Looking for ways your business can bring in more revenue? The answer may be right under your nose, or at least under your thumbs. The messaging channel, and specifically SMS or text messaging is the hot new communication channel for many companies, and it is one of the most important channels businesses should be focused on. We talk a lot about how companies can use messaging to provide better and more convenient customer service, but what about how messaging can generate new revenue?
Sure, a company could always decide to raise prices to generate new revenue, but there are other ways to skin that top-line cat. At the heart of any new revenue generating strategy is acquiring new customers, or having existing customers spend more and/or more frequently. In this article, we’ll take a look at how text message marketing can generate new revenue by influencing these three levers.
What are the Advantages of SMS Marketing?
You’ve probably been hearing a lot about outbound messaging these days. That’s because outbound SMS messaging is different than other channels for several reasons. By far, the most obvious reason is that smartphones have become ubiquitous. Everyone has a mobile device within reach, almost 24/7, and people primarily use their smartphones for texting. The pervasiveness of mobile technology makes it easy to see why text messaging would be the ideal means to engage with customers.
The second reason is consumers still view the messaging channel as a pure, noise-free way of communicating with friends, family, and even the brands they know and trust. This is evidenced by the incredibly high open rates for SMS (96%) and subsequent response rates (35%) of text messages.
The third reason, and this is probably the most important of them all, is that text messaging fits into the digital-first lifestyle of connected customers. Consumers have to be pulled away from their busy lives to engage with companies via phone or email. With text messaging, the consumer is in control of the pace of the conversation.
Turns out, giving that control back to consumers isn’t a bad thing. In fact, here are three instances when giving control of the conversation back to the consumer encourages them to let their guard down and can even build trust.
- Getting New Customers
Conversations about mobile marketing will usually conjure images of mass text messages sent to unsuspecting recipients. When we say get new customers, we don’t recommend sending bulk text messages to people who haven’t opted-in to your brand’s communications. There are many examples of Text-2-Join, Text-4-Info, Text-2-Win campaigns, and the like, that have gone sideways. Some consumers actually consider this type of outbound messaging too invasive and will not hesitate to respond with a “STOP” command, severing mobile messaging ties with the company.
When we talk about using business sms messaging to expand the customer base, we’re talking about using messaging as a way to be accessible to your prospective customers, who have opted-in to receive your communications. Influence their decision to buy by being a convenient, timely and trustworthy source of information. A text message to a consumer who may still be in the research phase of their purchase can serve as a welcome mat to ask the questions or receive the information that will get them to a “ready to buy” phase.
At Quiq, we believe companies that are present at the consumers’ moment of need, are the ones that are invited into a deeper relationship with those consumers. One of those critical moments may be right before they actually purchase and when they need guidance on your products or services. Take the pressure off of consumers to engage with you on your timeframe by leveraging the messaging channel. Invite your prospective buyers to engage with you during the pre-sales process to set your brand up as a helpful, accessible advisor.
- Encouraging Customers to Spend More
You’ve earned the right to call them customers, well, Bob’s your uncle. If they are happy with you, then it should be easy to get them to buy more, right? The problem is, you have to cut through so much noise and clutter to get their attention time and time again. Until now. With today’s technology and Quiq, companies can actually engage with customers on the channel that is most preferred to them.
Remember when we said text messaging is a noise free channel and that text messages have a 96% open rate? Well, we should add that most text messages are read within 3 minutes of receipt with a response rate anywhere from 32% to 45%. Now, you can send a call to action where people actually take action.
With messaging, you can take advantage of cross-selling and encourage customers to purchase complementary products or services. You could make larger sales by bundling products or services or encourage customers to buy a new product or service you offer. The real magic lies in the fact that now, these messages aren’t lost in their inbox, like email.
- Influence Customers to Spend More Frequently
Given everything that was stated above, the ability to increase repeat business may be an obvious outcome of using outbound SMS to get in front of your customers. But it deserves repeating in this context.
Even if you entice a customer to make a larger purchase once, it doesn’t mean they’ll be back. Mobilizing existing customers to come back may be the key to generating new revenue since returning customers spend 67% more than new customers.
Many a promotion has fallen on deaf ears because it was lost in a stream of emailed offers or thrown away with a stack of direct mail and weekly flyers. Consumers trust that the messages they opted-in to receive from brands are filled with information that can add some value to their busy lives. With Quiq’s outbound SMS, you can create timely and targeted offers and promotions that are viewed as valued communications, and thus, get attention.
Implementing Effective Text Message Marketing Campaigns
Text message marketing is most effective when it’s utilized as part of a greater cross-channel messaging approach. When you give customers the choice to interact with your brand through their preferred messaging channel, they’re more likely to stay engaged with you. Although SMS has the greatest potential reach of any messaging channel (practically everyone can receive and send a text), some customers may prefer to chat over Facebook Messenger or a similar channel. How do you determine which channel is a customer’s favorite? Give them a choice to reach out to you from a range of channels and see which one they pick.
One of the most effective messaging campaign strategies that has emerged recently is the use of questions and polls. Asking for consumer feedback empowers those that want to have their voice heard and shows customers that you care about what they have to say. The brilliance of this strategy lies in the fact that it is not salesy at all, and yet it can build loyalty and drive conversions. Once a consumer has shared some feedback, your business is free to make suggestions of goods and services that could fit their needs.
Realize the Advantages of SMS Marketing
As you can see, the advantages of SMS marketing are very real. Messaging makes it easy for customers to get in touch whenever they need you and you can help them, all in one conversation. Messaging makes it easy to have real interactions with your customers while answering their questions. Helping them at their time of need, learn more about your products and link them straight to the information they’re looking for. Quiq clients use messaging for meaningful engagement with customers across their entire journey. Our clients seamlessly and consistently communicate with customers across mobile, social and web to improve customer relationships.
Quiq makes it easy for customers to contact a business via Messaging, the preferred channel already in use with friends and family. With Quiq, customers can engage with companies via SMS/text messaging, Facebook Messenger, Web Chat, In-App, and Kik for help with their pre-sales and post-sales questions. In return, companies get a digital engagement platform to communicate with customers and gain valuable consumer insights.
Discover the true potential of cross-channel messaging for your business by trying out a Quiq Demo today.