How SMS Cashback Boosts Retail Loyalty and Repeat Sales

If you’re a store owner still relying on email discounts to drive sales, you might be missing out
on a far more engaging and profitable strategy. Let’s explore how SMS cashback campaigns
can help you generate higher sales, increase repeat purchases, and build long-term
customer loyalty—all without complex marketing tactics or time-consuming setups.
Why Email Discounts No Longer Work for Retailers
Email marketing has long been a go-to strategy for retailers, but let’s be honest—it doesn’t
always deliver. Here’s what typically happens:
Only 20% of customers open marketing emails, meaning 80% of your efforts are
ignored.
Just 1.5% of recipients make a purchase, leading to minimal impact on your bottom
line.
Even with big discounts, the revenue rarely justifies the markdowns, and you’re left
wondering if there’s a better way.
While email is affordable, it’s simply not as effective as it used to be. And when you’re
constantly slashing prices with discounts, it starts to feel like you’re giving away profits rather
than growing your business.
Why SMS Cashback Works Better Than Email Discounts
Now imagine sending a simple text message to your customers:
"Earn a $20 cashback reward on your next purchase - hurry, offer expires in 30-days!."
SMS is personal, immediate, and hard to ignore. Nearly 95% of customers open text
messages, compared to just 20% with email. With an engaging offer, about 15% of SMS
recipients make a purchase—a dramatic improvement over email’s 1.5% conversion rate.
Here’s why SMS cashback works so well:
It’s Engaging: SMS messages reach far more customers than emails—95% open rate
vs. 20%.
It’s Rewarding: Cashback feels like a reward, not just another discount.
It’s Action-Driven: A short deadline motivates customers to shop sooner, reducing the
time between purchases.
Real Results: SMS Cashback vs. Email Marketing
When you switch to SMS cashback campaigns, the impact is immediate:More Customers Act: For every 1,000 customers, about 140 make a purchase with
SMS, compared to just 3 purchases from an email campaign.
Higher Revenue & ROI: Across 1,000 customers, a single SMS cashback campaign can
generate over $7,000 in sales (140 purchases × $50 average order value). By comparison,
an email campaign with just 3 purchases would generate $150 in sales. Even after
accounting for cashback costs, SMS campaigns deliver significantly better returns.
Better Retention: Cashback creates a positive experience, making customers 2-3x more
likely to return and shop again.
Why SMS Cashback Drives More Sales Than Email Discounts
Traditional email discounts might increase sales temporarily, but they don’t build long-term
loyalty.
Email Discounts: Encourage one-time purchases but don’t create a reason for customers
to return.
SMS Cashback: Gives customers a reason to come back and buy again—often at full
price later.
Over time, SMS cashback doesn’t just boost immediate revenue—it helps increase customer
lifetime value, leading to sustainable growth for your business.
How LoyaltyEdge Makes SMS Cashback Easy for Retailers
The best part? LoyaltyEdge makes running SMS cashback campaigns effortless. Here’s how
we help:
Send personalized offers that your customers can’t ignore.
Automate the cashback process so you don’t have to lift a finger.
Build your SMS list with simple, effective opt-in methods.
Track your results and see how much more you’re earning—faster.
With LoyaltyEdge, you’re not just running campaigns—you’re building customer loyalty that
keeps shoppers coming back, driving long-term revenue growth for your business.
Ready to grow your sales and build customer loyalty?
Let LoyaltyEdge handle your next SMS cashback campaign and see the difference for
yourself. Your customers will love the rewards, and your bottom line will thank you.
Start your first campaign today!