Text coupons are an effective way to drive traffic and increase sales for your business.
Coupons have been around for decades and its popularity has no demographic boundary; from millennials, to Generation X, to baby boomers, whether well-off or barely getting by, people love coupons. The thrill of saving tempts even the most skeptical to take the plunge.
How popular are coupons?
- 50% of consumers use a coupon in at least every four purchases (RetailMeNot).
- 80% of shoppers would switch stores or brands when offered a compelling promotions (Market Track).
- 48% of consumers use 6+ coupons per shopping trip (Valassis).
- 83% of shoppers said they made unplanned purchases based on a promotion they received (Market Track).
Coupons (or offers) come in many forms but the most common and popular ones are:
- Free shipping/Free returns with purchase or minimum purchase.
- BOGO (buy-one-get-one) free or at 50%.
- Flash sales that require immediate action.
- Percentage off a purchase (i.e. 30% off of $100).
- Buy more, save more (i.e. 15% off 1 item, 20% of 2 items).
- Free gift with purchase or minimum.
- Exclusive offers, making customers feel like they are a select few to receive it.
Whatever promotional scheme a retailer chooses, coupons and special offers are a great means of drumming up sales for retailers and retailers spend significant amount of time engaging in promotional campaigns to entice customers to an online or physical store. It can also be used as an opt-in offer when trying to build your mobile database.
How does a retailer know which coupon or offer campaign will perform the best? Well, there is no one size fits all when it comes to coupons/offers. Continually testing different types will help retailers unearth the best performing ones for their particular product and customer type. As much effort a retailer dedicates in crafting their coupon or offer campaign, the same (if not more) should be put towards a customer outreach strategy.
A Retailer’s Challenge: Reaching Customers
The most challenging part of any campaign strategy for a retailer is making customers aware of their offers. Now more than ever, retailers have so many avenues of engaging with customers, from print, email, in-app, web, and mobile. But what’s the most effective, that will actually drive traffic to their store?
SMS Marketing Dominates
A formal study conducted by Oracle showed that 90% of SMS messages are opened and read within the first 90 seconds of receiving, 5X higher open rate when compared to traditional outreach methods (i.e. email). Additionally, some studies found redemption rates from SMS Marketing, specifically for one-time offers, are anywhere from 30%-50% higher than when offer is viewed through email or desktop on a mobile device.
Hoping a customer will open their email or randomly visit a retailer’s store to find an offer is an outdated way of thinking and puts the burden on the customer. Retailers need to actively reach customers in a way that is direct and encourages immediate action. In a study by Emersys, 57% of Americans want to hear from retailers when there is a sale or promotion. SMS Marketing allows retailers to do just that, making it a critical component of a retailer’s overall marketing campaign.
Interested in reaching thousands of customers at once with SMS Marketing? TextMarks has been helping retailers, small and large, reach, retain and engage with their customers much more effectively. Contact us at 800-696-1393 or email firstname.lastname@example.org.