Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use SMS Marketing Without Annoying Customers
Transcript
- Lucas: So there's this stat that's been bouncing around in my head: the average open rate for an SMS marketing message is somewhere north of ninety percent. Compare that to email, which is lucky to hit twenty percent on a good day. Luna: Ninety percent? That almost sounds too good to be true. But I guess when you think about it, people check their texts constantly, and there's no spam folder. Lucas: Exactly. And the click-through rates are higher too — typically around four to five percent, compared to email's two to three. So the raw numbers make SMS look like a DTC marketer's dream channel. But here's the catch. Luna: Let me guess: people hate getting spammed with texts. Lucas: Right. The worst thing a brand can do is treat SMS like a free-for-all broadcast channel. One poorly timed message — say, a flash sale alert at ten PM — and you've lost that subscriber forever. So how do you actually do SMS marketing without annoying your customers? That's what I want to dig into today. Luna: Good. Because I've definitely unsubscribed from a few brands after they texted me three times in one day. It feels invasive. Lucas: Yeah, and the opt-out rate for SMS is brutal if you're not careful. Industry averages hover around two to three percent monthly, but for brands that over-message, it can spike to ten percent or more. So let's talk about what works. First thing: permission. And I mean real, explicit permission — not just a checkbox buried in checkout. Luna: So what's the right way to get someone to opt in? Lucas: Best practice I've seen is a dedicated SMS opt-in flow, separate from email. You offer a clear incentive — ten percent off first order, early access to a drop — and you tell them exactly what they're signing up for. 'Get 10% off and receive 2-4 texts per month with exclusive deals.' No ambiguity. Luna: And then you have to actually stick to that frequency promise. If you say two to four texts a month and send eight, you're toast. Lucas: Exactly. Consistency builds trust. Let's look at Brooklinen — the bedding DTC brand. They do SMS really well. Their opt-in page is super clean: 'Text us for early access, new drops, and secret sales. Up to 5 messages per month.' That's it. And they follow through. I've been subscribed for about six months, and I get maybe one text a week, always with something I actually want — a limited-edition pattern, a flash sale on sheets. It never feels like noise. Luna: So it's about value per message. Every text has to earn its place in my inbox. Not just a link to the same email blast. Lucas: Right. And the brands that win at SMS personalize aggressively. Not just using your first name, but segmenting based on purchase history. If I bought a winter duvet, don't text me about duvets again until next season. Send me pillowcases or a mattress topper instead. Gymshark does this well — they segment by workout type. If you've bought running gear, you get texts about new running drops, not weightlifting stuff. Luna: That makes sense. It also helps with that 'invasive' feeling — the message feels relevant, not random. Lucas: And timing matters just as much. Most SMS platforms let you set quiet hours. A lot of DTC brands I talk to set a hard cutoff at eight PM local time. The last thing you want is a buzz at ten fifteen when someone's winding down. That's how you get blocked. Luna: What about automated flows? Like abandoned cart texts — I've received those and sometimes they feel helpful, sometimes creepy. Lucas: Yeah, abandoned cart SMS is tricky. If it's triggered within an hour and the tone is helpful — 'Hey, you left something in your cart. Here's a 10% off code if you want it' — that can work really well. Conversion rates on those can hit twenty to thirty percent. But if you send it five minutes after they leave the site, it can feel like you're watching them. Space it out. Luna: I've also seen brands do a post-purchase SMS sequence that's actually useful — like tracking info and care tips. That feels less like marketing and more like service. Lucas: That's a smart use of the channel. And it keeps your brand top of mind without being pushy. The key is to think of SMS as a relationship channel, not a broadcast one. Every text should have a clear purpose and a measurable outcome. Luna: So how do you measure success? Obviously open rate is high, but what else? Lucas: Click-through rate is the big one for campaigns with links. But for DTC, revenue per message is the north star. If you're sending a promo text, you want to know exactly how much incremental revenue that message drove. Some brands also track opt-out rate after each send — if a message causes a spike in unsubscribes, you know you messed up. Luna: It's a fine line. I'm thinking about that time I got a text from a skincare brand that said 'We miss you! Here's 20% off.' And I thought, 'You don't miss me, you want my money.' It felt manipulative. Lucas: Ha. Yeah, tone matters. The best SMS copy is direct and benefit-forward, not overly sentimental. Think 'Flash sale: 20% off all moisturizers for the next 4 hours. Use code MOIST20.' Simple, urgent, clear. No fluff. Luna: And always an easy way to opt out. I think that's non-negotiable. Lucas: Absolutely. Every message should include something like 'Reply STOP to unsubscribe.' And you have to honor that immediately. The worst thing you can do is make someone jump through hoops to leave. Luna: If these marketing conversations have sparked something you've actually used in your own strategy or even just made you think differently about how you approach your own buying decisions, we'd love to know. And honestly, the reason this show stays ad-free and focused on real tactics rather than sponsored fluff is because listeners like you support it directly. If you find value here, you can throw a few bucks our way at buy me a coffee dot com slash fexingo. It's a simple way to keep these conversations going without us having to pitch you mattress ads in the middle. Lucas: Yeah, we really appreciate that. And it helps us keep digging into topics like this one — where we can go deep without worrying about hitting a sponsor's talking points. So, back to SMS: another tactic that's worth mentioning is the use of SMS for customer feedback. After a purchase, sending a text asking for a review can get much higher response rates than email. Luna: That's smart. Especially if you keep it short — like 'How are your new sheets? Reply with a rating 1-10.' Low effort, high engagement. Lucas: Exactly. And the data from those interactions can feed into your product development and marketing. If a lot of people rate something a seven, you might follow up with a care tip or a complementary product offer. Luna: So it's not just about selling — it's about learning. Lucas: Right. And that's what separates the brands that do SMS well from the ones that just blast codes. The best DTC brands treat SMS as a two-way channel. They encourage replies, they actually read them, and sometimes they even respond. That builds real loyalty. Luna: Do you have an example of a brand that replies to texts? Lucas: Yeah, there's a supplement brand called Momentous that does this really well. They'll send a text about a new product, and if you reply with a question, a human writes back within a few hours. It's not a chatbot. That personal touch makes you feel like a valued customer, not a lead. Luna: That's a huge differentiator. Most brands are afraid of the cost of that, but it pays off in retention. Lucas: Totally. And the tech is getting easier. Platforms like Postscript and Klaviyo now offer two-way SMS features that let you manage conversations at scale without a full support team. It's worth testing. Luna: So if I'm a DTC brand just starting with SMS, what's the first step? Lucas: Start simple. Pick one automated flow — abandoned cart or post-purchase — and one broadcast campaign per week. Measure click-through and revenue per message. Then optimize from there. Don't try to do everything at once. Luna: And maybe don't text me at 10 PM. Lucas: Definitely not. That's the golden rule. Respect the channel, respect the customer, and SMS can be one of the highest roi tools in your marketing stack. Luna: Alright, I'm actually going to check my own SMS subscriptions and see who's doing it right and who's getting blocked. Lucas: Good idea. And if you find a brand that nails it, let us know — we might feature them in a future episode. Luna: Sounds like a plan.