Average ROI on SMS
REDCON1 is a rapidly-growing sports supplement brand sold throughout more than 80 countries. They provide protein powders, supplements, and on-the-go meal bars customers can purchase online and in retail stores like Walmart, Vitamin Shoppe, and GNC.
Ryan Monahan, Chief Marketing Officer at REDCON1, was invited to switch to Postscript by a friend at Redline Steel, a customized decor manufacturing company. What started as a friendly competition between the two companies turned into a robust SMS program for REDCON1.
Previously, REDCON1 used pop-ups to gather subscribers, but they didn’t see a lot of growth. Emily Ahlbum, REDCON1 Digital Marketer, said once they started using keywords and checkout for opt-ins with Postscript, they saw more traction.
After one year with Postscript, REDCON1 doubled their subscriber list. Now, their SMS channel is one of the most profitable ROAS (return on ad spend) consistently.
Even though they share discounts frequently, REDCON1’s unsubscribe rate is low, and campaigns have an 8% to 26% conversion rate.
Emily says: "From a customer retention perspective, we're getting people to come back faster than they normally would because it's a good deal. It's just been a huge win for us.”
Here are three ways REDCON1 created their robust SMS program with Postscript which yielded a 113x ROI:
Intentional segmenting. REDCON1 doesn’t want to bombard their customers with frequent promotions. With Postscript, they could segment their audience, so anyone who’s purchased in the last ten days doesn’t get an SMS alert.
Targeted messaging. Recent subscribers and one-time purchasers are still new to REDCON1, so they receive a gradual introduction to REDCON1’s brand. Meanwhile, two-purchase and two-plus-purchase customers get more familiar, branded tone and messages from REDCON1.
Leveraging storytelling. At REDCON1, campaigns go beyond discount blasts. “Leveraging some storytelling in the narrative has been helpful,” Ryan said. “Even if customers are getting two or three texts in a week, it's a more thoughtful and enjoyable process.”
Average ROI on SMS
Subscriber list after 1 year
Average conversion rates on SMS Campaigns
“With the earnings per send and the earnings per contact, SMS is definitely the highest channel by far, with the least amount of effort in the quickest to close or quickest convert. It's been a win across the board. I wish I could text everybody every day, all the time.”
SMS is like email. Except, totally different. Respect the inbox. Create hyper-segmented campaigns. Make customers happy.