SMS Marketing Best Practices for Your Loyalty Program

July 11, 2023

Paul

On a mission to help all businesses profit from passes.

Small businesses always search for effective ways to connect with customers and build loyalty in today’s rapidly growing digital landscape.

SMS marketing has become a prevalent and effective tool for this purpose.

You can establish a direct and personalized channel to interact with your customers by leveraging SMS marketing best practices and incorporating well-crafted SMS marketing campaigns.

In this article, we will explore SMS marketing best practices and provide tips on effectively engaging and retaining customers in your loyalty program.

Additionally, we will showcase how PassKit, our customer loyalty software, can assist in distributing digital loyalty cards, coupons or event tickets through text messages.

Let’s delve into the world of SMS marketing and unlock its potential for your business!

What is SMS marketing?

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SMS or text message marketing involves sending promotional messages or updates directly to customers’ mobile devices via SMS (Short Message Service).

Due to its widespread use and almost immediate delivery, texting is a highly efficient and effective method of marketing communication.

What makes SMS marketing campaigns effective

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SMS marketing campaigns are highly effective in capturing customer attention. Here are three additional factors for their popularity:

High open rates: Unlike email marketing, where messages can get lost in overflowing inboxes, SMS messages have significantly higher open rates. Research suggests that the average open rate for sms marketing messages is 98%, making them a valuable tool for time-sensitive promotions.
Immediate delivery: You can reach your customers instantly with an SMS marketing campaign. This real-time communication lets you deliver timely information, exclusive offers, and urgent updates directly to your customers’ mobile devices.
Direct and personalized communication: SMS messages allow for a more personal and direct connection with your customers. By addressing them by name and tailoring messages to their preferences, you can create a personalized customer experience and strengthen consumer relationships.

SMS marketing helps you significantly impact your buyers and achieve your marketing and sales goals faster.

What is PassKit?

If you’re looking to design loyalty programs with digital membership cards, coupons, or digital tickets for mobile wallet platforms such as Apple and Google Wallets, PassKit is the top customer loyalty software to use.

Storing and accessing loyalty customer cards or passes on mobile devices is now easy for consumers. It’s a handy and eco-friendly alternative that eliminates the need for physical cards and enables contactless transactions.

Compared to standard SMS marketing software, our innovative solution provides convenience, flexibility, and a modern approach to managing customer incentive programs, improving the overall customer experience.

Start a 45-day trial to evaluate all features.

How PassKit amplifies your SMS marketing strategy

PassKit amplifies your SMS marketing strategy in several ways:

Easy pass distribution and multichannel approach: PassKit makes it effortless to send loyalty business cards and digital passes to customers through SMS message, email, website, social media, or other digital channels. Customers can easily store their cards in their mobile wallets with just one tap on the link and use them with their mobile devices whenever at your business location.
Personalized and targeted SMS messages: With PassKit, you can significantly boost engagement and create a more personalized customer experience by tailoring messages based on the preferences and behaviour of your target audience.
Instant SMS notifications: You can send instant messages or reminders to customers regarding new rewards, program updates, point balances, and special promotions. It ensures that customers are promptly informed about important offers, increasing their participation.
Data collection: By analyzing loyalty program data, you can gain insights into customer needs, define the most used mobile wallets, track their interactions with the passes, evaluate the best distribution sources and refine your marketing strategies accordingly.
Connected customer experience: PassKit provides a connected customer experience by seamlessly integrating passes with other marketing channels. It ensures that customers receive consistent messaging and experiences across all brand touchpoints, enhancing their overall journey with your business.
Real-time performance monitoring: With PassKit, you can instantly update passes and closely track performance metrics to optimize your marketing efforts.
Integration with popular apps: PassKit integrates with various apps such as Salesforce, Zoho CRM, Marketo, WooCommerce, ActiveCampaign, and Emarsys. It allows for seamless workflows and improved campaign management.

These features enhance your SMS campaigns, increasing engagement, customer loyalty, and overall marketing success.

After showing why PassKit is the ideal loyalty program solution, let’s explore some SMS marketing tips to enhance your results.

