AMBASSADOR MARKETING

How to Drive ROI with Ecommerce SMS Marketing: Tactics + Templates

72% of people have bought something from a brand after getting a text message, as per Klaviyo research.

SMS marketing clearly works for e-commerce, but you’re not here for average results. You want measurable ROI and a strategy that actually converts.

To get there, you’ll need more than generic messages. In this guide, we’ll walk through the tactics and templates that actually move the needle.

TL;DR:

Ecommerce SMS marketing involves sending timely, personalized text messages to engage customers, drive sales, and enhance loyalty.

With 98% open rates and an average ROI of $71 per $1 spent, it outperforms many other channels.

Top message types:

• Welcome offers
• Cart abandonment nudges
• Flash sales
• Loyalty rewards
• Product teasers
• Personalized promos

Tactics for boosting ROI:

• Build a quality, permission-based list.
• Segment audiences based on behavior, location, or purchase history.
• Time texts smartly (e.g., weekend afternoons or post-cart abandonment).
• Always include a strong CTA.
• A/B test your campaigns.
• Integrate SMS into multi-channel marketing (email, social).
• Measure KPIs like CTR, conversion rate, CPA, and ROI regularly.

Best tools to use: Klaviyo, Postscript, Omnisend, EZ Texting

What Is E-commerce SMS Marketing?

Ecommerce SMS marketing involves sending promotional messages, updates, and even transactional texts directly to customers' mobile phones (ideally with their permission).

With SMS marketing, brands can share product launches, exclusive discounts or offers, and provide updates related to customer purchases.

Unlike social media posts, a marketing SMS goes directly to the receiver’s message inbox. It’s more directed and has a stronger chance of being opened and read by the receiver.

Benefits of SMS Marketing in E-commerce

For e-commerce, SMS marketing can be particularly beneficial. According to a YouGov survey, 45% of people worldwide use their phones for online shopping.

Here are the main advantages of using SMS marketing for your e-commerce business:

• High engagement and conversion rates: SMS messages have an open rate of 98%, much higher than that of email, which is just 20% at best. This means your messages are seen almost immediately.
• Impressive return on investment: For every dollar spent on SMS marketing, businesses can expect an average return of $71. This insanely high ROI makes SMS a cost-effective channel for driving sales and customer engagement.
• Low opt-out rates: SMS marketing has low opt-out rates, averaging 1 - 2%. This indicates that customers are receptive to receiving messages, provided they offer value and relevance.

• Effective for time-sensitive promotions: SMS marketing in e-commerce is particularly effective for time-sensitive offers, such as flash sales or limited-time discount codes. The quick nature of SMS ensures that customers interact with your brand quickly. That, in turn, increases the likelihood of conversions.
• Easy integration with other marketing channels: With the right tools, SMS fits smoothly into your existing marketing channels like email and social campaigns. This supports omnichannel marketing, strengthens engagement rates, and improves customer retention across the board.

Types of Ecommerce Marketing SMS (+ Winning Templates)

Let’s break down the key types of eCommerce SMS messages, each with a short description and a ready-to-use template.

1. Welcome Messages

This message can be sent when a customer signs up for SMS updates or creates an account. A welcome message sets the tone and can even include a discount as a gesture of appreciation.

Template: 🎉 Welcome to [Brand Name]! You’re officially in. Here’s 10% off your first order: WELCOME10. Shop now → [link]

2. Sales Promotions

Sales promotion SMS are time-sensitive messages that alert subscribers to ongoing sales, flash deals, or seasonal promotions, which drive conversions.

Template: 🚨 FLASH SALE: 20% off everything for the next 24 hours! Use code FLASH20 at checkout. Don’t miss out → [link]

3. Personalized Text Message Campaigns

These messages are tailored to user behavior, such as past purchases or browsing history, to create a more personalized and relevant experience.

Template: Hi [First Name], based on your recent order, we think you’ll love this: [Product Name]. Get 20% off for the next 48 hours only. Tap to claim → [link]

4. Mobile Coupons

Share exclusive, mobile-only discounts via SMS to drive urgency and increase order value.

Template: Your exclusive mobile coupon is here! Get $15 off when you spend $75+. Use code: TXT15. Shop here → [link]

P.S. Want to take your mobile strategy even further? Check out our breakdown of top mobile app marketing strategies to boost installs, engagement, and revenue.

5. Text-to-Win Contests

Encourage customer interaction by asking them to text a keyword for a chance to win a prize, a giveaway, or a discount.

