Quick links:

• • • 1. They use the right tool for the job
    • 2. They use customer data for lazer-focused personalization
    • 3. They give compelling reasons for customers to opt in (and stick around)
      
      

Massive international businesses like Dominoes, Sephora, Uber, and Airbnb are all using SMS to increase their revenue and efficiency. By leveraging text marketing, they have been able to reach their customers, boost engagement, and drive sales. If SMS marketing didn't work, these brands would not be using it.

So what do they know that we don’t?

We’ve looked at some of the world’s most successful brands to look at the anatomy of an SMS strategy that converts.

What did we learn? 

1. The science behind running high-performance SMS marketing campaigns actually isn’t as complicated as it looks.

2. By not leveraging SMS marketing, we’re missing out on a powerful tool that can help us reach our business goals faster and more efficiently.

So, we’ve wrapped up the know-how in this article, so you can see how they’ve cracked it. Inside you’ll find practical tips and strategies that you can use to create high-performance SMS campaigns that deliver results.

Best of all, it won’t cost you much to give the big-brand tricks a go.

1. They use the right tool for the job

Big box retailers aren’t afraid to try something new or unorthodox if they think it will get the job done. They just ask—what is the best way to reach our customers to achieve this goal?

This is one of the biggest perceived challenges for SMBs. When you’re time-poor, it’s easier just to stick to what you know.

The reality is, it doesn’t cost much (time or money) to test a new channel like SMS. And the learnings are worth their weight in gold. If you chat to one of our SMS experts, you can even be in to win 1000 free credits to play with.

Email or SMS?

When choosing between sending an email or sending a text, the main consideration should be time. Does the customer need to act on this right away? If so, use SMS.

If you’re running lots of these time-sensitive campaigns, though, be careful that you’re not overloading your customers. SMS is extremely targeted and almost always opened, so it should be used sparingly for one-off blast campaigns. We’d recommend sending no more than 2 of these to your customers per month.

Another good way to use SMS is for notifications. These only trigger when customers act, so they won’t be as intrusive or annoying (customers will understand why they’re receiving the message). While emails can be used too, they can sometimes get lost in the inbox. SMS will ensure important messages get where they’re meant to go in a near-instant fashion.

Chatbots or SMS?

Chatbots are great when a customer is looking for answers in real time. They work well on messaging apps (Messenger, WhatsApp) and on your website. This is mostly inbound, although you may have a chatbot notification to communicate something when customers visit your online shop.

SMS is better for outbound notifications, like when you’re running a sale or have a personal, time-sensitive invitation or offer to share. You can also use SMS for automated messages, for example, let a customer know delivery updates on their order.

Digital advertising or SMS?

I’ve heard merchants say, “Why would I send a text when it’s so much cheaper to run ads on social media?” I’d respond to this in two parts.

Firstly, is it really cheaper? On average, it costs $17.60 to reach 1000 people on Facebook. For Instagram, it’s $8.30. SMS sits almost bang in the middle—from around $10.00 per 1000 recipients. And that’s not even taking cost per conversion into account. 

Secondly, it depends on what you’re trying to achieve. For example, SMS can drive conversions through high personalization. You have more scope to get really specific to the customer; you know more about them because they’re in your database.

You could use this same idea for secret menu items or order freebies too.

2. They use customer data for lazer-focused personalization

If you’re tracking sales (i.e., if you have a digital POS system and/or an online store) you own a lot of customer purchase data. Now, let’s put it to use!

I’ve just been looking at a merchant account where they’ve automated more than 25% of the revenue. That’s purely just from sending campaigns when customers hit specific criteria or make a particular action.

This business is sending automated emails and SMS messages to customers who haven’t shopped in a while, giving them a small discount, and generating revenue from that.

They’ve also got automated SMS campaigns going out to their loyalty members, letting them know when they have points they need to redeem, or when they’ve unlocked a reward.

This is exactly what the big brands do—they put their data to work. It’s really exciting seeing smaller retailers take that concept and run with it. The set-up time is so minimal, especially because SMS doesn’t require any design work. And the results are incredible.

There are also businesses who are dipping their toe in the water, giving SMS a go with a one-off campaign, and being absolutely blown away at the impact.

Pinjarra Bakery is an example that comes to mind. This is an example of a merchant taking a step back and thinking: what’s the best channel for this campaign?

Every month or so, they’ll make a once-only, off-menu meat pie. They wanted to let their regulars know about it, but the promotion needed to reach them at exactly the right time.

So they sent an SMS, just before lunch time, to encourage customers to come in and try this one-off pie.

After just two SMS campaigns contributed to 15% of revenue over a 3-month period… it’s safe to say, SMS marketing is yet another Pinjarra success.

“Sometimes, I've got to look twice and go—Is this actually real?”

“Sometimes, I've got to look twice and go—Is this actually real?”

- Daniel Pantaleo, Pinjarra Bakery

Another bonus learning: Don’t just track customer purchase data, track the brands and products they’re buying too. With SKU-level data, you can pitch co-marketing campaigns to wholesalers, negotiate better stock prices, and just generally deepen your relationship with your vendors.

