You’re not alone - most Shopify merchants have the same goals. But it’s NOT gonna happen if you ignore the most crucial factor - retention marketing.
Let's face it, there's a lot of conflicting information out there about what you need to do to make the most out of your Shopify business - and it can be confusing.
At Recart, we’re fortunate enough to have seen 200k+ merchants grow using all types of retention and paid marketing as well as, at present, support 13k brands with SMS and Messenger marketing.
If you had trouble retaining your Shopify store clients we want to put those fears to rest.
Gone are the days when technology takes years to master, with Recart you will be able to unlock the growth that's been sitting in front of you this entire time.
The rule is extremely simple but still one of the most overlooked metrics in e-commerce marketing despite it being able to make or break SMS / email marketing efforts.
When brands hit or exceed this 10% subscription mark, their success with retention marketing is almost inevitable.
The rule itself is dead simple: subscribe at least 10% of your store visitors to your SMS list. Achieving it, however, is something only very few brands can.
Recart is a mobile messaging app for Shopify stores that offers fully-managed SMS and messenger marketing services that are successfully used by 13k+ brands.
Even more importantly...
Brands on Recart Scale Plans see an average 51x return on their investment.
And deliver messages for all major eCommerce use cases - abandoned carts, receipts, shipping notifications, product recommendations, one-off promotions with almost 100% open, and 30%+ engagement rates.
13k+ Shopify stores use Recart to generate millions of dollars every month.
Take a few minutes to read this page and quickly learn how to grow your Shopify business using retention marketing
Many stores focus on bringing traffic to their store and converting visitors to paying customers but are missing some crucial stages that affect retention and in turn revenue.
A customer journey could look like this:
Reached → Visitor → Subscriber → Customer → Returning Customer → Advocate
Usually, brands want to get from Reached to Customer the fastest way possible, so they deploy ads and invest 30-60% of their total revenue on Facebook, Instagram, Google, and TikTok.
In most cases, they take good care of the Visitor stage. They build a good-looking Shopify store paying attention to the UX and the speed.
However, they usually ignore the Subscriber stage after setting up a newsletter signup or an email popup, thinking “the popup is live so the job is done”.
But, this couldn’t be further from the truth.
This is the major yet understandable and common mistake most brands make. Why? Brands don’t have easy ways to figure out what’s the impact on their SMS/email marketing when they convert 3% or 10% of visitors into subscribers.
Here’s simple math to explain the difference. To illustrate, we’ll bring a few assumptions to the table using average results from brands using Recart SMS. In the first 30 days in the SMS list, a new subscriber:
Let’s assume that your brand has 100,000 unique visitors a month. A different visitor to subscriber rate brings you different results:
A brand with an average 3% visitor to subscriber rate generates about $11k incremental revenue from SMS marketing in the first month. When you improve your rate to 5%, the revenue jumps to $19k, at 10% to $38k, and at 15% to $56k. In the first month only.
However, benefits are cumulative here. Whoever is on your list already will keep receiving your SMS updates and, with a lower revenue per message rate, will keep buying from you.
Here’s a cumulative view of the performance difference between 3% and 10% visitor to subscriber rates:
Therefore, the revenue difference between the average (3%) and acceptable (10%) subscription rates is tens of thousands of dollars in revenue for the average brand. Exceptional strategies (15%) simply 5X your first-month results which accumulate into an 8x difference in six months.
Brands have many ways to subscribe their customers to their SMS lists. They are usually grouped into two categories: on-site and off-site opt-in tools.
In this category, the Welcome Popup is the king. It collects the most subscribers by far. Since the Welcome Popup is being seen by most of your new visitors, its conversion rate has the biggest impact on your visitor to subscriber rate.
The difference between a weak and a strong popup usually determines if you’re able to hit the 10% rule.
A strong welcome (or any other) popup has three main rules:
When you follow these points, you’ll start to see 2-3x more subscribers than before.
Another low-hanging fruit to help you get the 10% rule is by enabling SMS subscription on your Shopify checkout. Luckily, it’s natively available on your Shopify Checkout:
Enabling it takes about two minutes.
Activating a Welcome Popup and the Checkout Subscription will usually put you 7-9% towards your 10% goal.
If you have an active social following, this method is for you. You can convert your organic Instagram/Facebook/TikTok traffic into SMS subscribers using an SMS signup link in your stories and posts. These stories usually lead with an offer like a discount or exclusive content to incentivize followers to signup.
SMS subscription from Instagram stories only takes two actions:
Here’s an example of Bella All Natural offering 15% off to subscribers from their Instagram posts:
Another impactful way to grow your SMS list off-site is by sharing SMS keywords in your posts.
Here’s a great example from Her Juice Bar. They share the keyword HJB and their phone number. Anyone who wants to opt-in to your SMS list can simply text a keyword to your number subscribing to your list immediately.
The number of reaches and visitors you can turn into SMS or email subscribers has a big impact on your bottom line.
Using average results from our clients, a 3.3x (average → good) conversion rate difference cumulatively adds up to a 4.1x revenue difference in a year.
To recap, here’s the fastest way to hit the 10% rule in SMS marketing: