Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use SMS Marketing for Retention
Transcript
- Lucas: You know, Luna, I've been looking into something that a lot of DTC brands are talking about right now — SMS marketing for retention. It's not new, but the tactics are getting really sophisticated. Luna: I feel like every brand I buy from asks for my phone number at checkout. But most of them just send me a discount code and then go silent. Is that actually working? Lucas: That's exactly the problem. A lot of brands treat SMS like another blast channel — just another place to push promotions. But the ones doing it well are using it as a relationship channel. Think about it: text messages have open rates above 90 percent, and most are read within three minutes. Luna: Right, but that also means the risk of annoying someone is huge. If I get a text from a brand I haven't heard from in months, I'm probably unsubscribing immediately. Lucas: Exactly. So the key is segmentation and timing. I was reading about a DTC vitamin brand — let's call them Vitable — that reduced churn by 25 percent just by using behavioral triggers. They don't send weekly blasts. Instead, they send a text three days after a customer's first purchase, asking how they're feeling. Luna: That's smart. It's personalized and timely, not just 'here's 10 percent off.' Lucas: Right. And then they follow up with a refill reminder based on the product's usage cycle. So if you bought a 30-day supply, they text you on day 28: 'Your supply is running low, want to reorder?' That's a natural touchpoint. It's helpful, not spammy. Luna: And that probably drives a lot of repeat purchases without a discount. I'd much rather get that than another 'sale ends tonight' text. Lucas: Exactly. The data backs it up too. According to a study from 2024, brands that use behavioral SMS triggers see a 30 percent higher retention rate compared to those that only send promotional blasts. And the average order value from sms triggered purchases is about 15 percent higher. Luna: So the key is to earn the right to text them. How do you actually get people to opt in without feeling forced? Lucas: Good question. The best approach is to offer value upfront. At checkout, instead of a generic 'sign up for texts,' you say something like 'Get delivery reminders and restock alerts — no spam, just helpful updates.' And you show a preview of what they'll receive. Some brands even use a short quiz or preference center during opt-in to ask how often they want to hear from you. Luna: Oh, I like that. Let them choose the frequency. That way they're more likely to stay subscribed. Lucas: Exactly. And it's not just about the initial opt-in. You have to maintain that trust. If you promise 'no spam,' you have to mean it. One or two texts per week maximum for most brands. And every text should feel like it's for them, not for you. Luna: What about the timing of texts? I feel like I get messages at 8 PM sometimes, and it's just annoying. Lucas: That's a huge mistake. Most experts recommend sending SMS between 10 AM and 4 PM in the customer's time zone. And you should use data to figure out when each customer is most engaged. If someone always opens your emails at 7 PM, maybe their SMS window is different. But default to business hours. Luna: And what about the actual content? Is it just links to products, or can you be more creative? Lucas: The best brands use SMS for two-way conversations. For example, a DTC coffee brand might text: 'How are you brewing this week? Reply with A for pour-over, B for French press, C for espresso.' Then they send a tailored recipe based on the reply. That engages the customer and collects data at the same time. Luna: That's brilliant. And then you can use that data for future recommendations. It's like a mini survey. Lucas: Right. And the response rates on those interactive texts are often 40 to 50 percent — way higher than email surveys. Another tactic is to use SMS for customer service. If someone texts 'Where's my order?' you can have an automated response that links to tracking, but if they text 'I hate this product,' you can escalate to a human who can make it right. Luna: So it's about being responsive, not just promotional. That builds loyalty over time. Lucas: Exactly. And here's the thing — if these marketing conversations have sparked something you've actually used, whether it's a new tactic or a better way to think about retention, that's the whole point of this show. Luna: Yeah, and honestly, a couple of dollars a month is genuinely what keeps these going — buy me a coffee dot com slash fexingo, if you've gotten something out of them. Lucas: It's a small thing that makes a big difference for us, and it keeps the show ad-free and focused on the tactics that actually move the needle. Luna: Alright, back to SMS. So what's the biggest mistake you see DTC brands make with SMS retention? Lucas: Over-messaging. Hands down. I've seen brands send five texts in a week — a welcome, a discount, a reminder, a follow-up, an abandoned cart. That's too much. You lose the trust you built. The rule of thumb is no more than two to four texts per month for retention, unless there's a genuine trigger like a restock or a delivery update. Luna: And I guess you also need to make unsubscribing easy. If it's hard to opt out, people get frustrated and that hurts your brand. Lucas: Absolutely. The can spam Act applies to SMS too — you need a clear opt-out, and you have to honor it immediately. But if you're sending valuable messages, most people won't want to leave. The unsubscribe rate for well-executed SMS programs is usually under one percent. Luna: That's impressive. So if a brand is just starting with SMS retention, what's the first step? Lucas: Start with the most obvious trigger: post-purchase follow-up. Ask for feedback, offer a helpful tip, and include a way to reorder. That single message can boost retention by 10 to 15 percent. Then, once you've got that running smoothly, layer in behavioral triggers based on usage data. But don't try to do everything at once. Luna: And what about tools? Are there specific platforms that work best for DTC? Lucas: There are several. Postscript and Klaviyo are popular. They integrate with Shopify and allow for deep segmentation. But the tool matters less than the strategy. You can have the best platform but if you're sending the wrong messages, it won't work. Luna: I want to go back to something you mentioned earlier — the interactive texts. Can you give another example of a brand that's doing that well? Lucas: Sure. A DTC skincare brand lets customers text their skin concerns, and the system recommends a routine. It's like a chatbot but over SMS. They see a 20 percent repeat purchase rate from users who engage with the bot, compared to eight percent for those who don't. Luna: That's a huge lift. And it makes the customer feel like the brand actually cares about their specific needs. Lucas: Exactly. And that's the core of SMS retention — it's not about the channel, it's about the relationship. If you can make every text feel like it's from a friend who knows what you need, customers will stick around. Luna: I think that's a great place to leave it. Thanks, Lucas. Lucas: Thanks, Luna. And to our listeners — if you've got a retention story or a tactic that's working, we'd love to hear from you. You know where to find us.