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Text Marketing Conversion Rates Prove That Consumers Love Mobile


Mobile marketers – LISTEN UP!

Among consumers who have signed up for text alerts from retailers and merchants, 26 percent say that the information they received has led them to purchase the promoted product in the store, while 25 percent say they have purchased a different product from the store, according to May 2012 survey results from Placecast. Similarly, 27 percent either bought the promoted product or a different one online.

Despite just 4 percent of the survey respondents reporting having signed up for such alerts, interest appears to be on the rise: 41 percent said they would be at least somewhat or very interested in receiving text alerts about new products, sales, and/or promotions on their mobile device. This represents 14 percent growth from 36 percent who showed interest in 2010, and a 32 percent increase from 31 percent who were interested in 2009.

A 25 percent conversion rate is hard to come by in almost every channel. That’s why this report’s findings are so stunning.

Even if you amortize all channel costs to entice consumers to opt in for alerts, with conversion rates pushing one in three the return on investment for mobile marketing looks pretty attractive.

When smartphone ownership numbers are added into the equation – mobile marketing becomes even more interesting for marketers. According to the Pew Internet & American Life Project the number of Americans who are smartphone owners now stands at 46 percent, an 11-point increase since last May. Smartphone owners now outnumber the 41 percent of adults who own a cellphone that is not a smartphone.

As smartphone ownership has grown over the last year, there has been a corresponding shift in the specific types of phones that Americans report owning:

  • Android devices are used by 20 percent of cell owners, up from 15 percent in May 2011
  • iPhones are used by 19 percent of cell owners, up from 10 percent in May 2011
  • Blackberries are used by 6 percent of cell owners, down from 10 percent in May 2011

If mobile marketing is not part of your connection strategy for the next 18 months – you may want to be re-thinking that plan.

Thanks to Rick Mathieson for bringing this study to my attention.

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