SMS Marketing for Retail: How to Do It Right (+ Real Life Examples)

December 3, 2024 | By Favour Agari
Cartoon representation of a shopper on their phone with a checkout aisle behind them

I wanted to start this article by describing how tough the never-ending competition for consumer attention is today.

But you—as a retail marketer—are in the perfect position to explain that.

Like you, your direct competitors use social media, send emails, and create valuable content to rank highly on search engines. As a result, consumers are spoiled for choice, and the brands that stand out the most often secure the sale.

However, standing out—in terms of eye-catching social media campaigns and high-quality content that performs well on Google—can be financially unsustainable. If you have a limited budget or operate in a market dominated by larger industry players, your chances of standing out through these channels may be quite low.

To cut through the noise and generate consistent revenue with less investment, try SMS marketing. In this 101 guide, you'll discover essential SMS marketing best practices from leading retail marketing experts who generously shared their insights with me.

Let’s start with a definition.

What is Retail SMS Marketing?

attractive graphical representation of the quote “Retail SMS marketing is the practice of sending promotional texts to existing and prospective customers via their phone numbers

Retail SMS marketing is the practice of sending promotional texts to existing and prospective customers via their phone numbers. It is a simple and targeted way of reaching customers. When you do it right, SMS is a powerful way to nurture existing customers and warm up cold leads.

7 Data-Backed Benefits of Retail SMS Marketing

SMS marketing lets you connect with your customers. Here are seven reasons why you should try it out, culled from our mega list of SMS marketing statistics (see also Mobilesquard, Blogging Wizard, and Validity):

  1. SMS has outstanding open rates. Unlike other marketing channels, people generally hate leaving mobile texts unread, so SMS messages demand immediate attention. According to the latest data, 100% of texts are “viewed” and over half are opened.
  2. SMS commands incredible engagement. People don’t just open messages, they respond to them too! Nearly half of all SMS marketing campaigns receive an inbound response from customers by some reports.
  3. SMS generates fast responses. Need to get information to your customers quickly, and get a fast response? SMS is the way to go. The vast majority of people seem to respond to texts within minutes to an hour of receiving them.
  4. SMS improves customer experience: Customers want to hear from their favorite brands via text. 91% of survey respondents either had already subscribed to an SMS list or had an interest in it.
  5. SMS marketing is cost-effective: Looking for a marketing channel that provides a great ROI? SMS marketing is a relatively inexpensive way to reach a large audience, especially when compared to traditional marketing channels like direct mail or print advertising.
  6. SMS marketing is here to stay. SMS marketing ad spend is expected to reach $800 million this year, indicating a strong and growing market with ample opportunities.
  7. SMS is a proven sales driver. Want to increase your revenue? SMS marketing can help! In a 2023 survey, 72% of respondents made a purchase after receiving a text message.

How to Use SMS Marketing to Grow Your Retail Business

Simple, attractive graphic with “How to Use SMS Marketing to Grow Your Retail Business” and the headers below, including the short text below each header

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To drive sales with SMS, adopt a customer-first mindset. Here are effective strategies to maximize its potential:

1 — Start by Sending a Welcome Message

A welcome SMS isn’t just a greeting—it’s an opportunity to deliver immediate value, such as a discount or exclusive perk.

Example:

You can be as creative as you like with your welcome message, but a template like this works too: "Welcome to [Your Store]! Thanks for joining us! Enjoy 15% off your first purchase with code WELCOME15. Shop here: [link]."

2 — Offer SMS-Exclusive Deals

Reward loyal customers with deals only available via text.

Examples:

Eyeglasses.com runs a ‘Deal of the Day’ SMS campaign where users receive daily text offers. CEO Mark Agnew said, “This has driven not only revenue but also engagement, as customers share deals and increase our brand visibility organically.”

Mark also says, "I recently ran a campaign with early access to our new line of customized whiskey glasses available to our SMS members. I generated a lot of buzz by sending a sneak look link with a discount code for 10% off for the first 48 hours. Many consumers told me they enjoyed being the first to buy, and in two days, we noticed a 30% increase in pre-orders. These types of initiatives increase revenue and make our devoted members appreciated."

