Using Text Marketing to Build Your Customer Database

Text marketing to those customers who want to buy from you and probably already have is the most cost effective and produces the highest return on investment versus any other form of advertising. The cost to gain a new customer, no matter the market you are in is high versus the cost of keeping an existing customer. Business owners need to examine the life-time value of a customer and work to expand this time frame.

Casinos are one industry that have known this for years and work very hard at keeping their current customer base. Casinos use the Pareto Principle which in marketing terms means 80% of your sales will come from 20% of your customers. All casinos use this principle with the Players Club. Casinos ask players to sign up for their marketing database in exchange for a special offer, discount or coupon.

This is the same principal as building your text message marketing list. You will ask your customers to sign up for your list in exchange for a special offer or discount. These customers have a positive impression of your business, and are most likely to spend money with you again. The life time value of a customer is likely $15,000 depending on your business. Customers show a lower loyalty rate today versus years past. If you can give customer what they want from you every month, you are less likely to loss them to competitors and apathy.

Other strategies have been used for all business markets from restaurants to retail, politics to music. Previously only direct mail and email were the only ways to take advantage of customer databases for targeted one on one direct communication with your market.

Email read rates are down to 20% compared to 95% for mobile marketing messages. Conversion rates are even lower at less than 2% compared to an average 20% for mobile marketing.  Direct mail is also believed to continue its decline in 2010 as postage rates increase and redemption rates also average 2%. The time, money and labor associated with direct mail compared to the instantaneous effect of mobile marketing make communicating with your customers through the mobile channel and reaping instant rewards the clear choice for businesses.

Text marketing allows you to build your customer database using a mobile call to action that invites customers to text your keyword to our five digit shortcode: 83936. They are instantly added and you as the business owner to not have to maintain a list of hundreds or thousands of customers.  The lead time to send out a new message and measure the response rate is minutes to type and send the message and you will have new sales that same day.  The lead time for direct mail can not compete with text marketing and with email marketing the customer has to find your message in an email inbox with dozens of other messages and print the offer to use it.

By using Moto Message you are able to use text-2-reply keywords that build your customer database on auto-pilot and in turn allow you to send messages, offers, discounts and other coupons that are all designed to bring business in your doors immediately.

Text message marketing averages a 20% redemption rate based on the 80/20 rule. Marketing to your best customers, giving them special offers, and your customers will reward you with their business.

Related posts:

• Build Exclusivity With Text Message Marketing
• Non Traditional Uses for Text Message Marketing
• Text Message Marketing for Businesses is all about Discipline
• Text Message Marketing vs. Email Marketing
• Strategy and Consistency with Mobile Marketing Pays Off

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