Question · Email & retention
Is SMS marketing worth the cost for a small e-commerce store?
Answered by Nathan Frater ·
The short answer
It depends on your market and on how often your customers buy again. I treat it as a small, isolated bet and work out how many extra sales it needs to pay for itself.
Where you sell makes a big difference. In Australia, just about everyone’s doing SMS, so I treat it as table stakes. You fall behind if you’re not doing it there. In smaller markets where most brands aren’t using it, there’s a bit of an edge to gain, as long as you’ve got something relevant to send.
Then do the sums. Add up the monthly cost, including a dedicated sending number if you need one. If one or two extra sales a month would cover it, and you can isolate the revenue it drives, run it for 90 days and track it. If a small spend looks likely to come back many times over, give it a crack.
Repeat purchase is the other test. If customers rarely buy twice, the case is weaker. Think about what they need after the first order, like consumables or accessories, and build an automation around those over the following year.
Start collecting phone opt-ins now, before you pay to send anything. Gathering them costs little, and you’ll see how many subscribers you’d actually be texting. Once the flows are set up, they sit there ticking over and earning without much ongoing work.