SMS Marketing for Retail

How to make good use of platform marketing to increase sales using the retail as an example

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Retail SMS Marketing Case Study

How to enhance customer engagement through integrated SMS and Email marketing

The client is an emergent online retailer. They specialize in fashion accessories. They have a diverse product range. They have a robust customer base. Their goal is to boost customer engagement. They aim to drive sales.

Historically, the company's email marketing had low engagement. Open rates were less than 15%. This indicated a need for more effective methods. The retailer needed to capture and maintain customer attention.

The retailer partnered with us. 2way provides SMS marketing tools. This collaboration aimed to complement existing email strategies. The company integrated 2way's SMS newsletter tool. This allowed more direct and personal customer targeting.

Smart SMS campaigns for engagement boost

We detailed customer segmentation. Campaigns used sales history, browsing behavior, and demographics. This enabled personalized SMS messaging. Messages included customers' names and tailored product recommendations. Recommendations based on past purchases included exclusive offers aligned with customer preferences.

We configured automated SMS campaigns through 2way app. Application facilitated communications at every customer journey stage. Communications included cart abandonment reminders. They also confirmed orders and updated delivery statuses.

We added SMS marketing to current email campaigns. This step resulted in a 9% monthly increase in the customer base. Positive response from customers to direct and personalized communication. Increase of click-through and conversion rates. The SMS channel achieved a 95% open rate.

These timely and personalized SMS communication encouraged purchases. It also enhanced customer loyalty by keeping them informed. Email and SMS marketing combined delivered 8% increase of sales month over month.

The company introduced a 2way popup tool. This was alongside the SMS implementation. It enabled new customer sign-ups for SMS updates. This tool ensured compliance with regulations. It respected customer preferences.

SMS integration that drivers business growth

Customers appreciated the proactive communication. They liked the personalized offers. Offers were delivered directly to their mobile devices. This convenience built long-term relationships with the audience.

The 2way SMS platform provided comprehensive analytics. These offered insights into customer behavior and campaign performance. Insights have been instrumental in fine-tuning marketing strategies. They enhanced the effectiveness of future SMS campaigns.

This case shows the benefits of integrating SMS with email campaigns. A personalized, direct approach improved customer satisfaction and sales. It established a foundation for long-term customer relationships. This strategy highlights the potential of integrated marketing solutions. It achieves superior engagement and business growth.

🏆 Use case achievements

Customer base growth

Increased customer base by 9% monthly

Sales boost

8% monthly increase in sales

Success in three steps: That's how you can achieve it!


Low engagement of email marketing campaigns, with only a 15% open rate.


2way popup installed on website for compliant SMS opt-ins


Achieved a 95% open rate for SMS messages.

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Customer testimonials

I highly recommend 2way SMS service and SMS newsletter application for its versatility and effectiveness in running marketing campaigns. With this application, you will be able to easily manage your customer communication by sending personalized SMS messages and effectively run SMS newsletter campaigns.

Nikodem Grzeszczuk

Head of Digital Marketing, Rockwool

We’ve been using 2way SMS for our business, and it has been a game-changer. The ability to directly text our customers has opened up a whole new avenue for communication and marketing. With 2way SMS, we can engage with our customers by answering their questions, sending promotions, or collecting feedback. Our customers appreciate the personalized updates, appointment reminders, and special offers delivered straight to their phones. Damian has been essential to the success of our marketing efforts and the implementation of this new service.

Chase Roedel

Head of Marketing, Permaseal

Your essential guide to SMS Marketing that unlocks Retail growth

Effective communication is crucial in today's fast-paced retail environment. It captures consumer attention and drives sales. SMS marketing emerges as a powerful tool. It offers unparalleled engagement through direct and immediate interaction with customers. This FAQ explores the practical and strategic use of SMS in retail. It illustrates how this channel enhances customer engagement and significantly boosts sales.

What is SMS in retail?

SMS in retail involves using text messaging to engage with customers. Retailers send promotions, updates, and alerts directly to customers' mobile phones. This method is effective for increasing customer engagement and boosting sales. For example, a clothing store might text customers about a surprise sale or exclusive coupons. According to industry statistics, SMS marketing campaigns have open rates as high as 97%, significantly higher than email marketing. This high engagement rate makes SMS a valuable tool for retailers looking to connect with their audience instantly and effectively.

How to use SMS marketing in retail?

