Online stores that chat directly with customers gain 25% retention growth

July 22, 2021 by
Sanne Leenders

Some brands use text messages to speak to their customers build better relationships. This shows to improve retention. The average lifetime value (LTV) rising by as much as 25% when SMS is used for two-way communication.

Nowadays, Facebook and Google advertising costs at an all-time high. Moreover, traditional email marketing are offering poor engagement rates. Ultimately, this causes e-commerce brands to increasingly incorporate SMS dialogue across their customer journeys to scale revenue more sustainably.

Moving buyers from first to second orders

Research from SaaS start-up Blueprint finds that text message conversations move buyers from first to second orders more effectively. Moreover, it reduces subscriber churn, and improves a store’s understanding of what makes customers make multiple purchases.

62% LTV increase

Days Brewing, makers of 0.0% alcohol free beer, even saw a 62% LTV increase from customers engaged via text. This is comparing it to those only contacted through more traditional channels. “The results have been amazing - text messages give you an incredible relationship with the consumer and helps to deliver our growth ambitions,” says Days’ Co-Founder Duncan Keith.

In addition, amongst the participating merchants were refillable cleaning product brand Homethings and vegan protein store Misfits Health, which saw retention increases of 33% and 8% respectively.

Achieving the best possible customer experience

Even with the e-commerce explosion of the last eighteen months, consumer-facing companies remain disconnected from their customers. They often rely on a one-way communication to deliver a clunky purchasing experience. Thus, only by understanding what really makes customers tick can brands truly modernise their customer journeys. Having conversations via SMS can be the most powerful way to achieve that.

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