If you’ve been wondering just how many eCommerce businesses are using SMS marketing to communicate with their customers, or how effective the channel is, this is for you. In this lesson, we’re going to share some SMS marketing statistics for eCommerce brands from global studies, surveys and our own experiments and success stories with online businesses.
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The following SMS marketing statistics are curated on the basis of relevancy to eCommerce businesses.
91% of consumers want to receive text messages from businesses
Mobile consumer behavior studies have found that people want to hear from businesses frequently on text messages. In fact, nearly all the consumers surveyed have already signed up to receive updates on SMS from businesses they intend to make purchases from.
55% of consumers use native messaging on mobile devices to send texts
Despite the increase in the number of communication channels and messaging applications, consumers still choose to use the native text message the most. This is owing to its simplicity of use and availability, irrespective of internet services.
Mobile phone users check their phones on an average of 47 times a day
Considering how frequently we communicate with friends and family, work on mobile, and use social media platforms, mobile phones are constantly in use. This increases the chances of your text marketing campaigns getting noticed, read and interacted with.
34% of smartphone users read texts within five minutes of receiving them
Studies have found that text messages are read within five minutes of them being received. This backs our observation on running SMS marketing campaigns, seeing almost instant opens on text messages.
Compared to emails, text messages are 134% more likely to be read
Taking the above SMS marketing statistics into account and deep diving into the use of SMS, we found that text messages see higher open rates. At their best, emails tend to see a 17.92% open rate, significantly lower than text messages.
56% of online retailers plan to increase mobile SMS marketing spends
The pandemic increased the use of mobile devices dramatically across the globe. This resulted in retailers exploring channels that were native to smartphones, which led to SMS marketing. Seeing the results it delivers, businesses now intend to increase their spends on the channel.
43% of consumers prefer to receive four to six messages per month from businesses
After running multiple SMS marketing campaigns, we found that almost half the consumers across the world are happy receiving a minimum of four to six messages a month. While there is no set ideal frequency of sending messages, you can always start with this safe number and scale based on the response you get.
SMS marketing campaigns see an average of 19.3% click-through rate
Text messages are crisp, clear and to the point. They lead the recipient to the call-to-action, which is typically a link, almost instantly. That’s one of the reasons why SMS marketing campaigns see a higher click-through rate compared to other channels.
SMS marketing campaigns see an average of 98% open rate
Owing to the number of times we make use of mobile phones in a day and average screen times, SMS tends to also see a very high open rate. The nature in which the message notification gets delivered, also makes it much harder to ignore.
50% of consumers respond to text messages in three minutes
Habitual use of text messaging apps has resulted in businesses reporting a higher customer engagement rate on SMS marketing campaigns. They noticed customers were replying to SMS campaigns, which put the focus on two-way campaigns instead of one-way promotions.
More than 69% of consumers want to interact with businesses via text
Continuing on our point above, we have also experienced that when it comes to making purchases, consumers want to talk to businesses. This could be to seek support or even product recommendations, something businesses need to act on this choice of communication to turn intent into conversions.
Only 10% of text messages are seen as spam
As compared to channels like email, text messages have a lesser chance of landing in spam. At the maximum, they may reach the promotions folder on iOS devices, but are still visible to the recipient, making them more likely to be opened.
About 26% of businesses use text messages to send promotions, discounts and coupons
eCommerce businesses frequently run promotional campaigns and discounts to entice consumers. Due to its high open and click-through rates, SMS makes for a promising channel to get these promotions noticed. This is especially important for time-sensitive deals and flash sales.
More than 49% of consumers opt-in to SMS lists to receive time-sensitive promotions
Most consumers are driven to make purchases based on the deals and discounts available to them. In fact, their cart total plays an important role in their purchase decisions and that’s why they are more likely to subscribe to SMS lists in order to get notified about promotions in a timely manner.
Businesses can generate 49X ROI from a single SMS campaign
We have found that running marketing and promotional campaigns on SMS gets a higher engagement rate, leading to more conversions. This in turn, has helped online businesses generate a much higher ROI from one campaign as compared to others. Read more about it here.
SMS-delivered coupons for discounts are redeemed 10 times more than others
Experimenting with different promotional campaigns, we noticed that coupon codes sent on text messages tend to get redeemed almost instantly. This makes SMS a great channel for limited period discounts and for re-engaging inactive customers.
91% of consumers are likely to shop from brands that send personalized text messages
The importance of personalization still holds true for SMS marketing. We have noticed that personalizing text messages with the recipient’s name and their customer journey so far, helps businesses get a higher conversion rate.
71% of consumers want businesses to interact with them in real-time
The native messaging platform is what makes SMS conversational in nature. With the help of SMS marketing platforms like Recart, businesses can tap into two-way text message marketing campaigns to fulfill this need of consumers.
Text message reminders can recover up to 45% of abandoned carts
Since text messages are opened almost instantly, they serve the purpose of promptly reminding customers of products left behind. Combined with a discount on the cart total or even two-way communication, and businesses can recover up to 45% of the abandoned carts.
Welcome messages see 42.7% open rate on SMS
Welcome messages are crucial for eCommerce businesses to establish a strong relationship with consumers and lay out the expectations. While communication on other channels is automated too, welcome messages tend to see a much lower open rate on them compared to SMS. Read more about it here.
If you go by the numbers, we’d say yes.
SMS marketing has grown exponentially over the past couple of years across all industries. In particular, eCommerce businesses have seen the most positive impact from using this channel to communicate with its customers.
SMS opens up new doors of opportunity for eCommerce businesses and you shouldn’t waste another day without it.
Ready to get started with SMS marketing? Book a demo of Recart today.
Half of the top 1000 digital retailers are already using SMS extensively to communicate with customers. From promoting ongoing discounts and deals, to keeping consumers engaged throughout the lifecycle, we’re seeing more and more eCommerce businesses utilize the channel. The number of DTC businesses using text messaging is also increasing by the day, with over 76% of marketers stating they intend to increase their SMS marketing budgets.
The future of SMS marketing is conversational but we believe that businesses will leveraging new-age technologies and automations to run two-way communication with their customers on text messages. At the same time, we also predict SMS becoming a key channel in omni-channel marketing strategies to create seamless and consistent communication and customer experiences for online shoppers.
Owing to the nature of delivery, SMS marketing sees the highest amount of open rates and click through rates on campaigns. From our experience, businesses can experience up to 98% open rate on SMS campaigns and about 19.3% click throughs on even promotional messages.
Want to learn more about ecommerce SMS marketing before getting started? Head over to our next lesson on how to run consistent text marketing campaigns with automation.Book a Demo