To use SMS marketing effectively in retail, follow these steps:

  • Obtain Consent: Start by collecting customers' phone numbers and consent to receive messages to build your SMS subscriber list. This can be done at the point of sale, through online checkouts, or via a sign-up form on your website.

  • Segment Your Audience: Divide your customers into groups based on their preferences, purchase history, and demographics to use SMS to send highly targeted promotions. Tailored messages to each segment can lead to higher engagement and conversion rates.

  • Craft Compelling Messages: Keep your texts short and to the point. Include clear calls to action, such as “Shop now” or “Use code SALE20 for 20% off.”

  • Timing is Key: Send messages at optimal times based on customer behavior and preferences. For instance, a coffee shop might send a promotional text in the morning when customers are likely to want a coffee.

  • Integrate with Other Channels: Combine SMS with your other marketing channels. For example, follow up an email campaign with a text reminder about the promotion’s end date.

  • Measure and Optimize: Track the performance of your SMS campaigns through metrics like open rates, click-through rates, and conversion rates. Use this data to refine your approach and improve future messages.

By using these strategies, retailers can maximize the effectiveness of their SMS marketing campaigns. For example, a sports equipment store might see increased sales after texting an exclusive early-bird special for an upcoming product launch to customers who have previously purchased similar items.

What are the benefits of SMS Marketing for Retail Stores?

SMS marketing provides numerous advantages for retail stores, highlighted by its high engagement rates, with messages often boasting open rates as high as 98%. This ensures that promotions and updates reach nearly all targeted customers, making it an extremely effective communication tool.

The immediate delivery and response aspect of SMS means messages are typically read within minutes, showcasing the unmatched efficiency of automated text messaging. For instance, a retail chain could send a last-minute sale notification during a slow business day and see an instant increase in foot traffic and sales. This rapid interaction is not only efficient but also enhances the timeliness of marketing efforts.

SMS allows for direct and personal communication, which is crucial for building lasting customer relationships and loyalty. For example, a boutique could send personalized birthday discounts to customers, significantly enhancing customer satisfaction and repeat business.

From a cost perspective, SMS marketing is relatively low-cost compared to other marketing channels. Retailers can send thousands of messages at a fraction of the cost of equivalent email or postal campaigns, which often results in a strong return on investment. Retailers report substantial savings and increased sales volumes, with some campaigns driving up to a 30% uplift in transaction rates.

Additionally, the reach of SMS is vast, as nearly every consumer has a mobile device capable of receiving text messages. This universal accessibility makes it a powerful tool for reaching a broad audience, especially in regions with limited internet service.

Finally, the trackability of SMS campaigns adds a layer of transparency and measurability that is invaluable for optimizing marketing strategies. Retailers can use detailed analytics to track delivery rates, open rates, and conversion rates, adjusting their tactics based on real-time data to maximize effectiveness.

Overall, SMS marketing is a highly effective strategy for retail stores, driving customer engagement, increasing sales, and building a loyal customer base through its direct and immediate communication capabilities.

Is it legal to send marketing SMS for retail?

Sending marketing SMS messages in the retail sector is legal, but it is governed by strict regulations to ensure consumer protection. Retailers must adhere to these laws by obtaining explicit consent from customers before sending any promotional messages. For example, a consumer might check a box online or provide a mobile number at a checkout counter, explicitly agreeing to receive text messages.

One of the critical legal requirements is the inclusion of an opt-out mechanism in each SMS, allowing recipients to easily unsubscribe from future communications. This typically involves instructions such as "Reply STOP to unsubscribe," ensuring that consumers can stop receiving messages at any time.

In the United States, compliance with the Telephone Consumer Protection Act (TCPA) is mandatory, and violations can lead to penalties ranging from $500 to $1,500 per unsolicited message. In Europe, under the General Data Protection Regulation (GDPR), fines can be even more substantial, with penalties up to 4% of annual global turnover or €20 million, whichever is higher, for breaches involving improper handling of personal data.

Retailers must also be transparent about how they collect and use customer data, a requirement that is central to both TCPA and GDPR. This involves clear communication during the consent process about the nature of the messages the customer agrees to receive.

These regulations emphasize the importance of legal compliance in SMS marketing and highlight the potential financial risks associated with non-compliance. By following these legal frameworks, retailers can not only avoid hefty fines but also build trust with their customers, ensuring a sustainable and effective marketing strategy.

How much does text marketing for retail cost?

