Our partner is a leading ecommerce household furnishings player. The company generally relied on email as a primary channel of communication. Their Chief Marketing Officer wanted to see if using SMS campaigns for sales would help the company convert online leads more effectively and drive greater revenue from an upcoming 4-day promotion.
Email has been the primary channel of communication between ecommerce brands and their customers for some time now. However, over the past few years, response and engagement levels have been consistently dwindling. With 53.5% of all email traffic worldwide being spam, it is very easy for brand messages to get lost in the barrage of emails consumers receive daily.
The Opportunity – SMS campaigns for sales
The company was interested in SMS because of its promising engagement metrics. Studies have found that SMS offers open rates of up to 95% and click-through rates of up to 80% with each targeted message. When compared to email, text marketing also delivers:
- 4x better opt-in rates,
- ~4x higher open rates,
- ~15x more clicks, and
- ~22x more conversions
(Source: “Email Marketing Benchmarks”, MailChimp, updated 03/2018; “Ecommerce Email Marketing: Industry Performance Benchmarks”, Alicia Thomas, Klaviyo, 02/15/2018 | “What is the open rate of SMS Text Messaging?”, Christopher S. Penn, Shift Communications, 09/29/2015 | “How to Calculate Customer Acquisition Cost and Determine Benchmark by Industry”, Shalyn Dever, ChatterBuzz Media | “Email marketing vs. Social Media – is there a clear winner?”, Jacinda Santora, OptInMonster.com, 08/04/2019)
Why is SMS marketing more effective than email?
Email marketing has become more difficult as inbox filters and excessive spam mail has made consumers less receptive to receiving offers in their mail accounts. People respond to SMS alerts because their mobile is now the primary mode of communication, and SMS is native to cellphones as a platform. This makes SMS more effective for promotional campaigns and special discounts, as brands can ensure that their customers never miss a good deal or offer.
Brands can leverage this differentiated attention to make sure that consumers get timely notifications for confirming their orders, acknowledging payment, and tracking their deliveries. SMS is also useful in helping brands recover their abandoned carts more effectively.
Voyage helped an ecommerce client build a text marketing campaign as a part of a 4-day sale, generating $360k in revenue through SMS. This represented 30% of the total revenue generated from the brand’s website during the sale. Our client used the Voyage dashboard to build optimized and targeted messages for their audience based on the analytical insights generated on the platform, earning nearly $6.55 per message. These returns were considerably higher than the average revenue per recipient of $0.08, which is the most recently recorded benchmark from Klaviyo for email campaigns in the ecommerce industry.
The campaign was the company’s first SMS campaign, and we were pleased to have helped provide them a successful debut in SMS marketing. The company was able to get ~10k customers to opt-in to receiving SMSes, and the company’s ‘secret sale’ helped drive 1400+ orders at a ~16% conversion rate. The company is looking forward to building on its success and using SMS to drive more revenue in future campaigns.