Engage your Customers with SMS Loyalty & Rewards Programs

3 minute read

Team Mobile Messaging

You know how vital your subscribers are to your business, but how often do you show that appreciation to your subscribers themselves? Mobile apps are a great and common way to build brand loyalty and affinity, and can work really well alongside a rewards program. However, for brands that are not ready to double down on an app development project, there are many ways to create loyalty through the power of SMS marketing.

Extending your loyalty and rewards programs to your SMS channel is a fantastic way to keep your biggest fans engaged with your brand because 95% of texts from businesses are read within 3 minutes of being sent, and SMS marketing boasts an impressive 90%+ open rate. It’s one channel that almost guarantees you getting your message to the customer – fast!

An SMS loyalty program can reward subscribers for taking many different actions. A clever use of SMS is to notify subscribers when they earn points for purchases they make. By alerting them with a text message and link to your website, or by updating a Mobile Wallet Pass that can be redeemed in-store, you can provide an app-like experience quickly and easily, which encourages repeat purchases and drives loyalty. The added benefit is that you can then engage in two-way conversations to also answer questions they might have about a potential purchase. Think of it as a personal concierge for your customers to make them feel special and increase your chances of a purchase.

Mobile wallet passes are on the rise, with many brands now converting their traditional reward programs over to SMS, and using mobile wallets as a cheaper, more economical and real-time way to keep members, customers and supporters up-to-date. Not only can they be updated and managed by the marketer, but app-style notifications can be triggered through the wallet pass too, keeping your happy customers informed when there are new deals to be had, or important messages to be read.

Case Study: Specialty home goods retailer experience 20x increase in reward redemptions with automated SMS

A national home goods retailer was looking for a way to increase enrollment in their loyalty program, raise the average order value (AOV) of loyalty members, and boost the redemption rates of loyalty rewards.

First, the retailer created segmented lists of users based on purchase history, shopping preferences, and contact preferences. Then the business sent a multi-channel campaign of tailored email and personalized SMS messages to these lists, asking them to enroll in the loyalty program. Based on their actions, loyalty club members received triggered reward messages in real-time.

The campaign brought in over $30m in incremental annual revenue. The retailer also saw a 20x increase in reward redemptions once they automated their messages.

This is a snippet of our eBook, 5 Proven Tactics to Improve Customer Engagement with SMS. Download your free copy today to get even more tips for using SMS including customer loyalty programs, mobile wallets, and re-engagement campaigns!

If you’d like to understand more about how Upland Mobile Messaging combines SMS, MMS and mobile wallet passes to drive loyalty programs for our customers, then request a demo  and an expert will be in touch.

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