Why Text Message Marketing is Poised to Exceed Revenue Expectations in 2021
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If you’re wondering why you couldn’t escape headlines about why text message marketing was the wave of the future last year, there’s an easy answer: Marketers are on the hunt for what works.
And with above-average open and click-through rates—not to mention the ability to drive 10x more revenue per message than email—text messaging more than fits the bill.
But we’re living in a post-COVID-19 world, where business as usual is anything but. Will text messaging be the same performance marketing channel in 2021?
The answer is no—it’s positioned to become even more valuable. Here’s why.
Mobile commerce is now the norm
Consumers stuck indoors during lockdown weren’t just using their smartphones to order takeout—they turned to their mobile devices for all their shopping needs.
Mobile shoppers were responsible for 40% of all online sales by August 2020, accounting for $190 billion in spending. By the end of the year, mobile commerce was expected to increase 25.8% year over year, reaching $338 billion.
And based on a recent Attentive consumer survey, those numbers will only continue to grow. More than 90% of consumers made it clear that mobile is now an essential part of their shopping experience.
Text messaging resonates with mobile shoppers
There’s a reason retailers increased their investment in text message marketing while reducing overall marketing spend in 2020.
With more shoppers turning to their smartphones, brands needed a way to to engage an increasingly mobile-first audience. That’s why text messaging became one of the few marketing channels to see an uptick in spend between January and June of last year—investment in text messaging technology increased by five points post-COVID-19.
Brands want to reach consumers where they’re already spending their time, and for most consumers, that means their text messaging inbox. It’s no surprise that texting is second nature to Millennials and Gen Z, but data shows this channel crosses generational boundaries. In fact, shoppers aged 39-75 are more likely to connect with businesses via text message than social media or website chatbot—and 56% report signing up to receive text messages from brands.
Revenue opportunities are clear
The stage is set for 2021.
COVID-19 rapidly accelerated the shift toward e-commerce, packing a decade of growth into a few months.
This boosted the share of mobile commerce at the same time, forcing brands to focus on how best to engage shoppers on their preferred channel. With over 50% of consumers saying they became more interested in signing up to receive text messages from businesses in 2020, the revenue opportunities presented by text message marketing are evident.
But as more businesses invest in this channel, it becomes more important for brands to build out their strategies and stay a step ahead.
If 2020 taught marketers anything, it’s that change is constant. Brands have a chance to significantly boost revenue in 2021 using text message marketing, but they must prepare for the twists and turns of the year ahead.
To understand the current state of text message marketing, how it arrived here, and where it’s going, check out Attentive Outlook 2021. You’ll find data-driven insights designed to help you maximize the revenue opportunities of text message marketing in 2021 and beyond.
Attentive® is a personalized text messaging platform for innovative brands & organizations that can quickly become a top 3 revenue channel—with results like 30%+ click-through rates and 25x+ ROI. Contact Attentive for more information or view recent case studies.
Eric Wendt is a Content Marketing Manager at Attentive®—a Group 8A Premier Agency Partner and the most comprehensive text message marketing solution.