The cost of retail text marketing can vary widely depending on several factors, including the scale of the campaign, the provider used, and any additional features or services required.

Generally, SMS marketing services charge a monthly subscription for service access that includes phone number, advanced analytics and automation capabilities. Then every SMS marketing campaign is charged per message

Prices can range from as little as $$0.0075 to $0.025 per SMS, depending on the message package purchased. We offer packages where businesses can send thousands of messages per month for a fixed fee, starting from $50.

A real-life example would be a small boutique that sends out 1,000 text messages per month for a promotion or event. They are using our 2WAY Marketing Platform with monthly message package for $50. This package includes SMS rate at $0.025 per message and MMS rate at $0.050. Their SMS campaign would be around $25 monthly.

On the other hand, a larger retailer with a more extensive customer base might send 100,000 texts per month. Leveraging a discounted rate of $0.0075 per SMS in $3,500 package. Resulting in a monthly cost of $750. It is 30x higher charge than boutique store but it allows to send 100x more messages, demonstrating the scale that SMS message service can offer in retail marketing. Check our pricing

It's important for retailers to consider not just the direct costs but also the potential return on investment (ROI). Statistics show that the average open rate for retail SMS marketing messages is about 97%, and the response rates can be as high as 45%, which is significantly higher than email marketing. This high engagement can translate into more effective promotions and increased sales, potentially offsetting the initial cost of the SMS campaign.

Is SMS marketing still effective?

SMS marketing remains a highly effective tool for retail and other industries due to its unique advantages in direct communication and engagement, making it a central part of any SMS strategy. Its effectiveness is reflected in exceptional open rates; SMS boasts an open rate of about 98%, ensuring that nearly every message sent is seen by the recipient. This is a significant advantage over email marketing, which has an average open rate of only about 20%.

The immediacy of SMS is another key benefit. Messages are typically read within minutes of being received, which is crucial for time-sensitive offers and promotions. For example, a retail store can send out a text about a limited-time discount and see an immediate uptick in store visits and online purchases. This rapid engagement helps businesses react dynamically to changing circumstances, such as clearing out surplus inventory or boosting sales during slower periods.

Moreover, the broad reach of SMS extends to nearly every cell phone user, as it doesn't require a smartphone or data plan, highlighting its universal application and potential of SMS. This universality means that retailers can reach a wide demographic of customers directly through their mobile phones.

Personalization further enhances the effectiveness of SMS marketing. Retailers can send tailored messages to customers based on their purchase history or preferences, making the marketing feel more personal and relevant. For instance, a bookstore might use SMS to send a message to customers who previously purchased mystery novels, informing them of a new release in that genre, an example of how retailers use SMS for targeted marketing.

The response rates for SMS also highlight its impact, with some campaigns seeing response rates as high as 45%, underscoring the effectiveness of a targeted SMS strategy. This level of engagement significantly exceeds that of other marketing channels, making SMS a powerful tool for driving sales and customer interaction, showcasing the potential of SMS in the marketing sector.

These factors combined—high open rates, immediacy, broad reach, personalization, and high engagement—underscore why SMS marketing continues to be a valuable strategy for businesses looking to enhance their customer communication and increase their sales efficiency.

How can text marketing help to grow my retail business?

Text marketing can significantly impact the growth of your retail business by enhancing customer engagement and boosting sales. SMS marketing excels due to its immediacy. Messages are typically read within minutes. For example, a clothing store might announce a flash sale on overstock items via SMS. This can drive quick traffic to their website or physical location, a strategy often employed in retail marketing for immediate engagement.

The effectiveness of SMS is underscored by its high open rates, nearly 97%, ensuring most messages reach their audience. This is much higher than the open rates for emails, which average around 20%. A bookshop using SMS to promote a signing event may see a significant turnout thanks to the high likelihood that their message is read.

Personalized communication is another strength of SMS marketing, serving as a critical component of a comprehensive retail marketing strategy. Retailers can send messages tailored to customer behavior or previous purchases, making each communication more relevant. A beauty store, for instance, could text customers who have bought foundations in the past about a new product that matches their preferences, encouraging repeat business.

SMS marketing also provides measurable results. Retailers can track metrics like open rates and conversion rates, helping refine future campaigns. A sports equipment store could analyze the response to SMS ads for gym gear and adjust its strategy based on which messages performed best.

In summary, SMS marketing’s immediacy, high engagement rates, personalization, and measurability make it a powerful tool for retail businesses looking to increase sales and customer loyalty.