SMS marketing best practices for boosting your loyalty program

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From delivering targeted messages to leveraging real-time data, these practices will empower you to create a loyalty program that stands out and resonates with your customers.

Let’s explore how to enhance the effectiveness of your program with SMS marketing.

Regularly communicate program updates

It includes updates on new rewards, exclusive offers, and any changes to the program structure. Consistent communication helps to sustain customer interest and boost their participation.

Promote exclusive rewards

Consider offering exclusive rewards such as limited-time offers, discounts, or early access to new products or services. It will incentivize customers to stay committed to your brand.

Send personalized updates

For SMS marketing to be effective, personalization is crucial. You can achieve this by customizing your SMS campaign to suit each customer’s preferences, purchase history, or location. It helps you show that you value their loyalty and are keen on meeting their needs.

Celebrate customer milestones

Acknowledging and praising your customers’ milestones, like their membership anniversary or reaching a specific point threshold, is important.

Consider using SMS as a marketing channel to send them a congratulatory message with a special reward or discount they can easily store in their mobile wallet.

It helps to foster continued loyalty and strengthens customer relationships.

Exclusive pre-sales or early access

As an SMS marketing example, send customers a sneak peek or a limited-time opportunity to purchase before the general public. It makes them feel respected and creates excitement and expectation around your brand.

Provide exclusive event invitations

If your business hosts special events, such as product launches, workshops, or VIP gatherings, use SMS marketing to extend exclusive invitations to your loyal customers. It gives them a unique chance to connect with your brand more personally.

Limited-time loyalty bonuses

Occasionally surprise your loyal customers with limited-time loyalty bonuses. For example, offer double points for a specific period or a bonus reward for completed purchases.

These time-sensitive offers create a sense of urgency and motivate customers to engage with your loyalty program.

Leverage location-based offers

Harness the power of location-based marketing by sending SMS messages with exclusive offers when customers are near your physical store or a specific location.

This targeted approach increases the relevance of your promotions and encourages customers to visit your store or purchase.

Gamify the loyalty experience

For example, introduce challenges, quizzes, or competitions where customers can earn extra rewards or points. This interactive approach adds excitement to the loyalty experience and encourages customers to participate and earn more rewards.

Remind about expiring rewards

Send timely reminders to your customers about expiring rewards or points. This gentle nudge prompts them to take action and redeem their rewards. By keeping your customers informed, you ensure they get all your loyalty program’s benefits.

Re-engage inactive members

Identify and segment inactive members of your loyalty program and send them personalized SMS messages to re-engage them.

Offer an exclusive incentive, such as a bonus reward or a special discount, to encourage them to become active participants again.

This targeted approach helps you reactivate dormant customers and strengthens their loyalty to your brand.

Send personalized birthday offers

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Make your customers’ birthdays special by sending them personalized SMS messages with exclusive birthday offers. Offer a discount, a gift, or extra loyalty points as a birthday surprise. This thoughtful gesture shows you value your customers and increase their happiness with your loyalty program.

By distributing a digital coupon using SMS, your customers can save this offer in Apple or Google Wallet. They can quickly redeem the coupon, without any Point of Sale (POS) integration, using PassKit’s Customer Initiated Redemption solution.

You’ll be able to calculate the effectiveness of your SMS marketing quickly, from sending the SMS to using the coupon in your store.

Provide referral incentives

Inspire your loyal customers to promote your business by offering referral incentives. Send SMS messages with a unique referral code or link, which customers can share with friends and family.

Reward the referrer and the referred customer with exclusive benefits, such as bonus rewards or discounts, when the referral succeeds.

Create VIP tiers

Consider creating VIP tiers in your loyalty program to show appreciation to your loyal customers.

You can categorize your customers based on their purchase frequency, total spending, or engagement level and provide exclusive rewards to those in higher tiers.

Keep your VIP customers up-to-date by sending them SMS messages about their upgraded status and the additional benefits they can take advantage of.

