Nine in 10 (91%) consumers have already opted into at least one brand’s SMS program, or are interested in doing so, with consumers willing to share personal information in exchange for free shipping, complimentary gifts, or personalised recommendations, according to the annual State of Conversational Commerce report from Attentive.
The findings reveal 88% of consumers would engage in a two-way conversation with a brand about a product, and 87% would reach out to resolve a checkout issue. This shows that conversational commerce has seen wide adoption in the shopping journey and presents an opportunity for brands to engage with customers to close a revenue gap.
“Conversational commerce radically changes how consumers shop in their day-to-day, and SMS marketing is at the heart of this shift,” Attentive chief marketing officer, Sara Varni said.
“Brands are recreating the in-store experience online, which enables consumers to take an active role in starting a conversation. These two-way conversations naturally lend themselves to invaluable zero-party data collection that amplifies marketers’ efforts.”
The report also found that unlike last year when convenience reigned supreme, this year, discounts are the biggest lever brands have to influence consumers to spend more than they planned.
Despite being dialed into value, consumers are willing to spend significant amounts of money on items personally marketed to them via SMS. In the US, over 61% have spent between $50 and $500 on an item marketed to them via text, presenting an opportunity for high-end brands to meet their customers on the channels they prefer.
Attentive also surveyed over 900 brands globally to gather insights on top priorities for marketers in 2023 and the opportunities to maximise their programs. Just as SMS is globally-adopted by consumers, 79% of marketers use SMS as a retention channel and 73% of marketers say SMS drives incremental revenue for their business.
The majority of marketers surveyed aren’t managing a reduced budget this year. For 86% of marketers, their budgets are staying consistent to 2022 or increasing. But the focus has shifted to retention and acquiring new customers, using channels that are proven to show results.
Given the direct and measurable nature of SMS marketing, it’s no surprise that 52% of marketers are planning to increase their SMS marketing budget. This percentage is greater than any other paid channels’ budgets.