Why do consumers and brands love SMS for retail?

SMS marketing is cherished by both consumers and brands in the retail sector due to its convenience and effectiveness. Consumers appreciate the directness and simplicity of SMS, making it an effective tool in retail text marketing strategies. They receive concise messages directly to their phones. This method eliminates the need for an internet connection or app downloads, making it accessible to virtually everyone with a mobile phone.

Brands love SMS for its impressive engagement metrics. The open rates for SMS can reach as high as 98%, far surpassing the average email open rate of about 20%. A real-life example of this effectiveness can be seen in a retail clothing store that sends out a text message for a 24-hour sale. This store could experience a sharp increase in traffic and sales, illustrating the power of timely and direct communication.

SMS also allows for high levels of personalization, which strengthens consumer relationships. Retailers can send tailored promotions based on previous purchases or browsing history. For instance, a bookstore might use SMS to send alerts about new releases in a genre a customer frequently buys through retail text message marketing, enhancing the relevance and appeal of each message.

Additionally, SMS provides immediacy that is critical for time-sensitive promotions. Messages are often read within a few minutes of receipt, making them ideal for last-minute deals or urgent updates. A grocery store could text customers about a flash sale on perishable items that need to be sold quickly, effectively clearing out inventory without waste.

The combination of high open rates, personalization, accessibility, and immediate impact makes SMS a favored communication tool for both consumers and brands in the retail industry.

How can I build an SMS subscriber list for my retail business?

Build your SMS Marketing database in retail stores is a strategic process that involves clear communication and incentives to encourage sign-ups. Start by offering customers a tangible benefit for subscribing, such as exclusive discounts, early access to sales, or instant updates on new products. For example, a clothing retailer could offer a 10% discount on the next purchase for customers who sign up for SMS alerts. This immediate incentive can significantly increase the number of subscribers.

Place sign-up prompts where they are most visible to your customers to build your SMS subscriber list effectively. This could be at the point of sale, on your website, during online checkout, or even on social media platforms. A furniture store might include an SMS sign-up option during checkout, both in-store and online, ensuring that the message reaches customers at a critical moment in their purchase decision.

Transparency is key to building trust with your subscribers. Clearly explain what types of messages they will receive and how often they will receive them. Assure them that their contact details will be kept private and used solely for marketing purposes as outlined.

Consumers and brands favor SMS for its directness and effectiveness. SMS ensures that messages bypass crowded email inboxes and directly reach the consumer. Retailers report open rates for SMS as high as 98%, with response rates significantly surpassing those of email marketing. These high engagement rates make SMS an invaluable tool for driving sales and building customer loyalty.

Moreover, SMS allows for personal and immediate communication, which is ideal for time-sensitive offers and personal greetings, key features of an effective sms marketing strategy. For instance, a beauty brand could send a birthday discount to a customer, enhancing personal connection and encouraging a sale. Brands love SMS for its ability to deliver tailored content that consumers actually see and interact with, creating a direct line of communication that enhances customer experience and drives engagement.

In summary, building an SMS subscriber list involves offering clear incentives, placing sign-up prompts strategically, and maintaining transparency about message content. Both consumers and brands benefit from SMS through its direct reach, high open rates, and the personal touch it lends to digital marketing efforts.

Can I personalize SMS messages for my retail customers?

Yes, you can personalize SMS messages for your retail customers, and doing so can significantly enhance the effectiveness of your communications, a key tactic in sms text marketing. Personalization in SMS marketing involves tailoring messages based on customer data such as purchase history, browsing behavior, and personal preferences. This approach increases the relevance of your messages, making them more engaging for the recipient.

For example, a bookstore might analyze a customer's previous purchases and send SMS notifications about new releases in their favorite genres. This kind of targeted messaging can prompt customers to make repeat purchases, as the messages directly cater to their interests.

Statistics show that personalized SMS campaigns achieve higher engagement rates. Messages that include the customer's name or reference their previous interactions with the brand can boost open rates and conversions. A study revealed that personalized texts can improve click-through rates by up to 29% compared to generic messages, underlining the effectiveness of automated SMS personalization.

Retailers can also use SMS for special occasions, such as sending birthday discounts or anniversary sales reminders. A jewelry store might send an SMS to customers who purchased an engagement ring a year ago, offering a special deal on anniversary gifts. This not only celebrates the customer's special day but also promotes timely and relevant products.

