We all know the smartphone has become omnipresent, and even more so in the retail marketplace. Consumers check their phones an astounding 60 times per day and are expected to spend over 625 billion dollars annually on mobile devices by 2018. Since the inception of the Apple App Store, corporate loyalty marketing strategies have trended towards the App. But today’s App Store is not the App Store of 2008. With the addition of Android to the playing field, both App Stores have become cluttered, often burying small business’ apps. If you’re lucky enough to get your app noticed and downloaded, then comes the difficult task of turning the downloader into a high-value customer. Are apps the best way to reach customers — or can a dispensary SMS messaging solution provide greater customer reach?
Every business thinks they must have an App to be successful. But the truth is most apps, once downloaded, are rarely used. Numerous studies show that users use about one-fifth of the apps they have installed and that 90% of those who download an app do not become high-value users.
The same data shows that by using messaging, companies can expect a 45% retention rate for 30 days — a 125% increase over consumers who either did not receive or who did not opt-in for messaging in an app. So if you are lucky enough to get your app discovered and downloaded, you then must rely on push notifications to actually get customers to continue using your app.
While corporate wisdom promotes increased use of push notifications to engage and retain customers, the data is clear — push notifications are unreliable as a means of communication. They’re easy to ignore or turn off and most apps aren’t even used. Only about half of users keep push notifications on in apps, and most of the time, that’s for apps with info regarding things like flight times. This is where incorporating a dispensary SMS messaging system can truly make a difference.
Astoundingly, a survey of 6,000 people conducted by Twilio found that 1 in 10 people would give up sex in favor of continued use of phone messaging. If that doesn’t give you a glimpse into how important mobile phone messaging is, I don’t know what will. But let’s move on to some more substantive and practical research on the subject.
Messaging is the preferred method of business communication across all generations (compared to Email, Telephone, Face to Face, Online Chat, and Mail). Of those aged 18-44, 31% prefer it to all other methods. It comes installed on every phone, making it simple to use and access. While it may seem like WhatsApp and FB Messenger are on the rise, within the retail marketplace, 47% of messaging business is still conducted through SMS.
Consumers give texts priority over push notifications — in fact, 99% of texts received are opened, and 90% of those are within the first 3 minutes of being received. On the other hand, push notifications on iOS have an average open rate of 1.77 percent, while those on Android have an average open rate of 3.48 percent. Don’t be fooled by Android’s higher open rate, though. It’s likely due to the fact that Android automatically opts-in customers for push notifications immediately upon download — something Springbig would never do. All our users must opt-in before receiving messages. So what about open times? Well, iOS users open push notifications in a median time of 7 minutes; on Android, it’s whopping 48 minutes! Clearly, texts have the advantage.
The stats certainly seem to line up in SMS’s favor, but do customers actually want to receive texts from businesses? The answer is a resounding YES!
In fact, 89% of customers wished businesses used a messaging service, however, only 49% of businesses actually do. With springbig’s dispensary messaging service, you don’t have to be part of that 49%. Customers want to hear about your new products (46%) and to receive info about coupons and promotions (42%).
SMS can better help dispensaries communicate with their customers, create customer loyalty, and increase their sales, as long as it’s done correctly.
SMS messaging is still the #1 form of text-based communication in the U.S. despite the rise of other messaging apps. And although some may think SMS marketing is only useful for broad-based outreach, springbig gives dispensaries the ability to send specific campaigns to segmented groups based on their interests or their spending habits. This targeting, combined with springbig’s ease of use, analytics, and loyalty program, can help you craft messages that your customers will be glad they read and acted upon.
At springbig, we want to help you better connect with your customers in a way that works best for both of you. Our single send SMS cannabis solutions can help you share the latest news and promotions while helping you retain customers.
Ready to learn more? Request a demo today to get started with springbig’s dispensary SMS software.
CEO and Co-founder of springbig