The ROI in Texting: A Look into the Big Return of a Small Investment

As I have mentioned in previous posts, 94% of text messages are read within just a few minutes of being received.  Almost all businesses should consider texting to increase revenue, whether it is a salon, spa, restaurant, etc.  You have inventory or open time slots, this is the way to fill them.  Emails take lots of time to compose and too many people don’t take the time to read them in the world of people always on the go.  Businesses need to create the “call to action” versus hoping to have business.

Text messages being sent to customers should be kept short and sweet, typically 160 characters.  Accessibility to creating these messages should be simple as well.  That is why the texting platform offered through Integrated Mobile Marketing (www.immarketing.me) allows clients to login through a computer or generate and send the messages directly from their mobile device.  Not everyone has time to sit at the computer so that is why we now offer it on the go!

The text messages need to be unique to get the consumers’ attention.  Sending a text message of specials you always have on that night of the week is wasting everyone’s time.  They already know what you offer.  You need to pull the trigger for them to thing, “Wow, this is a deal I need to act on now.”  Maybe they weren’t sure where they wanted to eat dinner that night or keep telling themselves that they need a massage, but won’t take the initiative to book one.  Sending offers that aren’t typically available makes the consumers act upon them.

You have tables to fill or time slots to fill and your overhead is fixed so you’re paying rent, regardless of how much business you do.  These customers are profit after the marginal cost of food or supplies they need…plus, some of the food would possibly be gone to waste.

For those that love finance and math as much as me, here is a simple way of calculating the ROI on texting.  Assume you have 500 messages that you can send a month and you own or manage a restaurant.

500               Text Messages Sent

35%              Reponse Rate

175               Customers Utilize the Message

 2.5               Customer brings friends & avg 2.5 heads/message used

437               Seats Filled

$  5               Avg. gross profit/person (much more if alcohol is consumed)

    $2,185        Additional Revenue

At only $5/person in gross profit on food & pop, you would only need 8 people to cover the cost of the texting service!  That is a 54.6:1 return!  If you are a restaurant where alcohol is consumed by patrons, you could multiply the additional revenue exponentially!

Now assume you are a masseuse.  You typically charge $70/hr for a massage and you notice the next week that very few slots are filled.  You send out an offer for an hour massage at $55.  If you send out 100 of your available 500 messages (save some for another week) and 30 people call to schedule, that is $1,650 of income that filled openings that would probably not have been filled.  And there are still 400 more messages that could be sent and earn thousands more the rest of the month.

We have packages that range from 500 to 10,000 messages a month.  Contact me for pricing and more information about our texting platform.

 

Michael Vanderhorst

(937) 470-8588

michaelv@immarketing.me

Integrated Mobile Marketing’s Mission Statement

We exist to provide business owners valuable products and quality services that will enhance their exposure and profitability.

Just as importantly, we are here to enhance the lives of our people not only financially but spiritually and intellectually.

If our people don’t become better parents, spouses and citizens, we fail.

We believe in upward mobility based on ability and the premise of being in business for yourself but not by yourself.

Restaurants Searching for Customers

Out of almost all mobile search categories, those searching for restaurants are the closest to the buying process.  In the restaurant industry, it is necessary to create the call-to-action.  76% of restaurant searches are done by customers on the go and 51% of them are already in their cars while searching. 

84% of restaurant searchers that are mobile go on to make a purchase.  30% of smartphone owners convert to customers immediately while over 60% act upon their search within the hour.

Like many things in our society, when customers want something, they want it now and are typically on the go.  Having to download a menu can be very irritating now that major cell phone carriers have started charging or limiting data usage.  Then to “pinch” and zoom on the pdf just to read on a 3.5” screen what most people get to hold in their hands on legal-sized paper…you might as well forget about getting those people into your restaurant.

The way a restaurant can keep people browsing on their site and selecting you is by clearly and easily giving them information about your restaurant.  This can be done by a mobile site.  Not just a plug-in for your desktop site, but a true mobile custom site.  Don’t let custom scare you because through Integrated Mobile Marketing it is much cheaper than you think.

You’ll want a site that reflects the business that you have created and an ugly template won’t get you what you want.  It isn’t necessary to overload your mobile site with information.  To stop potential customers from continuing their search, you can use mobile site only coupons.  It helps them decide instantly since they know they’re saving money and don’t have to worry about printing them out.

Let their thumbs lead them to your restaurant.  From the home screen, allow them to get directions to the door, call, email and link out to your social media.

Why wait for them to question where they want to eat?  Reach out to them through text messages (also available through IMM.  94% of text messages are read within minutes of being received.  Long emails explaining all sorts of events and things going on in the restaurant are often overlooked, ignored or deleted when on a smartphone.  When on the phone, people will not want to read through an email that would be two pages on printed paper when it is from a restaurant.

Integrated Mobile Marketing offers text a la carte and also in a package with our custom mobile redirect websites.  We will also be adding new products here in the next few months so keep your eyes open!ImageImage

Where Does Your QR Code Take People?

Many businesses are now using QR codes to direct people towards their websites to gain attention.  There is some debate on those who think QR codes are here to stay and some think they’re a waste, but they are easy and free to create with various applications on app markets.

If you know the potential customers are using a smartphone to view your site because of a QR code you created, then why not give them a mobile website to view?!  It doesn’t matter what your business provides, if you have a website already, then there is a need for a mobile website.

Do not make the mistake that Boar’s Head made by spending lots of money on mobile campaigns and have it be a gigantic waste of money because the desktop version of your website requires lots of “pinching” on a smartphone to manage it.

Contact me to request more information.

 

 

Michael Vanderhorst

michaelv@immarketing.me

(937) 470-8588

Smartphones are Sticking Around

Around 125 million phones are being replaced each year…70% of these are Smartphones.  Almost 90 million phones being replaced every year are being replaced by smartphones!

I currently use a Motorola Droid X and personally, I rarely access the web on a desktop.  Applications (apps) are simplifying and streamlining access that was once heavily relied on through desktops only.  The call to action when people are researching businesses for services, whether it be a restaurant or a salon, is being increased substantially.  Most of the time it is the day of that someone goes to a business they find on their phone because they are already on the move.

If you are a business owner, have you looked at your site on a smartphone?  It could be the most beautiful website with excellent high resolution pictures, but the load times and ability to manage it on a smartphone could be troublesome.  People have to pinch or zoom in and if they click on a menu, it may open a new screen which can be harder to manage on a smartphone.  If it is too difficult for someone to manage on their phone, they become irritated and are likely to exit and look for a competitor.

 

Michael Vanderhorst

michaelv@immarketing.me