Advertising is a must for any business to be successful. Whenever a business has advertisement, whether it’s paper fliers, business cards, a radio ad, or a billboard, there is an element of waste in those advertisement. If a business prints 10,000 fliers and hands them out, the percentage of those advertisements that will convert to sales is about 2% and sometimes even as low as less than 1%. Obviously this could vary depending on how the flier presents itself, what offer is being advertised, and how the business targets the audience. However, at even a 2% conversion rate, those 10,000 fliers only yielded 200 sales. In this event, the element of waste is 98%. Other forms of advertising have a higher conversion rate, but regardless there will be some waste. Text message marketing is a unique form of advertising because of it’s uniquely high conversion/return rate. Text marketing rates of conversion are averaged at 30% up to near hundred-percentiles with some business efforts.
Why Text Message Marketing Yields High Conversion Rate
I recently read a document by the Mobile Marketing Association about permission based mobile marketing and had an insight as to why mobile marketing is so effective in its high return and conversion rates. Mobile marketing is different than other forms of marketing in that it requires consent of individuals to have marketing material sent to them. Because of this unique characteristic of mobile marketing, the information and promotions that are passed along to the subscribers are requested by the subscriber, not just presented to the subscriber.
How Text Message Marketing Reduces Advertising Waste
Because of the consent characteristic of mobile marketing, any advertising that is sent to the subscribers is content they are actually interested in. This makes them more likely to convert that advertisement to a sale. Rather than blindly soliciting the consumers with random advertising, you are targeting only the people interested in your business.
In these descriptions, advertising waste is decreased while conversion and return rates increase. Let’s say you have a database of 1,000 subscribers and you send a text message to them advertising a new promotion you have. Judging by the average percentages (if the campaign is implemented properly), you can expect anywhere from 300 up to all 1,000 of those subscribers to convert that advertisement to a sale. Obviously, this isn’t the case all of the time, however the mobile marketing statistics are there to back up its validity.
It is a simple concept as to how your business can reduce waste in advertising by using mobile marketing. By implementing these strategies and concepts into your business, when handled properly, you will be able to see the results. Learn more about text message marketing by reading our other blog articles related to how to begin and run a mobile marketing campaign.