- Results from an international poll of 8,000 consumers indicate that people are willing to exchange personal information for benefits.
- According to a poll by attentive benchmarks, 52% of marketers intend to raise their SMS spending in 2023.
When consumers feel they are receiving value, they are more comfortable than ever communicating with companies, according to Attentive’s annual State of Conversational Commerce Study. According to the study, 91% of consumers have previously signed up for or are interested in signing up for at least one brand’s SMS program. Moreover, consumers often provide personal information in return for free shipping, gifts, and/or customised recommendations.
Conversational commerce is characterised by engaging, customer-centered experiences that support the entire purchasing process. From awareness to post-purchase, these discussions lead to a point of conversion or commerce.
The results of a poll of more than 8,000 consumers in the US, Canada, the UK, and Australia show that 88% of respondents would have a two-way conversation with a brand about a product, and 87% would get in touch to address a checkout problem. This demonstrates the widespread acceptance of conversational commerce in the buying process and offers marketers the chance to interact with consumers to narrow a revenue gap through individualized, prompt attention.
Although the majority of US shoppers will disclose their name, email, and gender to receive tailored recommendations, the desire to communicate with companies demonstrates that customers are open to disclosing more information than just their basic contact information. Interestingly, this fits with the information about location and product preferences that marketers are most interested in. Throughout the customer journey, brands gather personal data that serves as the foundation for zero-party data, allowing them to provide more individualized experiences and promotions.
“Conversational commerce radically changes how consumers shop in their day-to-day, and SMS marketing is at the heart of this shift”, “Brands are recreating the in-store experience online, which enables consumers to take an active role in starting a conversation. These two-way conversations naturally lend themselves to invaluable zero-party data collection that amplifies marketers’ efforts.”
Sara Varni, CMO, Attentive
The 2023 Global Status of Conversational Commerce report also revealed the following findings:
The quest for value: This year, discounts are the main tool marketers have at their disposal to persuade customers to spend more money than they had originally intended.
Big purchases through SMS: Despite being tuned into value, customers are willing to pay a lot of money on products that are specifically marketed to them via SMS. In the US, more than 61% of people have paid between $50 and $500 on a product that was texted to them. This presents a chance for luxury businesses to connect with their customers on the platforms they prefer.
Loyalty begins before the first transaction is made: 87% of US respondents who subscribe to a brand’s SMS channel said they are inclined to make a purchase when connecting with the brand for the first time.
In order to learn more about the key priorities for marketers in 2023 and the opportunities to maximise their programs, we additionally polled over 900 brands globally. Highlights from the SMS Benchmarks Consumer Study conducted by Attentive include:
SMS is a direct revenue-driving channel: Just as SMS has been widely adopted by consumers, 79% of marketers utilize SMS as a retention channel, and 73% of marketers claim that SMS generates additional income for their company.
Concentrate heavily on performance-based channels: The majority of marketers polled said they aren’t handling a smaller budget this year. 86% of marketers expect their spending to remain the same or grow until 2022. But, the emphasis now is on retaining existing consumers and gaining new ones through channels that have a track record of success.
Budget increase for SMS marketing: It’s not surprising that 52% of marketers plan to increase their budget for SMS marketing given the direct and measurable nature of this form of advertising. This proportion is higher than the budgets of all other paid channels.
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