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Thursday 17 December 2015

Case Study: Kiehl's Experiences 73% Redemption Rate

SMS Marketing draws a fair bit of competitive pressures with arguments that SMS is a thing of the past and in the growing digital age of apps may prove to be surplus to requirements today. This post won't address the advantages and disadvantages of SMS Marketing compared to having an application on the smart phone but rather, look at providing either a strong alternative marketing channel to consider or a reliable cost effective solution to start with from the get go.

We will look at Kiehl's, an American cosmetics brand retailer that specializes in making premium skin, hair, and body care products.

To raise awareness about the new marketing campaign Kiehl's was involved with, they used in-store signage, email marketing and social media to promote the use of their SMS Campaign; which they called Kiehl's Alerts. The cosmetic company had two opt-in methods, one was signing up online, or through SMS by texting the SMS Keyword "KIEHLS" to the SMS short code 25687. 

Part of their geographic marketing approach to determine the closest store to their customers they were asked to agree to share their location with Kiehl's so that the cosmetic company could send up to three location based text alerts a month; this was triggered when the customer was within a certain radius of one of Kiehl's 45 test stores.

After the 6-month program, Kiehl's found that 73% of customers that had signed up for their SMS Marketing Campaign had made a purchase, and 81% of respondents in a survey sent out remembered the SMS marketing messages from Kiehl's, meaning that 90% of customers made an in-store purchase during the 6-month program!

How does this apply to your SME Business in Malaysia?

Geofencing a fancy term for Geographic location based anonymous tracking, might be something that your business may not require yet, but the core idea was how effective SMS is in providing incentives to your customers and serve as a valuable reminder of the special products and services you can offer to them as a means to provide instant information for them to make a decision.

A clear consistency is how companies' disclaim the number of text messages they will send to the users giving them ample notice and expectation reducing the likelihood of regarding messages sent by the company to be considered as overly excessive; a prevention method for a negative emotional response (spam).

Are you interested in launching your SMS Marketing Campaign, that produces similar results to what Kiehl's has experienced from their campaign? Contact the SMS Marketing Experts at EVERWORKS and let us help you get similar results that Kiehl's experienced through a robust platform for your own SMS Marketing Campaign.


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