Don’t Ignore This! How SMS in Marketing Increases Retention by 75%

Customer retention is one of the biggest challenges for businesses. Many companies focus on getting new customers but forget about keeping the ones they already have. The truth is, keeping customers is much more cost-effective than attracting new ones. This is where SMS in marketing plays a key role. Studies show that businesses using SMS can increase customer retention by 75%.

So, why is SMS so effective? Let’s take a closer look at how it helps businesses keep customers coming back.

Why Customer Retention Matters More Than Ever

Keeping customers happy leads to long-term success. If people buy once and never return, businesses struggle to grow. Loyal customers spend more, refer others, and require less effort to keep engaged.

Here’s why retention is important:

• Higher profits: Repeat customers spend more than first-time buyers.
  
  

• Lower costs: Acquiring new customers is five times more expensive than keeping existing ones.
  
  

• Stronger relationships: Engaged customers are more likely to trust a brand and continue purchasing.

Ignoring retention can lead to lost revenue. Businesses that invest in customer loyalty see better long-term results.

The Power of SMS in Marketing for Retention

Text messages have an open rate of over 90%. Most people read texts within three minutes of receiving them. Emails often go unread, and social media posts get lost in busy feeds. SMS, however, ensures businesses reach their audience quickly.

When companies send helpful and relevant messages, customers feel valued. This builds trust and keeps them engaged. A simple message can:

• Remind customers about an upcoming sale
  
  

• Provide order updates
  
  

• Offer special discounts for repeat purchases
  
  

These messages keep customers connected to the brand, making them more likely to return.

How SMS Increases Engagement and Loyalty

Engaged customers are loyal customers. SMS in marketing helps businesses keep customers interested through

1. Personalized Offers

Customers appreciate messages that feel personal. Instead of sending a general promotion, businesses can send:

• Birthday discounts
  
  

• Special offers based on past purchases
  
  

• Exclusive early access to sales
  
  

For example, a beauty store can send, “Hey Anna! Get 20% off your favorite skincare products today. Click here to shop!” This makes customers feel special and encourages them to make another purchase.

2. Exclusive Discounts and VIP Deals

People love feeling like VIPs. Sending exclusive SMS deals makes them feel valued. A restaurant can text, “Enjoy a free dessert with your next meal! Show this message to redeem.” Small perks like this build strong relationships with customers.

3. Appointment and Order Reminders

Missed appointments and abandoned carts hurt businesses. SMS reminders help reduce these losses. A dental clinic can send, “Reminder: Your appointment is tomorrow at 10 AM. Reply YES to confirm.” This keeps customers on track.

For online stores, a simple, “Your cart is waiting! Complete your order now and get 10% off,” can encourage purchases.

4. Loyalty Programs

SMS is a great tool for loyalty programs. Businesses can send updates about points, rewards, and upcoming benefits. A coffee shop can text, “You’re 2 drinks away from a free coffee! Stop by today!” This keeps customers excited to return.

Best Times to Send SMS Messages

Timing is everything. Sending texts at the right time increases success. Here are the best times to send messages:

• Morning (8-10 AM): People check their phones before starting the day.
  
  

• Lunch Break (12-2 PM): A great time for promotions since people are taking a break.
  
  

• Evening (5-7 PM): After work, people have time to browse and shop.
  
  

Avoid sending texts too early in the morning or late at night. Customers may find it annoying instead of helpful.

How Different Industries Use SMS to Retain Customers

Many industries benefit from SMS in marketing. Here are a few examples:

Retail Stores

Retail businesses use SMS to announce sales, offer exclusive deals, and send abandoned cart reminders. Example: “Flash Sale! 50% off for the next 24 hours. Shop now: [link]”

Restaurants and Cafés

Restaurants use SMS for promotions and reservation reminders. Example: “Reserve your table now and get a free appetizer! Call us today.”

Healthcare Providers

Doctors, dentists, and clinics send appointment reminders and health tips. Example: “Your check-up is tomorrow at 3 PM. Reply YES to confirm.”

E-commerce Brands

Online stores send SMS updates on order tracking, restock alerts, and loyalty rewards. Example: “Back in stock! Your favorite sneakers are available again. Order now: [link].”

Each industry benefits from SMS by keeping customers engaged and reducing missed opportunities.

How to Write Effective SMS Messages

A good text message is short, clear, and to the point. Follow this simple format:

• Greeting – Use the customer’s name if possible.

