Latest 28 Jan 2021 | Messaging Channels | 3 min read

Why Messaging is a More Efficient and Cost-Effective SMS Alternative

As our CEO Ido says “modern CX is proactive, suggestive and preventive.” Being able to address a customer’s issue before they even know there is one leads to loyalty, satisfaction and a much higher potential CLV. Traditionally brands have sent proactive messages over SMS, an excellent way to ensure you’re able to reach out to every customer with a phone number, but it does have some limitations that can affect CX. The conversations are all one-way. 

This doesn’t mean that SMS isn’t an effective tool in an era of private messaging channels, by capitalizing on its universal reach, brands can deflect conversations to a messaging channel by providing a personalized link. The benefit? Companies are able to open up a two-way conversation and begin continuous brand/consumer interactions across an entire lifecycle.

By capitalizing on the universal reach of SMS and sending a link to deflect conversations to a messaging channel, as a method of contact, SMS is unrivaled for its speed and reach, and companies can open up a two-way conversation and begin continuous brand/consumer interactions across an entire lifecycle. 

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The 3 Retail Benefits Of Contacting Customers Over Messaging vs SMS


1. Proactive notifications give a 190% higher customer retention rate

Studies have found that re-engaging customers early on in their journey is excellent for customer retention. Brands sending at least one notification can lead to a 190% higher retention rate, with 95% churn rates  after no engagement in the first 90 days - effectively wasting $0.95 of every $1 spent acquiring a new customer. 

If brands can retain customers via messaging channels, rather than SMS or in-app push notifications, not only does it encourage a two-way dialogue, it creates a more personalized relationship. This ultimately leads to a more loyal customer, because interactions with the brand happen within an app they use every day for private communications with friends and family.


2. Retargeted customers have a 70% greater chance of conversion

The beauty of messaging channels is that everything is kept in one, asynchronous conversation within apps that are an integral part of a customer’s everyday life. With proactive messaging, There’s a 70%  greater chance of converting retargeted customers who abandoned full carts or have simply become inactive. Using Conversocial’s Notify tool, one of our partners achieved a 31% re-engagement rate by starting conversations when an out of stock item was back or a previous purchase might need replenishing. 

Nobody likes being bombarded with messages from a company they’ve bought something from, but using messaging channels to execute the correct targeted message at exactly the right time can be the tonic needed to revive a lapsed relationship. By switching from SMS notification, there’s less need for a ‘hit and hope’ tactic that goes hand in hand with one-way communications.. 

3. Address customers frustrations quickly and easily

We’ve all been there, it’s incredibly frustrating when you need to speak to a brand but not one of the options for getting in touch offers the chance of a swift resolution. Customer issues are inevitable, how a company deals with them can shape the future of the relationship. 

Brands often have to notify their customers of an issue with their product or a shipping delay. However, it’s not a good experience to receive an SMS, which offers no avenue for reply. It’s the same as waiting for an email response or spending ages on hold, waiting for an agent to become free. In our State of Customer Experience Trends 2020 report, we found 96% of people say good customer experience impacts their loyalty to a brand, and 66% expect personalized CX over messaging channels. The combination of bots and humans through messaging channels covers all bases - customers can efficiently track their orders with automation, but if there is a more complicated issue, agents are able to step in and offer real-time help and advice.

SMS has its advantages, every customer with a phone is contactable over this platform. But it also has limitations that can potentially impact customer loyalty by feeling they’ve got no voice in a one-way relationship. We wouldn’t suggest dropping SMS as a way of contacting your customers, but it can be used as a gateway to moving relationships over to messaging channels and providing a more personalized and mutually beneficial experience for both brand and customer.


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