For Australian SMEs focused on keeping customers coming back, the question of whether to use SMS marketing is a really important one. The short answer is: absolutely, you should seriously consider it. It’s not the *only* retention tactic, of course, but it’s a powerful addition to your toolkit, especially given how Australians consume information.

We’ve seen a significant shift in customer behaviour over the last few years. People are busier, attention spans are shorter, and email open rates are declining. SMS cuts through that noise. It boasts incredibly high open rates – often above 90% – because most people check their texts quickly. This immediacy is a huge advantage when you’re trying to reinforce loyalty and drive repeat business.

Here are a few key insights to help you decide if SMS is right for your business:

• Personalised Offers: Generic blasts don’t work. Segment your customer database and send tailored offers based on past purchases or browsing behaviour. A coffee shop could text a loyal customer a discount on their usual order, for example.
• Timely Reminders: SMS is fantastic for appointment reminders, booking confirmations, or even letting customers know their favourite product is back in stock. Reducing ‘no-shows’ and capitalising on immediate demand directly impacts revenue.
• Loyalty Program Integration: Use SMS to update customers on their loyalty points balance, announce exclusive rewards, or offer bonus points for specific actions. This keeps your program top-of-mind and encourages continued engagement.
• Feedback & Surveys: Quickly gather customer feedback after a purchase or service experience. A simple “How was your experience? Reply with a score 1-5” can provide valuable insights for improvement.

It’s important to remember that SMS marketing isn’t about spamming customers. Compliance with Australian spam laws is crucial. Always obtain explicit consent before sending texts, and provide a clear opt-out mechanism. Think of SMS as a privilege, not a right. Used thoughtfully, it can significantly boost customer lifetime value.

To get started, we recommend auditing your current customer retention strategies. Identify areas where immediate communication could make a difference. Then, explore SMS marketing platforms that integrate with your existing CRM or point-of-sale system. A small, targeted test campaign is a great way to measure the impact and refine your approach before a wider rollout.