3. They give compelling reasons for customers to opt in (and stick around)

If you already see the value in texting your customers, your next challenge is: how do build my SMS database?

The big brands know that people will sign up to get an offer, but will opt out if they aren’t promised continuous benefits. If you want people to stick around (and you want to keep reaping the rewards of high conversion rates), you have to make an offer they can’t resist.

Case study: Sephora

Sephora has a finely-balanced strategy to keep a regular stream of SMS subscribers coming in, while sending exclusive offers and insider info to keep them there long-term.

Opt-in incentive: Sephora uses a 10% discount code to get customers signed up for SMS marketing.

Continuous benefits: Then, Sephora shows the value of being on the list. Their SMS subscribers and beauty insiders get access to all sorts of exclusive offers, as well as being kept in the loop with new stores and events.

Case study: Domino’s

Domino's takes a slightly different approach. The incentive to sign up is access to the deals themselves… and they’re very good deals.

Opt-in incentive & continuous benefit: Exclusive access to time-sensitive deals.

These deals are so good, you wouldn’t find much better. While smaller retailers and hospitality businesses can’t compete with the big brands on price, you can still use this method. Even if you don’t want to offer 50% discounts, your database will still appreciate a $5 voucher or small freebie.

Finally, to make a lasting impression on your audience, don’t be afraid to lean on your customer experience, product quality, and level of service as your point of difference in these kinds of campaigns.

How SMB Merchants Can Leverage SMS Marketing

1. Build Your SMS List: Start by building your SMS list by obtaining your customers' opt-in consent. You can do this by offering a discount or promotion in exchange for their phone number.
2. Expire Discount Codes: When you use discount codes for campaigns, make sure you set an expiry date to make the offer time sensitive.
3. Personalize Your Messages: Use customer data to personalize your SMS messages and offers. This could be based on their purchase history, location, or interests.
4. Time Your Messages: Send timely and relevant messages to your customers to maximize their impact. This could be about promotions, new products, or special events.
5. Keep It Short and Sweet: Keep your messages short and concise, with a clear call-to-action. This will encourage your customers to take action and engage with your brand.

Meet with one of our experts and be in to win 1000 free SMS credits.

Discuss how SMS could work best for your business. Meet with an SMS expert before the end of June and be in to win 1000 SMS credits.

Standard T&Cs apply. Additional competition terms: 1) Offer not available for SHAFT-regulated merchants. 2) To be eligible, you must book and complete a call with a Marsello SMS expert before UTC 11:59pm, 30th June, 2023. 3) Only one entry per eligible business will be accepted.

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

Quick links:

• • • 1. The Very Secret Sale

    • 2. Mystery Discounts

    • 3. Secret Menu Items or Freebies

    • 4. Pop-Up Store Google Maps Link

    • 5. The Birthday Offer

    • Before you begin: Tips From The Experts
      
      

    • Win 1000 Free SMS Credits

      
      

We all know what bad marketing looks like. It’s the emails we bulk delete, the text message that gets us up on the wrong side of the bed, and the intrusive ad in the middle of your Facebook message inbox.

We sign up for things left right and center, opting into emails when we buy something, accepting SMS marketing when we make an appointment… Then before we know it we’re inundated with marketing messages and we’re subjected to a total advertising overload.

That’s why, as business owners, we’re hesitant to send too many emails, or annoying texts, or set up pesky retargeting ads that don’t turn off even when customers have already bought the dang thing.

However, when marketing is done well, we don’t see it as marketing. We see it as a story, or a relatable anecdote, or a club we are genuinely excited to be part of.

So how do we take SMS—one of the more intrusive forms of marketing—and make it exceptional? How do we make SMS marketing so good that customers will be throwing their mobile numbers at us, begging to be part of our list?

The fact is, SMS has a reputation as one of the most annoying forms of marketing because it is the most direct. It comes right to the user's personal device, without the need for an internet connection or mobile data. It’s almost guaranteed to be delivered and opened. There’s really no barrier shielding the recipient from an annoying message if they’re opted in.

But what makes SMS annoying also gives it its edge.

So here’s what we’re going to do. We’re going to design 5 creative, tantalizing & clever SMS campaigns that you can use or modify and promote as part of your brand’s customer experience.

Ready to say goodbye to SMS opt-outs?

Goal: To attract new text subscribers and build up a marketable database for SMS. 

Benefit: Better engagement, higher read rates, and more return on your marketing investment.

Understand that these campaigns should be exclusive (or at the very least first access) to text message subscribers. In return for their mobile number and marketing consent, you want to make it well worth their while. Customers need to know that opting out means they will no longer have access to these incredible offers and campaigns.

Here are 5 SMS Campaigns That Will Have Customers Eager To Share Their Number.

1. The Very Secret Sale

Every month, 1 text subscriber is chosen randomly to participate in a secret sale. This creates hype and excitement within your database, and you can use it in your list of amazing things your subscribed customers get access to. This campaign creates a sense of exclusivity and urgency, while also encouraging customer engagement, referrals and social shares.

