SMS marketing has a 98% open rate. Emails average 20-25%. Yet most eCommerce brands either ignore SMS entirely or treat it like a copy-paste of their email strategy. Both approaches are leaving serious revenue on the table.
We've built SMS programs for over 60 DTC brands, and the ones who get it right are generating 15-20% of their total revenue from text messages alone. Here's how they do it — and the mistakes that kill most SMS programs before they start.
Why SMS Works (When Done Right)
The numbers speak for themselves:
- 98% open rate — compared to 20-25% for email
- 36% click-through rate — compared to 2-3% for email
- 90% of texts are read within 3 minutes of delivery
- Average revenue per SMS recipient is 2-3x higher than email
But here's the catch: SMS is an intimate channel. Your text messages sit next to messages from friends and family. Abuse that trust, and subscribers will opt out fast — and they won't come back.
Key Takeaway
SMS isn't a replacement for email — it's a complement. The brands generating the most revenue use both channels strategically, with each playing a distinct role in the customer journey.
The 5 Biggest SMS Mistakes eCommerce Brands Make
1. Treating SMS Like Email
Your email can be 500 words with images, headers, and multiple CTAs. Your SMS needs to be 160 characters with one clear action. Brands that copy-paste their email content into text messages see opt-out rates 3-4x higher than average.
SMS messages should be conversational, urgent, and feel like they're coming from a friend — not a marketing department.
2. Sending Too Frequently
The sweet spot for most eCommerce brands is 4-6 SMS messages per month. More than that, and opt-out rates spike. We've tested this across dozens of brands: going from 6 to 8 messages per month increased opt-outs by 47% while only adding 8% more revenue.
3. Ignoring Compliance
TCPA violations can cost $500-$1,500 per message. That's not per campaign — that's per individual text. One non-compliant blast to 10,000 subscribers could mean millions in fines. You need:
- Explicit opt-in consent (separate from email)
- Clear identification of who's texting
- Easy opt-out in every message (reply STOP)
- Quiet hours respected (no texts before 8am or after 9pm in the recipient's timezone)
4. No Segmentation
Sending the same text to your entire list is the fastest way to burn it. At minimum, segment by purchase history, engagement level, and opt-in recency. A first-time buyer and a VIP who's purchased 10 times should never receive the same message.
5. Using SMS Only for Promotions
If every text you send is a discount code, subscribers get trained to only buy on sale. Mix in value-driven content: shipping updates, back-in-stock alerts, early access, and exclusive content.
The SMS Flows Every eCommerce Brand Needs
Welcome Flow (2-3 Messages)
When someone opts in to SMS, don't wait. Send an immediate welcome message with the promised incentive (usually 10-15% off). Follow up 24 hours later with a bestseller recommendation, then 3 days later with social proof.
Our average welcome flow conversion rate across clients: 22%.
Abandoned Cart Recovery (2 Messages)
SMS cart recovery should hit faster than email. Send the first text 30 minutes after abandonment (email waits 1-4 hours). Keep it simple: product name, a direct link back to cart, and a sense of urgency.
The second message goes out 24 hours later with a small incentive if needed. Our clients recover an additional 8-12% of abandoned carts through SMS on top of their email recovery.
Post-Purchase Updates (3 Messages)
This is where SMS shines. Order confirmation, shipping notification, and delivery confirmation via text have 99%+ open rates. These aren't just transactional — they're brand-building moments that reduce support tickets and increase satisfaction.
Back-in-Stock Alerts
If a product is sold out and a customer wants it, SMS is the perfect notification channel. These alerts see 35-40% click-through rates and convert at 25%+ because the intent is already there.
VIP Early Access
Give your top customers first access to new drops, restocks, or sales via SMS. This creates exclusivity and rewards loyalty. VIP SMS messages generate 5-8x higher revenue per recipient than standard promotional texts.
Key Takeaway
Automated SMS flows generate 3-4x more revenue per message than campaign blasts. Build your flows first, then layer in campaigns strategically.
SMS Campaign Best Practices
Timing Matters More Than Email
Unlike email (which sits in an inbox until opened), SMS demands immediate attention. The best send times we've found:
- Flash sales: 10am-12pm local time (highest engagement)
- New product launches: 11am-1pm (when people browse during lunch)
- Weekend promotions: Saturday 10am (catches people during leisure time)
- Restock alerts: As soon as available (urgency is real)
Write Like a Human
Drop the corporate tone. SMS messages that feel personal convert 2-3x better. Compare these:
Bad: "BRAND NAME: 20% OFF SITEWIDE. Use code SAVE20. Shop now: [link]. Reply STOP to unsubscribe."
Good: "Hey! Your favorite serum is 20% off today only. Grabbed one for myself too. [link] - Sarah from GlowLab"
The second message feels like it came from a person. That's the difference between a 3% CTR and a 12% CTR.
Always Include a Direct Link
Every SMS should have one clear CTA with a shortened, trackable link that goes directly to the relevant product or collection — never the homepage. Remove any friction between the text and the purchase.
How to Build Your SMS List (Without Being Annoying)
Two-Step Pop-Up
Collect email first, then on the thank-you screen, offer an additional incentive for SMS opt-in. This two-step approach gets 30-40% of email subscribers to also opt in to SMS.
Checkout Opt-In
Add an SMS opt-in checkbox at checkout. Since the customer is already entering their phone number, friction is minimal. Average opt-in rate: 12-18%.
Keyword Campaigns
Use "Text JOIN to 55555" on packaging, social media, and your website. Physical products are especially effective — include a card in every shipment with an SMS-exclusive offer.
Social Media Cross-Promotion
Run Instagram Stories with a "text us" CTA. SMS subscribers acquired from social media tend to have 20% higher engagement rates because they already follow the brand.
SMS + Email: The Revenue Multiplier
The real magic happens when SMS and email work together. Here's the framework we use:
- Email handles: Long-form content, educational sequences, detailed product launches, newsletters
- SMS handles: Time-sensitive offers, flash sales, restock alerts, shipping updates, VIP access
- Both channels: Abandoned cart recovery (SMS first, email follows), welcome series (email educates, SMS converts)
Brands using both channels see 25-30% higher revenue than those using email alone. The key is coordination — never send the same message on both channels at the same time.
Key Takeaway
SMS isn't competing with email — it's completing it. The brands generating 40%+ of revenue from owned channels are the ones using both strategically, with each channel playing to its strengths.
Getting Started
If you're not using SMS yet, start with three things: a welcome flow, abandoned cart recovery, and post-purchase updates. These three automated flows will generate 80% of your SMS revenue with minimal ongoing effort.
Once those are performing, layer in 2-4 campaigns per month and watch the channel grow. Most brands see SMS generating 10-15% of total revenue within 60 days of launch.
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