When I get a text message, I get excited. It's usually from someone I want to talk to. And since I was in sales for most of my career, I try to avoid phone conversations as much as possible.
Aside from email for business, texting has turned into my primary method of communication. Much like othermillennials, phone calls are becoming rarer and rarer, except for business transactions and talking to your significant other.
Entrepreneur and millennial Zak Normandin recognized this trend. Zak is responsible for branding more than 30 consumer products sold in Target, Whole Foods and grocery stores nationwide. After his last successful exit with children's snack brand Little Duck Organics, he launchedDirty Lemon in September of 2015.
Since launch, he has increased his revenue by 1,400 percent, and he has generated 300 percent revenue growth in the last 90 days. On top of that, he is generating a 5 time return on investment for the advertising dollars he is spending.
Zak did something bold that many other entrepreneurs would be scared of trying. He only sells his products through SMS, also known as text messages.
These are the 7 reasons why texting increased Dirty Lemon's revenue by 1400 percent:
1. Personal communication via SMS optimizes the direct-to-consumer experience.
Millennials want results and they want them quickly. Phone calls can be tenuous and tiresome, especially when you have to read your credit card number over the phone. Zak strived to provide his customers with the best experience possible. By utilizing SMS as their primary method of communication and payment processing, they have the advantage of listening and reacting to the needs of requests in real-time.
Plus, since each text message is stored, Zak's team is able to develop personal relationships with each customer through a familiar communication tool that is most often reserved for friends and family.
This strategy has increased brand loyalty with 25 percent of his clients coming back as returning customers, mostly on a weekly basis and exponentially improved the customer experience for Dirty Lemon.
2. Limiting distribution increases demand and brand appeal.
When you walk into a grocery or convenience store, there are hundreds of beverages to choose from. It's difficult for a new brand to stand out. Consumers have only one way to purchase the products at Dirty Lemon and that's by texting them. This unique method is memorable, increases natural shareability and allows Zak to quickly cut through the cluttered competitive landscape in the beverage space.
3. Understanding customers better drives smarter product development.
When customers communicate directly with the Dirty Lemon team, they are able to gather valuable data which drives smarter product development decisions. Unlike brands that are sold through traditional distribution channels, Zak's team knows how receptive customers will be to a specific product well before it is available for sale. Customers tell Zak's team what they would like to see for future products and how they can improve, which immediately influences the growth strategy.
4. SMS-based ordering simplifies the transaction process, eliminates cart abandonment.
SMS-based ordering eliminates the need to log in to a website, or deal with the inconvenience of monitoring a recurring subscription. It's fast, convenient and available 24/7. More so, the system doesn't require any downloads of any kind, which makes it universal to all devices. If you have a phone and can send text messages, you can place an order.
5. Texting speeds up consumer communication.
Traditional customer service relies on lengthy phone calls or email queries with delayed response times. SMS allows Zak's team to respond to customers with personal messages in real-time.
6. Texting is the most familiar method of communication for modern consumers
Millennials are communicating with their friends, family and colleagues primarily over SMS. So why not integrate an intimate and familiar medium into the commerce space? It makes ordering as simple and efficient as possible.
7. Texting provides an advantage over brands with a traditional retail model.
Since Dirty Lemon is currently the only exclusive text-to-buy brand, it adds a layer of interest to new customers.
Have you tried incorporating texting into your business model? I'd love to learn more! Comment below.