The retail industry has tremendously shifted in the past few decades. With the explosion of e-commerce, the customers have shifted their purchase pattern. Customers can easily buy products across stores while sitting at home. Thus, making it difficult for the traditional retail industry to cope with the changes and increase customer retention.
The traditional retail industry has come a long way in providing customer satisfaction as marketers know it’s easy for the customer to switch. Thus, marketers often try to woo the customers by communicating directly about the new offers, new product launch, and delivery updates all through SMS services.
It is one of the widely used marketing tools used in the retail industry because of the high conversion rates. The data says that 98% of the text messages are opened and responded to, which makes it the most preferable tool by the marketers around the globe.
Let's check the pros and cons of SMS marketing solutions in the retail sector-
Pros Of SMS Marketing-
High Conversion Rates-
SMS marketing has the highest number of conversion rates. It is sent directly to the customers and has the highest opening rates as compared to the emails. The sender can also promote new lines, a sale, a new store, a new website or any number of promotional ideas which will help the company to enhance the customer base. Companies can also customize the messages as per the particular customers making it a more effective text marketing strategy altogether.
It is a cost-effective marketing strategy as the per-customer cost of sending messages is almost negligible. It is cost-effective both to produce and also to distribute, as you can send one message to all of your customers at the touch of a button. The company only pays for the messages they send, with no contract and flexible options available to the customers. It enhances the return on investment of the company.
Text Messages are delivered in Real-Time-
Text messages are delivered in real-time you can easily keep your content fresh and relevant and customers can respond quickly. It reduces the overall operating cost of the company. Companies can send information related to tracking status, delivery payment options, new product line, payment reminders and the feedback can be ensured in real-time to the customer so that company can attract new customers and retain the existing ones.
Through text messages services, the company can easily optimize its performance to find the potential customer. So, marketers can easily come up with new strategies to attract those customers by providing them with new products, coupons and discounts on first purchase, easy delivery options so that they attract the customers. Customers can easily find out the customer who will give business to them in the long run.
Cons Of SMS Marketing-
Difficulty in Engaging people-
Sometimes it becomes difficult to engage people for the long run as a customer can easily opt-in and opt-out as per the convenience. Just sending messages doesn’t guarantee success as we can’t assume the customer will be reading the messages or not. Further, you can’t use the same content repeatedly as it will become boring and the customer may not turn up. You need to be very quirky with your messaging.
Limited Advertising Space-
SMS marketing provides limited advertising space and the company can’t convey everything in the short messages. You simply don’t have the space to be vague or go into detail and communications need to be kept very to the point. Sometimes it may become difficult to attract the customers with these limited characters provided in SMS services.
Your Audience is going to be Smaller-
In SMS marketing reseller your audience is going to be smaller so you need to grow your list. Also, there are high chances of people changing their phone number. You have to keep a track on that too. So, you would be reaching fewer people when compared to the traditional method of advertising.
Though SMS marketing has potential advantages it has a few limitations as well. As a business or a marketer, it is important to understand the problems associated with SMS marketing services so that companies can come up with new strategies to minimize the limitations and can achieve a return on investment and huge growth in the long run.