In this article we will cover a few basics on how text message marketing can increase customer return rate. First, let’s define what text message marketing and customer return rate are. Text message marketing, also known as SMS (short message service) marketing, group text messaging, or mobile marketing is a relatively new method of marketing that has really taken hold in the last few years. Text message marketing is when a business or organization sends a message to current and/or prospective customers through a cell phone or mobile device for marketing or informational purposes. These mobile messages are generally sent using a web based application.
Text message marketing is done completely on an “opt-in” basis, meaning that every phone number has to agree to receive the text message from each individual business or organization in order to prevent spam messages. A business or organization wanting to use text message marketing will generally sign up with an application provider where they will choose a specific, relevant keyword (Joe’s Burger Barn may choose Joe's as the keyword) and will be assigned a short code (typically a 5 digit phone number) through which all messages will be sent and received. The business will then market that keyword and short code in order to get opt-ins. Joe’s Burger Barn may put on their marquee “Text Joe's to 77948 for a free drink with your next purchase”. At this point anyone texting in will receive a message confirming the free drink offer, giving an estimate of how many messages will be sent each month, and telling users how they can opt out of the campaign.
The Benefits of Text Message Marketing!
There are many ways a business or organization can use text message marketing. Medical professionals may use mobile marketing to remind patients of an upcoming appointment, opening in their schedule, or a bill that is due. Schools or city government can use group text messaging to inform people in the area about an emergency situation, road closure, upcoming event, and much more.
Real estate agents us SMS marketing to share information about a new property on the market and may include a link or phone number one can call to get additional information. The list goes on and on for how virtually any business or organization can use this incredibly effective form of marketing to get a targeted message to a specific audience within seconds. It is estimated that more than 90% of text messages are opened and read within 1 hour! When it comes to getting a marketing message out, there is no other marketing campaign with such high potential for reaching a targeted market so quickly and effectively.
How Can Text Message Marketing Impact Customer Return Rate?
Let’s focus on customer return rate for a minute. Customer return rate is how many customers come back to your business after an initial purchase. Getting a customer to come in and spend $50 at your business is great, getting them to come back next week and spend another $50 or $100 is even better.
There are a number of things that contribute to a company’s customer return rate; 1 - what kind of service/experience they had the first time, 2 - how satisfied the customer is with the product/service they purchased 3 - what kind of incentive they have to come back. Obviously each company is responsible for providing a quality, valuable product or service and for having a sales and customer service team that is knowledgeable, friendly, and effective. However, the third part, providing an incentive for customers to come back, can easily be done using text message marketing.
Use Text Message Marketing For Product Promotions!
Costco, for example, uses text message marketing to tell members when a new coupon booklet is being sent out, telling them to watch for it in the mail. They send another message on the day the coupons start, letting customers know they can now use their new coupons. In every message they also send a link to their website reminding customers that they can find special deals and online specials on the website all the time. Letting customers know about new products, promotions, or specials is great incentive for getting them back to your store or website. Text message marketing is the fastest, easiest, and one of the cheapest and most effective ways to share that message with current customers.
No matter the business or organization, there are many uses for text message marketing. Increasing customer return rate is just one of the benefits that a business can experience by using text message marketing. Read some text marketing reviews to find the best text marketing company to meet the needs of your business or organization.
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