Email Marketing Vs Text Message Marketing

When it comes to email marketing vs. text message marketing: What’s the difference, and which is more effective in the realm of ecommerce?

It’s a big question, and we’ve got a lot of ground to cover. Let’s start at a high level.

Both email marketing and text message marketing are powerful tools for driving sales. But when it comes to email, marketers are often working within a noisy, crowded environment.

Text message marketing, however, offers an opportunity for brands to connect directly with consumers in the place where the eyeballs are…all the time. Pew data shows 95% of Americans own a mobile phone today and that dependency on smartphones is at an all-time high.

What’s more: These two spaces are increasingly being used in different ways. While the average email inbox is becoming more personal (used for work, family, finance, etc.), the text inbox is more focused on activities like shopping, social activities, and notifications.

Let’s look at both channels in a bit more detail.

Comparing Email Marketing vs. Text Message Marketing in the eCommerce Setting

There are a few main areas where email marketing and text message marketing differ in terms of effectiveness within the eCommerce setting: Volume and competition, conversions, and response time. Looking at of these areas, we can see where a few key opportunities lie for online merchants.

1. Volume/Competition

In the world of email, there’s quite a bit of competition for consumers’ attention. In fact, data shows that there are upwards of 293 billion emails sent per day. That means that marketers have to work hard to stand out within the crowded inbox environment.

What’s more: The email inbox poses other hurdles related to reach, like Gmail’s promotions tab which sorts marketing messages into a secondary inbox folder. According to research, only 45.1% of email users check this tab each day, meaning it’s even harder for brands to leverage email marketing effectively.

In comparison, only about 26 billion texts are sent worldwide on average every day as of 2017.

And texting is becoming more the norm than the exception: Pew data shows that adults who text typically send and receive a median of 10 texts a day; teens who text send and receive a median of 50 texts per day.

Because there’s less competition and volume of messages sent, there’s a greater opportunity for marketers who are early adopters around this form of marketing.

2. Conversions and Performance

Next, let’s look at the difference in these to marketing platforms around conversions and performance.

For email marketing, the average click-through rate is fairly low, with only 2.78% of subscribers clicking on an offer within an email, according to Marketing Insider Group. Additionally, only about 30% of retail email list subscribers have completed a purchase from the retailer whose email list they subscribed to.

Text messaging offers some promising alternatives, however.

Gartner data shows that response rates on phones are as high as 45-98%, while the global average open rate for SMS texts is 94%. LiveRecover data also indicates that while cart abandonment emails convert at around 7%, text messages convert at 21% on average. Not bad, right?

But that’s not all. Two-thirds of customers are on board with text marketing as well, with surveys showing that 75% of people would like offers sent to them via text.

What’s also interesting is the number of marketers who feel that text messaging presents an effective opportunity for improved marketing performance: 65% of marketers say text message marketing is “very effective” for them.

In the realm of performance and conversions, text messaging opens doors to customers (and sales) in a way it never has before.

3. Response time

Last, we also need to consider how response time factors into the overall effectiveness of these two types of marketing.

For email, you’re largely using a broadcast style format, wherein a message is pushed out to a list of subscribers from an email service provider, largely in a one-way format. This works well for long-term engagements, but it’s not always great for real-time response rates, as people may have push notifications turned off or only check certain emails at certain times of day…if at all.

On average, data shows that most people only check email one to three times per day.

Text messages, on the other hand, work with much more urgency. There’s a stronger connection to the text message inbox, as these messages come right through a user’s mobile phone (and most people keep their phones nearby at all times.)

People check their phones far more than they do their inboxes as well. Some insights indicate that the average person checks his/her phone upwards of 80 times per day, even while on vacation.

But the tie to these devices is even stronger still: According to a survey from ReportLinker, 46% of Americans admitted to checking their smartphones before they even get out of bed in morning, while 65% of adults with cell phones say they have ever slept with their cell phone on or right next to their bed. The speed texts offer is impressive, too: 91% of texts are read within three minutes of being sent.

The takeaway: while email is great for long-term communication and less timely interactions in the eCommerce world, text message marketing creates an opportunity for near real-time interaction with potential customers.

Text Messaging Vs. Emails: Which is Better?

When it comes down to which of these marketing tools is better, much like anything in life, the answer is: It depends.

It’s smart to use both platforms and let them complement each other, recovering as many ecommerce sales as possible and staying in touch with consumers across touchpoints and channels. Just keep in mind that experimentation is the only true way to know for sure which will work best for your unique audience.

Try LiveRecover and see for yourself find out how effective text message marketing can be.

The Evolution of the Abandoned Cart

In the world of ecommerce, is there anything worse than cart abandonment?

