How e-commerce businesses can become profitable in challenging economic times with the help of SMS marketing
The recent years of economic turbulence have resulted in e-commerce facing a year of economic challenges, and the pressure to become profitable faster has increased significantly. No one can have missed the newspaper headlines about bankruptcies that are piling up, which leads us to the question - How do we get out of this situation? SMS is an underestimated channel that can help you emerge stronger from this crisis. Therefore, we will go through 2 ways SMS marketing can help you become profitable in challenging economic times.
Customer retention - Prioritize existing customers.
When the wallet shrinks, it is more important than ever to ensure you spend your marketing budget in the right places or, more precisely, where you get the most for your money. Therefore, retaining your customers is something that e-commerce businesses must prioritize, as it has historically been cheaper to maintain a relationship with existing customers than to attract new ones. SMS is a cost-effective channel for developing existing customer relationships. For example, our customers' average ROAS per campaign is 751%. For another example, read our customer case with Lace Laboratory, where they increased their conversion by 700% by using Jojka.
Send less, earn more - Segment more.
No one appreciates receiving uninteresting marketing via SMS or any other channel. Sending the same SMS to the entire customer base is not the most profitable way to conduct SMS marketing, as it is wiser to only send to those most likely converting. In other words, e-commerce businesses should prioritize their segmentation to become more profitable. This will lead to lower costs in the form of SMS fees while your revenues will increase as customers with the greatest likelihood of making a purchase receive your SMS.
In more challenging times, it is always easier to focus on the problems than to find the solution, but remember that more difficult times do not necessarily mean bad times. Instead, this is an opportunity to optimize the business with new creative solutions.