Marketing by Text Message: A Strategic Approach for E-commerce Brands

Text message marketing, also known as SMS marketing, has emerged as one of the most effective communication channels for e-commerce brands. With nearly instant open rates and direct access to customers, SMS marketing has outpaced traditional email marketing in engagement and conversion metrics. This article delves into the technical aspects of SMS marketing, its benefits, best practices, and how to implement it effectively for an e-commerce business.

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Why SMS Marketing is Effective for E-commerce

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Unlike emails, which often go unread or end up in spam folders, SMS messages boast an open rate of up to 98%. Moreover, the direct and personal nature of text messages helps brands establish stronger customer relationships. Key benefits of SMS marketing include:

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Immediate reach: Most SMS messages are read within minutes.

High engagement: Click-through rates are significantly higher than email marketing.

Personalization: Brands can tailor messages to specific customer segments.

Cost-effectiveness: Lower costs compared to paid digital ads.

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Building a Strong SMS Marketing Strategy

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Obtaining Customer Consent Legally

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One of the most crucial aspects of SMS marketing is compliance with legal regulations. Businesses must ensure they collect explicit consent from customers before sending marketing messages. This can be done through:

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• Opt-in forms on checkout pages

• Subscription pop-ups offering discounts for signing up

• Keyword-based opt-ins, where users text a specific keyword to subscribe

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Segmenting Your Audience for Personalized Messaging

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Segmenting your audience ensures that each customer receives relevant and engaging messages. Segmentation criteria include:

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• Purchase history

• Geographic location

• Browsing behavior

• Engagement with past SMS campaigns

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Crafting Compelling and Concise Messages

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SMS messages have a character limit (typically 160 characters), so it’s important to keep messages concise and action-oriented. Key tips:

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• Use clear and direct language

• Add urgency (e.g., "24-hour flash sale!")

• Include shortened URLs to track clicks

• Personalize messages with the customer's name

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Compliance and Best Practices

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To avoid penalties and maintain trust, businesses should follow compliance best practices:

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• Adhering to TCPA and CAN-SPAM Act regulations

• Providing clear opt-out options (e.g., “Reply STOP to unsubscribe”)

• Using a recognized shortcode for business SMS communications

• Limiting frequency to prevent subscriber fatigue

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Types of SMS Marketing Campaigns

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Promotional Offers and Discounts

Offering special discounts and promotions via SMS can drive immediate sales. Example: "Flash sale! Get 20% off all items for the next 12 hours. Click here to shop: [link]"

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Abandoned Cart Reminders

E-commerce brands can recover lost sales by sending timely abandoned cart reminders. Example: "Forgot something? Your cart is waiting for you! Complete your purchase now and get 10% off. [link]"

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Order Confirmations and Shipping Updates

Transactional messages provide customers with real-time updates on their orders. Example: "Your order #1234 has shipped! Track it here: [link]"

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Product Launch Announcements

SMS is a great tool to notify customers about new product drops or restocks. Example: "Exciting news! Our best-selling sneakers are back in stock. Get yours before they sell out! [link]"

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Customer Feedback Requests

Gathering feedback via SMS helps brands understand customer satisfaction. Example: "We value your feedback! Rate your recent purchase by replying with a number from 1-5."

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Examples of Successful SMS Marketing

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Alo Yoga: Growing Subscriber Lists with Discounts

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Alo Yoga successfully grew its SMS subscriber list by offering first-time shoppers a discount for signing up. This tactic not only increased conversions but also built long-term customer relationships.

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Sephora & Coach: Personalized SMS Campaigns with Attentive

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Luxury brands like Sephora and Coach use Attentive’s SMS marketing platform to send hyper-personalized text messages based on customer behavior, leading to higher engagement and sales.

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Bushbalm: 50%+ Click-Through Rates on Welcome SMS Campaigns

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Skincare brand Bushbalm implemented an automated SMS welcome series that achieved over 50% click-through rates, outperforming traditional email marketing.

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Choosing the Right SMS Marketing Platform

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There are various SMS marketing tools available, each with unique features. Popular options include:

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Postscript: A leading SMS marketing platform designed for Shopify store owners. It offers automation and personalization features, including keyword triggers, campaign scheduling, and real-time analytics. Businesses can also integrate it with other marketing tools for a seamless experience.

