- 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.
Today, Competition is EVERYWHERE: Online, Down the Street and Even In The Adjacent State
The big brands have been doing this for at least a decade. The smaller business is very late to the party, but I have proof that it’s never too late to belly up to the bar.
4 Ways to Compete Effectively Today
- Take back control of your database. If you are using facebook as you sole website, you have ceded control of literally everything to a 3rd party closed ecosystem. If you are counting on all your followers to see every post you make you are sadly mistaken.
- Understand where your customer’s attention is today. It’s on their phone. More than 95% of the US population now owns a smart phone. People glance at their phone literally ALL DAY LONG. This is where you should be communicating with them.
- Forget about developing an app, unless you are a HUGE brand like Starbucks, or Facebook or Twitter – something that people are likely to interact with daily. If you are a small business, save your money. Statistics show that 49% of people who initially download an app (usually to get that juicy join offer) will abandon using it within 30 days.
- Remember back around 1996 when email was a really new tool for marketing? Everyone jumped on building a database so they could send out communication to their customers to keep them connected and engaged. Well, email readership is tanking because there is so much spam that has infiltrated the system. When you build a database of your customer’s MOBILE numbers, you will have an invaluable way of reaching them instantly on the device they prefer and will see a nearly 100% read rate within about 5 minutes.
Because Mobile Marketing is Highly Regulated, There Is No Spam
Customers are required to give you explicit permission to opt into your program and if regulations are followed correctly, instructions on how to opt out should they change their mind should come with every communication,
Mobile Marketing Is Where Email Marketing Was in 1997.
Only 38% of businesses are leveraging this powerful tool, yet nearly 83% of consumers wish their favorite stores and brands communicated with them via text. Send a text and watch your traffic spike.
Opportunity Knocks. Will You Answer?
Those businesses that have jumped onto the mobile marketing highway have seen huge benefits. Our typical ROI ranges between 300-600% varying by type of business. If your business relies on repeat business, you should be moving in the direction of a mobile marketing program.
Mobile High 5 provides small businesses major league tools at minor league prices
After someone does business with you, then what?
Imagine someone walks in and make a purchase, buys a service or dines in your restaurant. You’re happy, because they increased your revenue for that day. But now what?
How Do You Get Them Back?
Did they have a good experience? You really don’t know unless they left you a review. They paid their bill. That’s good. You don’t know where they live, or why they stopped in. Or how to get them back.
Now what if you could build a long lasting relationship with that customer? That’s a big ask of someone to do within a 30 second to 1-minute transaction window. It requires ongoing engagement. Who has time for that? Small business owners already wear too many hats.
This is where Mobile High 5 does its magic. We ensure those dollars spent come back in the door another time. And another time and when they come back we are going to incentivize them to spend more. Thanks to technology and innovative processes, we leverage the power of texting, sweepstakes, rewards, promotions, and reminders to call people back into your place of business. All without the need for customers to download an app.
Customized to you, we develop a plan based on your business goals and marketing strategies so we maximize customer engagement to build a long and meaningful relationship which ensures repeat business.
And we do it by providing white glove service. With ridiculous responsiveness to our clients.
“Mobile High 5 is a great way to reach out to customers. Their team is extremely responsive and this allows for quick turn around w promos. Very happy with them.” – Greg Ramirez, Exton Beverage
Marketing Is Challenging For a Small Business.
We know. We Are One.
Why This Should Be Your #1 Goal in 2019
- Control When Your Messages Are Read. Unlike third-party social platforms a low percentage of business posts are seen (unless you promote with paid ads.). Why put social platforms in complete control of reaching your customer?
- Texts Are The Most Effective Form of Communication Today. Email read rates are dipping at around 10-20%. Social media posts – only a fraction of your followers will see those messages and in both email and social media, you have to WAIT for your customers to get around to checking these channels. Texts see read rates of 98% within 5 minutes. Unbeatable!
- Capture data on what your customers spends, when they spend it, who they are, even where they are, so you can customize messages to target them in a way that drives them back in the door. With text marketing, you can send different messages to different parts of your database, increasing your ROI!
Mobile marketing is permission-based, so any customer who has joined your mobile club has literally given you permission to send advertising to their personal phone. How many unread text messages do you have? Same with your customers. This is why building your mobile database should be your TOP goal for 2019.
Make sure each message you send has value and they will stay in your club forever. Loyalty goes both ways.
• The difference between those companies which grow and those which don’t is whether they pay attention to their existing customers. The more customers you keep coming in the door, the more likely you will achieve your business goals.
• It costs 6-7 times what it costs to keep a customer than it does to find that new customer. So why are companies focusing so much on generating new customers?
• The biggest hurdle for most is where to begin. In this blog post, I will share 5 easy strategies that you can use to keep your existing customers happy and over the long term, this will increase your profits for much less investment.
The Success Rate of Selling To An Existing Customer is 60-70% vs only 5-20% For A New Customer.
Why do customers leave?
5% Gets a Friend to Provide Service
9% Are Persuaded to Go To A Competitor
14% Are Dissastisfied
68% Believe You Don’t Care About Them
68% Need Constant Convincing That You Care
A business the “gets this” and invests in customer retention does so because it is the biggest revenue driver they have, according to KPMG.
5 Reasons You Need To Care About This
- You will see more revenue. These customers already have bought from you, so unless you really screwed up, they will buy again. They already trust you and you already know something about them so you will find it easier to develop offers that compel them to action.
- Less Marketing Is Necessary. You’ll spend less time because you won’t have to ALSO find them and convince them to buy, so you’ll spend less on marketing. A new customer costs 16 times more to maintain than an existing one. If you have a restaurant, studies show it takes 4 visits by a customer before they become a regular.
- Get Feedback So you Can Improve Their Experience. All you have to do is ask for that feedback and your existing customers will likely provide it. They will feel honored to have been asked and you’ll gain valuable insight that you can use to improve your offering.
- Higher Profits. Selling new customers often requires price discounting. Selling to your existing customers is based on value. They will be more receptive got up-selling and cross selling because THEY ALREADY TRUST YOU. According to Gartner Group, 80% of your revenue comes from just 20% of your customers, so reward them and show them you care!
- Lower Costs. A small 5% increase in customer retention can increase a company’s profitability by 25-95% according to The Harvard Business School.
Fastest Way To Retain Customers Is Through Loyalty Programs
The easiest way to build a database today and to know you’ll be reaching customers directly is to go MOBILE. Customers only have one phone yet have multiple emails. Relying on email marketing or just social media is based on a strategy of HOPE.
With Mobile marketing, you are reaching your customers right where their attention already is, on their personal phone. A whopping 98% of your messages are read within 5 minutes. Include an incentive and those customers come back in more often. Add a loyalty program that rewards customers for coming back and it acts as a multiplier.
Mobile marketing is permission based, so only those who have given their number willingly will join your program. You will find those are your best customers. They are the folks who want to engage with your business. Regularly. And isn’t that the best customer to have?
Interested in learning more about how a loyalty program might work for your business? Contact me for a no obligation 1-to-1 tutorial.
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.