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SMS Marketing Delivers 1,650% Return on Investment

Back in April MobileMarketer.com reported on the results of mobile couponing campaign by Scotty P’s Hamburgers in Texas.  We refer to these results many times when explaining the very high ROI text message marketing can deliver.  Here is a quick summary:

Scotty P’s Hamburgers needed to increase sales during lunch and reach customers based on the location where they most frequently dined.  Because customers signed up for offers from their nearest location Scotty P’s could send mobile coupons to help slower restaurants increase their sales.

Initially they used email to drive signups for the mobile club.  Every customer who opted-in with their mobile number received an instant free drink coupon on their phone.  5% of the email recipients opted into the program.

The first offer sent via SMS was a “buy a burger, get a burger free” coupon good during lunch hours only.

The text message marketing campaign delivered amazing results with a 12% response rate, zero opt-outs, and a 1,650% return on investment.  Using email they were able to achieve only a 20% open rate and 4% redemption rate on a similar campaign.

“One-hundred percent of the people who get the text messages are able to see them right away, and most people check their texts every 5 to 15 minutes,” Scott Pontikes, founder of Scotty P’s, said. “A consumer getting the text an hour before lunch, he’s likely to go to Scotty P’s and take his buddies with him.”

Scotty P’s is now using in-store promotions to increase the number of customers in their mobile database.  Customers are able to text-in and join the mobile database while waiting in line at the restaurants.

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