Email is Dead: A Simple Guide to Text Message Marketing

Experts agree that loyalty is the most effective and highest return marketing

Retailers with loyalty programs, on average,are 88% more profitable than competitors who do not.

DELOITTE RESEARCH SURVEY

Customer loyalty is the single most important driverof growth and profitability.

HARVARD BUSINESS REVIEW

It is 6 to 7 times more to acquire a newcustomer than to retain an existing one.

BAIN & COMPANY

Loyalty marketing is more relevant today than it has ever been

• Your biggest asset is your existing customer base and foot traffic

• Data shows that loyalty programs can increase customer visits by 20 percent or more

• With social media, each of your customers can now share your brand with hundreds of others

• Technology can now automate most of your loyalty marketing needs

• It’s marketing that’s fun and makes sense!

Loyalty marketing ROI is traditionally driven by increasing visits, spend, and response to promotions

Visit go.fivestars.com/loyaltyguide to learn more

Framework for Calculating Loyalty Return

Visit More

Frequently

Spend MorePer Visit

Participatein

Promotions

RewardCosts

ProgramCosts

NetRevenueIncrease

Customer Behavior Loyalty Marketing Costs

How Text Messaging Drives Loyalty

• Brings your best customers in the door immediately • Customers prefer getting timely messages from places they already go to, especially places they frequent • Text message promotions/ads can reach customers throughout the day, they don’t need to be in front of a TV or computer • Good text message campaigns can compliment your other marketing efforts

# of timespeople look at their cell phones

150XPERDAY!

91% of people keep their phones within 3 feet of themselves 24/7

Text message marketing is one of the mosteffective ways to distribute promotions

• Average Text Click Through Rate = 14.06%• Average Text Conversion Rate = 8.22%

• Average Email Click Through Rate = 6.64%• Average Email Conversion Rate = 1.73%

Text message marketing provides the highest ROI of any other mobile marketing tools... So let’s run through some rules of thumb for successful campaigns!

Text Marketing vs. Email Marketing14%

8%

6%

1%Email CR

Email CTR

Text CR

Text CTR

Rule #1: Write thoughtfully

• You only have 140 characters: Make them count!

• Always check spelling and grammar.

Text Marketing: Rules of Thumb

03:00MIN

of text messages are opened within 3 MINUTES.

98%

• Use abbreviations when necessary, but don’t over do it.

• Don’t text like your tween cousin. GR8 THX BYE!

• Make sure to include a call to action!!!

Visit Haagen-Dazs PaloAlto for your Valentine’sDay cake; order beforeFeb 10th & get 14% off!Call 650-555-5555 today!Reply STOP tounsubscribe

Rule #2: Send offers and reminders

Mobile Coupons/Promotions

of U.S. mobilecustomers prefer offers by text

Text Marketing: Rules of Thumb

Sales Reminders

Special Events

Mokutanya Charcoal Grill1155 California Dr: $0.50Oysters from 6pm-8pmonly! No limit & whilesupplies last, show us this text! Reply STOP to unsubscribe

Tacomania Tacos & BeerGrand Opening! 5292 Monterey Rd: Show thistext TODAY & get a freedrink w/your 1/2 pricetacos! Reply STOP tounsubscribe

Stop by Elle Boutique onBurlingame Ave for oursemi-annual jean sale!Show this text for an extra10% off purchase!Reply STOP tounsubscribe

32%

Over mobile web (21%), apps (11%), or voicemail (8%)

• Schedule and send your text messages at optimal times for maximum effect

Rule #3: Schedule texts

TEXTME

L8R!

Text Marketing: Rules of Thumb

• Don’t send more than one text a week to prevent opt outs from too frequent messages

Mokutanya Charcoal Grill1155 California Dr: $0.50Oysters from 6pm-8pmonly! No limit & whilesupplies last, show us this text! Reply STOP to unsubscribe

Dinner Special6pm-8pm

Text sent: 4:30pmon the day ofdinner special

Stop by Elle Boutique onBurlingame Ave for oursemi-annual jean sale!Show this text for an extra10% off purchase!Reply STOP tounsubscribe

Two Week Jean Sale

Text sent: 11:00amon first Saturday

during sale

Rule #4: Build your online presence

Text Marketing: Rules of Thumb

Like us on Facebook atfacebook.com/danvilleflamebroilerand receive 15 % off yourentire order throughFeb 9th! Reply STOP to unsubscribe

• Use text promotions to encourage visitors to your website

• Request Facebook likes and Twitter followers via text

• Send text to help promote social media posts or specials

Long day at the office?Saba Cafe Caters! Visit www.sabacaferwc.comtoday to make yourorder. Use code 123 for 1 Free Soda Ltr! ReplySTOP to unsubscribe

Rule #5: Prompt customers in store

Text Marketing: Rules of Thumb

TEXT

“SIGN UP”TO

55555TO GET

STARTED!

• Post in your store front signage to promote opt-ins

• Train your employees to ask every customer at check out to join your texting service

• If you offer the FiveStars Card to your customers, they are automatically signed up for BOTH your loyalty program and your text promotions!

Some rules are meant to be broken...

These are all general rules of thumb, but every business is different, so feel free to cater to your customers’ wants and needs.

... but laws are not.

Federal Communication Commission

• Basic guidelines here: http://goo.gl/0tfSF

• Telephone Consumer Protection Act here: http://goo.gl/b22am

Customer has to give written

consent to receive texts, also must

have opt out option in message**If you use FiveStars, we handle this for you :)

Text Marketing: Rules of Thumb

If you answered YES to all 4,your texts are good to go!

1. Are you only sending texts to people who have opted in?

2. Do you have your text terms/policies displayed anywhere

(online or in store) that opt-ins are promoted?

3. Do you have an opt out option in the text?

4. Are your opt-out requests honored no later than 3 days?

Four questions to ask before you send a text!

Text Marketing: Rules of Thumb

Text Message Success Story

Actual comments received from owner around noon that same day: “Got 3 already.�One within 5 minutes!”

Jim sent us very happy update citing 10-15 people came in with the text.

Later that day: “Well, you have convinced Don and one of my staff. I actually did get $107.40 in sales. I will have to try it again sometime.” - Jim

Soulman’s inRichardson’s “Valentine’s Day” Special! Buy 2 plates & 2 drinks. You’ll get 20% off AND 2 FREE desserts. Reply STOP to unsubscribe

Text Sent: 11:15am Feb 14, 2013

One of our Client Success Managers convinced Jim, a FiveStars business owner in Texas, to send out a Valentine’s Day text message to their customer base using our Merchant Toolkit.

Jim had never used our texting services before, and wasn’t convinced it was going to bring people in the door.

Want to start texting your customers?What texting tools are out there?

• Mogreet • Eztexting • Mozeo • TextMarks• ... and FiveStars Loyalty Automation Platform

Cue shameless plug!

FiveStars is pioneering loyalty automation that includes text message marketing

FIVESTARS LOYALTY AUTOMATION PLATFORMWe take care of everything

Point-of-SaleRelationshipManager

FiveStarsCard

CustomerEngagementToolkit

• Customer info right on the POS

• Never slow down the line

• Built in fraud control

• Simple technology everyone can use

• Impossible to lose

• Over 700,000 cardholders

• Simple segmentation

• Text or email campaigns

• Social media integration

Want a free loyalty consultation from FiveStars?Visit go.fivestars.com/demorequest

Email is Dead: A Simple Guide to Text Message Marketing