See why retail marketers use personalized text messaging to reach customers, influence shopping decisions, and drive revenue.
Text messaging has existed for years, but it has only recently emerged as a new performance marketing channel for retail brands. Consider overflowing email inboxes, screens full of often-forgotten apps, and ever-changing social media algorithms that control which content people see. Marketers are constantly looking for new ways to break through the noise to reach consumers (and drive revenue), which is why they are now turning to personalized mobile messaging.
Here are four takeaways from our latest guide, Personalized Mobile Messaging: Your Next Top Revenue Channel, on why you should consider adding mobile messaging to your marketing strategy for 2019 and beyond:
1. 98-100% of US adults use text messaging:
Consumers spend more time texting on their phones than they do checking email, using apps, and browsing the web. In fact, 98% of US adults ages 30-49 use text messaging. This increases to 100% for ages 18-29.
Consumer adoption is high due to changing wireless plans. Previously, some plans required consumers to pay to send and receive texts. Now, according to a recent Attentive survey, 98% of participants have an unlimited text messaging plan.
2. Over the last 5 years, email marketing performance has fallen 47%:
Email won’t be going away anytime soon, but there’s been a steady decline in its effectiveness. Email marketing click-through rates for retail businesses have fallen 47% over the last five years, with a current average click-through rate of 2.4% and open rate of 19.4%. Compare that to the 99% open rate of text messages.
This decline is hardly surprising considering, on average, approximately 50% of email marketing subscribers provide an email address they rarely interact with. On the flip side, consumers who opt-in to text messaging from brands show a higher intent to engage since they give their real phone number—and marketers know their messages are sure to be seen.
Think about your own inbox: how many brand emails do you receive each day, and how many do you actually read or click-through on? Now, look at your texts. How many messages do you leave unread?
3. 95% of apps are uninstalled within the first month of being downloaded:
There’s been an uptick in the usage of mobile retail apps in the last few years due to better user experience, but still, 49% of US consumers have never used a retail app. Of the apps that have been downloaded, 95% are uninstalled within the first month, amounting to a mere 5% retention rate. Plus, only 37% of app users allow push notifications.
For retailers who have not yet built an app, development costs and user acquisition/retention challenges can be intimidating and cause marketers to seek out other mobile marketing opportunities with higher levels of existing consumer adoption.
4. Companies who use mobile messaging see a 25x+ ROI:
When it comes to driving incremental mobile revenue from a new channel, companies who use mobile messaging see strong results, such as a 25x+ ROI and 5-10x+ revenue per subscriber vs. email marketing. Mobile subscribers tend to be a brand’s most valuable audience—a mix of high-intent potential buyers and loyal existing customers.
In a world where today’s consumers are increasingly overwhelmed by choices, marketers can rely on personalized mobile messaging to break through the clutter and ensure their messages are heard. After all, the most effective marketing happens when you reach your target audience with the right message, in the right place, and at the right time.
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