How Indian Small Businesses Utilize Bulk SMS for Repeat Sales
On average, new customer acquisition and associated costs (time and money) outweigh that of return customers. Small business owners understand this, but very few ever establish the mechanisms necessary to draw customers back. While they spend money to attract new customers, opportunity sales (those in the customer list) remain untouched.
Bulk SMS for small business India has its reason for existence exactly here. It doesn't waste time and effort in prospecting new customer possibilities. Instead, it reminds customers of the reason to return.
Importance of Repeat Sales
The hassle and costs of acquiring first-time customers, as well as discounts offered, are considerably recouped when a returning customer is made. Repeat customers (as opposed to first time) trust and are likely to spend more with each subsequent visit. Any small business owner whose priority isn't returning customers isn't running a profitable business.
The Price Difference Between A New Customer and A Returning One
Reminding an existing customer to return is a lot less costly than buying ads to attract a new customer. Sending a single SMS costs less than a rupee, while new customers secured by ad spending could costs anywhere from Rs. 10 to Rs. 100.
The reason small businesses utilize bulk SMS not as an announcement system and more as a repeat sales tool is because of the large difference in price.
Why Small Businesses in India are Leaning into Bulk SMS
Most small businesses in India work with limited budgets and small teams, so they don't always have the means to run frequent social media campaigns. That's where bulk SMS comes in. Because of the nature of SMS, it makes sense for most small businesses in India.
Instant Message Delivery
SMS messages don't require a customer to be connected to the internet, have an application installed, or scroll through other posts to see it. It arrives directly to the inbox and is typically read in under a minute. This is especially helpful for customers that do not utilize WhatsApp or Instagram on a regular basis.
Cost Per Message
SMS messages are an extremely affordable way to send a message to customers. Given the budget constraints most small businesses in India face, it makes sense to message customers multiple times a month, a campaign that would be much more expensive to run through paid social media advertisements.
How Small Businesses are Using Bulk SMS for Retained Business
Bulk SMS works for small businesses in India because businesses are using it in a targeted way. It has been extraordinarily successful in the Indian market.
Stock Alerts and New Arrivals
A lot of bulk SMS efforts by small businesses utilize stock alerts. For instance, a store texting past customers when an item in high demand comes back in stock. The message serves to convert a customer who was just browsing into a buying customer.
Reminders for Loyalty and Rewards
SMS campaigns for small businesses that have simple loyalty programs are used to remind customers how much closer they are to winning a reward, which further encourages them to visit the business before the offer expires.
Personalized Reorder Reminders
Automated reorder reminders encourage businesses to send messages when a customer's purchase is likely to run out. This helps businesses automate or spin a restock purchase into a simple, repeat sale.
Automated Festival and Seasonal Offers
Automated reminders for festivals like Diwali, Holi, or local events that include deals allow businesses to send reminders a day or two before the event and encourage customers to make a purchase. This is especially effective when paired with time-sensitive reminder message offers.
Automated Win-Back Campaigns for Inactive Customers
Inactive customers don't buy for 60 or 90 days. An automated inactive customer message with an offer convinces customers to buy.
Building an SMS Campaign That Brings Customers Back
The challenge of SMS marketing is not how to send a message. Another challenge is crafting the message to the appropriate customer at the opportune moment in order to separate a successful campaign from an ignored one.
Customer List Segmentation
Not all messages should be sent to customers the same way. Different offers can be combined with different selling strategies for one time buyers, frequent buyers, or inactive customers.
Sending the Message at the Right Time
A reminder message sent too early is just ignored, and one sent too late is of no use because the customer has already made a purchase. An offer that falls within the customer's buying cycle will ensure the customer responds.
Keep the Message Short and Clear
Successful SMS marketing campaigns employ the KISS principle (Keep It Short and Simple) when offering promotions. Three lines convey enough for a clear promotion---the offer, the reason it's important, and what they should do next. Everything beyond this gets skipped.
Common Mistakes that Destroy Repeat Sales Campaigns
Many small businesses promote the same exact offers to all of their customers, regardless of what that customer last purchased. Some businesses send promotions too often, increasing the chance that their customers completely disregard their messages. Others fail to register their devices for DLT, meaning a majority of their good offers go to waste, since the messages they send never even reach their intended customers.
Closing Remarks
Bulk SMS for Small Business India is at its most effective when small businesses picture it as a tool for their subsequent business transactions, instead of a tool to simply notify customers. The businesses that achieve results don't send more messages than everyone else. They send the right message, at the right time, to the right customer.
If your customer list has been inactive for a while, that's usually the easiest sales to make for the month.
Frequently Asked Questions
Is Bulk SMS still relevant for small businesses in India?
Yes. SMS has a high open rate as customers do not need to be on the Internet or have an application in order to read the message.
How many messages should I send my customers?
Generally, sending promotional messages to customers once or twice per month is optimal because it's enough to avoid being perceived as spam.
Which offer brings back customers the most?
Incentives that are time-bound and targeted (e.g. offers valid for a specified date) do the best, as opposed to open-ended incentives.
Which is best, bulk SMS or WhatsApp, to drive repeat sales?
SMS goes to everyone, while WhatsApp can send images and catalogs.
What's the approximate cost of bulk SMS for a small business in India?
Cost varies with message type and number of messages sent, but it is a lot cheaper than most paid advertisement platforms.
