Incorporate these SMS marketing segmentation best practices to boost engagement and business growth with relevant messages to the right people

How many of you have observed that a text message is immediately opened by the customer? According to a statistic, 78% of the customers say that SMS is the fastest and swiftest way to reach them. Yes, you will notice that almost all text messages are ready within 3 minutes of receiving them. You cannot go wrong with statistics, can you?

So, what do you do with this high open rate? You use it to maximize sales, and convert faster. Yes, messages can make you profitable, and grow your business effectively. It will ensure that the campaign you just sent gets you a customer.

# SMS Marketing: An Overview

Let’s understand what SMS marketing means, before we proceed to the segmentation bit. It is basically using messages to send out promotional messages to your customers. You tell them about the new additions, promotions or even quick updates through messages.

The key to growth with messages is timing and relevance. That’s where segmentation plays a pivotal role.

If you send the SMS meant for new customers to people who are already shopping at your store regularly, they might feel disconnected. So, keeping lists, segmenting them and nurturing your audience accordingly helps.

There are certain things you need to take into consideration when devising the segmentation for your business.

Here we will take you through segmentation best practices that every SMS marketer should follow.

Best Practices for SMS Segmentation

When you are practicing SMS marketing segmentation, there are a few things that you ought to consider.

#1 Grow your List

Just like emails, you need to focus on lists to ensure success with SMS marketing. You will need to create list of engaged people, new to the store people, and even people who have been inactive for a while.

These lists will help you personalize your messages and make it more effective for the end users.

For a retailer, an engaged customer would be someone who has been frequently visiting the customer. Again, they would be someone who is spending more compared to other groups. An inactive person would be someone who has not been to the store in a long time (say six months).

You need to have both lists ready. It is important as a retailer that you don’t forget about your dormant customers. They could have been your highest spenders at one time. However, for some reason they went away. So, you need to bring them back.

#2 Intent or Purchase Driven

The second group would be purchase-driven. This SMS marketing segmentation is based on the purchases they make. They have been making a lot of purchases, then they may be interested in more products at your store. If they are not yet making enough purchases, they might need to be motivated into completing a purchase.

#3 Keep it Smaller

Don’t mix too many elements into your list. Make it as segmented and small as possible. You don’t want to add too many elements to a particular mix. So, make sure you have identified elements in a way that your list is small and you can drive maximum personalized content for this segment.

For instance, if you know that these customers have not visited in months after their first purchase, they should be separated from the customers who were once your highest spenders but have not returned in a long time. Both the segments are different, and require different winback strategies.

#4 Goals of Segmentation

Make sure you are aware of the goals of segmentation. For instance, if your goal is to winback customers or retain them, then the lists will be derived accordingly.

In case, your goal is to get back the new customers and retain them, then the lists would differ. Make sure you define the goals before you start segmenting the lists.

Conclusion

Douple dipping is a possible outcome of creating effective lists for your business. However, it is alright to have the same customer along two different lists. If they need to be that way, you will have to nurture them accordingly.

Just make sure you plan your nurture based on the goals of these lists and the need of the lists.

At Reelo, we have created lists using RFM analysis, which allows you to straightaway get your hands onto automated segments. It will help you know your best customers, and those that you have lost on the run.