In essence, personalizing messages makes your marketing more effective by speaking directly to the customer's needs and interests. It turns generic communication into a more personal interaction, which can strengthen customer relationships and increase sales.

How often should I send SMS messages to my retail customers?

Determining the optimal frequency for sending SMS messages to your retail customers requires a balance between maintaining engagement and avoiding overcommunication. Typically, sending one to two messages per week is effective. This frequency keeps your brand at the forefront of customers' minds without overwhelming them.

For example, a grocery store might send a weekly SMS to alert customers about new specials or exclusive coupons. This regular contact can encourage repeat visits and enhance customer loyalty without feeling intrusive.

However, the frequency can vary based on the nature of your business and customer expectations. During special promotions or holiday seasons, you might increase the frequency slightly. A clothing retailer, for instance, could send additional messages during a major sale period like Black Friday, informing customers of daily deals or limited-time offers.

It's essential to monitor customer responses to adjust your messaging frequency accordingly. Statistics show that too many messages can lead to higher opt-out rates. A survey found that customers who receive more than five messages a week from a single retailer are more likely to unsubscribe.

Ultimately, the key is to keep your SMS communications frequent enough to stay relevant but limited enough to avoid saturation. Listening to customer feedback and adjusting your strategy based on their preferences will help maintain an effective SMS marketing campaign.

How can customer engagement with SMS for retail be increased?

Increasing customer engagement with SMS in the retail sector involves strategic planning and understanding of customer preferences. Start by ensuring your messages offer real value to the recipients. This could include exclusive discounts, early access to sales, or useful information about product launches.

For instance, a fashion retailer can boost engagement by sending out SMS alerts about limited-time offers or VIP shopping events exclusively to their SMS subscribers. Such exclusives encourage customers to pay close attention to messages from your brand.

Personalization enhances the effectiveness of your SMS campaigns. Tailoring messages to reflect the recipient’s previous shopping behaviors or preferences can make them feel more relevant and welcomed. A sporting goods store could send targeted messages to customers who recently purchased running shoes with information on an upcoming sale on athletic wear. This not only makes the message more applicable but also encourages repeat business.

Timeliness also plays a crucial role in engagement. Sending messages at the right time can significantly increase the likelihood of a positive response. For example, a restaurant might send a lunch offer just before noon, catching customers as they start to think about their meal options.

Interactive content can further engage customers. Inviting customers to participate in contests or polls via SMS can make the interaction more dynamic and fun. A real-life example is a bookstore that conducts a monthly poll using SMS, asking customers to choose which author they should feature next, rewarding participants with a discount code, illustrating retail text message marketing in action.

Statistics show that integrating these strategies effectively can lead to higher engagement rates. For example, campaigns that include personalized content, a best practice in retail text message marketing, see up to 50% higher open rates compared to generic messages. By focusing on value, personalization, timeliness, and interactive content, retailers can significantly enhance customer engagement through SMS.

How do you choose the best Text Message Marketing Service for Retail store?

Choosing the best text message marketing service for your retail store involves evaluating several key factors to ensure the service aligns with your business needs and marketing goals. Start by considering the service's integration capabilities, a best practice for those getting started with SMS marketing strategy. It's crucial that the SMS platform integrates seamlessly with your existing CRM and e-commerce systems. This integration allows for automated data syncing and more personalized messaging. For example, a clothing retailer using an SMS service that integrates with their online store can automatically send customers messages about items left in their cart.

Another important factor is the ease of use and functionality of the platform. Look for a user-friendly interface and features such as automated responses, scheduling tools, and detailed analytics, essential components of a successful SMS marketing strategy. These features can significantly enhance the efficiency and effectiveness of your campaigns. A garden supply store might use these tools to schedule regular gardening tips and reminders for fertilizer application, keeping customers engaged and informed throughout the season.

Cost is also a crucial consideration. Compare pricing plans among different services to find one that offers the features you need at a price that fits your budget. Keep in mind that some services may offer lower per-message costs at higher volumes, which can be beneficial for larger retail stores.

Customer support is another vital aspect. Choose a service that provides robust support, including tutorials, FAQs, and responsive customer service. Having reliable support can be invaluable, especially when launching new campaigns or troubleshooting issues.

Finally, review the compliance and security features of the service. Ensure it complies with relevant regulations such as the TCPA in the U.S. or the GDPR in Europe. A service that prioritizes security and compliance will help protect your customer data and shield your business from potential legal issues.

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