Modern Retail

Consumer ecommerce sees 26% boost to retention thanks to SMS

  • Online stores that used text messages to chat directly with customers increased LTV by over a quarter on average 
  • Blueprint is the UK’s first true conversational commerce platform driving retention, community and revenue for ecommerce brands via SMS
  • Conversational commerce tackles some of ecommerce’s biggest challenges inc: Moving customers from first to second orders, High subscriber churn rates, Lack of customer insights around experience and product usage 

Consumer ecommerce brands that use text messages to speak to their audience build better customer relationships and improve retention, finds new research from Blueprint. The UK-based SaaS start-up saw an average LTV increase of 26% amongst customer cohorts who’d been engaged by stores in 2-way conversations via SMS.

With Facebook and Google advertising costs at an all-time high, and traditional email marketing offering poor engagement rates, leading ecommerce brands are incorporating SMS dialogue across their customer journeys to scale revenue more sustainably. Blueprint’s research – which surveyed over 100 leading brands across the UK and US – demonstrated that text message conversations move buyers from first to second orders more effectively, reduce subscriber churn, and improve a store’s understanding of what makes customers make multiple purchases.

Days Brewing – makers of 0.0% alcohol-free beer – took part in the study, and saw a 62% LTV increase from customers engaged via text compared to those only contacted through more traditional channels. Days’ Co-Founder Duncan Keith commented, “The results have been amazing – text messages give you an incredible relationship with the consumer and helps to deliver our growth ambitions”

Also amongst the participating merchants were refillable cleaning product brand Homethings and vegan protein store Misfits Health – who saw LTV increases of 33% and 8% respectively. 

Harvey Hodd, Blueprint CEO and Co-Founder said, “Even with the ecommerce explosion of the last 18 months, consumer-facing companies remain disconnected from their customers, often relying on legacy 1-way communication to deliver a clunky purchasing experience. Only by understanding what really makes customers tick can brands truly modernise their customer journeys – and having conversations via SMS is the most powerful way to achieve that.”

In its mission to transform the future of ecommerce through authentic, two-way brand-customer conversations, Blueprint recently launched an integration with recurring payments platform ReCharge. The feature enables online stores to identify and upsell loyal customers from one-time orders to subscriptions. Users can also manage subscriber bases with automated subscription flows, whilst tackling product overload and churn with order skipping functionality.

Contributor: Blueprint

Blueprint is a venture-backed B2B SaaS start-up transforming the future of eCommerce by empowering brands to scale their business with authentic, two-way conversations with customers. Blueprint increases eCommerce retention through conversations with your customers on SMS and WhatsApp – proactively solving CX issues, building customer feedback, managing subscriptions, and driving repeat orders. Launched in January 2021, Blueprint is now rapidly scaling its customer base across the UK and US.

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