The work of every marketer is associated with analyzing the consumer market and designing a strategy to promote products to customers. The analysis of competitive products, the study of advertising projects, and consumer opinions provides a copious amount of information. But for a competent strategic plan, the marketer must learn everything in detail, namely important indicators: Sales Volume, Profit, Cost Per Customer Referred, Market Share, Leads, Lost Customers, Cost-Per-Click, Cost-Per-Customer, Average Bill, ROI(Return on Investment), Customer Awareness, NPS (Customer Loyalty Index), CTR (Click-Through-Rate), LTV (Lifetime Value) and Conversion Ratio.
Today we’re going to focus on the Conversion Ratio.
A conversion ratio is the percentage of successful sales or actions taken by customers, based on how many messages or ads were sent to a client base. Most often this business indicator is considered in the stages of the sales funnel.
Marketers have always used multiple channels to attract customers, which helps to get the customer’s attention and brings them to the stage of buying your product or service. For example, Facebook or Quora targeting advertising has its own unique conversion rate, as well as SMS or email marketing and this rate is influenced by unique factors like content, client segmentation, product/service offered, business niche, and many more.
It is believed that the effectiveness of a channel is influenced by the budget invested into it. Is this true? Let’s look into this.
More expensive doesn’t mean more efficient
According to analytical data, the conversion rate from Facebook ads is about 9%; cheaper email channels deliver on average 1% conversion rate. But all of these results are too low to be of significant interest for a marketer to invest in them. A great alternative to all these channels, which allows not only to save time and money, but also to increase customer loyalty using a personalized approach: send personalized text messages directly to the cellphones of clients or, most commonly known, SMS Marketing.
The channel with the most winning role
The power of SMS marketing is growing every day, with more and more consumers preferring to receive text messages through this channel of communication. This year, the number of text messages received in the UK alone was 49.3 million, and by 2022 this figure is predicted to rise to 56.7 million. This statistic reinforces that text messaging is the fastest-growing marketing channel.
In addition, the data from marketing studies have confirmed that the conversion rate of bulk SMS campaigns can reach 30% and higher, and the CTR is around 40%. The bounce rate of SMS messages is only 3%, which means that your message to the customer has the highest chance to get read, when compared with other channels.
Such amazing indicators prove that SMS marketing can be used for all kinds of businesses, no matter the type, to improve the communication between them and their clients. Marketers usually follow the rule “speak the language your customer understands”, making SMS messages more informal and even implementing the use of emoji emoticons in text messages sent to subscribers to add a visual impact on their text messages. Emojis are an important aspect of messaging between millennials. Keep in mind that the use of emojis in mobile marketing grew by 775% between 2015 and 2020.
If you were confused by the myths about SMS being an expensive tool that is appropriate to use only by large companies: forget about these misconceptions! A bulk SMS marketing campaign is a budget friendly option to contact your clients anywhere in the world, because It is the most used channel of communication between people and because it provides tons of benefits compared with traditional marketing methods.
Delivery anywhere in the world on any device
SMS messages not only increase the conversion rate many times over, but also gives marketers the opportunity to reach a global audience, delivering messages to customers in the most remote corners of the world. At a time when messengers require an Internet connection and are a rather insecure messaging channel, SMS delivers your message to all mobile devices instantly and you can be sure that the important information it contains will not be taken over by third parties. Statistics show that the number of unopened text messages tends to 0% because they carry a sense of urgency and are a more trusted channel for the customer to receive information.
Unique features of SMS Marketing
SMS provides a unique opportunity to deliver a marketing message directly into the hands of the clients in no time. Send a text message and make it personalized, allows brands to emphasize a unique approach to each of their customers to increase loyalty and build trust with an audience.
Also, statistics reported by marketers around the world show that abandoned cart reminders sent by SMS with discount coupons or any other type of incentive, have helped to increase conversion rates of all kinds of businesses up to 130%.
Now that you’re aware of how SMS messaging can help your business to grow your conversion rates and get closer to your customers, you have certainly more reasons to start using SMS in your business!
You can also count on SixFive’s help, one of the best Bulk SMS service providers in the market, to watch your conversion rates grow. Contact us, we’ll be glad to help you.