Top 5 Automated SMS Strategies for Boosting Sales in Dropshipping

Sales not what you hoped? Text messages can change that! They get opened way more than emails, with SMS boasting an open rate of 98% compared to email’s 20%. Customers love them. This guide gives you 5 easy ways to use automated texting to sell more stuff in your dropshipping store.

What is Automated SMS? How does it work?

Automated SMS, also known as SMS automation, refers to the process of sending text messages automatically based on pre-defined triggers or conditions which types of triggers can be specific events or customer actions that initiate a pre-written SMS message.

Here’s a breakdown of how automated SMS works:

1. Setting Up Triggers and Messages: You’ll use an SMS marketing automation platform that allows you to design automated campaigns which involves defining the triggers that will initiate the message and crafting the message content itself. These messages can be personalized by including customer names, order details, or other relevant information.
2. Integration with Your Dropshipping Store: Most SMS marketing platforms integrate with popular e-commerce platforms used for dropshipping which allows the platform to access customer data and order information, enabling it to trigger messages based on specific actions within your store.
3. Trigger Activates Message Send: When a customer triggers an automated campaign (e.g., completes an order, or abandons a cart), the platform automatically sends the pre-written SMS message to the customer’s phone number.

Here are some examples of triggers and the corresponding messages in dropshipping:

• Trigger: Customer places an order
• Message: “Thanks for your order! Your [product name] is on its way. You’ll receive a shipping confirmation shortly.”
• Trigger: Customer abandons cart
• Message: “Hey [customer name], looks like you left some goodies behind! Your cart is still waiting for you. Use code WELCOME10 for 10% off at checkout.

Why is it perfect for dropshipping?

Automated SMS is particularly well-suited for dropshipping because it capitalizes on several key strengths that align perfectly with the needs of dropshipping businesses:

1. High Open Rates and Engagement 

SMS messages boast significantly higher open rates compared to emails. Studies suggest open rates for SMS can reach 98%, compared to around 20% for emails. This means your message has a much greater chance of being seen by your target audience.

1. Urgency and Time-Sensitivity

Dropshipping businesses often rely on quick trends and capitalizing on fleeting customer interest. SMS inherently feels urgent due to its format and notification nature which makes it perfect for promoting flash sales, limited-time offers, or reminding customers about abandoned carts before their interest fades.

1. Personalization Potential

Automated SMS platforms allow for a surprising level of personalization. You can segment your audience based on purchase history, demographics, or interests that enables sending targeted messages with product recommendations, win-back campaigns, or special offers more likely to resonate with each customer.

1. Cost-Effective

Compared to other marketing channels, SMS marketing can be quite affordable. Many platforms offer tiered pricing based on message volume, allowing you to scale your campaigns efficiently as your business grows. Additionally, the high open rates often translate to a better return on investment (ROI) compared to other marketing methods.

1. Direct Communication Channel

SMS messages land directly on a customer’s phone, a device they likely keep close by throughout the day. This creates a more direct communication channel compared to email, potentially leading to faster response times and increased customer engagement.

1. Improved Customer Experience

Automated SMS can be used to send order updates, shipping notifications, and delivery confirmations. This keeps customers informed and creates a smoother overall shopping experience, potentially leading to higher customer satisfaction and repeat business.

Top 5 Automated SMS Strategies for Boosting Dropshipping Buisness

Here are 5 automated SMS strategies to boost your dropshipping business:

1. Abandoned Cart Reminders

Cart abandonment is a common issue in e-commerce. Customers often add items to their carts but leave without completing the purchase. Automated SMS reminders can nudge these potential buyers to return and complete their purchase.

Imagine Sarah browses your phone case store and adds a glittery case for her new phone to her cart. She gets distracted by a call and forgets to check out.

An hour later, an automated SMS from your store pops up on her phone: “Hey Sarah, looks like you forgot something awesome in your cart! Our sparkly ‘Nightlight’ case is waiting for your new phone. Complete your purchase within the next hour and get free shipping! [Link to Cart]”

Why it works: This friendly reminder is brief, mentions the specific product by name, and offers an incentive (free shipping) to complete the purchase.

