More businesses each day are using text messaging to reach their customers. That’s because SMS is an immediate, convenient, and widely used communication channel with the power to drive strong returns.
You may be wondering exactly how your brand can increase revenue from a communication tool like SMS. This blog will dive into six core ways Textline’s customers are increasing profits with SMS.
Is business SMS profitable?
When done right, SMS is highly profitable. The communication channel has delivered profit gains for companies across the U.S., with 82 percent stating that the channel is effective at driving revenue for their business. There are a few core reasons why SMS is profitable, especially when compared to other marketing and communication tools:
- Texts are read quickly. Not only are 98 percent of text messages opened, but they are also typically opened within three minutes of receipt.
- Brands have a highly engaged contact list. Opt-ins are required, making SMS a channel where you’re reaching customers who genuinely want to hear from your business.
- Texting is cost-effective. It costs about 3 cents to send one text message, this is a fraction of what some other digital channels cost per impression or click. Additionally, you don’t need a ton of human resources to craft and deploy a text campaign. This can lead to high returns on investment.
Proven ways to increase SMS profits
Texting gives you a great tool to increase revenue. Let’s look at six core ways Textline customers are using SMS to make more money, as well as campaign ideas under each category.
Grow customer lifetime value
Texting is a great way to help grow business accounts and the total lifetime value of any customer. There are several ways to use SMS to do just that:
- Reorder reminders: Automate messages to encourage clients to reorder replenishable products such as dental tools, skincare, office supplies, supplements, pet food, or medication.
- Subscription management: Remind customers about their subscriptions and let them manage it via SMS. You can enable them to pause, modify, or renew subscriptions all by text. The more hassle-free the process, the more renewals you’ll receive.
- Upsell or cross-sell opportunities: Grow the value of long time customers by offering them strategic upsells or cross sells via text message. For example, to effectively cross-sell, suggest adding a product that goes well with the initial item they purchased. For an upsell, try to encourage customers to buy the premium version of your product for access to more features.
- Promote free beta or trial opportunities: If you know a customer will benefit significantly from a new feature release, let them try it for free. Giving them this opportunity to use the feature for a brief time may encourage them to add it to their account in the future.
Get more timely payments and recover failed payments
Given its high open and response rates, texting is a great way to ensure your business gets paid on time and recovers any lost revenue from failed payments. To help your business improve payment and boost profit, use texting to:
- Send recurring payment reminders for monthly expenses such as rent, memberships, or subscriptions
- Share payment reminders for one-off payments like medical bills, joining fees, or down payments
- Trigger a text to send for failed credit card transactions
- Prompt customers to update payment methods instantly by sending a link via text
Reduce customer churn
When customers leave, their revenue does too. That’s why successful companies try to prevent and limit churn at all costs. SMS is a great tool to keep customers engaged, especially if they’ve gone dormant.
Here are a few ways Textline customers use our text messaging to cut churn.
- Send a tailored offer: Use a text message to get an offer in front of customers who haven’t purchased from your brand in a few months.
Ex: Hey Sam! Pilates Plus hasn’t seen you in class in a few weeks! Get your next class pack 25% off with code MISSYOU. - Send a nudge when platform activity dips: If your brand monitors login activity, use a text to encourage clients to use your platform again when they are inactive for a particular amount of time.
Ex: Hey Gretchen! We noticed you haven’t logged in for a month! Here’s a quick way to boost productivity with our tool. - Text a tip to encourage use of your platform: If you notice new customers haven’t used your platform to its full potential, send them a text to help set up a core feature.
Ex: We noticed you haven’t set up any automations yet – want to hop on a call with a team member who can help you set these up? - Win-back campaigns: If a customer wants to cancel, try to win them back with a text message packed with an offer.
Ex: Are you sure you want to leave? We’re offering you a chance to stay for 50% off. - Improve customer service: Texting is a quick way to get in touch with anyone. Use it to improve your customer support. Let clients text you to help solve their most pressing problems.
Ex: Hey Helen! You can text me at this number if you run into any issues with the tool. This is the fastest way to reach me!