Yep, it’s pretty much just a one-off discount or voucher for one person, once a month. But make the offer tantalizing enough that everyone wants it.

Steps: 

1. Export a list of your SMS subscribers as a CSV file (or download a full list, and sort by SMS subscribers, deleting the rest).
2. Use a Random Name Picker like this one, where you can upload a CSV file of your database
3. Pick a name at random (or as many as you like).
4. Create a campaign list or segment with that customer.
5. Generate a single-use or customer-specific discount or voucher code. Adding a time limit or expiry date creates urgency.
6. Send an SMS campaign (copy the text below and modify to your liking).

2. Mystery Discounts

This campaign creates a sense of excitement and anticipation for customers, as they wait for periodic messages with surprise discount codes. By keeping the value of each code a mystery, you’ll incentivize customers to jump online and add items to their cart to apply the code.

You can use this type of campaign alongside other campaigns and releases, for example for early access to new collections, to further increase customer engagement.

3. Secret Menu Items or Freebies

In one of the most creative SMS campaigns we’ve seen, Pinjarra Bakery promotes exclusive meat pies to their local customers. They’ll create whacky recipes and do a one-off batch, then send a text just before lunch to let customers know.

Campaigns like this are great. they’re time-sensitive, they’re fun, and they get customers excited to try something new and different.

You could use this same idea for secret menu items or order freebies too.

4. Pop-Up Store Google Maps Link

Running a pop-up store? Offer first access to the pop-up store Google Maps location to SMS subscribers. When promoting your pop-up store, you can create a landing page or add a form to your Link In Bio. Ask customers to add their mobile number to receive the location 24 hours before the store opens.

Pop-up stores can offer an air of mystique and exclusivity. They’re outside your usual store location, run for a limited time, and often promise the best deals and last-of-run items.

I was recently out shopping and needed a different size in the hoodie I wanted. I was told that there was only one left, that it wasn’t available online or in any of the physical other stores, but that it would be at the pop-up, happening later that week. Plus, the store assistant whispered as an aside, it would be half the price.

I got there on the day and the line was halfway down the street.

Pop-ups and markets are a popular way for stores to run sales and move stock quickly. Having everything for sale in one place, and for a limited time, creates urgency and demand. They are also great for ecommerce/DTC brands who want temporary, cheaper floorspace to build their brand presence in a particular market.

5. The Birthday Offer

Last but certainly not least! Most customers expect birthday offers when signing up for a loyalty program or marketing emails these days. But why not offer something extra to SMS subscribers?

This campaign creates a personalized experience for customers, making them feel valued and appreciated on their special day. Additionally, by setting a time limit on the offer, you’ll create urgency and encourage customers to take advantage of the offer before it expires.

Before you begin: Tips From The Experts

Above: Wildfang leads with the benefit of opting in when promoting their SMS marketing program at checkout.

1. Be upfront. Dominoes lead the charge in transparency, letting customers know before they subscribe to expect no more than 6 text messages a month. If you’re open, people know what they’re signing up for and will be less likely to opt-out.
2. Lead with the benefit. Retailer Wildfang asks customers to opt-in by self-selecting whether or not they want a discount. Be clear under the initial copy/headline that customers are signing up for SMS marketing, and make sure you deliver the discount in the first SMS message you send them (automate it to be extra certain).
3. Keep compliant. Make sure you’re staying within global, regional and industry SMS legals. While we stay up-to-date with the rules and regulations, we’re not legal experts, so make sure you check the TCPA and other legislation and guidelines to make sure your campaigns don’t miss the mark.

Final words

SMS marketing campaigns can be highly effective if they are designed well, creating a sense of excitement and exclusivity among customers. As SMS is the most direct form of marketing, it is important to ensure that campaigns are designed with care to avoid being seen as intrusive. The campaigns outlined above all offer creative and tantalizing options for customers to engage with a brand through SMS. By providing exclusive access to offers and campaigns, customers are more likely to opt-in to SMS marketing, leading to higher engagement and return on investment.

Meet with one of our experts and be in to win 1000 free SMS credits.

Discuss how SMS could work best for your business. Meet with an SMS expert before the end of June and be in to win 1000 SMS credits.

Standard T&Cs apply. Additional competition terms: 1) Offer not available for SHAFT-regulated merchants. 2) To be eligible, you must book and complete a call with a Marsello SMS expert before UTC 11:59pm, 30th June, 2023. 3) Only one entry per eligible business will be accepted.

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

“I didn’t have time to write you a short letter, so I wrote you a long one” - Mark Twain

Apparently, Mark Twain hadn’t heard of pre-built SMS templates, something we’ve just added to Marsello alongside the automations template library, emojis, merge tags for SMS, and to make your SMS marketing go even further cut SMS rates by up to 50% on some pricing plans.  

Here's what's new in SMS:

We’ve cut SMS rates by 50%*, doubling SMS credits across some plans

We’ve cut SMS rates by up to 50%* on some pricing plans, starting from our base $25/month plan. That means some plans will receive more than double the SMS credits per dollar.