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Here is an innovative way to build up your mobile phone number list.
An Orlando-based company, Sundrop Mobile, has created a system that uses consumers’ mobile numbers as their loyalty card. The system, called loyalTXT, is quick to implement.
The way it works is that, at the point of sale, the cashier asks if the customer wants to join the loyalty program. If the response is yes, the cashier simply inputs the customer’s mobile phone number. Then the customer receives an immediate text message which informs them they have joined the loyalty program. There is also a link where he/she can provide more information like a birth date or an email address. When the customer goes back to the store, he/she will simply give the cashier their cell phone number in order to receive the discounts. No more punch cards or plastic cards.
According to Sundrop’s CEO Travis Priest, there is an opt-in rate of between 60-80% versus traditional opt-in programs that can expect to have a rate of somewhere between 10-15%.
According to Priest Smackers, a frozen yogurt shop in Columbus, Miss. Collected a whopping 10,000 mobile numbers in less than 3 months.
Importantly, the loyalTXT system does more than offer discounts to loyal customers. Using the database, retailers can send text messages, emails, voicemails and social media. Furthermore, Sundrop measures the response to each marketing messages and can provide a ROI report on each campaign.
Priest warns that if you hound your customer with too many messages, his system could be viewed as intrusive. The key is to limit the number of marketing messages. He says that the typical opt-out rate hovers between 0.8% and 1.2%. If that climbs up to 2%, it probably means that the retailer is sending out too many messages or messages that aren’t adding value.
Priest suggests that a quick-service restaurant like a pizzeria or ice cream shop should send no more than one message every 2 weeks. A more upscale restaurant should limit its messages to o once a month.
The cost? Sundrop costs $99/month with an additional per-message charge for each message sent out.
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