Are you using an SMS service to build customer loyalty? If not, why not!

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I recently wrote an article on using Business SMS services to increase customer loyalty and retention and thought it would be useful to offer a chopped down version on our blog.

It has been proven time and time again that customer loyalty and retention are central for increasing business revenue. After all, it costs on average, three times more to acquire new customers that it does to keep an existing one. A study by the global business consulting firm, Baines and Company concluded: “A 5% increase in customer retention can increase a company’s profitability by 75%.” 

We are seeing more and more of our customers turning to Business SMS to build loyalty with their customers as its immediate, discreet, has high readership (over 98%), is cheaper than the phone and direct mail, and it encourages a response. One of the best devices for contacting people is the mobile phone, as they are always with their owner and they can use it wherever they are.

So how can a business use SMS to improve customer loyalty and retention? Here’s a few ideas for you:

  • Regular SMS communication keeps your brand in the minds of your customers
  • Use SMS to confirm appointment times, reducing no show rates and therefore your costs.
  • Provide excellent Customer Service. Get your customer service team to communicate via SMS with customers.
  • Encourage repeat purchase by sending timely reminders – such as insurance renewals, garage services, hairdressers etc.
  • Use SMS to confirm delivery time of goods.
  • Reinforce and build brand recognition and awareness through SMS marketing campaigns.
  • Send last-minute promotions via SMS to boost demand for your products and services.
  • Allow your customers to send SMS messages back to you. SMS lends itself to 2-way communication with customers.
  • For many people today, SMS is the preferred method of communication for customers and if you don’t offer this channel your customer may go to a competitor that does.

And one last thought, always, always ensure your message recipients have opted in – there’s nothing worse than getting unsolicited text messages from companies you’re never heard of!

Author Avatar
Andy

Marketing man at Esendex.