How Does SMS Marketing Boost Customers’ Lifetime Value & Loyalty?
- Posted on April 10, 2023 by Robert
- Reading time about 7 minutes
Having a loyalty program for your customers is not enough to increase their lifetime value. Have you ever wondered how to boost the lifetime value of your subscribers and provide them with more reasons to stay loyal? Marketing is another strategy that can enhance your customer. However, marketing has changed substantially over the past few years.
The ability for customers to access information online on their smart devices is unparallel today. Social media marketing and Email marketing have turned out to be effective forms of marketing. But SMS (short messaging services) marketing is still dominating and engaging more audiences than ever. Marketers are still using SMS marketing as an effective form of marketing.
What Is a Customer’s Lifetime Value?
Customer lifetime value is an important marketing static that represents the total amount spent on a particular brand in a year. This signifies how much loyal your customers are to your brand and spend money on your products and services. Mobile wallet loyalty rewards software helps you in increasing customer lifetime value. There are mainly two models that brands use to calculate the customer’s lifetime value.
1. Historical CLV
The historical CLV method allows brands to look at past data of the customers and provides data and insights of the customers based on their past interactions. This model works best for brands that have existed for more than five to ten years in the market. They can easily enhance their interaction with customers based on their past data.
2. Predictive CLV
In this model of customer lifetime value, customers’ behavior is considered in order to predict their future interactions and demands with the brands. The predictive CLV is generally used by startups, SMBs, and newly established brands to improve their customer acquisition, activation, and retention process significantly.
The Value of SMS Marketing?
Texts are instantaneous and personal, bringing customer experience and engagement within direct-to-consumer marketing to an all-new level. SMS is a powerful and simple marketing tool that can be used to significantly increase your customers’ lifetime value. SMS marketing can be a powerful tool for businesses and brands while tiered based loyalty rewards program boost their customer lifetime value (CLV). Here are some ways SMS marketing can help you in bringing the best value to your brand and businesses.
Increases Customers Engagement
SMS messages have a 98% open rate, which means they are an effective way to get your message in front of your customers. By using SMS to keep your customers engaged and informed about your products and services, you can increase their loyalty and encourage repeat purchases.
Deliver Personalized Messages
SMS messages can be personalized based on the customer’s preferences and behavior. By sending targeted messages that resonate with your customers, you can build a stronger relationship with them and increase the likelihood that they will continue to do business with you.
Promotions and Offers For Customers
SMS messages can be used to send time-sensitive promotions and offer to customers. By offering exclusive deals and discounts to your SMS subscribers, you can incentivize them to make a purchase and increase their lifetime value. Mobile wallet loyalty rewards software delivers deals and discounts for customers.
Improved Customer Service
SMS can be used to provide customer support and answer questions in real-time. Tiered-based loyalty rewards program by providing excellent customer service through SMS marketing. You can build trust with your customers and increase their loyalty to your brand.
Boost Customer’s Value with SMS Marketing
SMS marketing is an effective tool for brands, businesses, and eCommerce platforms to enhance the customer’s lifetime value. With Novus loyalty, you can easily enhance your customer’s loyalty and boost their lifetime value through shared data and innovations that tie our SMS, Loyalty, and Subscription offerings. We help brands with unified and perfectly tailored experiences to boost customers’ lifetime value and deliver a perfect way to retain them. Here are a few ways SMS marketing can contribute to increasing customer lifetime value.
Cross-Selling and Up-Selling
SMS marketing can be used to promote cross-selling and up-selling opportunities to customers. Brands and businesses can encourage customers to purchase additional items that they may not have otherwise considered by sending them messages with product recommendations or complementary items.
Retention and Repeat Purchases
SMS marketing can help businesses retain customers and encourage repeat purchases by sending personalized and relevant messages. Customers who feel valued and appreciated are more likely to return to a business for future purchases, and SMS marketing can help to achieve this by providing timely and targeted promotions that resonate with customers.
SMS marketing can also be used to provide customer service and support. By allowing customers to text questions or concerns, businesses can provide quick and convenient solutions, which can increase customer satisfaction and loyalty. Thus, SMS marketing can increase customer lifetime value by fostering long-term relationships with customers and encouraging repeat purchases.
Feedback and Engagement
SMS marketing can be used to engage with customers and gather feedback. Brands and businesses can send short messages for surveys and ask customers for feedback. Businesses can gain insights into customer preferences and areas for improvement. Engaging with customers in this way can help to build relationships and increase customer loyalty.
Boost Loyalty Rates with SMS Marketing
A loyalty program can boost customer retention and improve customer loyalty. Repeat customers bring higher revenue and new customers through word-of-mouth. They also reduce marketing costs when you consider how much it costs to acquire new customers. SMS marketing can be an effective way to boost customer loyalty rates.
Segment Your Customer
Tiered-based loyalty rewards program divides your customer list into different segments based on their interests, buying behavior, and preferences. This will help you to tailor your SMS for different customers. Each segment of customers engages with your product and services based on their buying behavior.
Offer Exclusive Deals
Send SMS messages with exclusive deals or discounts to your customers. This makes them feel special and appreciated and incentivizes them to remain loyal to your brand. Send exclusive deals, rewards, and points to customers with the help of mobile wallet loyalty rewards software.
Deliver Personalize Messages
Use your customers’ names in your SMS messages and tailor the content to their interests and preferences. Cashback loyalty rewards program software helps you in creating a personal connection between your brand and the customer. This will help you to increase the likelihood of loyal customers.
Clear CTA Drives Sales
Cashback loyalty rewards program software is a great tool to drive sales. When your offers and deals on products and services are curated with a clear call-to-action in your SMS messages. This makes it easy for customers to take the desired action. Thus, they can visit your website, make a purchase, or sign up for a loyalty program. This makes it easy for customers to take the desired action.
Delivers Value To Customers
Ensure that your SMS messages provide value to your customers. This could be in the form of helpful tips, useful information, or exclusive access to new products or services. Time your SMS messages to ensure they are received at a convenient time for your customers. Avoid sending messages during early morning or late-night hours.
SMS marketing still rules digital marketing with the highest opening rate of messages. Brands and businesses are still using SMS to deliver clear and concise messages to customers while providing personalized offers with CTA. This brings more potential customers to the board. Novus Loyalty is a cashback loyalty rewards program software for brands and businesses that offers numerous benefits to enhance customer lifetime value as well as boost loyalty.