How to Choose the Incentive for Your SMS Marketing Opt-In Campaign
When you’re just starting out an SMS campaign, the main dilemma is what to use for an opt in. If it’s too “small” an offer, no one will bother. If it’s too “big”, then you might get lots of people who opt in, then opt out.
It reminds me of Goldilocks and the Three Bears. Daddy’s things were way too big and didn’t suit the child. While Mummy’s things weren’t quite right either. What you want to do for your offer is to find the “just right” size. The trouble is your customer is Goldilocks, and you won’t know what offer they like until you give them one, or a few, to try.
You may think it’s incredibly difficult and expensive to test out multiple offers. But it doesn’t have to be. Let’s say you go big (like Daddy’s bed). Your offer generates lots of opt ins, and then people opt out. That might not be so bad. I’ve found some evidence that says that the large incentive opt out rates only run 2-6%. That equates to just a few per hundred opt ins. While I’m not convinced that number holds true for most campaigns (as the source used a limited data set), it is a good starting place.
At the very least, it offers some evidence that going with an incredible (e.g. “Big”) initial opt in offer could be what Goldilocks, I mean your customer, wants.
Try It and See
Assuming you want to grow your list fast, create an amazing offer and see what happens. If your unsubscribe rate is too high, then you know it was Daddy size and not right for your customers (or rather, great for your customers, but not great for growing your list). But at least you hopefully made some money on that single promotion, even if your list size didn’t stay as big as you wanted it to.
Next, try something a little “smaller” like Mummy’s chair or bed (am I taking the analogy too far yet?). If you hit the sweet spot, you’ll likely get people on your list who will stick around and love your brand, product or service. And they’ll also be more likely take action on future messages.
Ideas To Get You Started
If you’re convinced you should start with a big incentive, you might still be wondering what that will be. So here are some ideas to help you narrow down your choices:
- What was the best promotion you ever ran? Could you use that exact offer again, just for people who sign up to your SMS list? If that’s not possible, maybe you can offer something that’s similar enough to draw people in.
- Make a list of the most popular offers you already run in other channels. You can take one of those directly, but consider tweaking it to be just a little better and more exclusive to your SMS list.
- Ask your customers. Send a survey out via other channels – email, or social media – and simply ask them what they’d expect in exchange for their mobile number. This is the best place to start if you have no idea what your customers actually like, or measurements on your other promotion’s performance. The bonus here is you might find out more information that you can use across in other aspects of your business, such as customer service or product development.
Once you decide on your offer and have it advertised anywhere and everywhere you can (but nowhere it can’t be easily changed), don’t get too complacent. Make sure you get right in there and check redemption rates, click through rates, and the unsubscribe rate. Make adjustments based on the results and keep on going. SMS marketing offers one of the highest ROIs you’ll find in mobile marketing – once you find what Goldilocks likes best.
Related Articles
6 SMS Marketing Faux Pas To Avoid
SMS marketing can be an incredibly useful tool for successful mobile marketing campaigns. However, it is not without its pitfalls. We have compiled a list of six of the worst SMS mobile marketing faux pas, so that you can avoid them and text your way to marketing success.
5 Marketing Trends That Matter for SMS in 2018
The Ultimate Guide to SMS Marketing for Small Businesses
SMS marketing or short messaging service marketing is swiftly gaining popularity all over the world. Using text messages for business purposes is convenient and quick. It's also extremely cost-effective when compared to other methods of communication. When used correctly, an SMS marketing campaign can do wonders for your business reputation, not to mention your profits.
5 Ways Restaurants can use SMS Marketing for a Festive Full House
6 Ways to Get Results, and Not Annoy People, with SMS Marketing
Using SMS marketing is one highly effective way to maintain relationships with mobile users, but there's an incredibly fine line between engaging with someone and annoying them to such an extent that they swiftly delete your marketing messages and never want to hear from you again. Here's 6 things to keep in mind to make sure you don't annoy your subscribers.
The Biggest Lie in SMS Marketing
Have you seen articles telling you SMS marketing can’t be used to acquire new customers? Or that it isn’t a good way to so? Don’t believe them. You just have to know how to use SMS to get new people to sign up for your list. Read on to find out how.
One Simple Trick Can Boost Your SMS Marketing
SMS marketing offers the ability to send time-sensitive offers to your best customers. But are you missing out on the potential of your own brand in your offers? Read this post to see an example of how a simple trick can potentially boost your results.
Email and SMS Marketing are a Perfect Pair
Businesses with limited staff or budgets might ask themselves whether they should use email or SMS marketing. Both are relatively low cost. Both offer the ability to reach many people at the same time, yet provide personal interaction. Both have a long history of being used for marketing.
Why SMS Marketing is Like Facebook Marketing, But Better
Facebook is a popular place. According to Statista, they had 1.44 billion active users in the first quarter of 2015. It’s no wonder then that businesses are flocking to advertise there. But big isn’t always better. SMS marketing is similar in many respects to Facebook advertising, and for some uses it is actually better. Let me explain and see if you agree.
8 Ways Domino’s Use SMS Marketing To Increase Sales
This article presents a detailed case study on how SMS marketing is used effectively by Domino's Pizza. Learn about the eight things they excel in that lead to outstanding results in building brand loyalty and generating orders. Great chance to learn from a market leader.