Text Message Marketing: A Great Idea For Local Businesses
Most businesses spend most of their time and money trying to get new customers in the door. However, many take for granted their existing customers. Studies have shown that is it five times more expensive to acquire a new customer than to market to an existing customer. If a business is not keeping a list of existing customers and marketing to them, it is leaving a lot of money on the table. Text message marketing is a great way of creating a list and keeping existing customers.
Text message marketing, also referred to as SMS marketing, usually involves getting customers to sign up with their phone number to receive messages delivered right to their cell phones. While most email marketing blasts ends up being ignored, studies show that text message marketing is an extremely effective way to get the word out about some event. Over 95% of text messages are opened, and most of those are opened within minutes of receiving them. This is what makes text message marketing incredibly powerful.
Typically the best way to sign up customers to be on a text message list is to get them into some sort of customer loyalty program. By being in this program, a customer can receive discounts on certain purchases depending on how often he shows up to the store. One can also directly give discounts to customers for just signing up to receive text messages.
One good thing about text messages is that they can be used to keep the customers aware of your business and any specials that you might be running. They can also be used to generate instant business if an entrepreneur needs extra customers to cover the overhead during a slow night. For example, imagine a restaurant expected a lot of people a certain night and few people showed up. They might have to throw out a lot of food if it was not eaten that night. By sending out a quick text message to its subscriber list offering a 30% discount, it can likely get a flood of new customers to eat the food that might have otherwise gone to waste.
Text message marketing is a very important tool in the arsenal of a small business owner. By retargeting existing customers regularly with a well managed text campaign, one can greatly improve customer retention, and thus profitability.