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Online merchants that engage in two-way SMS chat see 26% rise in customer value

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Conversational commerce continues to grow with data showing that using SMS to engage consumers in two-way conversations not only improves customer retention and relationships, but also produces more sales.

Brands that use text messages to speak to their audience see an average live time value (LTV) of their customers increase by an average of 26%, finds the study by UK conversational commerce SaaS platform Blueprint.

Blueprint’s research – which surveyed over 100 leading brands across the UK and US – demonstrated that text message conversations move buyers from first to second orders more effectively, reduce subscriber churn, and improve a store’s understanding of what makes customers make multiple purchases.

Conversational commerce is taking the ecommerce and telemedia worlds by storm, with consumers increasingly looking for more engaged conversations with brands and retailers on the messaging platforms of their choice.

Total spend over conversational commerce channels will reach $290 billion by 2025, rising 590% from $41bn in 2021, predicts Juniper Research.

Communications platforms that provide the connection between brands and end users will be crucial in increasing the adoption of conversational commerce channels, it says.

Days Brewing – makers of 0.0% alcohol free beer – took part in the study, and saw a 62% LTV increase from customers engaged via text compared to those only contacted through more traditional channels. Days’ Co-Founder Duncan Keith commented, “The results have been amazing – text messages give you an incredible relationship with the consumer and helps to deliver our growth ambitions”

Also amongst the participating merchants were refillable cleaning product brand Homethings and vegan protein store Misfits Health – who saw LTV increases of 33% and 8% respectively.

Harvey Hodd, Blueprint CEO and Co-Founder says: “Even with the eCommerce explosion of the last 18 months, consumer-facing companies remain disconnected from their customers, often relying on legacy 1-way communication to deliver a clunky purchasing experience. Only by understanding what really makes customers tick can brands truly modernise their customer journeys – and having conversations via SMS is the most powerful way to achieve that.”

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