Making the Case for Mobile (Part 2) – Text Message Campaigns

Mobile for RetailPart 2 of Series  (See Part 1  – Mobilizing Your Website Content – Here)

Why is mobile an important part of a business marketing plan?  Because as a fairly new player in the marketing arena, it is incredibly cost effective.  The return on investment for mobile marketing is considerably higher than other traditional marketing because of mobile’s ability to target your interested customers.

Most businesses are comfortable investing their marketing dollars in traditional advertising.  A small business might allocate $160-$200 per month for ad placement in a single media venue that reaches a broad audience.  The broad reach ad premise is that a percentage of people within the media audience will see your ad.  A percentage of those who see the ad will be interested in it, and out of those who are interested, a percentage will take action.  The return on this investment is tracked through sales from new or returning customers responding to that ad placement.  Assuming that 3 or 4 new sales per week are made as a direct result of the traditional broad spectrum ad, the marketing expense  for those 12 customers would be $200 or $16.66 cost per customer.

In comparison, Mobile Marketing text message campaigns are extremely targeted.  A user database can take some time to build, but a good incentive can speed up the process.  With a starting list of 100 interested customers, a weekly business messaging campaign would cost about $60/month but has the potential to return at least the same results of a broad spectrum ad campaign.  In this case, the marketing expense for those same 12 customers would be $60 or $5 cost per customer – just as effective, but at 30% the cost.  Because the messages are targeted to a list of those who have expressed interest, it is likely that the campaign could generate more than double the response, again reducing the cost per customer.


Case Study: Seattle Sun Tan – a 35 location tanning salon located in Washington state.

SeattleSunTan

A recent, first campaign proved to be stunningly profitable.  They set up an attractive initial text offer for $20 off your next purchase when a customer purchased one of their higher value subscription packages.

In the first 30 days, this campaign built a mobile database of nearly 5,000 users, 57% of whom redeemed the offer and generated almost $200,000 in new revenue for the business.

With a starting database of 5,000 mobile users, SeattleSunTan can run additional promotional campaigns through the year and continue to generate a significant return on their investment.


Setting up your mobile marketing campaign has some up-front costs associated ($98 account and keyword; printing of promotional materials, cost of incentive, etc.), but the case for a great potential ROI right out of the gate is still a strong one.

Next week: A Look at PayPerClick Advertising – How it Works and Why it Should be Part of your Marketing Mix.

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Central NY Mobile Marketing builds WordPress websites for businesses and converts web content to mobile optimized format.  Other services include messaging programs through email and text programs, technology solutions for businesses, local search support, custom ad campaign landing pages, online PayPerClick advertising, training and more.  For a FREE CONSULTATION, call 607-643-5680 or email Susan O’Handley at susan@cnymobilemarketing.com