Template: 🏆 Win a $100 gift card! Text WIN to 12345 to enter. Contest ends Friday. Rules here → [link]

6. Referral Messages

Promote a referral program that allows subscribers to earn rewards by inviting friends and family.

Template: Share & earn! Refer a friend and you’ll both get $10 off your next order. Send them this link: [referral_link]

7. Abandoned Cart Reminders

Automatically remind customers of items left in their cart and prompt them to complete their purchase with abandoned cart reminders.

Template: Hey [First Name], you left something behind! Grab your items before they’re gone → [cart_link] + here’s 10% off: CART10

8. Loyalty Programs

These messages promote or provide updates related to rewards and loyalty programs to your subscribers.

Template: You’ve got 150 points! Redeem them for $15 off your next order. View your rewards → [link]

9. Teaser for New Products

Build anticipation for upcoming product launches by offering sneak peeks or early access.

Template: Sneak peek just for you: our new [Product Name] drops tomorrow! Be the first to shop → [early access link]

10. Feedback Messages

Request feedback on purchases via text messages. You even offer rewards for doing that.

Template: Hey, [First Name]! How do you like your recent purchase from [Brand Name]? We would love to hear from you! Leave your feedback at → [link] and earn a $5 discount code for your next purchase.

How to Calculate Your SMS Marketing ROI?

To calculate SMS marketing ROI, use the following formula:

ROI = ((Revenue from SMS Campaign – Cost of SMS Campaign) / Cost of SMS Campaign) × 100

For example, if your SMS campaign generates $1,000 in revenue and costs $200, the ROI would come out to:

ROI = (($1,000 – $200) / $200) × 100 = 400%

This means for every $1 spent, you earned $4 in return. (This is just an example, as, in reality, it could be even higher)

Although ROI is a good metric to gauge the ecommerce SMS marketing performance, you should also consider some other key metrics to get the whole picture.

• Click-through rate (CTR): The percentage of recipients who clicked on a link within your SMS. A higher CTR indicates engaging content and an effective call-to-action.
• Conversion rate: The percentage of recipients who completed a desired action, such as making a purchase, after clicking the link.
• Cost per acquisition (CPA): The cost associated with acquiring a new customer through your SMS campaign. Ideally, you want a low CPA for maximum overall ROI. Check out our free CPA tool!
• Opt-out rate: The percentage of recipients who unsubscribed after receiving your SMS. Monitoring this helps in understanding audience preferences and adjusting message content accordingly.

Why Calculating Your SMS Marketing ROI Matters

For any ecommerce business spending money on SMS marketing, understanding the ROI is key. It helps in assessing the effectiveness of campaigns and making informed decisions for future strategies.

Here are a few simple reasons why you should pay close attention to the ROI of SMS marketing:

• Optimizing budget allocation: Calculating ROI enables businesses to pinpoint which SMS campaigns are yielding the highest returns. For instance, if a cart reminder campaign yields a 700% ROI, but a product launch campaign yields only 200%, resources can go to the former for maximum profits.
• Making campaign adjustments: Your SMS marketing angle may be working or not. The ROI will tell you if it does work. If it doesn’t, you can refine your messaging, timing, and audience segmentation to improve future campaign performance.
• Justifying marketing investments: 83% of marketers consider showing ROI a top priority. ROI helps justify the investment in SMS marketing. CMOs can show stakeholders why they’re investing in SMS marketing tools and campaigns.

Common Reasons for Poor SMS Marketing ROI

Not every ecommerce SMS marketing campaign may have a high ROI, and there can be several reasons behind that:

• Poor subscriber list quality: Sending messages to outdated or inactive phone numbers wastes resources and can damage your sender reputation. Make sure your SMS list is clean and up-to-date. That will help maintain high delivery and engagement rates.
• Lack of personalization and segmentation: Generic messages that fail to cater to individual customer preferences can result in lower engagement rates.
• Overlooking message content quality: Messages that lack a clear call-to-action or fail to provide value may not do so well with your audience. Craft concise content within the 160-character limit that includes compelling offers or information. Include clickable links and promo codes where applicable.
• Ineffective timing of messages: If you’re sending messages at inappropriate times or sending too many messages, your marketing efforts may backfire. It can lead to higher unsubscribe rates. In fact, too frequent messages are the top reason for people to opt out of receiving marketing SMS.

10 Tactics to Improve ROI on Ecommerce SMS Marketing

You can follow the tips and tactics below to get the best possible ROI from your SMS marketing campaigns for ecommerce:

1. Build a Quality List

First of all, you must create a high-quality subscriber list. That’s the foundation of effective SMS marketing campaigns.

