- 20% of your customers drive 80% of your business, so make sure you are focusing your efforts on keeping them engaged with your business and thinking of you even when they are not on-site. The best way to do this is through a loyalty program that engages these customers via text message marketing. The loyalty rewards entice them join your program and the regular engagement with offers and information of value keep them coming back.
- Highly-engaged customers become your EVANGELISTS. They become experts on your brand and if you make it easy for them, they will actively share offers you text out with their friends, expanding your database even further.
- Highly-engaged customers are LOYAL and will stick with you for the long haul. They are also the most responsive, since they have to give you permission to send text offers, when one comes in, they will read it. Quickly. 98% of all text messages are read within 5 minutes. There is no more effective form of communication available today.
- Be generous with your rewards program. Don’t make customers leap over tall buildings for a meager discount. They will tire quickly of this and opt out. When calculating what you can afford to give back to customers, calculate what their likely total spend might be over 5-6 visits and then rebate them 10% back once they reach that milestone. If it takes your customer more than a few months to reach the 6th visit, then lower the bar. It’s better to reward more often than to make a customer wait so long that they have forgotten why they joined your program in the first place.
- Make sure all offers you text out are of value to your customer. There can be an occasional informational text, but make sure you pepper those with regular promotional discounts, early access or other special things not available to the general public. And make sure you offer an incentive to join your program. Those businesses which offer a sign-up incentive see their databases grow 500% faster than those that do not offer anything.
If I got a text message out of the blue from a business, I would DEFINITELY think it was intrusive. And annoying. It would color my opinion of that business because I didn’t ask for you to intrude on my personal phone.
It would also be illegal. I repeat. Illegal.
To Run An Effective Mobile Marketing Program, You Must Follow The Rules.
Text marketing, by law, is permission based. To run a legally compliant program, you MUST obtain explicit permission from your customer before you can communicate with them on their personal mobile phone. There are many DIY text message operators today that skirt this law, or don’t fully inform the people using their platform about all the rules they must follow in order to avoid trouble….the least of which will be annoying your customer. That is why I recommend you work with a full service partner such as Mobile High 5.
If you violate the law, there can be a fine of $500- $1500 PER text message sent. So if your database is 1,000 people (a reasonable database for a small business) that could be a HUGE fine. Plus, on top of the fine, the short code the message was sent on can be suspended and those costs upwards of $8,000 to provision.
So as you can see, annoying your customer is NOT the biggest thing to worry about. That said, if you run your program correctly, text message marketing can make a HUGE impact on your bottom line. Think about it. The customers who have signed up to be on your mobile program, have given you explicit permission to send them advertising right to their personal phone. And everyone has only one phone today, right? These people are typically your best customers. Treat them well, send them juicy offers and announcements. They will repay you in spades.
Because your texts will come in on the same channel as personal messages, they will see readership of 98% within 3-5 minutes. All phones light up when a message comes in. Texts cannot be turned off like an app notification can and messaging is native to every smartphone. Text marketing programs bring extremely high ROI and just get better the longer you run them.
What questions do you have for me about Texting and compliance with the law? Post them in the comments and I’ll answer them in a future post.