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Restaurant text marketing the right fit for 2022?

Mobivity’s 2021 Restaurant Text Marketing Benchmarks Report highlights advantages of text over other channels

Text message marketing subscribers visit 44% more frequently than non-subscribers, according to a report from Mobivity. Based on data from millions of transactions from 2018 to 2021, Mobivity saw spend increase 23% once consumers joined. In addition, over a six-month period, text subscribers were valued at an additional $12.15 on average in incremental revenue, although some brands saw an amount as high as $16.59, based on the findings of the Mobivity 2021 Restaurant Text Marketing Benchmarks Report.

The retention of text subscribers is also much higher than that of email subscribers, notes Mobivity. Surprisingly, 96% of text subscribers remain in the program after 90 days, and after two years, 90% remain in the program. This is twice the retention rate of apps and three times compared to email subscribers.

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Restaurant text marketing high open rates

The average six-month spend rises within a range of $5.37 to $16.59. Restaurant operators can apply the 23% increase in spend to their average check to determine the incremental benefit of a text marketing program. Given the high retention rate of text subscribers, the incremental revenue opportunity per customer
is tremendously high.

Mobivity found that the open rate of text messages is 98%, which is much higher than
both the email open rate of 20% and the app open rate of 5%. Given the high open rates of text message marketing programs, they are ideal for restaurant operators who want to rise to the forefront of consumers’ attention.

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“Restaurants of every kind were particularly hit hard at the onset of the pandemic and continue to experience staffing, supply chain and traffic issues. The No. 1 takeaway they’ve learned is that building an efficient, direct to consumer owned media channel is critical—and text messaging enables that,” said Dennis Becker, Mobivity Chairman and CEO. “With text messaging open rates 5X-20X better—and often with higher adoption rates—than other owned media channels, this lifeline helps restaurants connect with guests and offer them valuable offers that drive traffic and spend.”

Redemptions, delivering the right message

Data from Mobivity show that 60% of redemptions occur within the first 24 hours, and 39% of redemptions happen on the same day that the subscriber receives them. There is a greater immediacy in text messages as more than 30% of redemptions occur within the first three hours after receipt; and nearly half of those within the first hour.

During the pandemic, the Papa Gino’s and D’Angelo Grilled Sandwiches brands, a client set of Mobivity, saw their mobile messaging program deliver an average return of marketing spend of 440%. The two brands have also seen much higher opt-in offer redemptions than the average, with Papa Gino’s having a 50% redemption rate and D’Angelo averaging a 47% redemption rate.

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Becker noted that traditional mass marketing techniques are becoming less effective because consumers expect messaging to be more personalized and authentic. Based on their online habits, consumers will engage more with first-party-data and brands will have more control of their successes as they generate one-on-one messaging with consumers.

This article first appeared in the winter 2022 issue of Restaurant C-Suite Magazine.

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