How to Create SMS Loyalty Programs That Increase Customer Retention

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It’s cheaper to convert old customers again than to get new ones. But why do companies invest so much marketing efforts into acquiring new customers rather than keeping and selling to existing ones? 

Many businesses struggle with customer retention, and that’s a fact. But why? Because once they acquire new customers, they don’t work on keeping them. After some time, customers leave and buy from their competitors. The reason is simple – they are not loyal to your brand. 

SMS loyalty programs are all about inspiring brand loyalty, making customer retention easy, and increasing customer lifetime value. Learn how to create SMS loyalty programs that make customers choose you over your competitors, always.

What Are SMS Loyalty Programs?

SMS loyalty programs exist to enhance customer experience. And excellent customer experience is what makes you stand out from your competitors. 

When a customer wants a product, and every company offers it for a similar price and quality, how will they choose where they’ll buy it? 

It’s simple – they’ll choose the business they trust and are loyal to. Even if the price is slightly higher, they’ll still buy from them. 

The reason for that lies in the excellent customer experience they get when buying from that business and the loyalty that the brand evokes in them. When customers trust a brand, they think long-term instead of going for short-term rewards such as slightly cheaper prices. 

But to inspire such strong trust & brand loyalty – you need to work for it. SMS loyalty programs are just one type of bulk SMS marketing that can help you achieve that. The whole point of your SMS loyalty program should be to reward your customers for buying from you over and over again. 

This will enhance their experience with your brand and create trust that’s essential between customers and your business. 

The best thing is – you don’t need to come up with expensive and complex points systems that require serious development. SMS loyalty program is a simple yet powerful way to reward customers for their loyalty with texts. Simply send a rewards text messages and offer them special incentives & discounts for staying loyal to your brand.

Why Would You Use an SMS Loyalty Program?

A concept illustration that represents how powerful SMS loyalty programs can be in nurturing relationships with your customers.

We’ll let the numbers tell you why SMS loyalty programs are a great investment.

What does this mean for you?

  • You’ll reduce marketing costs.
  • You’ll get a base of loyal customers who gladly buy from you over and over again. 
  • The SMS loyalty program offers a highly personalized experience and 1-on-1 marketing that’s direct and easy to consume. 
  • SMS grabs attention, and with a 98% open rate, you can be sure your customers will always see how much you appreciate them. 
  • There is no faster way to reach customers than with an SMS loyalty program because rewards text messages are delivered instantly. 

You’ll utilize a cost-effective channel to promote your business, as you’ll only pay for texts you send.

How to Create an SMS Loyalty Program Your Customers Will Love?

Every business dreams about loyal customers. But only some businesses focus, invest, and work on increasing brand loyalty. You can change that by creating an SMS loyalty program your customers will love, but how?

  1. Come up with catchy names for your loyalty program. Brainstorm ideas with your team and create a bank of names for your SMS loyalty program. Later on, you can decide together which name works best and is most aligned with your brand. 
  2. Start collecting marketing phone numbers to grow your SMS list on time. Implement an SMS sign-up form on multiple pages on your website, promote it on-site in your stores, create attention-grabbing marketing campaigns and transform your audience from other channels to SMS subscribers. 
  3. Clearly tell your customers what’s in it for them. Offer crazy-good incentives that are exclusively available if they become members of your SMS loyalty program. This incentive can be anything from greater discounts, small gifts of appreciation, and special promo codes only SMS subscribers can use. 
  4. Set expectations from the beginning and tell your SMS subscribers how often they can expect promotional SMS from you. You can go a step further and ask them how often they’d like to receive texts from you. 
  5. After you’ve set up your SMS loyalty program, analyze the results. By taking a look at your SMS marketing analytics, you’ll see how to optimize and offer an even better SMS loyalty program. 

Loyalty Program SMS Template

Coming up with catchy names for loyalty programs and acquiring new subscribers may seem hard, but most of the time, it isn’t. We’ve prepared inspiration for when you feel stuck and run out of ideas. 

Take a look at the loyalty program SMS template and ditch the excuses – because the SMS loyalty program will definitely be your most lucrative investment. 

First off, start with welcome SMS such as:

Hey [Name], thanks for joining our SMS loyalty program. As a reward for your trust, use this coupon to get 20% off your next purchase at [Company Name]. 

If you want to get more SMS subscribers, here is a great SMS opt-in example: 

Become a valuable member of our SMS loyalty program and get the latest deals, special discounts, and a welcome promo code with 20% off your next purchase. Straight into your inbox!

You can also run business SMS drip campaigns and automate and schedule reward text messages based on customers’ preferences & behavior. Use your SMS loyalty program to send promotional SMS, and important announcements and nurture new leads to increase your chances of converting them into customers.

With the right SMS marketing ideas, you’ll achieve amazing results and create a strong brand your customers will love, buy from, and gladly recommend!

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