SMS Marketing: Targeting Existing Customers

Oct 22, 13 | Posted by: promote on SMS Marketing

Modern technology has provided many marketing opportunities that provide a much higher return on invested capital than traditional advertising methods.  The biggest advantage is that these methods are often more targeted, allowing one to segment a certain population who is likely to use your services.  Usually the best source of business is existing customers, and SMS marketing allows one to target them in a very inexpensive manner.

Short Message Service (SMS) messaging is a way of sending a text message right to someone’s cell phone.  It has become a particularly popular method of communication in the twenty first century, particularly among young people.  Unlike email inboxes which are filled with spam, SMS messages tend to be read.  An incredible 95% are opened, usually minutes within being sent.

Given this unusually high response level to SMS messages, SMS marketing represents an incredible way to get the word out on a business.  The cost per message is roughly .04-.08 cents, which can allow a company to send out thousands of messages for the fraction of a commercial advertisement.  If these messages are specifically targeted to people likely to be customers, the return on investment is even higher.

There are many ways of taking advantage of SMS messages to market your business.  One way is to find an organization with a captive list of people likely to frequent your business and to pay them to send out a message on behalf of your business.  However, this can be a lot more expensive than having your own list.  For this reason, getting a list of your existing customers often represents a very cost effective method of advertising.

A business can collect the cell phone numbers of their patrons by offering discounts on existing products to sign up for a loyalty program where they agree to receive messages a couple times per month.  The amount of money lost on the discount should be more than made up for in the repeat business created through SMS advertisements.  Some businesses will even incentivize people to get their friends to sign up for their SMS lists using a points based loyalty program.  These loyalty programs are particularly effective because they can generate viral sharing on platforms like Facebook and Twitter, which can lead to a flood of new customers.

SMS marketing is a way of maintaining your brand on the top of your customers’ minds.  By fostering a relationship with your existing customers as well as actively encouraging referrals, a business should be able to significantly increase its profitability.


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