While many small businesses are increasing their digital marketing budget, it is important to shift focus on mobile marketing. A survey by Mobile X Co showed that 90 percent of consumers want to engage with businesses via SMS.
The same source states that SMS outperforms mobile advertising campaigns by a significant margin. Of course, SMS is just one way to use mobile marketing. Here are some case studies of how some companies and brands use mobile marketing and applying them to your efforts as well.
1. Starbucks Loyalty Program and Promotional Offers
Starbucks is known for its mobile marketing strategies. The rewards program challenges customers to earn reward points for making various purchases. Also, they increase rewards for customers with more points that incentivizes them to visit Starbucks frequently.
To top it all off, they also send special offers like free drinks, 50 percent off, and 2 for 1 deals via push notification. This encourages users to keep the app on their phones even if they are not frequent customers. Many users jump on these offers due to their time-sensitive nature. This ends up converting a good number of casual customers into loyal ones.
The takeaway here is that putting your loyalty program in app form makes it easier to access and manage for customers. It’s also a great way to push giveaways and special promotions.
2. Pizza Hut Geo-Fencing and Mobile-Friendly Channel
Pizza Hut decided to experiment with geo-fencing and SMS marketing for over a year. Geo-fencing is a strategy that sets up areas on a map and targets customers when they are within the defined area. The SMS alerts would provide their customers with the latest deals in return for their zip code.
Instead of sending offers randomly, customers were sent time-sensitive Pizza Hut promotions when in the geo-fenced area. According to the company, this mobile marketing campaign outperformed TV ads by 4.4 times and online ads by 2.6 times.
3. A Simple Strategy Taco Bell Used to Amass 13,000 SMS Subscribers
Challenges for small businesses include getting potential customers and existing customers to subscribe to these SMS notifications. Taco Bell proves that all it is to incentivize their audience. The company ran a campaign that encouraged people to send a text message in return for a free drink with their next purchase.
This simple tactic resulted in 13,000 SMS subscribers in just five weeks. The best part about this case study is that it’s a simple tactic that any small business can pull off. It’s all about attaching something of value to the offer so that people have a strong reason to subscribe.
4. Seattle Sun Tan Digital Marketing with SMS Generated $196,000 in Sales
A local based franchise named Seattle Sun Tan use a simple method to integrate SMS marketing with their digital marketing channels. While this is a local business, this example also applies to many business models that operate online. Seattle Sun Tan started pushing their “Mobile VIP Club” on their website. As a result, this gave subscribers $20 off their next purchase. Additionally, Seattle Sun Tan promoted this VIP Club on their email list and social media channels as well.
This campaign resulted in over 4000 new subscribers and generated $196,000 in sales. The company also found that SMS subscribers are 500 percent more valuable than regular customers. The fact that text messages have a 98 percent open rate attributes to the success of the campaign.
Integrate mobile marketing into your strategies to see success like the cases above. Don’t think that these marketing campaigns are limited to brick and mortar businesses. Model and adapt these strategies to your own business. Many different business models benefit from mobile marketing. The list includes eCommerce stores, companies selling digital products, and even individuals selling professional services.