“During a recent sale, we launched a pre-sale SMS campaign offering an early bird discount, which led to a 25% surge in sales on the first day. It demonstrated how effective well-timed SMS strategies can drive immediate responses.” —Eva Miller, VP of Marketing at Pretty Moment

3 — Send Cart Abandonment Reminders

Cart abandonment texts can recover up to 20% of lost sales. To sweeten the deal, add incentives like free shipping or discounts.

Example:

“My favorite SMS campaign involved abandoned carts. Instead of a generic message, we added the item’s name and a playful comment. Leaving a ‘Coffee First’ T-shirt triggered: ‘Hey, we noticed you left this. It probably misses you as much as you miss caffeine. Complete checkout here: [link].’ Humor and personalization made it a brand touchpoint rather than a nudge, recovering 30%—exceeding industry averages.” —Josh Neuman, Founder of Chummy Tees

4 — Request Feedback Through SMS Polls

SMS polls see higher response rates than email surveys, making it easy for customers to share their thoughts.

Example:

“We sent a short text before launching a new collection, asking subscribers to vote on their favorite sneak peek design. This generated excitement and provided valuable sales data. Participation exceeded 40%, and the winning design became our season’s top seller.” — Josh Neuman, Founder of Chummy Tees

5 — Announce Flash Sales

SMS is ideal for last-minute sales announcements.

Example:

“In a flash sale for one of our quirky holiday collections, we sent an SMS that didn’t just say, ‘Sale ends in 12 hours.’ Instead, it included a playful call-to-action with a link to a pre-curated collection and a countdown timer for urgency. This campaign converted 12% better than similar email campaigns.” —Josh Neuman, Founder of Chummy Tees

6 — Use Texts to Foster Recurring Sales

Automated SMS reminders help customers stay on top of routine purchases while building loyalty.

Example:

“We created a ‘Filter Replacement Reminder’ campaign, sending automated texts based on customers’ past purchases. These messages prompted action before air or water quality deteriorated, leading to a measurable uptick in conversions and customer retention.” —Shu Sait, CEO of All Filters LLC

7 — Offer Personalized Product Recommendations

Send tailored messages based on browsing and purchase history to boost engagement.

Examples: “During prom season, we sent SMS alerts with personalized dress recommendations, resulting in a 30% increase in traffic within a week.” —Eva Miller, VP of Marketing at Pretty Moment

“We’ve used SMS to recommend frames based on customer buying habits, leading to a 25% conversion rate increase.” —Mark Agnew, CEO of Eyeglasses.com

Retail SMS Marketing Examples and Templates

“Thanks for the strategies, but I need some DFY text templates to send out right now!” I got you. Here are some examples of text messages you could send right now for each of the above strategies:

Welcome Message Templates

  • Example 1:

Hey [Name], welcome to the [Store Name] family! You're now subscribed to exclusive deals and updates. Reply STOP to opt-out.

  • Example 2:

Thanks for joining [Store Name]! Here's a gift for you: enjoy 15% off your first order with code WELCOME15. [Shop Link]

  • Example 3:

Hi [Name], welcome to [Store Name]! What are you most interested in? Reply with: 1 for New Arrivals, 2 for Sales, 3 for Home Goods.

SMS-Exclusive Deal Templates

  • Example 1:

SMS subscribers only! Get 20% off your next purchase with code TEXTME. Shop now: [Shop Link]

  • Example 2:

This week only, SMS VIPs get early access to our Spring Sale! Shop before everyone else: [Shop Link]

  • Example 3:

Surprise! Here's a special treat for our text subscribers. Enjoy free shipping on your next order with code FREESHIP.

Cart Abandonment Reminders

  • Example 1:

Hey [Name], did you forget something? Your [Store Name] cart is waiting! Complete your purchase: [Cart Link]

  • Example 2:

Still thinking it over? We saved your cart! Enjoy free shipping on your order when you check out now: [Cart Link]

  • Example 3:

Don't miss out on the items in your cart! Complete your purchase within 24 hours and get 10% off: [Cart Link]

Texts for Requesting Buyer Feedback

  • Example 1:

How did we do? Rate your recent [Store Name] experience from 1-5 (1=poor, 5=excellent). Reply with your rating!

  • Example 2:

What new products would you like to see at [Store Name]? Reply with your suggestions!