Improve sales cycle and speed
An incoming lead is the warmest immediately after they reach out. This means that you want to be quick to respond to their inquiry and set up an initial conversation to win customers and grow SMS profits. Texting is one of the fastest sales communication tools. Brands use Textline to improve their sales cycle in several ways:
- Fast lead outreach. Texts are read almost immediately and get a response in 90 seconds. This means that one of the quickest ways to reach out to leads is texting. Use a text to quickly set up some time to talk to a client.
Ex: Hi Sarah! Thanks for your inquiry. I’d love to book some time to discuss more about your needs. Here’s my calendar link: [Link] - Collect more leads. Many brands use Textline’s SMS + Webchat solution to collect more leads and reach them quickly. By enabling Textline’s Webchat, your customers can reach out via webchat to ask questions and you can reply to them using webchat or SMS.
- Demo or meeting reminders. Don’t let leads forget about scheduled demos. Instead, use a series of text messages to remind clients about upcoming demos.
Ex: Hey Anna! Your demo of Software7 is today at 1pm. See you there!
- Qualify leads. Use texting to better qualify your leads by asking a few questions or sending a survey.
Ex: Hey Rene! I’d love to learn more about your needs for our call. Can you fill out this quick survey: [Link]
Promote services and sales
One of the top ways brands use SMS for profit is with text marketing. Brands use SMS marketing to promote their products, services, and sales. Here are just a few ways to use SMS marketing to boost profits:
- Run a flash sale: Encourage customers to make a purchase or book a service by running a limited-time deal. Flash sales are effective at raising sales quickly because many consumers are afraid of missing out.
Ex: 24-Hours ONLY: Book your teeth cleaning services today and get 30% off. Book now: SimplySmile.com/book-now - Promote a seasonal deal: Use a text message to let clients know about a seasonal deal. This is a great strategy for holidays like Black Friday or slower months.
Ex: Maid2Clean: Our Spring Cleaning Deal is on NOW. Book a cleaning service and get 20% off. Offer valid until 4/15.
- Launch a new product: Texting is a great way to get your engaged subscribers to look at new products that you’ll have in stock or your brand is launching.
Ex: NEW product drop! Farm fresh organic pet treats are hitting the shelves. Stop in stores this week and get yours for 50% off. - Send a service reminder: Use a text message to encourage clients to book an annual service or bi-annual appointment.
Ex: Summer is just around the corner. This is a reminder to book your pool opening service soon. Our slots are filling up fast.
Texting for scheduling and recovering no shows
The easier you make scheduling and rescheduling appointments, the more revenue you will bring in. Given the convenience of texting, brands use it to schedule appointments and recover lost revenue from no shows. Here are a few simple ways to use Textline to aid in scheduling and recovery:
- Simplify rescheduling: The reality is that no-shows hurt revenue; you’re better off rescheduling than facing a no-show. Use a text to make rescheduling easy for clients.
Ex: Hi Tim! Your appointment is on Friday at 2pm. Reply C to confirm or R to reschedule. - Send routine appointment scheduling reminders: Use a text to encourage clients or patients to come in for their next appointment.
Ex: Hi Zyad! It’s time for your 6-month dental cleaning! Are you free on Sept. 3? - Encourage clients to text you to book: Send a text to encourage clients to book your service via text message.
Ex: Hey there! Ready to secure your trip of a lifetime? Text me here to book your consultation. - Missed appointment texts: Try to recapture revenue when a client no-shows using a text.
Ex: Hey Jenna. We missed you at your appointment today. We have an opening this week if you want to reschedule.
Maximize your revenue from SMS with Textline
The reality is text messaging has the power to drive revenue for brands. It helps companies get their messages in front of an engaged audience, which raises revenue, both directly and indirectly. If you’re looking for an SMS platform to help you maximize SMS profits, look no further than Textline. Textline offers brands a truly unmatched business texting platform. It’s built with ease, collaboration, security, and profitability in mind. Textline, which is priced for its sheer business value, beats out other platforms when it comes to its native integrations, breadth of features, team collaboration functionality, and security practices.
You won’t find a better platform for teams looking to boost business texting profitability. You’re just one text away from more revenue. Get set up with a free Textline account today by texting us at 415-849-4349 or request a demo from our experts.
