Not Seeing ROI From SMS Marketing? Here’s What to Do

July 9, 2019 Maria Gianotti

Not Seeing ROI From SMS Marketing? Here’s What to Do

We at Vibes pride ourselves on staying tapped into what our customers care about, and we recognize that ROI is a big topic of discussion. We recently held a webinar, in partnership with Quikly, to examine just how to get a great return on investment from SMS marketing. 

In Why You’re Not Seeing ROI Out of Your SMS Marketing (And How to Fix It), Vibes’ Associate Director of Strategy, Lisa Szkatulski, joined Alison Vandenkieboom (Director of Client Success at Quikly) to discuss how brands can successfully acquire quality subscribers, reduce opt-outs, and increase conversions. Here are highlights. 

Not Seeing ROI From SMS Marketing? Here’s What to Do

Challenges for SMS Marketing 

While SMS proves to be a fantastic channel for reaching customers, with a 98% average open rate and 90-second average response time for consumers, brands are still faced with three primary challenges: 

  1. Subscriber acquisition 

  1. Opt-outs 

  1. Conversions 

Lisa and Alison went into each challenge and provided tips for overcoming each obstacle in the webinar. 

How to Boost Mobile Subscriber Rates 

Lisa started by stressing the importance of launching an SMS campaign “Loud and Proud” to ensure that customers are aware of a brand’s mobile marketing features. She suggested promoting the fact that customers can get special offers via text across all marketing channels, including email and point-of sale. 

By providing customers enticing incentives to sign up for text messages, brands can boost subscription rates: knowing that 60% of mobile users enroll for coupons and promotions can guide what you choose for your initial offer to maximize signups. 

Allison followed up by saying that the simpler you can make the signup process, the better. Add a checkbox to your email signup form to get texts, and skip complicated signup processes. She also said that using urgency marketing can increase signups and see higher clickthrough rates. Create limited-time promotions to get people to feel a sense of missing out if they don’t subscribe. 

Reduce Mobile Opt-Outs 

The next challenge for marketers happens when mobile subscribers opt out of offers. This often happens when a brand sends too many text messages, overwhelming subscribers. Lisa suggested sending just one or two texts a week, assess results, then adjust accordingly. 

Sending relevant content can also cut down on opt-outs. The data is there for the taking, and 78% of mobile users are willing to share personal data to get a better experience. Use that data to personalize mobile offers. When you can, celebrate milestones like birthdays and anniversaries in your marketing messages. 

Alison said that it’s important to be human and use a conversational tone in your messages. Speak with your audience, not at them. She also suggested segmenting inactive subscribers and sending them reactivation campaigns to get them buying from you again. 

Turn Mobile Subscribers into Customers 

The final challenge is getting your mobile subscribers to actually buy from you. Lisa said that getting to the point quickly and concisely is key. Since SMS is limited to 140 characters per text, you need to have a clear call-to-action and link in each message. 

She also said that rewarding engagement and usage is a great way to convert. Leveraging SMS with mobile wallet links can encourage more purchases, and encouraging mobile users to become loyalty members is just a click away. In fact, 69% of mobile users want to save their loyalty card to their mobile device! 

Alison stated that it’s important to create unique incentives for SMS subscribers rather than duplicating what you send via email. Giving subscribers a VIP experience and offering them access to exclusive offers will increase conversion as well. 

Scarcity, she also said, is key to conversion. Having a limited quantity of products available, or an offer only available for a short timeframe will create a sense of urgency that will compel people to buy now.

ROI isn’t guaranteed with SMS marketing without a little attention to detail. But with these tips (and a great platform like Vibes), you’ll easily recover your investment.

Looking to review the webinar in full detail? We provide a link to the recording here

About the Author

Maria Gianotti

Maria Gianotti is the Director of Demand Generation at Vibes. She's passionate about growth marketing and educating other marketers on the tremendous potential of mobile. Currently, Maria serves on the Board of Directors of the American Marketing Association's San Francisco Chapter as 2019 President-Elect.

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