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.