Mariya Arabadzhieva-Todorova
Content Marketing Specialist @ Yotpo
March 22nd, 2023

Learn how SMS marketing can increase subscribers’ lifetime value and make loyalty redemptions as seamless as possible.

Table Of Contents

Having a loyalty program with various VIP tiers, appealing bonuses, and exclusive offers can only take you so far. How you communicate it to your customers is what will pave your way to success. Do they know how points work, what they can be used for, and how to check their current loyalty status?

The same applies to your subscription program. Ever wondered how to extend the lifetime value of your subscribers and give them more reasons to stay subscribed?

SMS is the glue helping your loyalty and subscription programs stick together and work in perfect harmony. It enables brands to better engage their most loyal audiences – VIP members and subscription customers – for maximum results. Here’s how.

Boost loyalty redemption rates with SMS

Redemptions are crucial for the success of your loyalty program – eCommerce brands see 89% more revenue from loyalty redeemers compared to non-redeemers, as well as a 164% higher repeat purchase rate on average.

SMS marketing can help brands increase loyalty program participation while ensuring a smooth and frictionless shopping experience. In fact, our data shows that loyalty members subscribed to SMS are twice as likely to redeem their points. And now, you can make it even easier for them to do so.

With Click-to-Redeem from Yotpo SMSBump, shoppers can exchange their loyalty points for discounts on products just by clicking on a link in your text.

We did all the heavy lifting for you – simply choose from a few pre-built redemption amounts, e.g. “$5 off for 100 points, $10 off for 200 points,” etc. and let shoppers know how they can use their points balance to score great deals.

What does this mean for your brand? With Click-to-Redeem, you can:

  • Expedite the path to purchase. There is no need for shoppers to create an account or log in. All they have to do is tap the link in the text message to redeem the provided discount at checkout.
  • Increase the visibility of your loyalty program. With SMS, you can keep customers in the loop about their existing loyalty points and opportunities to redeem them even when they’re on the go.
  • Rescue outstanding points. Usually, loyalty points come with an expiration date, so sending timely reminders via SMS will create urgency and motivate shoppers to redeem on time before they miss out.
  • Always target the right people. We’ve made it easy to target only the customers that are eligible for redemption. How? When sending a Click-to-Redeem campaign, we’ll automatically define the right audience and add all relevant shortcodes to your message.
  • Create highly personalized shopping experiences for your most loyal customers. Send ultra-tailored messages using a wide variety of embedded shortcodes. Inform customers of the exact dollar amount their points are worth (e.g. $10), how many points the reward will cost them (e.g. 200), and add a personalized reward redemption link so they can click to redeem their offer.
  • Launch loyalty-focused SMS campaigns in just a few clicks. With several preset loyalty templates in your template library to choose from, you can create and send Click-to-Redeem campaigns in no time to reach more loyalty members and turn them into redeemers fast.
  • Send triggered Click-to-Redeem messages on autopilot to maximize results. Add a Click-to-Redeem option to your existing SMS flows to notify eligible customers of their redemption options (e.g. include it in your winback flow to encourage dormant customers to come back and use their rewards for discounts on their purchases).

Click-to-Redeem SMS campaigns and flows help you create engaging experiences that keep customers coming back to increase their lifetime value. With Yotpo SMSBump and Loyalty working together, you can also track your redemption rate in real time and adjust your strategy for the best possible results.

Yotpo brands already seeing success with Click-to-Redeem

Home fragrance brand HomeWorx was one of the first to leverage the new feature as part of their marketing strategy.

They saw a stunning 74x ROI on Click-to-Redeem campaigns and a 10x increase in redemption rates of their loyalty program.

Hair care brand Better Not Younger is also leveraging Click-to-Redeem SMS to drive more loyalty program participation.

Their Click-to-Redeem campaign had the highest CTR and ROI of any campaign since Black Friday, and to top it off, it saw the highest number of redemptions in the brand’s loyalty program history!

Increase subscribers’ lifetime value with SMS and loyalty

But that’s not all… Did you know that if you’re offering subscription services, you can leverage both your SMS and loyalty programs to increase the length of subscriptions and therefore the lifetime value of your subscribers?

With the powerful connections between Yotpo SMSBump, Subscriptions, and Loyalty, shoppers can also earn and redeem loyalty points on their upcoming subscription orders, plus get personalized updates about their points balance and redemption options via text.

With the ability to redeem loyalty points on subscription orders, you can give shoppers another reason to stay subscribed (other than loving your products, of course!) to boost retention and reduce churn. And by notifying them about these opportunities right on their phones, you’ll make engaging effortless.

Three key ingredients of a successful retention strategy

SMS marketing enables eCommerce brands to more effectively reach and nurture relationships with their highest-value audiences: loyalty members and subscription customers.

With the Yotpo platform, you can enrich those engagements even further – with shared data and innovations that tie our SMS, Loyalty, and Subscriptions offerings together, you’ll provide similarly unified and perfectly tailored experiences to your customers to retain them.

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