In the dynamic landscape of eCommerce, there is a new customer retention reality. Email-only strategies are losing out to more personalised omnichannel journeys—with SMS central to the retention evolution. Lee Smorthit at Dark Matter Commerce explains how growth-driven eCommerce brands can go beyond email in 2024 to drive more repeat purchases with data from Attentive.

Email has long been the cornerstone of customer relationship management for eCommerce brands. But as technology has evolved, intricate personalised journeys have slowly become the expectation—not the exception—for your customers.

With a wealth of pure-play email options available for brands to adopt, customers have become accustomed to the day-to-day email comms many brands stick to. These starter email flows—e.g., abandon cart and welcome flows— can build the foundations of a strong retention strategy, but you don’t have to stop there.

While it’s imperative to get these email foundations right as a starting point, there’s an embarrassment of riches right now when it comes to new automated personalisation opportunities that makes it easier than ever to level up your retention strategy.

To get the best results, many retailers are going beyond email. The brands that tend to succeed in the post-AI age are those who can mature their retention strategies with data-rich segmentation and more granular flows, coupled with the power of SMS, to reach their customers directly.

Has email lost its edge?

The truth is that email is still a highly effective retention channel. The issue lies in how brands are using it. Many eCommerce businesses today are guilty of sticking with the same flows that they set up years ago, falling behind those competitors who are embracing automation, AI-led personalisation, and omnichannel retention strategies.

There’s another channel that boasts several of the benefits of email while commanding immediate engagement with the majority of your users, and it’s great for anyone who’s ready to level up their customer retention efforts.

We’re talking, of course, about SMS.

What is SMS marketing?

SMS marketing, or short message service marketing, involves sending offers, promotions, and reminders to subscribers’ mobile devices via text messages, typically limited to 160 characters.

Like email, SMS is a customer lifecycle channel, supporting goals and strategies from acquisition to retention. However, the immediacy and engagement rates of SMS can sometimes surpass those of email. Over the last few years, SMS marketing has become a differentiator for brands of all sizes who’ve used it.

The benefits of SMS

1. It drives additional revenue

It’s been proven that integrating SMS with email campaigns can significantly boost revenue. In fact, marketers who combine these channels report up to 10 times more revenue than those who rely on email alone.

Additionally, Attentive’s Consumer Survey revealed that 75% of UK respondents who subscribe to text marketing programmes made a purchase from a text message within a month. This immediate response underscores the powerful impact of SMS on consumer behaviour and revenue generation.

2. It increases user engagement

People might ignore your emails, but they find it much harder to ignore your texts. 68% of UK respondents prefer SMS for receiving immediate updates on products and promotions. Text messaging simplifies engaging with both potential and existing customers on their most-used device. And over 70% of customers have already used their mobile phones for shopping, reflecting a rising trend in mobile purchases.

The nature of SMS allows for instant engagement, unlike email, which often suffers from natural time delays. This immediacy is crucial for capturing users’ attention and prompting quick actions, making SMS an indispensable tool for timely marketing efforts.

3. It enhances customer retention

While email still plays a huge role in any retention strategy worth its salt, SMS is an equally effective retention channel. 79% of marketers leverage SMS to drive repeat purchases, and Attentive’s customer data shows that 54% of SMS subscribers are repeat purchasers.

Moreover, SMS has been instrumental in recovering lost sales. In 2023 alone, SMS reminders helped recover over 9.8 million carts, resulting in $1.7 bn (£1.32 bn) in saved revenue (Attentive internal data).

4. It facilitates two-way conversations

SMS fosters quicker and more interactive communications than email. The average response time for text messages is under two minutes, vastly outperforming other channels, where responses are often significantly slower — or aren’t available at all.

This rapid interaction makes SMS a powerful tool for real-time customer engagement and support. The expectation of a two-way conversation inherent in SMS helps brands build more personal and responsive relationships with their customers.

5. It helps you collect first- and zero-party data

SMS is also excellent for collecting valuable first- and zero-party data throughout the customer lifecycle. Brands can explicitly gather preferences through interactive text messages; for instance, a beauty company might ask new SMS subscribers about their skin type and use this data to tailor future communications.

How SMS and email can work together

While SMS is certainly an effective channel, many marketers fear that introducing SMS to their retention strategy will cannibalise the efforts of their email flows.

But quite the opposite is true: SMS complements email marketing very well indeed. Attentive’s Global State of Conversational Commerce report found that 85% of global shoppers who subscribe to a brand’s SMS programme also sign up for their email list.

Combining SMS and email in a cross-promotional campaign can maximise the effectiveness of both channels. For instance, send an email with more detailed product info, and follow up with an SMS message encouraging the purchase to subscribers who didn’t buy from with the email. This strategy leverages the strengths of each channel to enhance overall engagement and retention.

For order confirmations and updates, use SMS for instant notifications and follow up with detailed emails. This approach ensures that customers are kept informed in real-time while providing them with comprehensive information for their records. By integrating SMS and email effectively, you can create a more responsive and engaging retention strategy that drives long-term growth and customer loyalty.

8 ways to use SMS in your retention strategy

While email is ideal for detailed information, SMS excels in delivering concise, time-sensitive messages. Together, they create a more robust and responsive marketing strategy.

Here are the best ways you can start using SMS to enhance your existing email flows.

1. Time-sensitive offers

Using SMS for immediate notifications of time-sensitive offers ensures high open rates and quick engagement.

Since SMS benefits from high open rates within the first few minutes of sending, it is particularly effective for alerting customers to flash sales, limited-time discounts, or urgent updates. This immediacy can significantly enhance the effectiveness of your promotional campaigns.

2. Important information

For detailed and important information, email is still the preferred medium due to its capacity for long-form content and record-keeping.

However, SMS can play a crucial role in notifying recipients about these important emails. By sending a brief SMS alert, you can ensure that customers are aware of critical updates in their inboxes, increasing the likelihood of these emails being opened and read.

3. Order updates

Providing instant feedback on orders through SMS allows customers to spot potential issues quickly. When a user makes a purchase, a quick text acknowledgement can confirm the order details and remind them of any important information. This quick reaction can save companies like yours significant amounts in potential return fees and enhance the overall customer experience.

4. Cart abandonment reminders

SMS is highly effective for addressing cart abandonment. Traditional email reminders alone can sometimes struggle to recapture spontaneous purchasers’ interest, but unifying comms across email and SMS increases your odds of reaching customers within the crucial interest window.

SMS allows you to immediately engage with customers who have left items in their carts, increasing the chances of recovering these sales. This timely intervention can significantly reduce cart abandonment rates and boost conversion rates.

TIP: Test your timings. Play around with time delays and frequency to optimise your email and SMS flows for maximum engagement and commercial output.

5. Customer service

Offering customer support via SMS provides a quick and efficient way to resolve inquiries. Customers often appreciate the speed and convenience of SMS for addressing their issues. This additional support channel can enhance customer satisfaction and loyalty by providing timely and responsive assistance.