So, what makes a quality SMS marketing list? Well, the recipients should match your ideal customer profile (ICP). For instance, if you’re selling nail art kits, a quality list of subscribers would primarily consist of women.

It’s highly recommended that you create a list organically over time. Here are some tips:

• Use clear opt-in language with a strong incentive.
• Promote your SMS signup across channels (website, email, social, in-store).
• Add a mobile-friendly pop-up on your website.
• Offer exclusive discounts for signing up for SMS marketing.
• Collect numbers at checkout with a consent checkbox.
• Segment signups by source or interest.
• Keep the signup process short; name and number are enough.
• Use QR codes for offline-to-online SMS signups.
• Use virtual and in-person events for list growth.

Make sure you collect explicit consent from customers before sending messages and adhere to compliance regulations. Use SMS marketing tools for actively managing and auditing your subscribers' list.

2. Segment Audience

Audience segmentation allows for more targeted and relevant messages. When you categorize your SMS subscribers based on factors like purchase history, location, and engagement levels, you can tailor your SMS marketing campaigns to specific groups.

For instance, sending exclusive offers to loyal customers can help increase customer loyalty and lifetime value. You’ll need data, of course, to segment your audience, which you can get from your current tech stack, like the SMS marketing platform you’re using or a customer relationship management (CRM) system.

Here are some segmentation examples:

3. Send Hyper Personalized Messages

Personalized messaging can dramatically improve customer engagement. 76% of consumers are more likely to buy from a brand that delivers personalized experiences, according to McKinsey.

In the context of SMS, you can incorporate customer names, past purchase details, and personalized product recommendations in your texts. This approach improves the customer experience and may also result in higher conversion rates.

Most paid SMS marketing platforms offer features that facilitate personalized SMS marketing efforts, so achieving personalization in SMS marketing is very much doable.

4. Optimize Timing

Timing plays a crucial role in the effectiveness of SMS marketing messages. You don’t want to bother people at the wrong hour or too frequently. Similarly, you should send out the texts at a time when the receivers are more likely to read and act on them.

For example, for ecommerce brands, sending messages during work hours wouldn’t be ideal. Afternoons on weekends tend to perform better, as users are more relaxed and actively on their phones.

Recent trends suggest that Thursdays, Fridays, and Saturdays deliver the best results, especially during 9 AM to 12 PM and 5 PM to 9 PM. These time slots align with when most users check their phones, either before work, during breaks, or in the evening wind-down window.

You should also time messages based on the desired action. For example, sending a cart reminder within an hour of abandonment significantly increases the chance of recovering the sale.

AI-driven platforms analyze customer behavior to schedule messages when they are most likely to be read.

5. Include a Clear CTA

Every SMS message should have a concise and compelling CTA. Whether it's prompting customers to visit your website, use a discount code, or check out a new product, a clear CTA guides the customer towards the desired action.

Also, make sure that the CTA is prominently placed within the 160-character limit to maximize its impact. Include links so your audience can directly hop on to the website to make the purchase.

Some clear and effective CTA examples for ecommerce SMS marketing are:

• “Tap to shop the sale before it ends!”
• “Claim your 20% off now → [link]”
• “Buy now, pay later—shop with Klarna today.”
• “Get it before it’s gone—shop the drop now!”
• “Use code SMS20 at checkout to save.”
• “Reserve your size before it sells out!”
• “Reorder in 2 clicks → [link]”
• “Track your delivery here: [link]”
• “Reply YES to claim your deal!”
• “Unlock early access, click to browse.”

Pro Tip: Use Generative AI to create catchy but relevant CTAs for your text messages. Many marketers are already doing this.

6. Test Different Campaigns (A/B Testing)

A/B testing lets you compare different versions of your SMS messages to determine which performs better. You can test variables such as message content, send time, and CTA to identify what resonates most with your audience.

For instance, tools like Postscript provide A/B testing features, which let you refine your messaging strategy based on real-time data. You can essentially have two different versions of the same type of marketing SMS to see which one performs better.

“A/B testing is really beneficial for companies of any size. Testing allows brands to learn what tactics perform best with their audience. They can then take those learnings and apply them to future decisions, taking the guesswork out of finding what resonates with their users,” Abigail Beene, HawkSEM.

7. Offer Incentives

Incentivizing customers through exclusive discounts, promo codes, or interactive games can be a great tactic to increase engagement. For instance, you may send a unique discount code via SMS to push for immediate purchases.

Similarly, interactive campaigns, like SMS-based games, are entertaining and may also help create deeper connections with your audience, especially if that audience is young, like Gen Z.

