SMS has become a part of our everyday lives. It was back in 1992 that the first text message was sent, and just a few years later the first payment was accepted via SMS and the term ‘mobile commerce’ was coined. Jumping to the present day, text messages have become our main form of communication, while mobile commerce has evolved into a ‘must-have’ retail channel all over the world, including in Australia.
About 82% of Australian consumers use their smartphones to communicate with friends and family at least once a week. But they’re not only texting with people they know — over 74% are also signed up to receive text messages from at least one brand. In addition, 51% of shoppers said texting with brands is most engaging when they send information relevant to their interests and past purchases. With this increased usage of smartphones, customers now have more opportunities to discover and shop for their favorite products on mobile, paving the way for SMS to become one of the highest revenue-driving channels yet.
We recently asked 1,000 consumers and 200 marketers across five age groups in Australia what they think of SMS as a channel, and the data confirmed our suspicions. Australian consumers want to hear from brands via SMS, and many Australian marketers are already leveraging it to grow their businesses successfully. Here’s everything we learned.
Australian consumers like communicating with brands via SMS
SMS provides a direct line of communication between brands and consumers, and the data shows that this communication is steadily increasing. Approximately 68% of consumers said they often receive text messages from brands, and 43% said the number of texts they receive has increased within the last two years. With this increase in marketing texts, brands can better engage and retain their customers, 41% of whom said that receiving SMS messages from a brand makes them more likely to buy from that brand again. In fact, 70% of marketers believe their brand’s use of SMS will actually increase within the next two to five years.
Gen Z finds SMS useful, but every generation is on board
As SMS continues to grow and dominate, all generations are jumping on board and appear more willing to use SMS today. More than half (58%) of consumers said they find promotional SMS marketing messages from brands useful, and 45% agreed that they respond well to these promotional texts. Further research showed that every generation actively engages with SMS marketing messages. Approximately 43% of Gen Zers claimed to be engaging with more SMS messages than they were two years ago, compared to 42% of baby boomers and 41% of millennials. Australian brands can therefore leverage SMS marketing with confidence, knowing that customers of any age are likely to engage.
Marketers and consumers rank SMS as a top engagement channel
According to both marketers and consumers surveyed, SMS is now the second most popular communication channel. Consumers ranked email (79%), SMS (54%), and social media (51%) as their top three most useful channels to receive information from brands, demonstrating that all three can effectively drive revenue for Australian brands today. Although email was slightly preferred by these consumers, SMS still has a significant pull. Marketers similarly shared that SMS (52%) and email (60%) see the most engagement overall, while SMS currently drives the most online sales of any channel.
SMS is clearly a powerful tool for Australian marketers to reach their customers with the right product and offer at the right time to capture their attention and drive them to purchase. On the other hand, email still allows marketers the opportunity to promote longer, more visual, or less urgent information to audiences. By using both in tandem as a part of a larger marketing strategy, Australian brands can give every customer a personalised experience on the channel they prefer.
Consumers are willing to share their data
SMS opens new doors for brands when it comes to engagement and, fortunately, consumers appear willing to share their information with brands if it means getting a more personalised experience. The Australian marketers surveyed expressed that their customers would likely share their interests (79%), mobile number (76%), demographics (67%), what they’ve browsed on the brand’s website or app (67%), their social values (65%), their social profiles (56%), their location (56%), and more for marketing purposes.
Capturing this customer data is a critical step towards making every engagement relevant and more likely to convert, and it seems consumers are warming up to it even as they gain more opportunities to become private.
Australian brands are driving revenue with SMS marketing
Fashion brand Princess Polly has already been dominating the market, driving millions in sales within just three months of incorporating SMS into their marketing strategy. By texting their customers, including their most loyal ones, Princess Polly has set a strong example for other Australian brands of what success with SMS can look like — the brand has seen 43% MoM subscriber growth and 64x total ROI since launching their SMS channel.
“It’s been a dream come true for our customers. They get really excited about the exclusivity, and we’re able to communicate better with them knowing what they want,” says Kim Zorn, Head of Performance at Princess Polly. “With SMS, we can deliver personalised communications to bring them back to purchase again.”
SMS is a vital tool for mobile commerce success
Mobile technology will continue to advance and shift the Australian retail landscape, but eCommerce brands that adapt now will be set up for success. This survey showed the massive potential for SMS marketing as a customer engagement and retention solution, with both consumers and marketers acknowledging the channel’s value.
Carmel Zein, Senior Marketing Manager at Yotpo, agrees that SMS marketing can take Australian brands to new heights. “The brands that embrace SMS marketing, sharing relevant content via text that reflects the interests and preferences of each unique customer, will put themselves ahead of the game,” she says. “It’s never been more crucial to find new ways to engage with shoppers and owned channels, and SMS can be an incredible growth opportunity for those brands that put it at the forefront of their marketing strategy.”
Discover how your brand can create revenue-driving SMS marketing experiences in Australia and beyond with Yotpo SMS & Email. Request a demo today.
