Improve loyalty with SMS in eCommerce

In the competitive world of e-commerce, customer loyalty plays a crucial role in the success of any online business. The ability to retain and cultivate strong relationships with existing customers not only increases profitability, but also generates positive referrals and establishes a solid base of loyal shoppers. 

In this article, we will explain the best use cases for implementing effective loyalty strategies, generating significant results in terms of growth and sustainable success.

Why is eCommerce loyalty important?

Customer loyalty in eCommerce is essential for several reasons:

1.Long-term profitability: It is more profitable to keep existing customers than to acquire new ones. According to studies, the cost of acquiring a new customer can be up to five times higher than retaining an existing one. In addition, loyal customers tend to spend more on average, which further contributes to business profitability.

2.Recommendations and referrals: Satisfied customers are more likely to recommend an online business to their friends, family and acquaintances. These recommendations can generate a positive word-of-mouth effect that can attract new customers organically and generate sustainable growth.

3.Lifetime value of the customer: A loyal customer has the potential to generate ongoing revenue over time. By building a strong relationship with customers, a bond is created that keeps them engaged with the brand and increases the likelihood of repeat purchases in the future.

4.Competitive differentiation: In a market saturated with options, customer loyalty can be a key differentiator. Offering a personalized, customer-centric experience can stand out from the competition and create added value that customers appreciate and seek.

5.Valuable feedback: Loyal customers are more likely to provide honest comments and opinions about the products, services and experiences offered by an online business. This feedback can be invaluable in improving and optimizing the company’s offerings, which in turn increases customer satisfaction and strengthens customer loyalty.

Important aspects of loyalty

1.Database segmentation: It is essential to segment the customer database according to different criteria, such as demographics, purchasing behavior, preferences and loyalty level. This allows sending personalized and relevant messages to each segment, increasing the effectiveness of communications.

• Personal data to personalize the message: Collecting personal data, such as name, gender and birthday, allows loyalty messages to be personalized, creating a closer and more personal experience for the customer.
• Contact channels and methods: It is important to use a variety of contact channels, such as email, text messages, social media and push notifications.
• Geographic data: Adapt messages to culture, language or time zone.
• Order history data and products purchased: Allow you to offer personalized recommendations, exclusive discounts or loyalty programs based on the customer’s interests and preferences.
• Interest data: Knowing the specific interests of each customer provides the opportunity to send relevant content, such as news, articles or related promotions, that increase their engagement and participation with the brand.
• Information on how a customer has met us: Knowing how a customer has met the brand or eCommerce can help you understand which acquisition strategies work best and tailor communications accordingly.
• Incident or support ticket information: Having access to customer incident or support ticket information allows you to provide a more efficient and personalized service, solving problems quickly and satisfactorily.

2.Updated data and detection of erroneous messages: It is essential to keep customer data updated and avoid sending erroneous or irrelevant messages. Regular database cleaning and verification of information ensures accurate and effective communication.

3.Clear and accessible unsubscribe methods: Providing clear and simple options for customers to unsubscribe from communications is essential to respect their privacy and prevent them from being overwhelmed by unwanted messages.

4.Choice of communication channel: Allowing customers to choose their preferred communication channel increases the likelihood that they will interact and engage with loyalty messages.

5.Activation/deactivation of different communications: Offering the option to activate or deactivate different types of communications allows customers to personalize their experience and receive only the information they deem relevant.

Cases of SMS use in eCommerce customer loyalty

Use the SMS channel to communicate directly with your users. You make sure that the information reaches them instantly and they see it. This leads them to click on the message and end up buying from your online store.

Some examples of successful SMS:

• Personalized promotion

1. 1. 1. Birthday greeting with discount coupon
      2. Creation of a VIP club with private sale and special discounts.
      3. Sending SMS with attachments or links to catalogs, top products, special landings, launchings, etc.

• Incidents

1. 1. 1. Sending SMS when answering or resolving any ticket or incident case. With a link you will be able to consult the case or answer immediately.
      2. Bonus if a customer has had an incident (in the purchase process, in the delivery, lack of stock, etc.).

• Support

1. 1. 1. Sending the manual, assembly instructions or maintenance guide by SMS.
      2. Sending of invoice or proof of payment.
      3. In case of not contacting the customer, sending SMS: “We are trying to contact you, please contact us urgently at…”.

• Feedback

1. 1. Request for rating or feedback: send a link in SmS where a form opens with the option of review or number of stars.
   2. Send SMS satisfaction surveys with an online form.
   3. Reward recommendations from other users

• Purchase process

1. 1. Offers on accessories, consumables, or complementary products.
   2. Discounts on subsequent purchases
   3. In the case of recurring purchases, schedule the purchase and send an SMS before and after confirming the order.
   4. Facilitate and inform about the return process

Customer loyalty in eCommerce is a key factor for long-term success and profitability. By focusing on building strong, personalized, customer-centric relationships, companies can cultivate a loyal customer base that generates sustainable revenue and acts as brand advocates. 

The strategic use of SMS in eCommerce customer loyalty can improve communication, strengthen customer relationships and increase engagement and sales over the long term.

At LabsMobile we have been integrating the SMS channel for more than 13 years and we have many customers using SMS messages in their eCommerce. We will be happy to help you and explain how to best use SMS communication in your eCommerce, contact us! Tell us about your case and we are sure that in a few weeks your loyalty and conversion metrics will improve.