You work hard to get visitors to your site and then through the sales funnel—so it’s frustrating when you lose them at the last minute. Cart abandonment hurts your bottom line, results in wasted ad spend, and adds to your customer acquisition costs, too.

A small consolation: If you’re dealing with a high cart abandonment rate, you’re not alone. According to Baymard, the average cart abandonment rate is upwards of 70%.

In this post, we’ll look at the evolution of cart abandonment as well as some tips for fixing the issue and lowering your overall cart abandonment rate.

The Nuts and Bolts of Cart Abandonment

Before we get too far, let’s establish a foundation of understanding about what cart abandonment is and why it matters.

Cart abandonment, by definition, is when an online shopper adds items to their virtual shopping carts but doesn’t complete the purchase. The average cart abandonment rate varies by industry, but across the board, it hovers between 70-80% for online purchases.

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Why does cart abandonment happen? Why do shoppers take the time to put items in their carts, but don’t finish the checkout and complete the purchase?

There are many factors that contribute, including:

1.) Unanswered questions. If the product page doesn’t have enough information, product photos, or details about things like the company return/exchange policy, it may leave the customer with unanswered questions, which keeps them from finishing the purchase.

2.) Poor mobile UI/UX. Having a mobile-friendly website doesn’t automatically mean your checkout workflow is top-notch on mobile devices. If there are elements that are difficult to use on a small phone screen (like trying to use a live chat feature that’s not displaying correctly), customers will leave their carts behind out of pure frustration.

3.) Shipping costs more than expected. 23% of abandoned carts come from surprise costs (like a hefty shipping and handling fee) that the buyer didn’t know about up front. Again, unanswered questions and unexpected fees are a huge problem when it comes to order completion.

This chart from Statista also illustrates reasons for cart abandonment with some added visual context:

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It’s clear that cart abandonment is caused by a multitude of reasons…but all of them eat away at a brand’s bottom line. There’s a common theme here, too: Uncertainty is the enemy of conversion.

When it comes to getting shoppers to follow through and buy, it’s essential for brands to be help eliminate that uncertainty in any way they can.

How Cart Abandonment is Evolving

US cart abandonment has been on the rise, growing steadily alongside online sales. Since 2012 the average has hovered in the 70 percentile range, but is up slightly in more recent years, as shown by Statista data.

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In recent years, however, the issue of cart abandonment has become even more complex. As shoppers now research and buy products across multiple devices and platforms and as means for product discovery are impacted by things like social media advertising, marketers and brands have to work even harder to convert leads into sales.

The truth of the matter is: As online commerce continues to grow, so will cart abandonment rates. With so much competition in the market around price and product, shoppers have more options than ever before. That means that brands have to go above and beyond to win back attention and convert that initial interest into sales.

So how do they do that?

How to Reduce Cart Abandonment in 2019

1. Use retargeting

Retargeting (or remarketing) helps you stay top-of-mind with customers by reminding them of the products they’ve left behind in ads across platforms like Google and/or Facebook. These ads are easy to deploy and help bring back shoppers with the help of a simple pixel or RSLA that does all the heavy lifting for you.

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2. Promote elements of social proof

Social proof includes trust-building elements like case studies, social media praise, testimonials, ratings, and reviews that help other happy customers validate your brand and its products. And guess what? They help you close more sales. By promoting these assets in cart abandonment emails and other follow-up efforts, you harness the wisdom of the crowd and help convince your would-be customer you’re worth buying from.

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3. Leverage text recovery

You may not realize it, but recovery abandonment doesn’t happen only through email automation. In fact, text messaging has a 21% recovery rate compared to email’s mere 7%. With a tool like LiveRecover, you have access to a team that can quickly answer customer questions via direct contact on a mobile device and nudge shoppers to the final checkout phase. LiveRecover’s live sales team will quickly answer customers questions via text message and help to complete the sales recovery process.

4. Follow up with drip campaigns

While text messaging may be more effective at recovering abandoned carts, there’s still a place in your strategy for drip campaigns that help win back customers who didn’t complete a purchase. In fact, Salesforce data shows that 60% of shoppers will return to a website after receiving a series of personalized follow-up emails after abandoning their carts. You can use an automated drip email campaign to educate, reinforce value, and maybe even offer a discount code to move the buyer down the sales funnel toward conversion.

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Reduce Cart Abandonment, Make More Sales

Are you going to be part of the average and let three-fourths of all abandoned carts just slip away? Now is the time to re-think your cart abandonment strategy and consider how you can start recovering more would-be sales through smart tools and strategies that save you time and money.

Demo LiveRecover today and see how text messaging can be an important part of your reduced cart abandonment strategy.