UPDATED 12:00 EDT / MAY 25 2012

SMS Ads: Still Got It! Mobile Retail Trend Report

Mobile retail is an undeniable byproduct of our love for tablets and smartphones, and it’s up to marketers and business owners to take advantage of this consumer trend.  Cellit, the mobile marketing division of ePrize, announced the release of a mobile study that highlights how mobile SMS are impacting some retailers’ loyal mobile subscribers, and driving in-store and online sales.

The report is a result of 1,180 campaigns conducted by national retailers, including restaurants and other companies looking to create a deeper level of customer engagement.  The surveys were done over 450 days throughout 2011 and Q1 of 2012.

According to their research, SMS campaigns delivered 6-8x higher engagement rates than retailers typically found through email by executing redemption, data collection, and brand awareness programs.

SMS promotions with fixed timeframes and strong calls to action are key to driving mobile CRM initiatives.  Short SMS content works well – in some cases two messages per week during peak season and four messages per month during non-peak seasons can increase conversions by more than 20 percent.

“Mobile marketing is still in its infancy,” said David Wachs, the SVP of Mobile for ePrize, GM of Cellit. “While retailers engaging in mobile programs are finding tremendous value, only a small number of companies have taken full advantage of this effective marketing mechanism. We released this study to help retailers get a better understanding of what to expect when launching an SMS program, and how to achieve ongoing engagement and success with mobile CRM.”

Mobile databases integrated with marketing initiatives and promotions through in-store, Web, email, print, and social channels like Facebook can lead to strong sales growth. The holiday period increases mobile database conversions by more than 41 percent, according to the study.

“It is crucial for retailers to understand that SMS works differently than email,” Wachs continued. “Although the channels do have some similarities, the differences are substantial and the communication strategies for each should be independent. To gain the most from an SMS program, retailers must integrate SMS into their overall CRM and marketing database instead of treating it as a silo.”

In addition, weekend promotions can yield retailers’ daily average subscribe rate increased to 147 compared to 139 on weekdays.


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