CommerceCo Recap: SMS Advertising and marketing Fundamentals

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Text messaging can be one of the most productive marketing channels in retail, provided workflows are automated and performance is tracked.

Entrepreneur Jordan West, owner of an e-commerce agency, Mindful Marketing, and an online clothing company, The Kindred Studio, uses SMS marketing to increase customer loyalty and sales. He believes text messaging is one of his best marketing channels.

Don’t invite everyone

“Have you ever heard of the term ‘spray and beet’ marketing?” West asked. “Do not do that. Don’t treat all customers equally. Every customer has a unique relationship with your brand. Do not respect them by treating them all equally.

“Think about it like this. When you meet someone …[the relationship] starts small and asks about small things. You don’t ask for their phone number right away. That’s a big deal with texting. Don’t try to put everyone on your list. “

Instead, when doing SMS marketing, focus on the customer segments that are most likely to respond to text campaigns.

West recommends segmenting customers according to what he calls “traffic level”. The idea is to create segments around the depth of customer relationships. Buyers are a different segment than first-time visitors.

West developed a framework to segment buyers based on their relationship with the company. The framework moves prospects from cool to warm leads.

Identify the level of customer loyalty for your company, if you will. West has a numbered scale for this. Other marketers may use the freshness, frequency, and monetary value (RFM) model to identify the right place in a relationship to ask a customer if you can send promotional text messages.

Automate

One of the most important advantages of digital marketing is automation. A company can set up programmatic workflows that encourage and move customers and prospects along the buying process and into deeper levels of engagement.

For example, West uses automation to get strong SMS results. In this way, his approach to SMS was similar to many successful trading companies using email marketing or even social media marketing. These companies segment, target, and personalize messages.

The key, however, is to use automation in moderation.

measure up

SMS marketing is understandable and measurable. West was quick to point out that the assignment of SMS is not always clear, but he has also made an effort to explain how to measure it.

“Look at this click-through rate: 43% percent. And then a conversion rate of 10%. So $ 4.11 per message, ”West said as he shared some of his own company’s SMS marketing data during a live event for the CommerceCo by Practical ecommerce community.

“So this message costs me a dime and I get $ 4.11 in sales per message. That’s amazing, ”said West of his company’s SMS Automation welcome series. “The abandoned car [SMS automation] is even bigger, $ 10.26 per message. “

As with almost any marketing channel, the metrics your business is tracking should be related to the goals of that campaign. West wants sales, so click through rate, conversion rate, and revenue per message are all critical.

List size

One metric that you may not want to measure, especially if you are just starting out in SMS marketing, is the number of subscribers.

“That list had just 2,000 subscribers at the time, but I wanted to show you how incredibly effective SMS marketing is at the beginning,” said West as he showed the results of five SMS marketing campaigns that covered more than 25,000 US Dollars in sales.

Instead, focus on results – build customer relationships and generate sales.

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