Why this powerful yet underrated channel should be on every retail marketer's radar.

In the UK, SMS is often perceived by marketers to be an ineffective channel. Despite its success in the US, where marketers generate $72 in revenue for every $1 spent on SMS, many believe it doesn’t resonate with consumers (or deliver the same return on investment) across the pond.

This is a common misconception. In fact, research from Attentive shows that 90% of UK residents are open to receiving SMS from brands. Yet, only 34% are currently opted in.

It’s clear there’s growing demand among UK consumers to be contacted in this way, but brands aren’t taking full advantage. This represents a compelling opportunity to capture that demand before others do.

Let’s explore why SMS is worth your investment.

Key stats

• 37% of UK consumers agreed that receiving SMS messages from brands makes them more likely to purchase from that brand again.
• 40% of UK consumers want to hear from brands multiple times per week via SMS.
• 75% of UK SMS subscribers have purchased by clicking a link in a text message within the last month.

UK consumers are eager to connect with brands over SMS

Audiences in the UK are interested in hearing from brands via SMS for a number of reasons.

A study of 701 UK consumers by Attentive found that 70% would subscribe to SMS to access exclusive perks and discounts. Transactional texts, like shipping updates, appealed to 58% of respondents, and 55% would subscribe to receive notifications about new product launches.

What this tells us is that retailers can use SMS at touchpoints throughout the customer journey to engage and convert audiences. Beyond just transactional messages, the immediacy and informality of this channel makes it a powerful tool for discovery and promotion too.

SMS offers more ways to engage

Diversifying your marketing mix, and therefore your streams of revenue, is key for any modern marketer. Every customer is different, and building SMS into your wider marketing strategy enables your audience to interact in the ways that best suit them.

The best part? SMS doesn’t cannibalize your other channels; rather, it complements them.

SMS as a channel has the unique advantage of immediacy, making it perfect for delivering timely calls to action and inspiring a sense of urgency. Email, on the other hand, uses brand storytelling and eye-catching visuals to capture consumer attention.

Used together, you can build even more impactful multi-channel campaigns. For example, you might send an SMS to quickly capture a conversion shortly after an abandoned browse, then, if that doesn’t work, follow up with a more visual email to close the sale.

It all comes down to personalization

Like any marketing channel, your success with SMS will depend on your strategy, and that means prioritising relevancy and personalization.

A survey by Validity found that 56% have purchased less or stopped buying from a brand altogether due to annoying SMS messages, highlighting the importance of understanding and addressing individual customer preferences.

Having the right tech is key to this. For example, Ometria’s predictive best channel functionality uses retail-trained AI algorithms to determine the most effective channel to contact a customer on. This allows you to use SMS in a very targeted way, as well as deliver a completely personalised experience for every customer. You can also use overlays on your website to recruit new SMS subscribers.

Ultimately, diversifying into SMS gives customers more ways to engage with your brand, and more ways for you to truly personalise their experience, allowing you to build long-term loyalty and boost your bottom line.