Listrak Report Reveals The Need for Transactional Messaging – WWD
Listrak Inc.’s latest Cross-Channel Benchmark report was built on campaign performance across the company’s entire client base of more than 1,000 brands and retailers. The data collected totaled 112 billion email and SMS/MMS messages, compiled from Jan. 1 through Dec. 31, 2022.
The results showed the importance of personalization and how text and email marketing, working in tandem, can drive Customer Lifetime Value, or CLV.
Researchers at the company then analyzed 11 message types, which included broadcast, activity-based triggered messages, loyalty-based triggered messages and transactional. Listrak said its researchers segmented the results across 21 verticals.
Ross Kramer, chief executive officer of Listrak, said the report “helps uncover today’s biggest opportunities for engagement, loyalty and revenue growth in both email and text message marketing — in an uncertain economic climate that is affecting both retailers and consumers.”
Notable takeaways from the analysis showed that text messaging marketing is now the expectation of shoppers. “What was once a ‘nice to have’ is now a necessity, according to 2022 data,” Listrak said in a statement. Another key finding was that SMS and email marketing work best together.
“Customers who subscribed to both SMS and email marketing programs have a 30 percent higher [CLV] than those subscribed to a single channel,” the report’s authors noted. “Of note, retailers saw an explosion in send volume — including a 75 percent increase year-over-year send volume for SMS — during the 2022 holiday season alone.”
Listrak described transactional messages as table stakes. “These have proven, year-over-year, to perform well across clickthrough, conversion and revenue per send metrics for both email and SMS,” the report stated.
Other important findings were that brands and retailers using a unified platform is the best way to leverage data and that personalization is key in cross-channel marketing. “Consumers no longer resist personalization on shopping platforms, but rather, expect it,” the report noted. “Leveraging customer data to show greater personalization that can be displayed in messages like abandonment, alert and transactional categories drives higher KPIs across the board.”
Kramer said the company created the Cross-Channel Benchmark Report “as one resource to help those retailers define their own benchmarks.” Our team can help you reach customers through the right channel with personalized and relevant messages every time, resulting in higher engagement and increased revenue.”