2. Personalized Offers and Discounts

Personalization is key to building a loyal customer base. Tailored offers and discounts can make customers feel valued and encourage repeat purchases.

John recently bought a wireless charging pad from your tech store. He also browsed several wireless headphones.

A few days later, John receives an SMS: “Hi John, we saw you were eyeing some wireless headphones! We think you’ll love our new noise-cancelling X10s. Get 20% off with code WELCOME20. [Link to Products]”

Why it works: This message personalizes the offer based on John’s past browsing and purchase, making it more relevant and enticing.

3. Order Confirmation and Shipping Updates

Keeping customers informed about their order status improve their shopping experience and builds trust. Automated SMS updates provide real-time information that reassures customers.

After placing an order for a yoga mat, Lisa receives an immediate SMS confirmation: “Hi Lisa, your order #1234 for the ‘Tranquility’ yoga mat is confirmed! It’s expected to arrive by July 15th. Track your package here: [Tracking Link].”

A few days later, Lisa gets another SMS: “Hi Lisa, your yoga mat is on its way! It’s currently shipped and you can track it here with the same link: [Tracking Link].”

Why it works: These automated updates keep Lisa informed about her order status, reducing anxiety and creating a positive experience.

4. Limited-Time Promotions

Creating a sense of urgency can drive quick sales. Limited-time promotions capitalize on the fear of missing out (FOMO), prompting customers to act fast.

 It’s the weekend before summer vacation and your swimwear store is running a flash sale.

On Friday afternoon, an SMS blasts out to your subscribers: “Summer’s calling! Get 30% off ALL swimwear for the next 48 hours only! Stock up on new bikinis and boardshorts before it’s too late. Shop Now: [Link] Use code BEACHFUN30 at checkout.”

Why it works: This message creates a sense of urgency with the limited-time offer (48 hours) and highlights the perfect timing for summer shopping.

5. Customer Feedback and Reviews

Gathering customer feedback helps you improve your services and products. Positive reviews can also boost your credibility and attract more buyers.

David receives his order for a new pair of running shoes. He’s happy with the fit and comfort.

A day after delivery, David gets an SMS: “Hi David, thanks for rocking your new running shoes! Your feedback helps us improve. Share your thoughts and get 15% off your next order of athletic wear: [Review Link]”

Why it works: This message encourages David to leave a review, potentially boosting your credibility with future customers. The discount code incentivizes him to return for more athletic wear.

Best practices to send Automated SMS for Dropshipping

While automated SMS can be a powerful tool for dropshipping, but it’s important to use them strategically to avoid annoying customers. Here are some key best practices to keep in mind:

1. Building Your Audience (Opt-in and Compliance)

• Clearly ask customers for their phone number and consent to receive marketing messages during checkout, on your website signup form, or through social media promotions.

Here’s an example signup form message: “Stay in the loop! Sign up for SMS updates on new arrivals, exclusive offers, and order tracking. Text JOIN to (your business phone number).”

• Be transparent about how you’ll use their number and provide a clear way to unsubscribe from future messages (e.g., “Text STOP to unsubscribe”). 

For example, after they sign up with the above message, you can reply with: “Thanks for joining! You’ll receive SMS updates about 4 times a month. Reply STOP to unsubscribe at any time.”

• Research and adhere to SMS marketing regulations in your target regions. (US Example: Telephone Consumer Protection Act (TCPA), 10 DLC).

2. Crafting Compelling SMS (Content and Timing)

• Divide your customer list into groups based on purchase history, demographics, or interests for targeted messaging. For instance, create a segment for “New Customers” or “Fitness Enthusiasts” (if you sell fitness products).

• Use customers’ names in greetings or reference their past purchases in recommendations. An example for a returning customer named John who bought a wireless speaker: “Hey John, looking for the perfect soundtrack to your summer? We just got new headphones that pair perfectly with your speaker! Check them out here: [link to headphones]”.

• Provide helpful information like order updates, exclusive discounts, or product recommendations. Don’t just bombard them with promotions. 

Here’s an example order update SMS: “John, your wireless speaker is on its way! Track your order here: [link to tracking page]”.

• Consider your target audience’s location and habits. Avoid sending texts late at night or during inconvenient times. If your audience is mostly on the West Coast (US), schedule messages for afternoon/early evening their time.

