What Is SMS for Retail and How Can You Use It?

You’ve got something exciting to share — maybe a new collection just dropped, or a big flash sale is about to kick off. So how do you make sure your customers actually see it?

You could send an email that might get buried in a crowded inbox, or post on social media and hope the algorithm is on your side. Or, you could go where you know they’ll look: their text messages.

Think about it: how many unread texts do you have right now? Probably close to zero. That’s why SMS open rates are as high as 98%. It’s a direct line to your customers in a way that email and social media just can’t match.

For retail businesses, SMS marketing can be a game-changer. Read on to learn everything you need to know about SMS for retail and how to put it to work for your brand.

What is retail SMS marketing?

Before you can begin to use SMS marketing strategies, you first need to understand the answer to the question: What is text message marketing for small business? And, just as importantly, how can retail text message marketing help you connect to your target audience? 

SMS is an acronym that stands for Short Message Service. SMS marketing is also referred to as text message marketing. 

SMS marketing for retail focuses on using short-form text messages to help retailers engage with current customers and nurture leads. With SMS for retail, you can connect with your customers at every stage in the sales funnel, from when they first start perusing your product offerings through the purchase stage and the delivery process. 

Retail SMS message types

Not all text messages are created equal. When you’re using SMS for your retail business, your messages will usually fall into one of three main buckets. Understanding the difference helps you send the right message at the right time.

Promotional messages

Best for: Driving revenue and creating buzz

These are the texts you send to drive sales and create excitement. Think special offers, big announcements, plus deals that get people in the door or on your website.

A few examples you could send:

• Announce flash sales and limited-time offers
• Give VIPs early access to new arrivals
• Send special discounts just for your text subscribers

Transactional messages

Best for: Building trust and keeping customers in the loop

These are the helpful, automated updates that your customers actually expect to receive. They are tied to a specific action a customer took, like placing an order. They are all about being helpful.

A few examples you could send:

• Send order confirmations and shipping updates
• Let them know, “Your order is ready for pickup!”
• Send back-in-stock alerts for a popular item

Conversational messages

Best for: Providing memorable customer service and building relationships

This is where you have real, two-way chats with your customers. It’s all about providing amazing, personal service and answering questions just like you would in the store. Real people, real answers.

A few examples you could handle:

• Answering product questions like, “Do you have this in a size 10?”
• Helping a customer hold an item for them to pick up later
• Getting quick feedback after they’ve made a purchase

Which type should you start with?

Feeling a little overwhelmed? Don’t be. The best way to kick things off is with a simple, effective mix. We suggest starting with one of each:

• A conversational text: The ability for customers to text you with simple questions.
• A promotional text: A simple welcome offer for new subscribers.
• A transactional text: An order confirmation or shipping notification.

What are the benefits of SMS marketing for retailers?

As we mentioned early, text messages have an open rate as high as 98%, making SMS for retail one of the highest performing marketing strategies. Benefits of SMS for retail include improved customer engagement, increased customer acquisition, and soaring sales rates.

Improve customer engagement

One of the reasons SMS marketing for retail is so effective is that it reaches customers on a channel they already use. Instead of asking customers to download an app, you simply ask them to opt-in to your brand’s text message marketing. 

48% of customers consider text message marketing to be their preferred way of receiving updates from brands. This preference is especially true for millennials. Studies show that companies can see an 11 to 30% increase in engagement simply by using SMS marketing efforts to target millennials. 

Engagement with SMS marketing is higher than with most other marketing channels. The click-through rate (CTR) of SMS marketing is 36%.

Increase customer acquisition

When potential customers are first learning about your brand, SMS marketing provides a great way to nurture these leads. A welcome SMS sequence can be used to educate potential customers about why they should choose your brand and how you’ll provide a solution to their problems. 

Another way to use SMS marketing to increase customer acquisition is to provide a coupon code to everyone who joins your SMS marketing list. 

Drive sales

SMS for retail is most commonly used as a channel for driving sales. Messages with the power to increase sales include:

• Promotional offers and sales
• Coupon codes
• Information about limited-time events
• VIP offers
• Loyalty rewards 

SMS marketing can also increase sales by generating demand for a product. Demand generation is different from lead generation because instead of nurturing leads, you’re nurturing the feeling of need for your product.

For ecommerce retailers, two of the highest intent texts to add to your program are abandoned cart reminders and loyalty point updates, because they reach shoppers when they’re closest to completing (or repeating) a purchase.

How to promote your business with SMS for retail

So, you know that you should be using SMS for retail. But how do you actually incorporate retail SMS marketing into your everyday marketing strategy? 

Promoting your business with SMS marketing involves understanding best practices and folding SMS marketing into your omnichannel customer engagement strategy. 

Follow SMS best practices

Before you can get started with SMS for retail, you need to familiarize yourself with SMS best practices. 

SMS marketing is protected by the Telephone Consumer Protection Act (TCPA).

To stay in compliance with TCPA guidelines, your customers must opt-in to receive marketing messages via text. You must let your customers know what types of messages they can expect to receive and how to opt out.

To make consent unambiguous, include what subscribers will receive and how often at signup, then send a brief double opt-in confirmation text before your first promotional message, with ‘Reply STOP to opt out’ included in the message flow.

Additionally, you cannot text customers between 9 p.m. and 8 a.m. in their respective time zones, as these are considered quiet hours. 

