SMS marketing is a fundamental strategy for the retail sector. Sending mass campaigns or managing transactional communications are the two main use cases for this sector. However, many more retail marketing strategies can be explored that will benefit businesses.
If you want to know how to attract new customers or increase your sales, keep reading. We’ve compiled five basic strategies for offering attractive discounts that successfully meet your objectives.
Key SMS discounts in retail marketing
Have you ever ended up buying more than you needed because it was at a lower price?
According to a Psychology Today study , consumers france whatsapp number data prefer to buy products with coupons, even if it means spending more money. Ninety-three percent of all shoppers use discount codes year-round. As a society, we love a bargain, and that’s why deals work!
With 98% open rates, the fast and direct nature of SMS makes it the perfect channel to remind customers you’re there and give them a reason to visit your store, click your link, or place an order.
So combine the two: bulk SMS and discounts. You’ll have a significant impact on sales volume and make your customers happier.
Dos and Don’ts of SMS Discounts
While customers are interested in seeing what kind of discounts you have, it’s important to strike the right balance between creating opportunities and lowering your usual offerings.
Here’s our list of dos and don’ts. It will help who are my target subscribers? what is their occupation? where do they live? you hit the sweet spot for SMS retail marketing incentives:
What you should do
- Include customizations when offering discounts as a reward for being an active/loyal customer. Also, when contacting your customers on their birthdays.
- Create a tiered discount scheme with increasing discount levels to turn one-time buyers into loyal, repeat customers.
- Make the most of every seasonal opportunity (check out our marketing calendar for key dates!)
- Be discreet! Offer discounts to your SMS list of loyal customers or to shoppers who have abandoned their carts, etc., to make them seem more exclusive.
You should not do
- Avoid being a repetitive discounter: this can cheapen the value of your regular offering, especially if it’s a high-end retailer!
- Avoid alienating your loyal customers by constantly offering so many discounts that it seems like your regular price is inflated or a rip-off.
- Don’t damage your reputation with competitors by offering such deep discounts that you’re seen as the “cheap and cheerful” option, rather than being known for product quality and reliability.
5 types of discounts to send to your customers
Now that we’ve covered the why and how of discounts, let’s look at the what. Here are five classic discount offers you can experiment with in your retail marketing strategy.
1. Buy one, get one free
The 2-for-1 offer is a cornerstone of any retailer. It does exactly what it says on the tin. You offer one product at the regular price and give away a second, identical product.
66 % of shoppers rated this type of discount as their favorite, and of the same group of consumers, 93% have taken advantage of such an offer at some point.
If you have excess stock, especially aero leads if you sell products with expiration dates, this type of offer is perfect! It’s clever and makes your customers’ money stretch a little further. While the incentive itself is simple, you can get more creative by promoting it through a multi-channel strategy. Email and SMS blasts often make the perfect combination to get offers noticed and used!
Ready-to-use sample templates:
- Hi [NAME], have you seen our 2-for-1 offer? Buy one [PRODUCT] and get one free on us. But hurry, because stock is limited. Buy now: [LINK]
- Buy one [PRODUCT] online and you can pick up a second one in store for free. Yes, you read that right. Here’s the link you need: [LINK]
2. The first purchase discount
A great offer to grow your subscriber list is the tried-and-true first-order discount. This is one of the best ways to entice those who are simply browsing your website to become paying customers.
It also offers a lot of flexibility and means you can experiment with different discount sizes, such as 5% off and 10% off. You could even explore discount options with specific amounts (€5 off) and track key SMS marketing metrics to see which one gives you the highest engagement rate.
Our top tip if you’re going to do this is to send your discount code in the same welcome message to your subscription list or in a follow-up message.
Some ready-to-use examples:
- Welcome to Tu Moda! Thanks for signing up. Use this code [CODE] at checkout to get [X]% off your order. [LINK]
- Hi [Name], Looks like you’re missing out on your new outfit! Here’s a special promo code to get [X] off your order! Simply use [CODE] at checkout before [DATE].
3. Flash sales
Flash sales, which typically have the largest price reductions, offer a discount for a limited time (no more than 72 hours) and capitalize on the fear of missing out (FOMO). This generates excitement and prompts customers to act quickly.
As with the 2-for-1 deal, it’s an effective tactic if you have excess stock you want to get rid of, but it’s also great for encouraging one-time buyers and loyal customers to spend money during a slower selling season.
You could even reward your SMS subscribers by giving them priority access to shopping on sale an hour before everyone else.
Examples of flash sales would be:
- Hey [NAME]! Our big [X] hour sale starts tomorrow, but you get early access one hour early Get in first and get [Y]. [LINK]
- [NAME]! Our flash sale starts tomorrow at 9:00 AM. Use code [CODE] to unlock your [Y]% discount now and get a head start on the campaign. [LINK]
4. The tiered discount
This type of offer works in tiers, meaning the discount percentage is linked to the amount your customers are willing to spend. Tiered discounts are available to both new and existing customers.
For example:
- Get a 20% discount when you spend more than €50
- €50 off your first order (if you spend €150 or more)
- Get a €5 in-store voucher for purchases over €40
- Get free shipping on orders over €20
This offer encourages customers to spend more money; if they want to unlock the discount, they must purchase enough to cross this first threshold. It’s also a highly effective way to increase your average order value (AOV).
And it’s very simple to set up: the higher the AOV, the higher the bid. You could analyze your data and see what your average customer spends to work on a bid that reaches this amount or just above! It should be tempting but still profitable for you.
More templates to inspire you:
- Spend more and save more! Use code [CODE] at checkout to get [X]% off your next order of [X]+.
5. Personalized discounts
This is where you can really make a big impact on your subscriber base! Personalized discounts are offers you send tailored to specific groups on your SMS list. They can be based on things like demographic interests (age, gender, etc.), purchasing activity, location, and website behavior patterns.
All of this information comes from customer data you collect through SMS surveys or order history.
For example, if you’re a fashion retailer, you can send different offers to male and female subscribers. Or, if you’re part of a regional chain, you can send one offer to customers in Barcelona and a different offer to customers in Malaga.
And don’t forget the most important thing: celebrating her birthday.
Discount segmentation can offer customers more value through a personal experience with your brand. You also avoid choice overload, as you can suggest products they’re likely to be interested in.
Ready-to-use templates:
- Happy birthday, [NAME]! Here’s your gift. Get [X]% off your next order using this code [CODE] at checkout.
- Hi [NAME], it’s been a while since you purchased [PRODUCT]. Need to restock? Use this code and get [X]% off with us [CODE]. [LINK]
Everything you need to know about SMS retail marketing
Finding the perfect balance for discounts through SMS marketing depends on selecting the right type of offer for your brand and combining it with something your customers find enticing. The goal is to encourage less active or loyal customers to increase their average order value by getting more than they normally would. The right product to discount depends on what your customers like, how they shop, and/or what you’re interested in getting.
For example, if you know customers buy in bulk, a discount or percentage off will allow them to save money or place even larger orders. But if they tend to buy individual items, a 2-for-1 offer will be more motivating.
It’s always a good idea to analyze the performance data from your previous SMS campaign before crafting your next text message. What did your customers respond to last time? This way, you can experiment with offer types, timing, and personalization to help you increase your ROI from different incentives.
If you’d like to start experimenting with SMS marketing incentives to increase customer loyalty and boost their average purchase, contact us or sign up for your free trial.