According to the latest SMS marketing statistics, SMS campaigns have over 7 times greater performance than email marketing campaigns. In the United States, approximately 50% of consumers make direct purchases after receiving a branded SMS, QR code or discount coupon.
Why is SMS so effective? It’s because it is an immediate way to reach target customers, given the fact that people nowadays don’t go anywhere without their smartphones, not even to bed. While email remains an excellent channel for communicating with your target audience, not everyone checks their email frequently. The same goes for social media.
On the other hand, SMS has a 98% open-rate, which is why SMS is one of the best ways for grabbing the attention of your consumers. However, in order to run smart SMS marketing campaigns, you need to know how to properly segment your list first, that is, the list of your SMS recipients.
Why Is List Segmentation So Significant?
Segmenting your text message marketing list, that is, dividing it into groups, will enable you to tailor your messages for each group of your recipients, providing all of them with relevant content that will actually interest them. You will be able to focus your messages on the needs of all your recipients and instantly engage each and every one of them, effectively taking your communication with them to a level with higher potential.
Otherwise, your campaigns would end up being generic and irrelevant to most of your SMS recipients, so you would only waste your time, money and effort and not generate a positive ROI. Sending the same text messages to all of your recipients is a surefire way to failure because not all of them have the same needs. If you don’t target them with customized messages, they will eventually opt out.
Therefore, after you build your SMS marketing list, you should segment it in order to capture the attention of all your recipients and effectively convert them into customers. Use the following criteria to divide your SMS list into groups that you can easily target.
Geolocation targeting is a very important factor to consider when segmenting your SMS list because it can help you target consumers in particular locations. People generally prefer buying products from the nearest stores, so you should definitely use that to your advantage.
There’s no point in sending SMS texts that promote a one-day event in your San Diego store to people located in New York, for instance. By using a geolocation filter to segment your list, you can target the people located in the same geographic area as your store, so your efforts will be much more effective.
What will greatly help you reach your target customers when they’re in the proximity of your store are beacons. They are small devices that send location-based notifications to smartphones and tablets when they detect them in the vicinity.
Starbucks does a great job with geo-targeting, sending personalized messages to their customers when they’re nearby.
“Hi, Sam! You are near 1011 Market St. Currently
50% off on your favorite drink: Vanilla Latte!”
Demographics greatly affect consumer behavior, so you should have in mind your recipients’ gender, age, lifestyle and other factors that you may find relevant to your marketing campaign.
When it comes to gender, you certainly know that men and women don’t have the same needs for every product. They actually have very specific needs when it comes to most of the products, so sending different text messages to those two groups will yield a positive ROI.
The same goes for different age groups. What millennials want doesn’t exactly match what baby boomers want. For instance, an Instagram competition isn’t something that baby boomers would be interested in, so promotional SMS texts for such an offer would be effective only if you segment your list using age. Keeping that in mind will help you turn your every SMS campaign into an effective one.
If you want to use lifestyle as one of the factors for SMS list segmentation, you need to profile your recipients first, which can be easily done by sending them a questionnaire to fill in. You can send a simple SMS stating that you would like to get to know the recipient better in order to send them offers tailored to their preferences. You can offer them a discount for filling in the questionnaire and instantly engage them.
Consumer behavior is one of the most important factors to consider when it comes to market segmentation. For instance, you can use the behavior of your website visitors to segment your text message marketing list. Gathering information regarding what pages they have visited and what products they found interesting can help you send offers that will capture their attention.
You can also use your customers’ purchase history and purchase frequency for your market segmentation. You can keep your regular customers engaged by frequently sending them promotional offers with limited discounts, while you can attract those customers who are not frequent buyers by offering them bigger discounts on their next purchase.
As you can see, SMS marketing list segmentation is paramount for running smart and effective campaigns, so be sure to use the aforementioned criteria to segment your list and instantly engage every single one of your recipients. Follow these tips and engage all your segments with relevant SMS messages that will keep them coming back for more.
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