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Klaviyo: A robust SMS and email marketing platform known for advanced segmentation and data-driven campaigns. It enables businesses to send highly targeted SMS messages based on customer behavior and purchase history, ensuring greater personalization and engagement.

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Attentive: A high-end SMS marketing tool used by major brands for large-scale campaigns. It specializes in hyper-personalized marketing, AI-driven automation, and behavioral analytics, making it a preferred choice for enterprise-level e-commerce businesses.

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Yotpo: A flexible SMS marketing solution with a pay-as-you-go pricing model, making it ideal for small and mid-sized businesses. It also integrates with customer reviews, loyalty programs, and referral marketing, helping brands build stronger customer relationships.

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Key features to look for in an SMS Marketing Platform:

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• Automated workflows

• Compliance management

• Detailed analytics

• CRM integrations

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Comparing SMS and Email Marketing

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When to Use SMS

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SMS marketing is particularly effective for:

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Time-Sensitive Promotions: With an average open rate of 98% and most messages read within minutes, SMS is ideal for flash sales or limited-time offers. 

Order Updates and Confirmations: Customers appreciate real-time notifications about their purchases, and SMS provides immediate delivery.

Personalized Messages Requiring Immediate Action: For alerts like appointment reminders or exclusive VIP offers, SMS ensures prompt attention.

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When to Use Email

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Email marketing excels in scenarios such as:

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Long-Form Content Like Newsletters: Emails can convey detailed information, making them suitable for newsletters, product updates, and comprehensive announcements.

Brand Storytelling and In-Depth Promotions: The format allows for rich media and extended narratives, helping to build brand identity and engage customers.

Content-Heavy Marketing Campaigns: For campaigns that require detailed explanations, multiple links, or various calls to action, email is more appropriate.

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How To Create High-Converting SMS Messages

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To maximize the effectiveness of your SMS campaigns:

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Best Practices for Effective SMS Copy

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Keep It Short and Direct: Given the 160-character limit, ensure your message is concise and to the point.

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Use Urgency: Phrases like "Limited-time offer!" can prompt immediate action.

Incorporate Emojis and Images When Relevant: While SMS is text-based, using MMS allows for multimedia content, which can enhance engagement.

Include a Strong Call to Action: Clearly state what you want the recipient to do next, such as "Shop Now" or "Claim Your Discount."

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Optimizing SMS Campaign Performance

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To continually improve your SMS marketing efforts:

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A/B Testing Different Message Formats: Experiment with various wording, offers, and send times to see what resonates best with your audience.

Tracking Open Rates, Click-Throughs, and Conversions: Monitor these metrics to assess performance and identify areas for improvement.

Adjusting Campaigns Based on Subscriber Behavior: Use insights from customer interactions to refine your messaging and targeting strategies.

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Future of SMS Marketing for E-commerce

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The landscape of SMS marketing is evolving, with several trends shaping its future:

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AI-Powered Personalization

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Artificial Intelligence (AI) is enhancing SMS marketing by enabling:

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Automated Customer Responses: AI can handle common customer inquiries, providing instant support and freeing up human resources.

Predictive Analytics for Segmentation: By analyzing customer data, AI can predict future behaviors and preferences, allowing for more precise audience segmentation.

Personalized Message Recommendations: AI can suggest tailored content for each customer, increasing the relevance and effectiveness of your messages.

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Rich Media Messaging (MMS, Video, GIFs)

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Incorporating rich media into your messages can significantly boost engagement:

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Product Images: Visuals can enhance product appeal and provide clarity.

Video Tutorials: Short videos can demonstrate product usage or showcase features effectively.

GIFs Showcasing New Products: Animated images can highlight new arrivals in a dynamic way.

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Conclusion

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SMS marketing has revolutionized how e-commerce brands engage with customers. With its high open rates, direct reach, and personalization capabilities, SMS is an invaluable tool for driving sales and building customer relationships. Brands that strategically integrate SMS into their marketing mix will gain a competitive advantage in the ever-evolving digital landscape.

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Ready to leverage SMS marketing for your e-commerce brand?

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Book a call with The Email Marketers today so we can help you spot the gaps in your retention marketing and potentially collaborate with a full team of SMS marketers without the worry of needing to find and train an inhouse team. 

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Book my free strategy call now

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