this case study operates luxury resorts across the world. The issue they were facing was that many of their resorts experienced a failure to provide reliable internet connectivity to their many thousands of clients. As a result of this, the resorts needed to devise a way to deliver information to clients that was fast, reliable, responsive, and supportive. The solution they found was integration of SMS to deliver:
- Welcome notifications 24 hours prior to check in
- Real time weather alerts
- Resort contact details
- Sightseeing information
- Two-way communication for the benefit of guest queries
Guest satisfaction was greatly enhanced by this SMS service.
In short SMS Marketing works. That is all.