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SUCCESS STORY

What is the real impact of an SMS campaign?

Measuring incrementality in an omnichannel campaign

The Challenge

Éram is the French leader of in-store and online shoe distribution. Twice a year, the brand holds Private Sales, allowing its customers to benefit from exclusive discounts on a selection of items. Communicating around this period is important because unlike normal sales, dates vary from one shop to another and from one year to the next.

SMS messaging might seem like the obvious solution, but it is an expensive channel that must be used only when necessary. It is therefore particularly important to measure the real incremental impact on various groups.

The Solution

Numberly created a testing protocol that measures the incremental impact of an SMS on the purchasing rate and on the revenue generated by sales. This impact was measured for customers who are only reachable via SMS as well as for customers who have allowed Éram to contact them via both Email and SMS.

A control group of 50% was set up in order to take into consideration various criteria :

  • Customer value: are they “addicts”, “sympathizers” or “distracted”?
  • Their likelihood of reacting to emails and propensity to read their emails on mobile devices;
  • The likelihood that they would react positively to a discount;
  • The probable date of repurchase.
Numberly's test protocol has made it possible to highlight certain characteristics of the target populations.

The Results

How do you measure the real impact of an SMS campaign in terms of ROI? The incremental revenue is the difference between the revenue generated by customers who have received the SMS and those who haven’t. The same goes for incremental margins. These two KPIs were calculated for each population according to various qualifying criteria ten days then eighteen days after the broadcast.

It was thus established that the broadcast of an SMS generates a significant incremental conversion. According to the group and criteria, the increase in ROI is between 5 and 16.

This analysis has allowed Numberly to make the following recommendations:

  • SMS is an essential channel for customers who are only contactable via SMS;
  • SMS has a greater impact on customers who do not read their emails on mobile: they use the internet less than their counterparts and are therefore more responsive to SMS;
  • The use of the SMS channel is effective, including on individuals who are responsive to email;
  • Individuals who react positively to discounts are more likely to react to SMS messages.

Key Figures

from 5 to 16

of observed ROI for SMS across various groups