Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers / How a Tea Brand Uses SMS to Boost Repeat Rate by 60 Percent
Transcript
- Lucas: Today we're looking at a direct to consumer tea brand that managed to boost its repeat purchase rate by 60 percent using a pretty smart SMS campaign. And the interesting thing is they'd been relying almost entirely on email for retention before this. Luna: Sixty percent is huge. What made them switch to SMS? Lucas: Well, they were seeing open rates on their emails drop into the low teens for customers who'd bought once but hadn't come back. And the founder told me they had this gut feeling that their customers were just overwhelmed with email. So they decided to test SMS as a more direct channel. Luna: And it worked. What was the strategy? Lucas: They built a three-part SMS sequence triggered by the first purchase. The first message went out about 24 hours after delivery — just a simple 'thanks for your order, here's a 15 percent off code for your next purchase.' That's pretty standard. The second message came about a week later, and it was more interesting. Luna: What did the second one say? Lucas: It included a recipe tip using the tea they'd bought, and a reminder that they could reorder with free shipping if they bought two or more boxes. So it was adding value, not just pushing a sale. The third message was the real key — it was timed based on how quickly they consumed the tea. Luna: How did they know the consumption rate? Lucas: They asked during the checkout process. After you buy, they have a quick optional survey: 'How many cups of tea do you drink per day?' Then they use that to estimate when you'll run out. For someone who drinks two cups a day, a 16-bag box lasts about eight days. So the third SMS fires on day nine with a 'time to restock' message and a limited-time offer. Luna: That's clever because it hits right when the customer is about to run out. Did they test any other timing? Lucas: They tested sending the third message a day earlier and a day later. The earlier timing had a slightly higher click-through rate — people who hadn't run out yet still clicked to see the offer. But the later timing had a higher conversion rate because the urgency was stronger. In the end, they stuck with the estimated depletion date because it balanced both metrics. Luna: So the whole sequence is three messages over about nine days. What were the overall results? Lucas: They saw a 60 percent increase in repeat purchase rate among customers who received the SMS sequence compared to those who only got email. The average order value also went up by about 12 percent because the second message promoted multi-box orders. And the unsubscribe rate was under 2 percent, which is very low for SMS. Luna: What about the cost? SMS is more expensive per message than email. Lucas: True, but the return on investment was strong. They calculated that each SMS sent generated about $4.50 in incremental revenue, and the cost per SMS was around 2 cents. So that's a 225-to-1 return. Not bad. Luna: And they probably avoided some of the deliverability issues that hit email these days. Lucas: Exactly. SMS has near-100 percent open rates within minutes. For a time-sensitive message like a replenishment reminder, it's hard to beat. But I think the bigger lesson is how they used data to personalize the timing. A lot of brands send a generic 'we miss you' email after 30 days, but that's way too late for a consumable product. Luna: Right. The whole sequence is built around the customer's actual usage pattern. It feels less like advertising and more like a helpful nudge. Lucas: Exactly. And that's the psychological trick — it's framing the message as a service, not a sales pitch. The founder told me they saw a lot of customers reply with 'thanks for the reminder' or 'perfect timing'. Luna: That's the kind of engagement you can't buy. So what's the takeaway for other brands? Lucas: I think the first step is to identify whether your product has a predictable consumption cycle. If it does — coffee, tea, supplements, skincare, pet food, anything consumable — then SMS replenishment sequences are a natural fit. The second step is to actually ask customers about their usage during the checkout or post-purchase survey. Luna: And not just ask once. I imagine they refine that data over time. Lucas: Yeah, they track actual reorder timing and adjust their estimates. If someone reorders on day seven instead of day nine, they update that customer's profile so the next message fires earlier. It's a feedback loop. Luna: That's smart — it gets more accurate with each purchase. One thing I'm curious about: did they use the same SMS sequence for all customers, or did they segment further? Lucas: They did some