Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Win with SMS Marketing
Transcript
- Lucas: You know, Luna, there's a stat that's been bouncing around my head all week: the average person checks their phone something like a hundred and fifty times a day. That's not just a number, that's the entire battleground for DTC brands in 2026. Luna: A hundred and fifty? That's, like, every six minutes if you're awake for sixteen hours. It's no wonder email open rates look prehistoric by comparison. Lucas: Exactly. And that's why SMS marketing has quietly become the channel that a lot of smart DTC brands are leaning into. But it's not just about blasting a promo code to everyone on your list. The brands getting it right are treating it less like a megaphone and more like a conversation. Lucas: Take Brooklinen, for instance. They're the bedding company. A few years back they started using SMS for their flash sales and product drops. Their opt-in list is people who genuinely want to know when something's back in stock or when there's a 24-hour sale. And that's the key — it's permission-based, and it's expected. Luna: Right, because the last thing you want is to be that brand that texts you at 9 p.m. on a Tuesday with a 'LAST CHANCE' message. It feels invasive. So what's the actual conversion story? Is SMS really pulling its weight? Lucas: The data is pretty compelling. I've seen industry benchmarks where SMS conversion rates hover around ten to fifteen percent for time-sensitive campaigns, which is way higher than email's typical one to three percent. And the average order value for sms driven purchases tends to be higher too, because you're reaching people at the moment of intent. Lucas: But here's the catch: you have to earn that attention. Every text is an interruption, so it better be worth it. The brands that nail this are the ones that treat SMS as a privilege, not a right. Luna: So how do you actually get people to opt in? Because I feel like we've all become wary of handing over our numbers after, you know, the data-breach era. Lucas: That's a fair point. And it's why the smart brands are moving away from the generic 'text JOIN to 12345' pop-up. Instead, they're embedding SMS into the post-purchase experience. You just bought a skincare set — a text asking if you want tracking updates and exclusive restock alerts feels natural, not creepy. Luna: Oh, that's smart. It's a value exchange. You're offering something useful — package tracking — and that opens the door for future promotional texts. Lucas: Exactly. And once you're in, the engagement is different. People read texts within minutes, not hours or days. So for a flash sale that ends at midnight, SMS is the only channel that can actually move the needle. Lucas: There's also the psychological layer. A text feels personal, like a friend letting you know about something good. It's not a mass email blast. And that's why the copy has to sound human. No corporate speak, no exclamation marks. Just a simple, clear message. Luna: Speaking of human, I remember reading about MVMT watches back in the day. They used SMS for their pre-launch campaigns, and it felt like you were in on a secret. They'd text 'Hey, we're about to drop a limited run. You in?' and it worked because it was conversational. Lucas: That's a perfect example. And that's the thing — SMS is not just another channel to repurpose your email content. It needs its own voice, its own rhythm. You're writing for a device that buzzes in someone's pocket. Luna: So what about timing? Is there a golden hour for texts, or is it more about knowing your audience's habits? Lucas: There's no universal golden hour, but there are patterns. For DTC brands with a lot of impulse purchases — think snacks, beauty, fashion — late morning and early evening tend to see higher engagement. But the real winner is behavioral triggers. Someone abandons a cart, send a text within an hour. Someone hasn't ordered in ninety days, send a 'we miss you' text. That's where SMS really shines. Lucas: I've seen brands double their recovery rate on abandoned carts just by adding an SMS nudge on top of the email sequence. The email is the reminder, the text is the nudge that actually gets the click. Luna: That makes sense. But I have to ask — is there a risk of over-texting? I feel like I've unsubscribed from a few brands because they treated my number like a 24/7 hotline. Lucas: Oh, absolutely. Frequency is the fastest way to kill an SMS program. The rule of thumb I hear from the brands doing this well is no more than two to four marketing texts a month. Anything more, and you're begging for opt-outs. And opt-out rates on SMS are brutal — once someone's gone, they're not coming back. Lucas: So it's about quality over quantity. You're not trying to win a volume game, you're trying to build a relationship one text at a time. Luna: So what does a really good SMS campaign actually look like? Can you walk us through one that just clicked? Lucas: Sure. Let's take a fictional brand — say, a coffee subscription company. They've got a segment of customers who've been with them for six months but haven't ordered in three weeks. That's a churn risk. So they send a text: 'Hey, we saved your favorite roast. Back in stock, and there's a 15% code waiting for you. Want it?' Lucas: And that works because it's specific, it's timely, and it offers a clear incentive. The open rate on something like that is probably ninety percent, and the click-through is huge. Compare that to an email that just says 'We miss you!' — it's not even close. Luna: Okay, that does sound effective. But what about measuring ROI? Because I know a lot of brands struggle to attribute sales to that last text when the customer might have seen an Instagram ad first. Lucas: Attribution is admittedly murky. But you can use UTM parameters on the links in your texts, and you can set up dedicated promo codes for your SMS campaigns. That gives you a pretty clean read. And you can look at your overall customer lifetime value for the SMS segment versus the email-only segment. The SMS group tends to have higher repeat purchase rates. Lucas: The thing is, it's not about replacing email. It's about adding a layer that's more immediate and more personal. You use email for storytelling, for education. You use SMS for action. Luna: That's a helpful framework. I feel like a lot of brands hear 'SMS marketing' and just think 'text blasts,' but it's really about being surgical. Lucas: Exactly. And the brands that are winning are the ones that treat SMS as a direct line to their most engaged customers. It's not a mass channel. It's a VIP channel. Luna: You know, this reminds me of something you said earlier about treating SMS as a privilege. It's like those brands that only text you when they have something genuinely relevant — you almost look forward to it. Lucas: Yeah, and that's the sweet spot. It's why we're so deliberate about not running ads on this show — we want to respect your attention, and we're grateful for the support we get from listeners. Luna: Totally. If you enjoy these conversations and want to keep them ad-free, you can support us at buy me a coffee dot com slash fexingo. Every little bit helps. Lucas: And that support is what lets us keep diving into the nitty-gritty of DTC strategy. So, back to SMS — I think the biggest takeaway for any brand listening is to start small. Pick one use case, like cart recovery, and test it. See what the response is, and build from there. Luna: Great advice. And speaking of starting small, what about the tools? Do you need a fancy platform, or can you start with something basic? Lucas: You don't need a massive tech stack. Most e-commerce platforms like Shopify have SMS apps that plug right in. You can set up automated flows, manage opt-ins, and track performance without a dedicated marketing cloud. The key is to actually use the data you collect — segment your list, test your copy, and iterate. Lucas: One thing I'd caution against is just importing numbers from a contest or a giveaway. Those people aren't necessarily interested in your brand, and they'll opt out faster than you can say 'compliance'. Luna: Right, and speaking of compliance, I feel like we should mention TCPA and all that. You don't want a lawsuit on top of everything else. Lucas: Absolutely. You need explicit opt-in, clear opt-out instructions, and you need to honor them immediately. It's not just good ethics, it's the law. And if you're using a reputable SMS platform, they'll have guardrails in place, but it's still your responsibility. Luna: So, to wrap it up, if you're a DTC brand in 2026 and you're not using SMS at all, you're leaving money on the table. But if you're using it badly, you're just annoying people. Lucas: Couldn't have said it better. SMS marketing is a powerful tool, but it's a precision instrument, not a sledgehammer. Use it with respect for your customer's attention, and you'll see the results. Luna: Thanks for listening, and we'll catch you next time.