How two retailers used SMS to increase sales

10 Comments | This entry was posted in Events

In a session this afternoon on creating a text messaging program with the end goal of increasing sales, speakers agreed that the first step is building a database. Ric Hattabaugh from mobileStorm shared two case studies of retailers who built an SMS database and achieved an incredible, measurable ROI.

Ashley Furniture HomeStores used incentives to build their database. Specifically, anyone who signed up to receive text messages was eligible to win free gas or a $500 shopping spree. They included a short code throughout an advertising campaign encouraging people to text them to be automatically entered to win. The result? They received over 6,000 text messages from customers opting in to receive messages – not a shabby start for a regional retailer without a nationwide presence. From there, the company leveraged that group and sent those people a text message inviting them to a secret sale. After four days, and $85,000 in sales, the company saw an ROI of $122 for every dollar spent.

Hattabaugh also discussed an SMS program implemented by Planet Funk, which asked customers to text a specific short code to receive coupons along with an offer to join a mobile program. Two-thousand coupons were generated with a redemption rate of 91%. The cost of the program was minimal, and the ROI – 377% – was huge.

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9 Comments

  1. avatar Dave Eckstein
    Posted March 5, 2010 at 6:24 pm | Permalink

    Dave:

    Just one of several case histories presented at RAMA.

    Mac

  2. Posted March 7, 2010 at 4:48 pm | Permalink

    This will become commonplace when retailers learn how much can be made from using new technology.

  3. avatar justin bryan
    Posted July 6, 2010 at 11:30 am | Permalink

    Mobile marketing is the new tread of marketing products because of uses of mobile phone. According to recent survey about 90% US people read sms and this shows how people interested in mobile. Sending sms through shared short code or own brand short code to customer helps to reach your products to customer. Short code is now used by all popular reality shows, programs, games and election campaigns to send or to populate their message to targeted audiences.

  4. Posted July 25, 2010 at 12:47 pm | Permalink

    I just hope companies don’t find a way to exploit mobile marketing like many do with email in which people start getting tons of unsolicited text messages sent to their phone.

  5. Posted July 27, 2010 at 9:46 am | Permalink

    The ROI on any sms marketing campaign that I have seen so far has been great. I think the important part is to teach the business/retailer how exactly to use it in order for them to get the most out of it.

  6. Posted August 5, 2010 at 2:36 am | Permalink

    I think that there is going to be a surge in mobile marketing in the very near future. When more businesses see the results that companies like these are having, mobile marketing will be the preferred medium for business’ advertising dollars. Hopefully people will respect the use of text messages and not spam people’s phones.

  7. Posted October 21, 2010 at 8:50 am | Permalink

    I ran a mobile campaign and click through rates aree through the roof! I dont have a problem getting 10% CTR… the issue is getting the users to take specific action.. like buying something or similar.. thats where mobile and sms really struggle.. until billing becomes universal then mobile and sms marketing will struggle

  8. avatar christine
    Posted November 17, 2010 at 10:15 am | Permalink

    Text Messaging requires more innovative content and interactive platform for driving visitors. People love the way of messaging for shopping because it is easy and efficient and don’t move for internet connection. According to the report published by MMS, this festival around 60% of US mobile users are planning to shopping though short code text messaging.

  9. Posted June 24, 2011 at 8:19 pm | Permalink

    I’m not surprised at all with the efficiency of this marketing strategy. This technology, when used smartly, can make a really big difference on sales.

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  1. [...] Mobile Boot Camp which covered basic topics of designing and deploying effective mobile sites, using SMS to increase sales, and what the future holds for this digital trend, but that was hardly the end of the mobile [...]

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