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4 Ways to Use Customer Data to Improve ROI and SMS & Email Campaigns

2023-11-30
Email and sms marketing, Email marketing, Email campaigns If you represent a consumer brand, chances are you're already engaging in sending Email and SMS campaigns to your customer base. However, do you have insights into whether these campaigns are yielding a positive return on your marketing investment? Here are four methods to utilize your customer data effectively to enhance these campaigns and boost your ROI.
 
For retail brands, Email and SMS marketing stand out as immensely potent channels, offering exceptional returns on investment (ROI). A case in point: retail brands can anticipate a staggering $45 in revenue for every $1 invested in Email marketing.
 
How does your ROI measure up comparatively? If your brand's Email and SMS ROI trail behind, it signals the necessity for campaign optimization to bolster this metric. Given the competitive landscape of retail Email marketing, subpar ROI may not just mean missed sales but also potential loss of valuable customers.
 
Presently, retail customers seek heightened personalization, even in their brand communications, as part of their shopping experience. The more tailored your Email and SMS messages align with their preferences, the more impactful these campaigns can be, especially in captivating the modern audience.
 
Hence, if your campaigns require an ROI surge, implementing four strategies can significantly enhance the returns of your Email and SMS marketing endeavors.
 
Email and SMS campaigns 
 

1. Birthday-level Personalization

 
The effectiveness of birthday promotional Emails, which witness a remarkable 481% higher transaction rate and generate 342% higher revenue compared to regular promotional Emails, stems from their hyper-personalized nature.
 
Beyond the mere inclusion of the recipient's name, the essence of birthday Emails extends further. Anticipation is inherent as customers expect brand discounts in their inbox around their special day. Moreover, these promotions are perceived as exclusive to the individual, creating a sense of excitement and intimacy.
 
Yet, the reality is that birthdays offer an illusion of exclusivity. With numerous customers and only 365 days in a year, hundreds experience similar sentiments daily. However, a crucial lesson lies within this phenomenon.
 
Injecting even a fraction of this "personalization" from birthday messages into your brand's Email and SMS marketing can result in a substantial ROI boost. Highlight the emphasized aspects mentioned earlier and incorporate these ideas into your campaigns.
 
Consider establishing a "second birthday" for each customer on the anniversary of their initial purchase from your brand. This approach reinforces the perception of a unique promotion tailored to their shopping history, fostering a personalized connection.
 
Strive to infuse elements of "birthday-level personalization" into all your campaigns, elevating ROI uniformly across your marketing initiatives.
 

2. Precision in Customer Segmentation

 
Employing broad, generic promotions via Email is considered poor practice, but doing so through SMS is deemed even more egregious. The inherent intimacy and personal touch associated with text messages contribute to their nearly 100% open rate. This stems from the recipient's perception that the message is tailored specifically for them, rendering generalized promotions ineffective in this medium.
 
Instead, focus on tightly segmenting your customer base to deliver targeted promotions. Research indicates that segmented Email campaigns yield a staggering 760% increase in revenue compared to one-size-fits-all promotions.
 
Although creating narrower segments demands more effort from your brand's sales and marketing teams, the dividends make it unequivocally worthwhile. Leveraging Email and SMS Automation can streamline the process, enabling the dissemination of precisely targeted campaigns while mitigating the time investment required.
 

3. Curate the Right Recommendations

 
Enhancing ROI significantly hinges on showcasing the most relevant products to your customers. The closer the match between the displayed items and their preferences, the higher the conversion rates for your Email and SMS communications.
 

4. Getting the Right Time to Send Messages

 
Just as sending birthday promotions at the opportune moment matters, the timing of your overall Email and SMS marketing campaigns significantly impacts ROI. For instance, an SMS sent at 10 pm might not yield favorable results and could even lead to customers labeling your texts as spam due to annoyance. Optimal timing involves sending texts during business hours, preferably between 9 am and 2 pm on weekdays.
 
Regarding Emails, studies suggest that Fridays generally boast the highest open rates, while others highlight Tuesday and Thursday as potentially more favorable days. This variability underscores the importance of conducting A/B tests specific to your audience to determine the most optimal send times. Relying solely on industry norms as a starting point is insufficient.
 
Similar to birthday messaging, align promotions with relevant events by dispatching related communications 7 to 10 days before these occasions. Doing so can significantly amplify ROI and engagement levels.
 
 
Email and SMS campaigns
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