Customer Retention using SMS Marketing
Obviously SMS marketing is a very effective revenue generating method and trends suggest that SMS business will continue to grow into the foreseeable future. For the most part, marketers use SMS to target potential consumers in hope of converting them into brand new customers. However, the use of SMS reach much further than just acquiring new business, it is a valuable tool for gaining the loyalty and retention of pre-existing customers as well.
Shiny Button Syndrome
In today’s market, with the integration of new technology and large corporations doling out millions for advertising, businesses need to be wary of where and how they spend their marketing budget. It’s far too easy to get swept away by the competition or to get “shiny button syndrome” and fall for every cool, new method that comes out. More now than ever, customer retention is necessary for businesses to be able to compete and thrive. Those that put all of their effort into gaining new customers instead of retaining pre-existing customers are sure to miss out on some big pay days. But how exactly does one use SMS to retain customers?
There are 3 primary reasons as to how / why businesses should be using SMS to reach out to their previous customers in an effort to build loyalty.
Consciously or subconsciously the human mind receives countless messages from adverts every single day. With enough effort, these adverts will stick in our minds and can actually influence consumer shopping habits. For example, every time you think of shoes, companies like Nike, Adidas, Reebok most likely come to mind, or if you mention fast food, Mc Donald’s is always going to be one of the first names that pops into your head. This is no coincidence. These companies work extremely hard to ensure that their names are synonymous with their products. Through SMS, your company can do the same.
An advertising firm by the name of RadumOne posted some interesting statistics regarding the use of mobile coupons. Their research shows a growing trend in mobile coupon use. In 2012, 28% of smartphone users redeemed some form of mobile coupon. Despite the growing number of mobile users, the percentage of mobile coupon users is expected to grow to over 33% by 2014. This is a clear indicator that consumers WANT to receive your offers. When polled, 42.3% of mobile users claimed that they would prefer coupons via SMS over other methods such as barcode scanning.
Every day consumers make choices on what businesses they choose to purchase services and goods from. These choices can be influenced through communication with your prior customers. For instance, chances are when you are in need of a haircut you have a specific barber or salon that you will go to. Why? There are countless other places out there that could provide the same exact service; some may even be better or more cost effective. The reason is you’ve most likely built a relationship with this business in some way. Through interacting with customers via SMS, you now have the ability to connect with them and build the same sort of relationship so that every customer may become a repeat customer. Plus, customers will be more inclined to refer their friends as well.
As you can see, there is more to SMS marketing than just messaging ads in hopes of acquiring new clients. There are far more uses for this marketing method. If managed correctly, SMS marketing can drive business in a way that no other method ever could.