Text Message Marketing Case Studies

Subway SMS Marketing Gets 9% Redemption Rates

A 16-store franchise of Subway Restaurants in the Buffalo/Rochester, New York region has generated increased repeat business through its My Subway Mobile SMS campaign program. Set up to influence more visits from its current customer base, the program has been promoted through marketing literature and radio and TV campaigns in the area.

To opt-in to the SMS program, customers simply text a mobile keyword to a SMS shortcode (a five-digit number). After customers opt-in to the SMS campaign, they are sent product offers and coupons via text message. A coupon with high incentive for return visits may consist of a “free 6-inch Subway sandwich with purchase of a 32-ounce drink.” After analyzing the response from these messages, Subway has determined that the most effective format features 4-6 messages per month, consisting of an expiration date for each discount.

After only a few months, the 16 restaurants have seen an extraordinary return on their investment. Over 5,000 customers have signed up, 13,000 messages have been sent, and most importantly – they have experienced a 9% redemption rate of all messages, as opposed to a 1% rate for direct mail. With My Subway Mobile SMS campaign now ramping up, a buy-one get-one SMS alert will result in a nearly instant increase in customer traffic.

This SMS campaign is only possible through the use of SMS marketing. SMS marketing allows your business to send valid promotions that are delivered instantly to each customer’s mobile phone. As Subway has accomplished, any business can gain more control of traffic through SMS marketing efforts.

Subway has now continued to expand on the program’s success, initiating a 300-restaurant campaign in Seattle, WA.

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