The Decline of Email and SMS: Why Businesses Need to Explore New Channels for Loyalty Programs

In the world of marketing, email and SMS have been some of the most popular channels for reaching customers for many years. However, recent trends have shown that these channels are no longer as effective as they once were. In this blog post, we will explore why email and SMS are dying and what new trends are proving to be more relevant, engaging, and easier to produce for loyalty programs.

The decline of email and SMS

While email and SMS have been popular channels for reaching customers for many years, recent statistics have shown that they are no longer as effective as they once were. According to a study by MarketingSherpa, the average email open rate in 2021 is just 17.8%, down from 19.7% in 2020. Similarly, the average click-through rate for emails is just 2.6%, down from 3.2% in 2020. These statistics demonstrate that email is no longer as effective at engaging customers as it once was.

The decline of SMS is a similar story. According to a study by Mobile Marketing Association, the average SMS open rate is just 82%, down from 94% in 2016. Similarly, the average response rate for SMS is just 45%, down from 48% in 2016. These statistics demonstrate that SMS is also no longer as effective at engaging customers as it once was.

New trends for loyalty programs

So, if email and SMS are dying, what new trends are proving to be more relevant, engaging, and easier to produce for loyalty programs? Here are a few examples:

Push notifications

Push notifications are becoming an increasingly popular channel for loyalty programs. According to a study by Localytics, push notifications have an open rate of 51.3%, which is much higher than the average email open rate. Additionally, push notifications have a click-through rate of 7.8%, which is much higher than the average email click-through rate. These statistics demonstrate that push notifications are a more effective way to engage customers than email.

Wallet passes

Wallet passes are another new trend that is proving to be effective for loyalty programs. Wallet passes are digital cards that customers can add to their mobile wallets, providing a convenient and accessible way to access loyalty program information and rewards. By using wallet passes, businesses can provide a seamless and user-friendly experience for their customers, improving customer satisfaction and loyalty.

Gamification

Gamification is the use of game-like elements to engage customers and encourage participation in loyalty programs. By adding game-like elements such as challenges, badges, and rewards, businesses can make their loyalty programs more engaging and fun. According to a study by Badgeville, businesses that use gamification can see up to a 100% increase in engagement and a 50% increase in time spent on their site.

Sources

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