Marketing has always been about finding new ways to reach potential customers and keep existing ones engaged. With the rise of mobile technology, text message marketing has become an increasingly popular tool for businesses to communicate with their audience. But text message marketing is more than just a way to send promotional messages to customers. When used correctly, it can be a powerful tool for maximizing customer lifetime value.
Introduction to Text Message Marketing
Text message marketing is a way for businesses to communicate with their customers by sending text messages directly to their mobile devices. It is a permission-based marketing channel, meaning that customers must opt-in to receive messages from a business. This makes text message marketing a highly targeted and effective way to reach customers who have already shown an interest in a business’s products or services.
There are a variety of text marketing platforms available, ranging from simple SMS marketing software to more robust text marketing platforms that offer advanced features like segmentation, automation, and analytics. These tools make it easy for businesses to manage their text message marketing campaigns and track their effectiveness.
Benefits of Text Message Marketing
There are many benefits to using text message marketing as part of a business’s overall marketing strategy. For one, text message marketing has a high open rate. According to a report by Mobile Marketing Watch, 98% of text messages are opened and read within three minutes of being received. This means that businesses can be confident that their messages are being seen by their intended audience.
Text message marketing is also a cost-effective way to communicate with customers. It is much cheaper than traditional marketing channels like TV or print advertising, and it can be targeted to specific groups of customers based on their interests or behaviors.
Another benefit of text message marketing is that it is a highly personal way to communicate with customers. Because text messages are sent directly to a customer’s mobile device, they feel more personal and immediate than other forms of marketing like email or social media. This can help businesses build stronger relationships with their customers and increase customer loyalty.
Understanding Customer Lifetime Value (CLV)
Customer lifetime value (CLV) is a metric that measures the total value a customer will bring to a business over the course of their relationship. It takes into account not just the initial purchase a customer makes, but also any subsequent purchases they make over time. The higher a customer’s CLV, the more valuable they are to a business.
CLV is an important metric for businesses to track because it helps them understand the long-term value of their customers. By focusing on increasing CLV, businesses can build stronger relationships with their customers and increase profitability over time.
How Text Message Marketing Can Increase CLV
Text message marketing can be a powerful tool for increasing customer lifetime value. Here are a few ways businesses can use text message marketing to boost CLV:
1. Offer exclusive deals and promotions
One of the easiest ways to increase CLV with text message marketing is to offer exclusive deals and promotions to customers who opt-in to receive messages. By offering discounts or special offers, businesses can encourage customers to make additional purchases and increase their overall CLV.
2. Provide personalized recommendations
Text message marketing can also be used to provide personalized recommendations to customers based on their purchase history or browsing behavior. By sending targeted messages that suggest products or services a customer might be interested in, businesses can increase the likelihood of a repeat purchase and boost CLV.
3. Send reminders and updates
Text message marketing can also be used to send reminders and updates to customers about their previous purchases. For example, a business might send a message reminding a customer to renew their subscription or update their account information. These messages can help keep customers engaged and increase the likelihood of future purchases.
4. Request feedback and reviews
Finally, text message marketing can be used to request feedback and reviews from customers. By sending a message asking customers to rate their experience or leave a review, businesses can gather valuable feedback that can be used to improve their products or services. This, in turn, can increase customer satisfaction and loyalty, leading to higher CLV over time.
SMS Marketing Best Practices
We’ve already established that text message marketing is a highly effective way for small businesses to connect with their customers and drive sales. In order for text message marketing campaigns to be successful, it’s important to follow best practices that ensure your messages are well-received and don’t come across as spam.
We’ve put together four of the best text message marketing practices for you to use in your campaigns:
- Get consent: Always get permission from your customers before sending them text messages. This can be done through your brand’s marketing sign-up form.
- Keep it short, sweet and personal: Customers don’t want to read long, spammy messages, so it’s best to keep them concise. Personalizations, like including your customer’s name or using their purchase history to tailor your marketing message, make customers more inclined to engage.
- Send at the right time: It’s best to schedule messages to be sent during business hours and limit the frequency.
- Track & analyze your campaigns: Determine what’s working and what’s not, and make adjustments to your marketing strategy accordingly. You can track metrics such as open, click-through and conversion rates to see how well your messaging is resonating with your customers.
Following these best practices, text message marketing for small businesses can be a powerful tool for driving sales and building long-term customer relationships.
Common Mistakes to Avoid with Text Message Marketing
While there are many benefits to using text message marketing, there are also some common mistakes that businesses should avoid. Here are a few of the most common pitfalls of text message marketing:
1. Sending too many messages: One of the biggest mistakes businesses make with text message marketing is sending too many messages. Customers are more likely to opt-out of receiving messages if they feel like they are being bombarded with too many promotions or updates.
2. Not providing enough value: Another common mistake is not providing enough value in text messages. Customers are more likely to engage with messages that offer something of value, like a discount or exclusive offer. If businesses don’t provide enough value in their messages, customers may start to tune them out.
3. Failing to segment messages: Segmentation is an important part of any text message marketing campaign. By segmenting messages based on customer behavior or interests, businesses can send more targeted messages that are more likely to resonate with their audience. Failing to segment messages can lead to lower engagement and higher opt-out rates.
Avoid these common mistakes to make the most of your text message marketing strategy.
Conclusion: The Power of Text Message Marketing for Maximizing CLV
Text message marketing is a powerful tool for businesses looking to increase customer lifetime value. By offering exclusive deals and promotions, providing personalized recommendations, sending reminders and updates, and requesting feedback and reviews, businesses can use text message marketing to build stronger relationships with their customers and increase profitability over time.
Of course, it’s important to avoid common mistakes like sending too many messages or failing to provide enough value. By using best practices and leveraging the power of text message marketing, businesses can maximize their CLV and grow their bottom line.
Schedule a demo with Stemless Co. and start leveraging SMS in your marketing strategy today.