8. Send Location-Based Offers

If you happen to have location data about the subscribers in your list, you can use it to add more relevance and personalization to your text messages. You can even send out location-based offers for leads in a specific city or town.

This tactic is more suitable for an e-commerce brand with a physical presence. SMS marketing can drive foot traffic in addition to online orders. Even if you don’t have a physical store, you can still send location-specific offers, such as free delivery in a specific state or city.

Again, make sure that you have the necessary permissions to use location data and that your messages provide value to the recipient.

9. Integrate SMS into Multi-Channel Marketing

Combine SMS with other marketing channels, such as email campaigns and social media, to create a cohesive customer journey.

For example, follow up an email campaign with a timely SMS reminder. Similarly, send out links to social media posts with offers via text to increase visibility.

All your marketing channels can be streamlined to promote offers and consistently keep potential customers engaged. It’s great to stay top-of-mind, especially if you’re selling high-ticket items that have long sales funnels.

With the right integrations, you can easily integrate your SMS marketing platform with other marketing channels.

Multi-channel marketing can be quite lucrative. 50% of marketers say they hit their financial targets with multi-channel marketing.

10. Measure, Analyze, and Improve

Last but not least, regularly monitor key performance indicators (KPIs) for your e-commerce SMS marketing campaigns. Typically, the key metrics you should watch out for are:

Use dedicated analytics tools or any analytics feature in your SMS marketing tool to gain valuable insights. Analyzing this data helps refine your messaging strategy, optimize campaign performance, and ultimately improve ROI over time.

SMS Marketing Automation Strategies for Ecommerce

In addition to specific SMS campaigns, set up automated workflows for specific texts. You can use an advanced SMS marketing tool to set up automatic text messages when a certain action is taken.

For example, you can set up an automatic ‘Welcome’ text message for new subscribers added to the list. Similarly, the abandoned cart reminder messages can also be automated by integrating your store with the SMS marketing platform. That way, you don’t have to do it manually. The text goes to the customer automatically.

Automations like these can also help improve ROI indirectly. And your marketers are freed up to do more important things.

Make SMS a Core Growth Channel for Your Brand

SMS marketing should be a key component of e-commerce brands' overall marketing strategy. It can potentially have a higher ROI than pay-per-click (PPC) and social media campaigns.

Use the tactics and templates above to realize an impactful ecommerce SMS marketing strategy.

SMS marketing can also be great for go-to-market in new cities and countries. If you need help with marketing on an international level, explore the best global marketing agencies.

Frequently Asked Questions (FAQs)

Is SMS marketing legal?

Yes, SMS marketing is legal when businesses adhere to regulations such as the Telephone Consumer Protection Act (TCPA) in the U.S. and the General Data Protection Regulation (GDPR) in the EU. This includes obtaining explicit consent from customers before sending promotional messages and providing clear opt-out instructions in every message.

Non-compliance can result in fines ranging from $500 to $1,500 per violation.

What is SMS compliance?

SMS compliance means following legal guidelines, like getting clear consent before messaging, offering easy opt-outs, and keeping records of user permissions. These rules protect consumer privacy and help you avoid fines or legal trouble. A reliable SMS platform should support full compliance management by default.

What are the best SMS marketing tools?

The best SMS marketing tools for eCommerce offer features like automation, segmentation, and performance tracking. Top picks include Klaviyo for its deep eCommerce integrations, Postscript for Shopify-specific automation, Omnisend for combining email and SMS, and EZ Texting for easy-to-use mass messaging tools.

Is SMS marketing profitable?

Yes, SMS marketing can be highly profitable. On average, businesses see a return of $71 for every dollar spent on SMS marketing. That’s a 700% ROI or 71x return. Also, text messages have high engagement rates, with an open rate of 98%. However, only campaigns executed with a strong strategy and the right tactics can achieve this level of profitability.

What are some SMS marketing ideas?

Some effective SMS marketing campaigns are:

• Flash sales: Announce limited-time offers to create urgency.
• Cart reminders: Send messages to customers who have abandoned shopping carts.
• Exclusive discounts: Offer special deals to SMS subscribers.
• Product launches: Inform customers about new product releases.
• Appointment reminders: Notify customers of upcoming appointments or deliveries.

What is the conversion rate for ecommerce SMS marketing?

Conversion rates for SMS marketing in e-commerce can vary, but research shows an average range of 21% to 32%. Message content, timing, and audience segmentation can heavily influence SMS conversion rate. Use analytics tools to track and optimize these factors. That can lead to improved campaign performance.