SMS Marketing for eCommerce Showing Increased Conversion Growth

Last Updated:
November 3, 2022
Author:
Kimmy

SMS Marketing for eCommerce

Throughout 2022 changes in marketing and shopping habits have kept eCommerce merchants on high alert. After all, the cost of paid social media advertising continues to rise, while the effectiveness decreases in most industries. This is largely in part due to the privacy changes Apple introduced with iOS 14, however, inflation also plays a role. In this article, we look at how SMS marketing for eCommerce can help show increased conversion growth, and why this marketing approach is beneficial.

First, Your Business Must Stay Compliant

To be able to send SMS marketing messages, you must have a list of customers that opt-in and give your business their details. Not to worry, many customers prefer to give their phone number for text updates, over their email address. Simply set up a popup form on your website to collect phone numbers and start to build your list. Ensure you also have clear terms and conditions accessible, explaining how you plan to use customers’ data when they opt-in.

Why SMS Marketing for eCommerce Shows Increased Conversion Rates

Higher Open Rates

SMS marketing and email marketing have both seen an increase in open rates over the past two years. In fact, since the privacy changes of iOS 14, email open rates have increased by 94% in 2022 when compared to the same period in 2021.

Direct Engagement with Customers

Through SMS marketing, you have the opportunity to engage with your customers. SMS messages are short and to the point, thus, they feel more personal to the consumer. Furthermore, you can segment your customers based on previous buying history to ensure they get offers relevant to them. For example, if a customer regularly buys a certain flavor of protein powder, you could send them a $5 off coupon for that flavor.

Encourages Brand Loyalty

Sending SMS messages to your customers allows them to connect with your business immediately. By sending real-time alerts for order processing, and shipping, your customers feel confident in their purchase. You can also utilize SMS marketing to check in with your customers after a product has been delivered. This helps to boost customer service and improve brand perception. This also allows customers to quickly and easily contact your brand with any questions or concerns they may have.

Businesses Can Use Automation to Save Time

SMS marketing is gaining traction across all eCommerce niches. In fact, promotional SMS campaigns have increased by 47% in the past year. Once you have a phone list, you can set up automated campaigns. Consider using the following automation to help increase conversions and drive traffic.

  • Welcome Messages – Once a customer opts into SMS messages, send them a thank you message. Then, consider following this up with another coupon a week later.
  • Loyalty Rewards – Send your SMS subscribers exclusive deals or early access to sales.
  • Abandoned Cart – Similar to email cart reminders, an SMS reminder can be sent 24-36 hours after they leave the site from the checkout page. Keep your messaging brief and be sure to mention your brand name.

By using these strategies, eCommerce businesses have seen a 42% increase in conversions and a 28% increase in orders over the past year.

In Conclusion

As social media marketing costs continue to rise, many businesses are looking into more direct communication options. In the past year, automated email marketing messages generated 29.1% of eCommerce orders, from just 1.75% of emails sent. Push notifications also generated 43% more orders in 2022 than in 2021. This is an astonishing number of orders and shows how the marketing landscape is changing once again as consumers tune out ads on social platforms.

Utilizing marketing options that customers must opt-in for like push notifications, email and SMS are a wise choice for eCommerce businesses looking to increase conversions in the coming months.

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