There’s usually two things on any business owner’s mind:
- Decreasing or controlling expenses and debts and
- Increasing sales and cash flow
Let’s talk about how SMS, as a tool, can help:
Making sales your business
Some businesses can’t help but excel at selling themselves. Their sales are out the door, they’re constantly sold out and customers eagerly demand more and more and more. Knowing how successfully your business can generate sales and diversify other streams of income is critical. While this won’t give you the full picture of your financial viability, it is certainly a fundamental strength to build.
1. Tap customer growth opportunities
When marketing is done right, it can boost sales, increase revenue and create a solid customer base. It is an integral ingredient for continued success.
The trouble is marketing budgets can be complex and cumbersome, and the results are sometimes less than impressive. When you look at its contribution to your growth, it can seem more trouble than it’s worth.
That’s where bulk SMS marketing can help.
New tools often have high up-front costs, require time to recoup investment and are too complex or sophisticated to use. Due to the universality and familiarity of SMS, mobile marketing strategies are a far superior choice on a cost-by-cost basis. SMS also entails fewer maintenance costs and allows for a direct line to reach your customers.
CASE STUDY: Recently a new ecommerce company came to us wanting to bring mobile marketing into their mix. Their sales were unparalleled within their niche industry. Apparel lines were consistently sold out within minutes of launch thanks in part to clever SMS-driven promotional offers.
They were still insistent, however, that their business was still leaving money on the table. While ¼ customers visiting their website were able to make a purchase, the others were left unhappy and empty-handed.
To make sure those customers kept coming back, the company set up SMS subscriptions on sold-out product pages. The text reminders would let customers know as soon as that item was restocked, re-igniting the rush to buy again.
Not only did this work in drawing back repeat customers, it also helped to build their customer database. Encouraging customers to exchange information, even prior to a purchase, helps improve collection and segmentation of customer data.
RELATED: Check out our 19 easy ways to build your customer database.
2. Keep cash coming
‘Cash is king’ so helping your business keep a regular cash flow will protect it in the long run. A lack of cash flow can prove fatal to even the most robust of business models.
That’s where payment reminders can help, offering a simple tool for reminding customers and suppliers before their bill due dates. Additionally, automated follow-up reminders can also be programmed if a payment is late by a certain number of days.
CASE STUDY: Fintech business Jacaranda Finance offers a digital platform to prospective millennial borrowers who need immediate access to cash. When trying to automate their system for better streamlined communications, those on manual plans remained a problem. These borrowers regularly did not meet payments on their due dates.
That’s where text messaging services through MessageMedia helped to alleviate the issue. By integrating our API into their system, they were able to set up automatic SMS reminders for those borrowers. A few days before, borrowers would get an SMS reminding them about their upcoming payment.
These text messages were completely automated and required no added work by Jacaranda staff besides its initial set up. As a result, there was a 66.6% increase in clients paying on-time.
RELATED: Find out how else a bulk SMS service helped Jacaranda Finance deliver a better customer experience.
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Getting expenses under control
No matter how much you might sell or make, you may still find yourself struggling to grow. This often means that your costs and deductions are unmanageable. If your expenses exceed your profit, you are likely to go the way of many other failed businesses.
3. Reduce inefficiencies
Time is money. Inefficiencies cost companies their competitive edge, extra sales and are a waste of resources. One of the most frustrating situations for a service-based venue is the cost of no-shows. When a client forgets or just doesn’t show up, you’re costing a business:
- Employee’s time and salary
- Customer revenue
- Administrative and operational expenses
- Cost of a prospective customer
Using business text messaging can help you reduce these external frictions. By using automation and integration, SMS services can be easily added to improve workflows and to streamline communications.
CASE STUDY: A US telecommunications provider was finding themselves inundated with phone calls every time a planned outage occurred. Emails had been sent out prior to the outage pre-warning customers but the emails weren’t being received or read .
By switching out manual emails with automated SMS messages, customers stopped calling. In fact, it saved their customer representatives between 2 – 8 hours per week, giving support staff time back to allocate their resources and efforts on more important technical issues and queries.
RELATED: Find out how you can use SMS-based conversational messaging to enhance customer experience for your business.
4. Decrease costs
SMS is affordable for the biggest enterprises to the leanest, micro businesses. In many cases, it drives a high ROI (return on investment) in comparison to its first investment. Businesses often find themselves recouping their SMS costs by their first campaign.
Whie there are many benefits of SMS marketing, we’re not recommending that text messaging be your only tool. In fact, text messaging works optimally when combined with other mediums as part of a larger omnichannel strategy. Using it alone may only stifle business communication efforts from their full potential.
Where it can help is in driving an innovative edge or costs down for the very customers that you serve.
CASE STUDY: i4Tradies is a business management platform for trade services businesses throughout Australia. One of their main goals is to help customers as well as trade businesses streamline operational challenges through technological advancement.
When COVID hit in early 2020, there was an 80% drop in jobs for trade service businesses. Consumers were reluctant to book a tradie because of the added stress of hiring during a pandemic. In comparison, trade service businesses were suddenly without work and regular cashflow.
i4Tradies saw an opportunity to create a new streamlined system that would help solve these problems on both ends. They created an SMS hotline that allowed customers to simply text in their problem and location. i4Tradies could then use their considerable network to arrange a tradesperson on their behalf.
On the other end, trades businesses could sign up to their lead generation platform connected to the hotline. The platform would immediately alert local tradespeople when new jobs requiring their expertise became available. Trade services businesses saw the biggest results with lead acquisition costs dropping by 35%.
RELATED: See the full step-by-step of i4Tradies automated SMS system.
Final thoughts, further reading
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As more and more use case studies are developing every day, SMS continues to prove a versatile, cost-effective business tool. Talk to us if you are interested in finding out how you can use SMS to drive the growth that you need today.
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