Mobivity Holdings Corp. , a global provider of personalized guest engagement solutions that drive customer frequency and spend, today released the findings of its 2021 Restaurant Text Marketing Benchmarks Report which demonstrates the success and impact of text message marketing programs on guest frequency, spend and ROI for restaurants and brick and mortar brands.

Looking at its own network data of 15 million subscribers and 500 million transactions from 2018 to 2021, Mobivity found that text message marketing subscribers visit stores 44% more frequently than non-subscribers. And once a consumer joins a restaurant’s text messaging program, the guest’s spend increases 23%. Measured over six months, a text subscriber can be valued at $12.15 on average in incremental revenue and Mobivity saw brands with incremental text subscriber revenue as high as $16.59.

“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,” says 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.”

Text Marketing Outpaces Apps and Email in Loyalty & Retention

Guests who join text marketing programs stick with it. An astounding 96% of subscribers remain in a text program after 90 days, and 90% are still in the program after two years, outpacing app and email subscriber retention by a factor of 2X and 3X respectively.

Timing is Secret Sauce for Redemptions

The timing of offers matters. Mobivity’s benchmark data show that 60% of redemptions occur within the first 24 hours, and 39% of redemptions happen on the same day the subscriber receives them. Further highlighting the immediacy of text messages, more than 30% of redemptions occur within the first three hours after receipt, and nearly half of those are within the first.

New England quick-service restaurant Papa Gino’s Pizzeria and fast casual restaurant D’Angelo Grilled Sandwiches (PGDA) utilized Mobivity’s SmartMessage with patented Trusted Redemption technology to gain critical insight into each redemption which is a part of Mobivity’s enterprise-grade Unified Guest Engagement Platform. During the pandemic, PGDA saw its mobile messaging program deliver an average Return on Marketing Spend of 440%. The two brands also see 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.

Adds Becker, “Traditional mass marketing techniques are becoming less effective as consumers expect more personalized and authentic engagement, consuming media via new individualized streaming methods, and as tech giants hobble traditional third-party ad targeting. First-party data is the new oil that fuels brands’ ability to control their marketing destiny in a one-to-one world of marketing.”  

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