Text Message Marketing Case Studies

Retail SMS Marketing Case Study – $7.2 Million in New Sales

Retail SMS Marketing

Have you been looking for a really good retail SMS marketing case study? If so you’re in luck today, as we here at Tatango have found a great retail SMS marketing case study for you! This retailer was able to get 300,000 customers to opt-in, and with an 85% redemption rate, was able to generate $7.2M in new sales. The best part, this happened over the course of three days.

How is this possible? According to this retailer, they ran an SMS marketing campaign over a holiday weekend, where they offered customers a significant discount to be used that same day. The catch? To receive the significant discount from this retailer, a customer must first opt-in to that retailers SMS marketing program. Pretty good deal if you ask me!

Does the strategy this retailer used to grow their SMS subscriber sound familiar? Yep, that’s right… It’s pretty much the exact same strategy every retailer that wants to grow their SMS subscriber uses. For example, check out how Julep grew their SMS subscribers from o to 5,000 in less than 24 hours by offering 50% off a customer’s next purchase. Need another example? Check out how National Wholesale Liquidators grew their SMS subscriber database to 50,000 customers, simply by offering new SMS subscribers $5 of any purchase of $25 or more.

It’s usually at this point when talking to a Tatango retail client, where the retail expresses their concern regarding customers opting into the SMS marketing campaign to receive the discount, then opting out of the SMS marketing campaign after they’ve received their discount. Here at Tatango we’ve determined that the amount of customers that opt-in to receive an initial discount, then opt-out within 24 hours was between 1.3 – 6.1%. This means that for every 100 customers that opted-in to receive the discount, 94-99 customers remained SMS subscribers. If you look at the average opt-out rate for customers after receiving the discount, it was only 2.3%, which would mean that out of 100 customers opting in to receive the discount, a retailer is going to retain 98 of those customers.

Some specifics about this retail SMS marketing campaign.

  • Retail SMS offer was a same-day discount, meaning it needed to be used that same day.
  • Retailer grew their SMS database by more than 300,000 mobile phone numbers in three days.
  • Retailer experienced an 85% redemption rate on that one SMS offer.
  • Retailer generated $7.2M in sales from that one SMS offer.
  • On average, each new SMS subscriber generated $24 in retail sales.
  • On average, each SMS subscriber that redeemed the SMS offer spent a little more than $28.00.

What’s even more impressive about this retail SMS marketing campaign is that since running this promotion, they’ve increased their subscribers to more than 1,000,000. Wow… That deserves a round of applause for this retailer.

Like we’ve always told retail clients at Tatango, if you want to grow your SMS subscribers, you have to incentive customers to opt-in. This retail SMS marketing case study proves this point!

Looking for more great retail SMS marketing case studies? We’ve got you covered, with the top 10 retail SMS marketing case studies here.

Want to talk to the experts at Tatango about your retail SMS marketing strategies? Hit us up here and lets chat.

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