Our Product Marketing Manager Katie Ash looks at how companies are using SMS, both to increase conversion rates, and to improve customer retention.
When SMS remarketing is used in a relevant and personalized way, it can be the most effective channel for engaging your audience.
Indeed, SMS messages have an average open rate of 98% with 90% of messages opened within three minutes. It also beats email on click through rate (CTR).
Here are six examples of SMS marketing campaigns that effectively increase conversions, recover abandoned sales and drive customer loyalty.
Why consumers unsubscribe from retail emails, and how retailers can minimise this through more relevant and timely communication.
According to a survey from Engage Hub, 90% of consumers have unsubscribed from retail emails in the past 12 months.
Among the main problems cited by the survey respondents were too many emails, or emails not being relevant to their interests.
46% said they receive too many messages – 26% said they get messages from some retailers at least once a day, while 15% receive more than that.
This is a common complaint from customers, and retailers do have to consider email frequency. Consumers will always report that they receive too many emails, but retailers need to study their results to decide on this.
There’s a balance to be struck between sending too many and running the risk of pushing up unsubscribe rates, and missing out on opportunities to sell by sending too few.
Retailers can also send too many of the same type of email. For example, Gap sends emails advertising sales and special deals several times a week, thereby lessening the effect of the tactic.
I’d argue that relevance may be a bigger issue here. For instance, I’ll ignore the majority of Gap’s emails as there’s only so many shirts you can buy, but I will take note of them when I’m looking for new clothes as they are then relevant to me.
Indeed, 24% of respondents in the Engage Hub survey have unsubscribed due to irrelevant emails, and a similar pattern is shown in a recent MarketingSherpa survey:
Financial services brands can build customer loyalty and increase customer lifetime value through user experience. Great mobile banking apps are one way to achieve this.
Customer loyalty is a challenge for financial service firms. Like many businesses, this sector has often had a greater focus on new customer acquisition than retaining existing customers.
There are obvious benefits of a focus on customer retention. For example research shows the potential of selling new products to existing customers at 60-70%, compared to between 5% and 20% for new customers.
It’s now more of a challenge that it used to be. Thanks in part to the Current Account Switch service, introduced in 2013, it’s now much easier to change banking providers.
More than 3m customers have switched accounts since 2013. Moreover, there is less of a perception amongst the public that changing banks is a major hassle. 83% find it easy to switch.
Now that switching is easier, banks have to work harder to hold on to their customers, and user experience has a huge part to play here.
This is where digital comes in. The use of banking websites and apps has grown rapidly, with mobile banking apps used 11 million times a day in 2015, up from 7 million in 2014.
Banking apps and online services are now a key part of the experience for finance customers, and providing an excellent user experience in this area can be key to retaining (as well as attracting) customers.
To put it simply: if users find it easy to use banking services on mobile and desktop, then they’re more likely to be happy customers.
How ecommerce sites can use messaging around live trends to drive conversions.
Showing live trends data to potential shoppers gives them useful information which can help them to come to a decision, and also adds an element of urgency which can speed up conversions.
For example, if there’s only one pair of shoes left in a customer’s size, then they need to buy quickly to avoid the risk of missing out.
This data is generally used to show product availability, and a form of marketing through scarcity.
Scarcity is one of Caldini’s Principles of Persuasion (referenced in this article on Amazon and Psychology), and works on the fear of missing out (FOMO). In addition, if something is rare or exclusive, it can seem more valuable to people.
It’s a principle which can be applied to many different products, but it is a tactic that should be approached with the customer in mind.
If you provide useful data which informs their decision, this is good for you and the customer. However, if the data is false, or the tactic over-used, then people will lose trust in the information presented.
Here are some examples of sites using live trends data…
How non-profits can use digital channels to build an audience and maximise donations online.
A few years ago, many of the biggest charity sites failed the on the basics of usability, but non-profits have made massive strides online since then.
Indeed, many non-profits have now fully embedded digital into their organisation, and are reaping the benefits. Lloyds’ UK Business Digital Index 2016 found that the more digitally mature charities were 28% more likely to have reported an increase in funding.
However, the same report also found that 49% of charities lack basic digital skills, so there is room for improvement.
Here are some ways charities can improve online and increase the number of donations they receive.
Here are some highlights from our recent webinar, in which we looked at how fashion brands are using personalization.
According to Accenture, 75% of consumers are more likely to buy from retailers who personalize their customer journey.
It can be a challenge to put Personalization into practice, but the rewards are there for retailers who can do this effectively.
Here are some great examples from the fashion retailers. For more, you can view the full webinar at the foot of this article.
A look at why fashion retailers seem to be ahead of the pack for mobile commerce, and what other sectors can learn from this…
An understanding of human behavioral patterns – why and how people make decisions – can make a big difference when selling online. Using Amazon as an example, this article looks at how an understanding of psychology can drive sales.
Amazon dominates online retail. It generated $135.9 billion in sales in 2016.
There are many reasons for Amazon’s success, one of which is that it clearly understands its customers, and this is reflected in its site design, and the many innovations it has introduced to online retail.
Let’s look at how Amazon persuades shoppers to make a purchase…
From May 2018, GDPR, an EU regulation, will become enforceable in the UK and the rest of the European Union. Here we look at what it is, and why it matters for businesses.