Staying in compliance with these laws is important, not just for maintaining trust with your customers, but because there are serious consequences to breaking these laws. Violating TCPA guidelines can leave your brand susceptible to lawsuits and fines up to $1,500 per message. 

In addition to legal requirements, there are other SMS best practices to help you serve your customers well.

While it’s okay to send automated text messages, studies increasingly show that customers want to be able to communicate back and forth with companies via text message. SMS for retail can provide an avenue for customer service that allows customers to skip long wait times and avoid being stuck on hold while at the office. If they can text, and read responses on their own schedule, it improves the convenience of your customer service strategy. 

It’s also a good idea to keep SMS messages short and sweet. The average customer should be able to read and respond to a text message in about ninety seconds. 

How to grow your retail SMS list

Okay, so you’re ready to start sending texts. But first, you need a list of people who have clearly said, “Yes, I want to hear from you!” Getting that permission is everything.

The good news? It’s easier than you think. Here are three simple ways to grow your SMS list.

1. Use a text-to-join keyword

This is one of the easiest ways to get started. It’s like a secret handshake for your brand. You choose a keyword, and people text it to your number to join your list.

How to do it: Put up small, clear signs right where your customers are. Think next to the cash register or inside the fitting rooms. Something simple like, “Text VIP to 55555 to get 15% off your next purchase!” works perfectly.

2. Ask at checkout

The checkout counter is the perfect moment to ask. Your customer is already engaged and happy with their purchase. Make it a natural part of the process.

How to do it: Online, you can add a simple, unchecked box to your checkout page. In-store, your team can ask directly. Just make sure they know what to say.

Here’s a simple script for your team:

“Would you like to join our text club? You’ll get access to exclusive deals plus instant alerts for new arrivals.”

3. Offer a deal on your website

For visitors browsing your site, a can’t-miss offer is the best way to get them on your list. A simple popup can do all the work for you.

How to do it: Set up a popup that appears after someone has been on your site for a few seconds. The key is to offer something valuable in exchange for their number — like a welcome discount or free shipping on their first order.

A quick word of caution

It can be tempting to text people from your old contact lists. Please don’t! Texting customers who haven’t given you explicit permission for SMS is a huge no-no. It breaks trust and can get you into trouble.

Do this instead: Send those contacts an email inviting them to join your new text list. That way, you know you have clear permission, and you’re starting the relationship off on the right foot.

Use retail SMS marketing and email marketing together

Omnichannel customer engagement strategies work better than any one marketing channel alone. SMS and email marketing strategies can be used together to create compelling marketing campaigns that sell.

For example, consider a retail store that was having a breakout sale one weekend. They might send an email to their customers explaining the sale and detailing what the sale is celebrating and some of the top products they should take a look at. Then, a little bit later, the company could send a coupon code via text message to their loyal customers. On the day of the sale, they might send another quick text reminding customers that it’s sale day, as well as an emailed catalog of all products on sale over the weekend.

Pair retail SMS marketing and email marketing together, and you have a powerful multichannel strategy to keep customers engaged with your brand.

Share time-sensitive product offers and updates

Americans check their phones once every ten minutes on average. That makes SMS the perfect channel to use when you’re communicating time-sensitive offers and updates. 

Here are a few ideas for time-sensitive texts to send your list:

• Restock notifications for sold-out products
• Time-sensitive coupon codes
• Sale announcements

Send shipping updates

For customers who have already made a purchase, SMS marketing is a great way to keep them updated on the status of their order.

Using SMS marketing for shipping and order status notifications is an easy, automated way to up your customer service game. Customers will feel like your brand is keeping them updated so they never have to wonder where their order is. Plus, it’s relatively easy to get this set up on the backend. 

Quick text messages keep customers informed and engaged with your brand but take minimal effort on your part.

Retail SMS KPIs to track

Okay, you’re sending texts. Awesome! But how do you know if they’re actually working?

It’s all about looking at the right numbers. Don’t worry, you don’t need to be a data scientist. Just keep an eye on these few key performance indicators (KPIs) to see what’s resonating with your customers.

Quick fixes

Seeing a number you don’t love? No sweat. Here are a few quick “if/then” adjustments you can make.

• If you see a high unsubscribe rate… then you might be sending texts too often. Try pulling back on your frequency and make sure your offers are a good fit for that specific audience.
• If your click-through rate is low… then your offer might not feel exciting enough. Try sweetening the deal or making your call to action more direct and urgent.
• If your opt-in rate is struggling… then your sign-up incentive might not be strong enough. A 10% discount might not cut it. Maybe try offering 15% or free shipping instead.

A good rule of thumb is to review these numbers weekly for your first month to get a feel for things. After that, you can switch to a monthly check-in.

Increase customer engagement with SMS for retail

SMS for retail is a powerful tool that can drive customer engagement through the roof. With so many things to love about SMS marketing, it’s no wonder that using text marketing is one of the hottest digital marketing trends right now. 

Get started by signing up with a professional marketing platform that provides SMS, like Constant Contact. Then reach out to your current email list and offer them an incentive to signup for SMS text messages as well. Be sure to let them know what types of messages you’ll be sending and when you’ll be sending them. Your customers will appreciate it. 

Already a Constant Contact customer? To get started, follow this tutorial on setting up SMS in your Constant Contact account.