• Aim for messages under 160 characters and use clear, concise language. An example flash sale SMS: “FLASH SALE! 20% off all sunglasses for the next 24 hours only! Shop now: [link to sunglasses page].” (139 characters)

• Tell customers exactly what you want them to do next, whether it’s visiting your store, using a discount code, or completing a purchase. 

An example SMS for abandoned carts: “Hey [Customer Name], looks like you forgot something awesome in your cart! Your [product name] awaits. Complete your purchase here: [link to cart].”

3. Setting Up Automation (Technical Considerations)

Select a SMS automation platform that integrates with your dropshipping store and offers features like:

• Automated SMS sending based on triggers (e.g., abandoned cart, order confirmation)
• Data analytics and reporting to track campaign performance
• Customer segmentation capabilities

• Decide between a short code (more memorable but might seem impersonal) or a long code (tied to your brand but less recognizable). Consider your brand image and budget (short codes often have higher fees).

• Monitor key metrics like open rates, click-through rates, and conversion rates. Use this data to refine your strategy and improve campaign performance. See which messages resonate most and adjust content, timing, or CTAs accordingly.

Potential Drawbacks and Challenges of SMS Marketing

While SMS marketing offers significant benefits for dropshipping businesses, it’s essential to acknowledge potential drawbacks and challenges:

• Character Limitations: SMS messages are restricted to a limited number of characters, making it challenging to convey complex information or compelling narratives.
• Opt-in Requirements: Businesses must adhere to strict regulations and obtain explicit customer consent before sending promotional SMS. Building a subscriber base can be time-consuming.
• Potential for Annoyance: Excessive or poorly timed SMS messages can irritate customers and lead to opt-outs or negative brand perception.
• Limited Analytics: Compared to other digital marketing channels, SMS marketing offers fewer analytical tools for in-depth campaign performance measurement.
• Cost: Depending on the number of messages and the SMS provider, costs can escalate, especially for large subscriber bases.

Measuring ROI for SMS marketing campaigns

Understanding the return on investment (ROI) of your SMS marketing campaigns is crucial for optimizing your strategy and budget allocation. Here’s a brief overview of how to measure ROI:

Main Key Metrics to Track:

1. Open Rates: This indicates how many recipients opened your SMS.
2. Click-Through Rates (CTR): Measures the percentage of recipients who clicked on a link within the SMS.
3. Conversion Rates: Calculates the percentage of recipients who completed a desired action (e.g., purchase, sign-up).
4. Revenue Generated: Tracks the total sales directly attributed to SMS campaigns.
5. Customer Acquisition Cost (CAC): Determines the cost of acquiring a new customer through automated SMS marketing.

How to calculate ROI:

To calculate ROI, use the following formula:

ROI = (Revenue Generated – Campaign Costs) / Campaign Costs * 100

Additional Considerations:

While not directly factored into the ROI calculation, understanding the Lifetime Value (LTV) of customers acquired through SMS campaigns offers valuable insights into the long-term effectiveness of these efforts. Also, monitoring customer feedback and satisfaction levels helps assess how SMS campaigns influence brand perception.

Conclusion:

Stop wishing, start texting! These five automated SMS strategies are your secret weapon to dropshipping success. So why wait? Put these Strategies for boosting dropshipping business into action and watch your sales grow faster than ever!

FAQ:

Q1: Is SMS marketing legal?

A: Yes, SMS marketing is legal, but it’s subject to specific regulations like TCPA, 10 DLC, etc. You must obtain explicit consent from customers before sending promotional messages and provide an opt-out option. Always adhere to local laws and regulations.

Q2: What is the best time to send SMS messages?

A: The optimal time to send SMS messages depends on your target audience. However, generally, weekdays between 10 AM and 3 PM are considered good times. Experiment with different times to find what works best for your customers.

Q3: What are some common SMS marketing mistakes to avoid?

A: Common SMS marketing mistakes include sending too many messages, not providing a clear call to action, using generic messages, and ignoring customer preferences.

Q4: How much does SMS marketing cost?

A: The cost of SMS marketing varies depending on the SMS marketing platform, the number of messages sent, and additional features. Many platforms offer pricing plans to suit different budgets.