  • Example 3:

Quick poll: Which color do you prefer? Reply with A for [Color 1] or B for [Color 2].

Flash Sales Announcements

  • Example 1:

FLASH SALE ALERT! ⚡ 30% off everything for the next hour only! Shop now: [Shop Link]

  • Example 2:

Don't miss out! Our biggest sale of the season starts NOW! 50% off select items: [Shop Link]

  • Example 3:

Surprise Flash Sale! 🎉 Take 25% off your entire purchase today only! Show this text at checkout or use code FLASH25 online.

Texts to Trigger Repeat Purchases

  • Example 1:

Running low on your favorite [Product]? Time to restock! Order now and get 15% off: [Product Link]

  • Example 2:

It's been a while! Come back and shop our new arrivals. Enjoy a special discount just for you: [Shop Link]

  • Example 3:

Subscription alert! Your monthly supply of [Product] is ready to ship. Update your preferences here: [Link]

Texts to Offer Personalized Product Recommendations

  • Example 1:

Hey [Name], based on your past purchases, we think you'll love this new [Product Category]! Check it out: [Shop Link]

  • Example 2:

Since you bought the [Previous Purchase], you might also like this [Complementary Product]! Take a look: [Product Link]

  • Example 3:

[Name], we just got a new shipment of [Product Type] in the style you love! See what's new: [Shop Link]

SMS Marketing Example From Retail Brand, GroomsDay

GroomsDay is a company that specializes in customized gifts for groomsmen, allowing individuals to create lifelong memories. They recently surpassed the remarkable milestone of 100,000 orders. CEO Chris Badja and his team are leading figures in their niche, focusing on curating personalized gifts for groomsmen. In response to my request for a comment on their unique SMS marketing strategy, Chris said:

“SMS allows us to design a buying experience that seems thoughtful and intimate. For example, I frequently offer unique tie bars to someone who previously acquired engraved Cufflinks or give tailored discount codes depending on what consumers bought or looked at. I ensure these communications reach them within a few days of their original purchase while they are still contemplating their occasion."

attractive graphic showcasing the quote above, crediting the quote to Chris Badja, CEO of GroomsDay

Chris says, "Last quarter, especially from returning customers who valued the quick recommendations, this strategy helped us raise sales by 25%. Seeing how something as basic as a well-timed SMS may improve a purchasing experience has been fulfilling."

Respect the Inbox: Some Essential Retail SMS Marketing Tips

Your customers' inbox is intimate, and if you want to maintain a positive brand image, you must respect it. Regardless of which way you decide to use text message marketing, some general rules apply. Here’s what “respecting the inbox” looks like in practice:

  • Mind your texting frequency. While there's no one-size-fits-all answer, sending multiple texts per day or even per week can quickly lead to subscriber fatigue. What might be acceptable for a flash sale or time-sensitive event could be overwhelming under normal circumstances.
  • Segment your audience based on their preferences and engagement levels. This allows you to tailor your texting frequency to different groups, ensuring that you're not bombarding anyone with unwanted messages.
  • Always provide a clear and easy way for subscribers to opt out of receiving messages. This not only respects their preferences but also helps you maintain a clean and engaged subscriber list.
  • What's the offer, and why should they care? Your text message should quickly and clearly communicate the value proposition to the recipient.
  • Bombarding subscribers with multiple offers in a single text can be confusing and overwhelming. Instead, highlight one compelling offer per message to maximize its impact.
  • While focusing on one primary offer per text is best, you can subtly cross-promote other products or services with a brief mention or link.

Remember, the inbox is a sacred space. By respecting your subscribers' time and attention, you can build a loyal and engaged audience that values your brand and its messaging.

Win the Inbox, Win the Sale

Retail SMS marketing is the cost-effective path to new and repeat customers. Keep it simple, targeted, and valuable—and watch how your revenue soars. (Just remember to respect the inbox by not sending too many texts at a time.)

Get a 14-day free trial of Mobile Text Alerts and start sending those texts today!

Bio:

Favour is a freelance content writer for B2B SaaS. In 2022, she was named Hackernoon’s content strategy contributor of the year. When she’s not writing, she’s taking long walks, shopping online for a new dress, or scouring the internet for the latest content marketing news.

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