Seamless redemption process

Ensure that the redemption process for your loyalty program is seamless and user-friendly. When customers receive SMS messages with rewards or discounts, provide clear instructions on how to redeem them.

Consider integrating PassKit into your SMS marketing strategy to simplify the redemption process.

With PassKit, customers can easily access and redeem their rewards directly from their mobile devices, eliminating friction and enhancing the overall user experience.

All you need to do is start a 45-day free trial to access our platform.

SMS marketing best practices: Wrapping up

In this article, we have explored a range of best practices for leveraging SMS marketing to boost your customer loyalty program. By implementing these strategies, you can create a more personalized and engaging customer experience, ultimately driving higher loyalty and repeat business.

Among the various tools available, PassKit stands out as the best digital membership card app for amplifying your SMS marketing efforts and enhancing your rewards program for small business.

With PassKit, you can quickly provide customers with single-tap access to the latest version of their passes, deliver personalized and targeted SMS messages, and instantly notify them about new rewards, program updates, and special promotions.

PassKit allows you to collect valuable data on customer behavior and preferences, enabling you to refine your marketing strategies and provide a connected customer experience.

PassKit’s integration with popular apps like Salesforce, Zoho CRM, Marketo, WooCommerce, ActiveCampaign, and Emarsys further boosts your marketing efforts by leveraging the capabilities of these platforms.

Using PassKit’s powerful features and capabilities, you can maximize the impact of your SMS marketing campaigns and loyalty programs, fostering stronger customer relationships and driving long-term loyalty.

FAQs about SMS marketing best practices

Let’s answer some of the commonly asked questions about SMS marketing.

How to use SMS marketing effectively?

To use SMS marketing effectively, follow these essential guidelines:

Ensure you have permission from recipients to send them SMS messages
Craft concise and impactful messages that provide value or incentives to engage customers
Personalize messages based on customer preferences and behavior
Utilize a clear call-to-action to prompt desired responses
Timing is crucial, so send messages at appropriate times to avoid inconveniencing recipients
Track and analyze campaign performance to refine future strategies
Integrate SMS marketing with other channels for a cohesive customer experience

By following these practices, you can leverage the power of SMS marketing to connect with customers, drive engagement, and achieve marketing success.

What are the best practices for text messages frequency?

Finding the right frequency for SMS marketing is crucial to maintaining a positive customer experience while maximizing engagement. Here are some best practices:

Respect customer preferences: Give customers the option to choose their preferred frequency of SMS communications during the opt-in process. It allows you to align your frequency with their expectations.
Be mindful of timing: Consider your target audience’s time zones and daily routines. To avoid disturbing recipients, it’s best to refrain from sending messages too early in the morning or late at night.
Balance frequency and relevance: Strive for a balance between sending enough messages to stay top-of-mind and not overwhelming recipients. Focus on sending relevant and valuable content rather than bombarding customers with frequent, generic messages.
Segment your audience: Tailor your SMS frequency based on customer segments. Some customers prefer more frequent updates, while others prefer less regular communications.
Test and analyze: Regularly monitor the response rates, opt-outs, and feedback from your SMS campaigns. Analyze the data to identify patterns and adjust your frequency accordingly. A/B testing can also help determine the optimal frequency for your specific audience.
Be adaptable: Customer preferences and behavior may change over time, so regularly review and adapt your strategy to ensure it aligns with evolving customer expectations.

By following these best practices, you can strike the right balance in SMS marketing frequency, keeping customers engaged without overwhelming them and ultimately driving better campaign results.

How to generate leads with SMS messages?

To generate leads with an SMS marketing platform, use opt-in forms to collect phone numbers, offer incentives for signing up, and create compelling and concise messages that encourage action.

Include clear calls-to-action and track campaign performance to optimize lead generation strategies. Personalize messages and segment your audience for better targeting.

What is the weakness of SMS marketing?

One weakness of SMS marketing is its limited space for content. Converting complex or detailed information can be challenging with a maximum character limit per message.

Additionally, some customers may perceive SMS marketing as intrusive if improperly executed, leading to opt-outs or negative brand perception.