If the constant dinging around you isn’t a clue, texting is one of America's favorite smartphone activities. Also known as SMS (short message sending), texting is a quick, convenient way to stay connected with friends, family — and businesses.
In fact, three-quarters of consumers say they’d rather communicate with businesses via text than phone calls or social media.
When customers share their mobile numbers with brands, they gain access to exclusive promotions, discounts, and insider information on events and product launches. These "text clubs" offer businesses a direct, personal line to their most loyal customers.
Texting is claiming a larger slice of ad budgets and businesses are seeing results. From discount codes and cart reminders to customer review requests, SMS marketing delivers both measurable returns and a boost to business’ reputations. These text clubs give brands an intimate, immediate connection to loyal customers.
If you’re looking to reach consumers, SMS marketing must be a key part of any comprehensive digital marketing plan. Most Americans have their phones in their pockets or handbags, checking them multiple times per hour, if not more. Six in ten customers read texts within one to five minutes of receiving them, and consumers engage with nearly half of all texts from businesses.
SMS marketing is also a great way to drive revenue. Let’s discuss how.
How to calculate SMS marketing revenue
With today’s tight ad budgets, marketers need to know their efforts get results. To track revenue associated with text clubs, here’s a quick three-step formula:
- Subtract the amount you spent on the text campaign from the campaign revenue.
- Divide that result by the cost of the campaign.
- Multiply by 100 to get the percentage.
Say a local steakhouse spent $5,000 on a text campaign offering a discount on mid-week dinners, and the promotion produced $12,500 in sales. The return on investment is 150%, a solid result that more than doubled the ad spend.
Benefits for your brand beyond revenue
If that kind of return isn’t enough to sway you to embrace text clubs, here are several additional benefits.
One-to-one communication: SMS messages are customizable, and consumers love that personal touch. In fact, 76% of Americans are more likely to purchase from brands that personalize ads and 78% are more likely to recommend them to friends and family. Federated Media’s technology allows businesses to send one-to-one messages.
Customer loyalty: When brands send specials and promos over text, customers reward them with their business. Text clubs increase brand engagement and conversion, key indicators of smart investment. Offer incentives, discounts, and deals – customers love feeling like insiders.
Stand out from your competitors: SMS marketing is still a well-kept secret. Only 39% of businesses use texting in digital marketing, meaning your customers won’t be overwhelmed by competing texts and crowded inboxes.
Smart ad investment: When ad budgets are tight and media costs are high, texting is an efficient alternative. SMS marketing is a low-cost option that yields strong results.
In today’s hyper-competitive marketplace, businesses need effective and innovative ways to engage consumers. Text clubs break through the clutter, create connections, and make an impact.
At Federated Media, our marketing experts can help manage your text club with scheduled messages and one-to-one texting between you and your customers. We also ensure that each club and campaign is legally compliant with Federal Trade Commission guidelines and updates. Contact us for a customized text strategy to maximize your return on investment.
