This promoted content is produced by a publishing partner of Open Mic. A paid-for membership product for partners of The Drum to self-publish their news, opinions and insights on thedrum.com - Find out more
6 strategies for growing your loyalty program with SMS
June 13, 2022
Consumers are on mobile devices more than ever before. The average user spends five hours a day on their phone, and mobile commerce now accounts for 60% of online retail sales in the United Kingdom. As a result, e-commerce brands are looking for new ways to reach customers and fuel the success of their marketing programs with a mobile-first approach.
SMS is the ideal channel to do exactly that. With SMS, you can have a direct line to your customers to develop deeper connections with them and drive more sales, and it’s especially effective when used to engage those who are already loyal to your brand.
Most global shoppers today (60%) say they prefer to use their phones to engage with brand loyalty programs, including access points and rewards. By following these consumers’ cues and supplementing your loyalty program with SMS, you can send high-value customers exclusive, personalized updates where they are now most likely to take action (their phones) and reward them for doing so. Better yet, you can drive more engagement to your loyalty program overall, which will in turn accelerate the program’s success and the growth of your business.
Here are six strategies we recommend to grow your loyalty program with one of the fastest revenue-driving channels today: SMS.
1.) Text your SMS subscribers to grow your loyalty membership
Loyalty isn’t always easily won, but you can earn it more quickly with SMS marketing. When you have an existing SMS subscriber list, you can send those subscribers a text to promote your loyalty program. In it, you can share a bit about how your loyalty program works, the unique benefits and rewards that only members get, and more to inspire interest and increase your membership.
And the reverse can be true as well — 76% of loyalty members say they will opt into SMS to communicate with their favorite brand. Leverage a variety of opt-in tools on your website, social and marketing channels, as well as in-store, encouraging loyalty members to become SMS subscribers to receive more timely, convenient, and exclusive updates to boost program engagement while growing your SMS list in tandem.
2.) Roll out the red carpet to welcome and engage new members
Any time an SMS subscriber signs up to your loyalty program, give them a warm welcome via text to encourage them to engage from the very start. This is the perfect time to share more details about your program and how it works, such as how your customer can earn points on purchases, the different benefits of each of your VIP tiers and how to reach them, and other fun perks that stand out. You might even consider welcoming them with their very first offer, such as 15% off their next purchase, to easily drive program behavior.
3.) Keep customers informed and active with point balance reminders
When a customer realizes they have earned enough loyalty points to benefit from a reward, they now have a clear incentive to make a purchase. This is what makes SMS point balance reminders essential — with them, you can keep your customers informed about their current point balance in no time, sharing what products they can buy by redeeming those points, or how many more points they need before that next special offer (and how they can earn them fast). These tailored texts will keep your loyalty program top of mind, while encouraging regular participation for maximum results.
4.) Send loyalty promotions via SMS to quickly drive purchases
Approximately 34% of UK shoppers say they would be encouraged to complete a purchase if they were to receive a text message about their loyalty points or rewards, meaning that potential revenue awaits you on mobile. Send exclusive point promotions and other offers directly to your loyal SMS audience, giving them the chance to earn double or triple the points on certain days or on certain products, to further increase participation and spending.
5.) Award VIP tiers with tailored, exclusive offers to increase CLTV
Consumers today crave exclusivity. If they are a loyalty member, they expect brands to give them the VIP treatment with experiences that are personal and tailored to them. How can you achieve this? With text messages that ordinary customers don’t get, ones that are relevant to where that customer is in their loyalty journey and that make them feel valued. Offer 24-hour early access to a new collection or a sale, free expedited shipping for top tiers, deep discounts in exchange for points — the possibilities are endless. And when a customer in one VIP tier is close to reaching another, let them know how they can climb higher to benefit even more from being a loyal customer and increase their lifetime value.
6.) Create a sense of urgency with points expiration notifications
Modern consumers are mobile, and mobile devices are therefore the optimal way to reach them. In fact, 30% of UK shoppers say they prefer SMS to other marketing channels because of its immediacy and convenience alone. Leverage the channel’s unmatched speed to share any information that is time sensitive, like an impending point expiration, as well as to create a sense of urgency that drives loyalty members to action.
These are just a few of the ways that you can strengthen your loyalty program with engaging SMS marketing experiences, but there are plenty more. Learn all about how you can attract new loyalty members and better engage existing ones with a combined SMS and loyalty strategy at Yotpo.com.