The Role of Business Texting in Customer Loyalty Programs

Text message marketing is one of the most popular and effective tools for businesses to contact their customers. Are you aware that SMS messages have an open rate of 98%, while email only has 20%? Not only that, but the response time for a text message is also, on average, 90 seconds, a swift and effective medium for connecting with customers.

Now, imagine combining the power of SMS marketing with customer loyalty programs. Since most people are already equipped with mobile phones that allow for texting, SMS programs are a low-cost and relatively simple way to reach a broad audience without requiring additional technology or training.

A new study showed that 77% of customers are more likely to stick with a brand that has a loyalty program. By combining SMS marketing with customer loyalty programs, businesses have a winning combination that drives engagement, loyalty, and revenue.

In this article, let us explore how business texting plays a crucial role in keeping customers loyal and why it works so well.

Why Texting Works for Businesses?

Texting is not only a way to have a conversation with a friend; it is a viable option for businesses to connect with customers quickly. Everyone has a phone, and most people check their messages within minutes of receiving them. SMS marketing statistics indicate 98% of text messages are read versus only about 20% of emails. That is a stark difference! Furthermore, text messages are short and concise, which aligns with how busy people are today. For loyalty programs, this allows businesses to send status updates, rewards, and reminders in a format that customers see and act on.

Building a Personal Connection

An important contributing factor to the increase in loyalty through texting is that it is a more personal interaction. A business text is like a quick note from a friend. An example would be a message that reads, "Hey Sarah, you've earned 50 points. Treat yourself to something special!" That is a fantastic way to make your customer feel recognized and is a personal connection that builds trust and keeps customers engaged with your brand. This is especially true for loyalty programs because customers are inclined to stay with a company that values them as individual customers.

Instant Rewards and Offers

Texting is perfect for delivering rewards right when they matter. For example, an SMS loyalty reward message simply saying "Exciting news! You have earned 20% off your next purchase - use your discount today!" drives excitement and encourages shopping earlier rather than later. Customers are less likely to leave a text unread compared to an email, which is why it is also so effective in encouraging action. Enabling a sense of immediacy is also a driving factor in keeping customers engaged in the loyalty program and letting them feel rewarded without too much delay.

Reminders Keep Customers Engaged

Life gets busy, and people forget things. Even things that they have earned. Sending a text message allows businesses to follow up with a friendly reminder and nudge all customers into action. A message like, "Hi John. Your $5 reward expires tomorrow, do not forget to redeem it!" reminds people to use their benefits before they expire. Sending a simple message reduces unrewarded frustration (like previously earned points gone to waste) and brings customers back to your store or website. Sending an initiative-taking reminder through text message will routinely keep your loyalty program on customers' minds.

Exclusive Deals Via Text

Everyone loves feeling special, and text messaging can achieve this. Brands may send SMS loyalty rewards to members with special promotions such as “Secret Sale: 30% off for our VIPs only this weekend!” This sense of belonging is an important part of loyalty; when customers feel they are getting something that someone else is not, they will be more likely to remain in business with the brand.

Gathering Feedback

Loyalty is not just about giving rewards. It is also about listening to customers. To understand customer satisfaction, texting is a fantastic way to ask for feedback after a purchase or experience. A short message like, “How was your last visit? Reply with a number from 1-5!” takes seconds for customers to answer. This shows the business cares about their opinions, which builds trust. Plus, if something is wrong, the company can fix it quickly, keeping the customer happy and loyal.

Cost-Effective for Businesses

Running a loyalty program can become costly, particularly with complex apps or printed cards. Texting, however, is budget friendly. Small businesses, such as local shops or cafes, can utilize texting to compete with larger brands without overspending. This affordability allows more companies to implement loyalty programs and encourages customers to return.

The Importance of Establishing Long-lasting Customer Loyalty

Investing in attracting new customers is critical for your business’ growth; you must also invest in retaining your customers for greater profitability. Retaining a customer is significantly less expensive than acquiring a new one, which means your brand can reduce its marketing costs by increasing the proportion of revenue from existing customers. This demonstrates the direct impact a consumer loyalty program can have on your business's profitability.

Implementing a comprehensive and effective loyalty program can provide the competitive advantage your brand needs to succeed in the marketplace, and text messaging is one of the most impactful media you should utilize. A survey shows that almost 48% of consumers prefer receiving brand messages via SMS, while 22% prefer email. Also, customer engagement through texting is highly effective for building brand loyalty.

Start Sending Loyalty Text Messages Using Falkon SMS

Loyal customers are five times more likely to make a repeat purchase, four times more likely to refer you to others, and seven times more likely to try a new product. By opening a communication channel that your customers are already familiar with, such as text messaging, you can foster new connections and strengthen existing ones. Start using Falkon SMS today to create your loyalty texting program.

Final Thoughts

Understanding your customers’ needs and interests is the key to successfully using SMS marketing to send personalized and relevant text messages to your customers. Engaging in SMS marketing is excitingly simple, and the ability to incorporate SMS marketing into your customer loyalty program is even more powerful: you have a fantastic opportunity to harness an incredible direct marketing channel for your growth and ultimate success. Do not wait. Start using SMS marketing and loyalty programs today and watch your business grow!