Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use SMS Marketing to Win Back Abandoned Carts
Transcript
- Lucas: So, Luna, have you ever added something to your cart on a brand site, closed the tab, and then twenty minutes later your phone buzzes with a text from that brand? Luna: All the time. And honestly, half the time it works. I go back and finish the purchase. Lucas: Exactly. And that's what we're talking about today — how DTC brands are using SMS to win back abandoned carts. It's not just about sending a text; it's about the timing, the copy, and the psychology behind it. Luna: And I'm guessing it's not as simple as just blasting a message to everyone who left something behind. There's a strategy here. Lucas: Right. Let's start with the numbers. Cart abandonment rates hover around seventy percent across e-commerce. So if you're not actively recovering those carts, you're leaving a ton of money on the table. And while email recovery has been around forever, SMS is the new frontier because it's immediate and personal. Luna: But what's the actual conversion rate difference? I've seen stats that email gets like maybe four or five percent, but what does SMS do? Lucas: So studies vary, but a lot of DTC marketers report SMS cart recovery rates in the ten to fifteen percent range. That's two to three times higher than email. And when you layer in the fact that SMS open rates are north of ninety percent within three minutes, it's a no-brainer if you're doing it right. Luna: Okay, but there's a catch, right? It can't just be 'Hey, you left something.' What makes a text effective? Lucas: The best SMS cart recovery texts feel like a nudge from a friend, not a desperate sales pitch. You want a conversational tone, maybe a bit of humor, and a clear call to action. But the real magic is in the timing — the sweet spot is usually around thirty minutes after abandonment, when the intent is still high. Luna: Thirty minutes? That seems really fast. I'd think you'd want to wait a few hours or maybe a day. Lucas: You'd think so, but the data shows that the first hour is critical. A lot of people abandon carts because they got distracted, not because they lost interest. A quick text brings them back while they're still in the buying mindset. Wait too long, and they've moved on. Luna: But doesn't that risk being annoying? Like, I just left the site, and now you're texting me. That could feel intrusive. Lucas: That's why opt-in is non-negotiable. You have to get explicit permission, usually through a checkbox at checkout or a dedicated SMS signup. And even then, you need to monitor frequency. One well-timed text is fine. Three texts in a day is harassment. Luna: So what does a good flow look like? Is it just one text, or do you do a sequence? Lucas: Most brands do a two- or three-message flow. The first text goes out around thirty minutes, then maybe a follow-up a day later with a gentle reminder or a small incentive like free shipping. And sometimes they'll add a last-chance message with a discount code if the cart is still sitting there after a few days. Luna: And the discount code part — does that teach people to abandon carts just to get a deal? Lucas: That's a real concern, and it's why many brands skip the discount initially. You want to see if a simple reminder works before you give away margin. Some brands reserve the discount for the second or third message, so they're only incentivizing people who would've abandoned anyway. Luna: Makes sense. But what about personalization? Is it just 'Hey ' or can you do more? Lucas: You can do a lot more. If you have their cart data, you can reference the specific product — 'Hey, those running shoes are still waiting' — or even use dynamic images. Some platforms let you send a photo of the exact item they left behind. That visual cue is powerful. Luna: Okay, but I've also seen texts that are clearly automated and feel like a robot wrote them. How do you keep it human? Lucas: The trick is to write like a human, and then have a real human send it. Some brands use a two-way SMS service where a rep can actually reply if the customer texts back. That's where you see the real engagement — a customer asks a question about sizing, and a human answers right there in the thread. Luna: That's a game-changer. It turns a passive message into an actual conversation. Lucas: Exactly. And it's not just cart recovery. Once you have that opt-in list, you can use SMS for order updates, restock alerts, and even loyalty perks. It's a direct line to your most engaged customers. Luna: So what's the downside? There's got to be a catch beyond the cost per message. Lucas: The main downside is the risk of over-communication. If you text too often, even an engaged customer will opt out. And compliance is a big one — you need to be careful with TCPA regulations. Every text has to have an opt-out option, and you have to honor it immediately. Luna: And the cost — is it expensive compared to email? Lucas: It's more expensive per message, but the ROI is usually higher because of the conversion rates. You might pay a few cents per text, but if you're recovering a hundred-dollar cart, that's nothing. The key is to test and track your numbers so you know your cost per acquisition. Luna: I read about a brand — I think it was Brooklinen — that use SMS for cart recovery and saw a significant lift. Do you have a specific example? Lucas: Sure, Bombas is another one. They're known for their socks, and they use a playful, casual tone in their texts. They found that adding a simple 'We saved your cart' message with a direct link back to the checkout lifted their recovery rate by almost forty percent compared to their old email-only flow. Luna: Wow, forty percent. That's not just a small tweak. Lucas: Right. And the lesson there is that SMS isn't just a channel — it's a way to capture intent when it's highest. You're meeting the customer where they already are, on their phone, at the moment they're most likely to act. Luna: So for a DTC brand listening, what's the first step? How do they even start with SMS? Lucas: Start small. Pick one flow, like cart recovery, and test it on a segment of your list. Make sure you have an opt-in mechanism in place, and then measure your conversion rate against a control group. You don't need a huge budget — just a solid strategy and a platform like Postscript or Klaviyo that integrates with Shopify. Luna: And that's a good reminder that this is all about the right offer at the right time. It's not about being pushy. Lucas: Absolutely. Look, we've been talking about how effective SMS can be, and honestly, it reminds me of something about this show. We keep making these episodes because a handful of listeners chip in monthly through buy me a coffee dot com slash fexingo. That's literally what funds us making this many of these. Luna: Yeah, it's a small group that keeps it going, and we're grateful for that. It keeps the podcast ad-free. Lucas: So if these marketing conversations have sparked something you've actually used, that's the best way to support us. Anyway, back to SMS — another mistake I see brands make is not integrating SMS with their email flow. You don't want to send both and overwhelm people. Luna: That makes sense. You should have a coordinated journey, not two separate channels fighting for attention. Lucas: Right. So how do you know if SMS is right for your brand? A simple heuristic: if you have a loyal customer base and a decent order value, SMS is worth testing. If you're a low-ticket, high-volume business, maybe stick to email. Luna: And what about the future? Are we going to see SMS evolve into something else, like RCS or WhatsApp? Lucas: Definitely. RCS is coming, and it'll bring richer media and better analytics. But for now, SMS is still the most universally compatible channel. And the principles we've talked about — timing, personalization, and respect for the customer — will apply no matter the platform. Luna: So the core takeaway is: don't ignore SMS. It's a powerful tool for cart recovery, but it has to be used thoughtfully. Lucas: Exactly. So next time you abandon a cart, pay attention to how that brand texts you. You might learn a thing or two.