A must-read for operators: What is the conversion rate of attracting new customers through SMS?

SMS marketing is the standard for notifications of e-commerce activities. What is its current reach rate? What is the actual ROI of marketing conversion achieved through SMS?

“SMS Marketing/ New Customer Conversion Rate ”

The above phrases are the keywords I typed when searching for reference values ​​of SMS conversion on the Internet. Because I have been doing SMS marketing recently, I am particularly curious about it. SMS marketing is now the standard for notifications of e-commerce activities. What is the current reach rate? What is the actual ROI of marketing conversion achieved through SMS?

I wanted to find some reference values ​​on the Internet, but unfortunately, I didn’t find any. There are many people who share how to send text messages, but few people share specific conversion data.

After more than half a year of data accumulation, I have formed a basically stable data pattern , which I would like to share with you so that other friends can use it as a reference when doing SMS marketing.

What is the purpose of SMS marketing?

Guide users to download the APP through SMS. Due to different purposes, the data shared below is only for guiding users to download the APP through SMS, not e-commerce sales conversion.

What is the background of SMS marketing?

We already have data on user portraits , purchase preferences, etc. We are now guiding known target users to a new APP via text messages, with the benefit of redeeming points.

Advantages: Attract members to download and register by providing membership benefits, and the membership benefits are mainly points redemption.

Disadvantages:

1. The redemption threshold for points is high. Customers need to spend 700 yuan to reach the redemption threshold, while the average user spends around 200 yuan.
2. SMS marketing is becoming less and less accepted by users, the SMS reading rate continues to decline, and SMS marketing has become synonymous with spam.
3. The threshold for downloading APP is high, and the click rate of links built into text messages is low . (Risks such as fraudulent text messages, some users will not click on the links in text messages)

What is the SMS conversion rate?

Regular SMS contact:

SMS content: copy + download link. The conversion rate of clicking the SMS link is 27%, that is, out of 100 SMS messages sent, the links in 27 SMS messages are clicked. The download-to-registration conversion rate is 8% , which means that after sending 100 text messages, 8 people eventually download and register the APP.

Special event SMS reach:

SMS content: copy + H5 link; click the link to enter H5, and download the APP through H5 interaction. The link click conversion rate of this model is 16% (this data still has room for improvement and can be increased to 27%).

The conversion rate for receiving rewards by clicking on the link is 32% , so if you are doing activities such as distributing coupons or benefits, you can refer to this number. However, after receiving the reward, the conversion rate of downloading and registering the APP is still 8% . After repeated tests, the value has remained around 8% many times.

2 key data

• Click-through rate of links in SMS: up to 27%, generally 16%, and as low as 9% (9% value comes from the CRM department); in actual scenarios, the conversion rate of users who see the SMS should be higher than this value;
• APP download registration conversion rate: about 8%, usually about 5%, and the lowest is about 1.9%; after consulting some SMS service providers, this conversion rate is around a few thousandths. This data cannot be verified, so it is for reference only.

There are three critical steps in guiding users to download APP via SMS: the first step is to let users see the SMS, the second step is to let users click on the link, and the third step is to realize the download.

The first two steps are closely related to the content and timing of the text message, while the last step is directly proportional to the benefits you can provide to users. (The benefit we use is 10g trial pack)

If your text message is an H5, the participation rate of the H5 activity is 80% , which depends on the difficulty of your H5 activity. Secondly, H5 is used as a buffer to guide users to download the APP, and the final conversion rate is still around 8%.

What time is best for sending text messages?

Working days: 10:00-21:00-12:00

We tested sending text messages at night because the peak time for users to play with their phones is at night. However, overall, the data performance was not high. On the contrary, the data performance at 10 o'clock in the morning was very good (around working hours, when users are relatively freer).

Weekends: 6:00 is the best time , targeting young customers, most of whom browse their phones while lying in bed in the morning.

Double 11: around 8:00 is the best time.

The peak period for text messages on Double 11 starts at 15:00 on the 10th and lasts until the evening. Mobile phones keep ringing with text messages. The consequence of merchants sending messages together is that users give up reading the content, so sending messages during the peak period will result in a higher reading rate. (This method was verified during last year’s Double Eleven , and the data performance was relatively good)

Is it necessary to group users?

The answer to this question is: It is absolutely necessary . We sent text messages to a group of users, and the content of the text messages was subdivided into more than 20 different types of copywriting.

Regarding the target user group: segment, segment and segment again.

In today's environment, if SMS marketing wants to achieve a higher conversion rate, it can only continue to segment the population from multiple angles. Segmenting by user life cycle or membership level is one way, and segmenting by user shopping preferences is another way...

In a word, you should make the user feel that your text messages are valuable to her, rather than a form of harassment. (It is easier said than done, please think from their perspective)

How to edit SMS content?

Among the three text messages above, which one would you click to read?

When it comes to editing text message content, the key is to “put yourself in other people’s shoes” . The core of text messages is still information notification, not advertising marketing. Think about what text messages you read on a daily basis, and the same goes for your users. (Merchants inform users of promotional activities through text messages, minimizing the marketing feel and making it notification-style)

The content of the text message should speak human language. This is the same principle as writing selling point copy. What is good is what users need.

There are two scenarios here:

• First, when a mobile phone receives a text message, the screen lights up and displays part of the text message content. You need to present your core attraction as much as possible in this text to attract users.
• The second is that when the user clicks into the SMS list, the first short paragraph of text should be able to clearly convey the benefits. As for your theme or something, users really don’t care.

If possible, the signature is placed at the end, why?

Many companies are reluctant to put the signature at the end and insist on putting their brand signature at the front. But for the user, if you send her advertising information every now and then, as soon as she sees your signature, she will know it is another advertisement. Will she still click to read it?

So by removing the labels and putting the interest points in front, your open rate may be further improved.

Summary

Okay, that’s all for today’s sharing. I hope it can be of some help to you.