SMS is really one of the business world’s more pleasant surprises. In the sense that its perceived value reliably conceals the real advantages it brings.  In many cases SMS marketing even plays a leading role in determining the success of a business.

Think about how often it’s utilized by the best companies in their operations or marketing, and this notion becomes clearer and clearer.

Today, we’ll be looking into 3 examples of how businesses make use of SMS to accomplish the objective of getting more customers; and ultimately gaining an edge over the ever-so-present competition.

The following are real life anecdotes that demonstrate the advantages which SMS brings, and how it can be applied to your business as well.

1. Recreation

I used to use this for nightclubs. Text 12345 to put yourself on the guest list and get free entry before xx time, reduced entry afterwards. Autoreply text that they could show at the door.

After a few months I had a huge database of people in the area and people showed up earlier and earlier, allowing me to charge the later people a premium to get in.” – snobbysnobby

This example tells of Reddit user snobbysnobby, who uses a simple approach to build a guest list for his club. People love exclusivity, that’s a fact, and when faced with the opportunity to be part of a guest list, they jump at it, allowing snobbysnobby to amass a large list of people he can instantly entice to show up earlier with the prospect of better seats or early bird deals.

It got to a point where more and more people showed up earlier, thus allowing for the business to charge an entrance fee.

This marketing strategy is an absolute must to adopt for the Bars & Clubs, or even the f&b industry, because how else are we going to amass a loyal following if the business ends engagement after everyone leaves. It is imperative to have a method of creating touch-points with patrons, and to encourage them to rally along with them their entourage of friends and colleagues.

 

2. F&B

I get geo-specific text promos from companies through my wireless provider. It’s like they’ve partnered with my provider which I have already agreed to receive promotional messages from as they service me, and piggyback.

I’ll get a Mcdonalds ‘Hey, we noticed you’re within 0.5km of a mcds, we can offer this deal’ but it’s showing that it comes from Rogers.

It’s interesting, but also lets me know I need to pay more attention to fine print, because if I wasn’t okay with it, getting that text from a non-rogers organization would piss me off.”  – Tarquin11

In the same thread, Reddit user Tarquin11 noticed that the MacDonald’s in his area piggybacks on his Wi-Fi carrier to notify their subscribers within half a kilometer of the restaurant of deals for meals.

This is actually where a combination of factors come together to form an effective marketing strategy. Firstly, the message was piggybacking on their Wi-Fi provider, an entity which is familiar to many.

And on top of that, MacDonald’s is already a brand which is widely known. And that’s why the marketing message serves up the perfect little storm. Nothing about it comes across as intrusive at all.

If anything, the message was equivalent to receiving a text from a friend sharing a good deal that’s close by. The equivalent to this in a Singapore context would be Location Based Advertising, because it allows businesses to deliver messages to SingTel subscribers who are physically nearby their location, and since it’s sent by a brand name which is so well know and familiar to us locals, it ticks 2 boxes in terms coming across as a welcomed message.

 

3. Ecommerce

“The SMS campaign had an open rate of 98%, a click-through rate of 36%, and a conversion rate of 5%

The email list had an open rate of 22%, click-through rate of 7%, and a conversion rate of 6%

Our SMS List made us $255 in revenue

The Email list made us $45 in revenue” – ImproSelf

It’s always interesting to see when people report of revenue stemming from SMS. In the Digital Marketer board, user Improself reports of how SMS generated more than 5 times more revenue compared to email.

And while there is nothing especially unique about this example, it demonstrates the wonders a high open and click rate does for any marketing campaign. A 5 times higher open rate literally gave a click rate which is 5 times more and led to 5 times the revenue too! This really comes as no surprise, the more people a business manages to reach out to, the more conversions will follow. Hence the insane advantage SMS provides.

But of course bear in mind that the list which he is marketing to are opt-in subscribers; people who are familiar with the eCommerce website already.

If your email list is generating X amount of revenue, just imagine what SMS can add to that. Businesses caught in the comfort zone of email marketing often overlook this avenue for revenue.

That’s why it’s a must to build a list to market to with SMS, because it literally leads to higher revenues. The addition of SMS into a company’s arsenal of marketing methods can only bolster its effectiveness.

So when people are busy contemplating about whether to use Email or SMS, we say, why not BOTH? After all, results will be evident. And the truth is, while there may be a best way for your business to market to your audience, utilizing both methods caters to the maximum number of people thus converting more prospects into customers, and customers into loyal patrons.

 

In Conclusion:

Despite the bad press SMS receives, when used conscientiously can deliver potent marketing results.

The objective is to give as many customers a proper reason to opt-in, and thus building a list where the business can continue to engage the customers even after they leave. Because who else are businesses going to try to convert into regular customers other than the ones who have visited before.

More importantly, when advertising to any demographic it’s imperative to avoid being intrusive. This can be done by Piggybacking on familiar brand names, and to remain relevant (as much as possible) to the interests of the prospect.

Leave a Reply