• Offer – Explain the benefit clearly.

• Call to Action (CTA) – Tell them what to do next.

Example: “Hi Tom! Get 15% off your next order. Use code SAVE15. Shop now: [link].”

Common SMS Marketing Mistakes to Avoid

Even though SMS in marketing is powerful, mistakes can reduce its effectiveness and even drive customers away. To get the best results, businesses need to be mindful of how they communicate through SMS. Here are some of the most common mistakes to avoid:

1. Sending Too Many Messages

Overloading customers with frequent messages can feel intrusive and annoying. Instead of keeping them engaged, excessive messaging may lead to unsubscribes and a negative perception of the brand. Stick to 2-4 messages per month to maintain a balance between staying top-of-mind and respecting customers' space. Each message should add value, whether it’s a special offer, a helpful reminder, or important information.

2. No Clear Call to Action (CTA)

A text message without a CTA leaves customers unsure about what to do next. Every SMS should have a clear purpose, whether it's to click a link, redeem a discount, confirm an appointment, or visit a store. A strong CTA makes messages actionable and encourages engagement. Example: Instead of saying, "Flash Sale! 50% off on all products," make it clear by adding, "Shop now: [link]."

3. Using Long Messages

SMS is meant to be short and to the point. Messages longer than 160 characters may get split into multiple texts, making them harder to read and less effective. Customers are more likely to engage with a message that is concise, clear, and direct rather than one that feels like a lengthy email. Stick to simple language and avoid unnecessary details—if needed, include a link where customers can get more information.

4. Sending Messages at the Wrong Time

Timing matters when it comes to SMS marketing. Sending texts too early in the morning or late at night can frustrate customers and lead them to unsubscribe. The best times to send messages are during business hours, lunch breaks, or early evenings when people are most likely to check their phones. Always consider time zones, especially for businesses with a nationwide audience.

5. Not Personalizing Messages

Customers appreciate when brands make them feel special. Sending generic, impersonal messages can reduce engagement and make SMS marketing feel robotic. Using a customer’s name, past purchase history, or location-based offers can make messages more relevant. Example: Instead of "Get 10% off," try "Hey Jake! Enjoy 10% off your next order—shop now: [link]."

By avoiding these mistakes, businesses can maximize the effectiveness of their SMS in their marketing strategy and build stronger relationships with their customers.

Tracking SMS Success: Key Metrics to Watch

Businesses should track their results to improve their SMS strategy. The key metrics include:

• Open Rates: Measure how many people read the text.
  
  

• Click-Through Rates: Track how many clicked the link.
  
  

• Conversion Rates: See how many purchased after receiving the message.

Tracking these numbers helps businesses adjust their approach for better results.

Conclusion

SMS in marketing is a simple yet powerful tool for keeping customers engaged. It helps businesses build stronger relationships, increase sales, and reduce customer drop-offs. By using SMS the right way, companies can improve customer retention by 75%.

Want to keep your customers coming back? Start using SMS today! Visit connect.co.uk for expert solutions.

FAQs

1. How often should I send SMS to customers?
Send 2-4 messages per month to keep them engaged without overwhelming them. Sending too many can annoy customers and lead to unsubscribes.

2. What is the best type of SMS for retention?
Loyalty rewards, exclusive deals, and reminders work best for keeping customers engaged. These messages create value and make customers feel appreciated.

3. Can SMS work for small businesses?
Yes! It’s affordable and effective for businesses of all sizes.

4. How do I get customers to sign up for SMS?
Offer an incentive, like a discount, for opting in to receive messages. Make sure they know the benefits of signing up.

5. What should I avoid when sending SMS?
Avoid sending too many messages, long texts, and unclear offers. Keep messages short and meaningful.

6. Can SMS marketing increase sales?
Yes! Texts drive quick responses, leading to higher sales and repeat customers.

7. Is SMS better than email marketing?
SMS has a higher open rate, making it more effective for urgent messages. However, both can work well together.

8. What industries benefit most from SMS marketing?
Retail, healthcare, food services, and e-commerce see great results. Each industry uses SMS differently to boost retention.

9. How do I personalize SMS messages?
Use customer names and send offers based on past purchases. This makes messages more relevant and engaging.

10. Is SMS marketing expensive?
No, it’s cost-effective and delivers high returns on investment. Even small businesses can afford it.