segmentation. For example, customers who bought a variety pack got a different second message — instead of a recipe tip, it highlighted a new flavor they might like. And they also tested different offer amounts: 10 percent off versus 15 percent off versus free shipping. The 15 percent off performed best for first-time buyers, but for customers who'd ordered multiple times, free shipping was actually more effective at driving a repeat purchase. Luna: That makes sense. Once someone is already a repeat customer, they're less price-sensitive and more convenience-sensitive. Lucas: Right. And the founder mentioned that they also A/B tested the language. The message that said 'Your tea is probably running low — here's 15 percent off' outperformed 'Don't run out of tea — reorder now' by about 20 percent. The word 'probably' actually increased clicks because it felt less presumptuous. Luna: Interesting. A little humility goes a long way. So would you recommend this approach for brands that sell non-consumable products? Lucas: It's harder. If you sell something like a pair of shoes, the repurchase cycle is much longer and less predictable. But you could still use SMS for other triggers — like a birthday message or a seasonal restock reminder for something like winter boots. The key is finding a moment where a text feels timely and relevant, not intrusive. Luna: Yeah, and for consumables, the timing is almost built into the product. It's a natural fit. Lucas: One more thing I want to mention — they also included a link to their loyalty program in the third SMS. So if someone clicked to reorder, they'd see they could earn points for that purchase. That helped turn one-off buyers into loyal customers over time. Luna: So the SMS campaign wasn't just about the immediate repeat purchase — it was also a gateway to the loyalty program. That's a smart long-term play. Lucas: Absolutely. And it worked. Their loyalty program enrollment went up 40 percent after they added that link to the SMS sequence. So the SMS was doing double duty. Luna: I love that. It's a great example of how a focused, data-driven SMS campaign can drive both short-term repeat purchases and long-term retention. Lucas: If these marketing conversations have sparked something you've actually used in your own work, the show is ad-free because of listeners who chip in at buy me a coffee dot com slash fexingo. It's a small way to say the episodes are worth it. Luna: Yeah, it keeps us going without interruption. And we really appreciate it. Lucas: Alright, back to the tea brand. One thing we didn't touch on — they also integrated the SMS platform with their ecommerce system so that if a customer reordered before the third message was sent, the sequence would automatically cancel. That prevented the awkward 'time to restock' message to someone who already had a shipment on the way. Luna: Oh, that's crucial. Nothing erodes trust like getting a reminder for something you already did. Lucas: Exactly. They built in logic to check the last order date and suppress the message if the customer had reordered within the expected cycle. It's a small detail but it makes the whole experience feel smarter. Luna: So the technology side matters as much as the creative side. Lucas: For sure. You can have the perfect copy and timing, but if the system sends a message to someone who just bought, you've wasted the opportunity and annoyed the customer. Luna: That's a good reminder for anyone building these sequences. Test the logic as thoroughly as you test the copy. Lucas: Yeah. And one more thing — they also used the SMS channel to collect feedback. After the third message, if someone clicked a link but didn't purchase, they'd get a follow-up text a few days later asking if they had any questions about the product. That led to a surprising number of conversations that converted later. Luna: So SMS becomes a two-way channel, not just a broadcast tool. Lucas: Exactly. It's more personal. People are more likely to reply to a text than an email. And once you have that dialogue, you can address objections in real time. Luna: That's a level of service that builds loyalty beyond any discount. Lucas: Right. So to sum up: know your product's consumption cycle, ask customers about their usage, time your messages to when they're likely to run out, and treat SMS as a conversation, not a megaphone. Luna: And test everything — timing, offer, language, segmentation. Lucas: Exactly. That tea brand's 60 percent repeat rate boost didn't come from one brilliant idea. It came from a series of small, smart optimizations. Luna: And that's the kind of thing any brand can replicate if they're willing to invest in the data and the testing. Lucas: Absolutely. That's it for today. Thanks for listening.