$3.66 million SMS revenue generated in a few months, 10% of Overall Store Revenue And An average ROI of 8x:
SMS marketing Report 2021
Why SMS is a multi-times ROI-positive channel
Other than being effective for conversions, SMS marketing is highly profitable and achieves an ROI of several times over because of its low costs. It’s also incredibly easy due to its minimal copy and almost no design requirements. With SMS, short is definitely sweet.
Why SMS is even more relevant in the age of “first person data” marketing
Everyone knows email is powerful, but now SMS adds that additional touchpoint in the customer lifecycle. With the new iOS and Facebook changes and with third-party data becoming harder and harder to rely on, the name of the game now is first-party data and ‘owned messaging,’ which email and SMS are the two most important pillars of. It’s a channel brands can turn to in these hard times and test with minimal risk and a high reward.
But don’t take our word for it. We analysed our SMS results for the last year (2021) and they’re pretty great.
SMS revenue as part of the overall revenue
Between the 21 clients, the average revenue from SMS stood at 10% of the total store revenue. Out of the 21, 18 clients have an average SMS revenue share of 18%. The highest SMS revenue was for an adult toy store client at 21.22%. It’s worth noting that most of our SMS clients started their SMS journey in the 2nd half of the year and 1/4th of them started only in Q4.
Average SMS revenue share for:
Revenue breakup between flows and campaigns
SMS flows netted the bulk of the SMS revenue at 80% and remaining 20% was done by campaigns. This is normal and for SMS, flows like the Welcome Flow and the Cart Abandoned Flow perform great, earning even upto 50% of the SMS revenue between the two. The flows also scored a higher share because most stores tend to send more flow SMSes than campaign ones.
ROI for the clients
First 3 month performance for 5 stores
5 of the stores that started their SMS journey in October netted an average of 10.48% of their overall store revenue from SMS in the first month, ramped up to 14% in the second month (Nov) and 14.88% in the 3rd month. (Dec)
BFCM results from SMS alone
The Black Friday Cyber Monday (BFCM) month was a strategic time to invest in SMS for most stores, resulting in a whopping $1.1 million in overall revenue from SMS alone. Here’s when we stepped up to the occasion and set up special BFCM flows, campaigns and landing pages, for all the stores we managed SMS for. While for these stores, revenue from email marketing was 30% of the overall store revenue, from SMS alone, they drove a revenue of 12% ( 11.85%) during BFCM month and 13% during the BFCM main sale days (Thanksgiving, Black Friday, and Cyber Monday respectively.)
Conclusion: SMS marketing which began as an add on to email marketing is now a formidable marketing channel in its own right. With a 10% average revenue from SMS and growing month on month, not only is SMS effective but also a very ROI-positive marketing channel that no ecommerce store can afford to ignore.