Retailers today face no shortage of challenges. Inflation-driven higher prices. Consumer concern over economic uncertainty. Increased privacy regulations and other barriers to finding and contacting potential customers. And a growing, fierce competitive environment that impacts consumer mindshare (and share of wallet).
So, retailers should be looking to draw as much value out of any channel that can help them reach customers, get to know them better, and deliver useful offers and information.
Today, that means embracing SMS, perhaps now more than ever.
After all, consumers have told us time and again that they are open to receiving brand updates on their mobile devices -- not only with their words but through their actions as well. SMS open rates often surpass 80%. Messages sent by brands are usually opened within three minutes of delivery.
Making these already impressive stats even more powerful is the reality that phones are nearly always within reach for nearly any consumer you wish to reach. Taken together, it's easy to see why SMS can be a huge win for retailers and shoppers alike.
But only when employed correctly.
All the lessons and best practices we've learned in other channels apply doubly so with SMS precisely because mobile phones are such personal devices. You can't just blast a generic message to your full subscriber base and expect that to work as it might with another channel.
The key to successful relationship marketing is showing that you know your customers and that you care about their needs. That means asking questions and listening to the answers. Not only have marketing experts repeatedly made this point, but shoppers have as well. Buyers gravitate towards brands that tailor messages based on their knowledge of customer wants and needs. And in this respect, actions speak louder than words.
The way retailers can show shoppers that they're listening is by personalizing the information sent, and where possible, contextualizing it based on the situation. Let's examine each…
Personalization
Personalization is a buzzword for a reason. According to Marigold's latest Global Consumer Trends Index, almost 80% of customers report a likelihood of engaging with personalized offers and messages tailored to their interests.
The way to accomplish this is to get to know them. Analyze shoppers' purchase history to make smarter recommendations. Ask them questions to better understand their needs. Asking questions about which product categories they're interested in, how often they shop for the products you offer, and even who they're shopping for (gifts are frequent and often untapped potential!) are just a few examples of data points you can consider to collect.
Then act upon this information accordingly. After all, if customers are making the effort to shop with your brand or answer your questions, you owe it to them to make some effort in return.
Just be sure to stick to zero-party data that you've collected from the customer directly and with their consent. More than 60% of customers think brands sending them offers based on information gained from third-party tracking cookies are "creepy."
But when we say personalization, we mean making a bigger effort than simply including a customer's first name in your text message. It's about understanding and caring about the wants and needs of your customer, as well as the intent behind their actions.
Apparel brands should know their customers' style preferences and how often they refresh their wardrobe. Home decor companies can easily ask which room their customers plan to remodel next. Office suppliers can learn if customers work from home or in an office.
As brands learn more about these unique interests and needs, the ability to follow up with well-timed personalized content, offers, and recommendations makes the messages you send more helpful and welcome, as opposed to annoying interruptions.
Context
In much the same way, context is a critical component of an SMS campaign, again due to the intimacy of the device in question. If phones are with customers all the time, brands must be vigilant in tailoring the right message for not only the right time/place but also the appropriate stage in the customer's lifecycle journey.
Lighting up a potential customer's phone with discount offers when they're still in the "just browsing" stage is an instant turnoff and a likely way to lose yourself a sale. Better to take that time to understand what they're looking for with questions that help clarify both their thinking AND your understanding.
But if a customer has a history of browsing for an out-of-stock product that's newly available, pinging them with an alert and a link (and even a discount) is a welcome and helpful effort. So are proactive texts on when prices fall, or inventory is running low.
What's more, keep in mind how your customers want to view messages on their phones. The device format matters. Text messages must be short and focused. You can also employ MMS options where appropriate (images, GIFs, etc.), on a more one-off basis where they can have a real impact (think tent pole events or new product releases customers have expressed an interest in).
Actions like these show you really are listening to and caring about your customers. You're showing them that you know them. When this happens, customers are far more willing to let you into their phone and engage with you via SMS. It's then that all the power and convenience of the mobile phone works in your favor because you're amplifying their personal needs and desires with a service, not an ad.
It comes down to trust. Establish trust with your customers by showing that you're trying to help them, and they'll trust you with access.