A Strong Start – Q1 2023 Benchmark Data
Earlier this year, we made some predictions for 2023 and analyzed and published the results of our 2023 Cross-Channel Benchmark Report. With the first quarter already behind us, let’s look at how things are shaping up so far and where to focus your Text Message Marketing program from here.
Automation is Critical to Maximize Engagement & ROI
Q1 further proved that automated campaigns earn higher Click-Through and Conversion Rates and more revenue with a higher Revenue/Send KPI over broadcast messaging. A consistent broadcast frequency builds and maintains channel awareness, and automations triggered by activity like browsing, abandoning, and purchasing move the needle further. Nurturing new subscribers in a Welcome Series is particularly impactful when leveraging a solid incentive. It came out with the highest Conversion Rates and Revenue/Send numbers in Q1.
Product Alerts Are a Customer’s Best Friend
Some of the most engaging campaigns in Q1 were Product Alerts strategies, including Back In Stock, Low Inventory, and Price Drop, the latter bringing in the highest overall average Click-Through Rate. These hyper-relevant messages triggered by browse events also earn significantly higher Revenue/Send numbers than broadcasts or re-engagement triggers at other points in the cyclical customer journey – 3x higher! These need to be within your automated campaign arsenal to maximize SMS ROI.
Text Message Marketing is Budget-Worthy
Year over year, Q1 brought a 3% overall increase in SMS Click-Through Rate and a (whopping) 6% overall increase in SMS Revenue/Send, even with ballooning volume numbers as more retailers adopt channel strategies. Text Message Marketing programs should be a focus when planning and adjusting your marketing budget and just as high a priority as your other digital marketing channels. Don’t leave any room for your competitors to reach your customers and prospects before you can!
The Year of Mobile, Personalization, & New Channels is Off and Running
We predicted more retail investment in mobile and new channels for this year. While 2023 is proving to be a challenging economic year, retailers and brands are continuing to expand their strategies and reach to remain competitive. Our clients’ Q1 results were compiled with much more volume year over year and with more active, personal campaign types.
Despite ongoing macroeconomic issues and an ever-changing retail landscape, Listrak’s Text Message Marketing clients are growing their programs and earning more revenue with thoughtfully curated campaigns, strategic automation, and highly personalized, relevant messaging. Now’s the time to meet your customers where they are and deliver against expectations of SMS communication, especially in preparation for the holiday season. Start making changes and implementing new strategies to have a robust, high-converting program in place by October.
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