SMS Remains One of the Most Effective Marketing Channel

Report: SMS Remains One of the Most Effective Marketing Channels

SMS used to be one of the few marketing channels that brands could leverage. But that was roughly over a decade ago.

Today, several other media exists for marketers to get their message across to consumers. These include email, social media, organic traffic from search engines, and paid advertising.

For that reason, Short Message Service‘s popularity as a marketing channel seems to be declining. However, an eMarketer report suggests that a few retailers believe otherwise.

According to some sellers, SMS remains one of the most personal ways to reach consumers. And when combined with a concrete strategy, it could be one of the most effective marketing channels.

In a statement to eMarketer, Chief Marketing Officer of Direct-to-consumer (D2C), Peace Out Skincare, Junior Pence said:

“Our revenue per SMS subscriber is 52 times higher than our revenue per email subscriber. We saw this trend early on in our program and switched all of our on-site pop-ups to capture phone numbers instead of emails.”

There’s more

How Brands are Leveraging SMS as a Marketing Channel

SMS as a Customer Acquisition Tool

Ecommerce sites have enjoyed an influx of new customers since the pandemic began.

However, brands have expressed concern about the lifetime value of these consumers. Head of marketing and analytics at Uncommon Goods, Brian Hashemi explained the reason.

“A large portion of them are coming through transactional channels that are normally associated with lower levels of repurchase behavior,” he said.

So, the brand leveraged SMS to boost retention efforts. It also had to increase the email opt-in acquisition.

Using Short Messaging Service as a Marketing Channel

Getting consumers to opt for an SMS program is relatively simple. The challenging part is getting them to stay.

According to eMarketer, people who opt into an SMS program and share their information usually expect something in return.

For example, Pence noted that Peace Out Skincare’s SMS users are shoppers looking to make a purchase. So, they expect messages from the brand to offer promos, new products, and quick answers to questions.

Furthermore, the CMO said that Peace Out Skincare would continue to add incentives for SMS subscribers. These include early access, rewards program, and customized AI opportunities.

Frequency of Sending SMS

There are tons of factors to consider when using a short messaging service as a marketing channel. Perhaps the most vital of all is the messaging frequency.

According to Hashemi, Uncommon Goods record an SMS response rate that’s ten times higher than for email.

“But, we can’t send SMS messages at the same frequency as we do emails, so there’s a little back and forth regarding which channel is better for us,” he concluded.