A business I’ve long been a fan of is the SMS (short message service) Loyalty Kiosk marketing business.
In this article I will not only tell you why to start a SMS loyalty kiosk business but how I would go about starting a SMS loyalty kiosk marketing business.
Whether you’re familiar or unfamiliar with SMS marketing also known as text marketing, the usual way a business owner or a person attempting to talk a small business into utilizing their text marketing services is to simply provide a short code (12345) and a keyword (Mike’s Pizza.)
A customer walks into the business, see’s a sign that states, “Join Our Text Loyalty Club by texting Mikes Pizza to 12345” and now Mike has a member in his loyalty program.
Seems simple enough, doesn’t it?
Why Start a SMS Loyalty Kiosk Marketing Business
However, a major issue with the above is that most people won’t text Mikes Pizza to 12345.
It’s not that the above doesn’t work as there wouldn’t be any businesses running text marketing loyalty programs in this manner, it just converts poorly.
I want to ask you a couple of questions.
- Have you seen a business with this type of program in place…”Text Mikes Pizza to 12345?”
- Did you text “Mikes Pizza to 12345?”
I’m not much of a betting man but if I had to bet I would bet on the side of no.
Personally I’ve never joined a text based loyalty program in this manner, have you?
Perhaps you have but wouldn’t it have been easier for the business itself to ask, “If you join our mobile loyalty program we”ll provide you with 20% off your bill on your fifth visit” or “If you join or mobile loyalty program you’ll receive 50% off an pizza pie on your 10th visit?”
Here’s another question for you.
Would it be easier to ask the person to take their cell phone out and text “Mikes Pizza to 12345” or one of the following:
Place a small digital kiosk (think iPad) on the table or counter or ask, “My I please have your name and cell phone number” and do it for the person?
Ideal Businesses for a SMS Loyalty Kiosk Marketing Business
What businesses are ideal for a SMS kiosk loyalty marketing program?
- Casual fast dining – Pizza shops, burger joints, healthy eating, delicatessens, etc.
- Desert’s – Bakeries, ice cream, Italian ices.
- Automotive Care – Car washes, wheel alignment services, automotive repair.
- Boutiques – Candles, clothing, children’s wear.
- Services such as massages, tanning, hair care, etc.
I could go on and on about the businesses that could benefit from a SMS Kiosk Loyalty program but I believe you get the gist by now.
Why Would a Business Want to Use A Text Message Based Customer Loyalty Program?
I could provide you with charts and statistics and bore you to death but instead I’ll state a fact.
The fact is there is no other form of marketing that is as effective as text message marketing.
Emails more often than not are ever opened.
Direct mail is expensive and normally goes from the mailbox to the trash.
Advertising in news papers can be expensive or reasonable but converts poorly.
How many people do you know don’t have a cell phone?
I know when I know I have a text message I open it immediately and know that most if not all people do the same.
Text messaging is the most widely used form of communication between parties.
Whether or not you’re a fan of “Seinfeld” the above shows that customer loyalty programs work.
Although Elaine didn’t enjoy the sub’s she was on a mission to get her free sub.
She purchased 24 subs just to obtain a free sub on her 25th visit.
Imagine, if this was a place where she enjoyed the subs.
All brick and mortar businesses rely on walk in customers and it makes sense to try and get those customers to come back more often.
If even a couple of places in my town had a customer loyalty program that may have been a deciding factor on me going to that place.
For example, if I was in the mood for chicken wings and one of my favorite places to eat chicken wings was going to provide me with a free pint of beer on my 5th visit, perhaps I would have went there instead of opting for something else.
There are plenty of places in my town that I enjoy but none of them have a loyalty program.
This is for a variety of reasons.
Why Wouldn’t a Business Use Text Message Marketing?
I hate to state what I’m going to state but feel I must.
Many ideal businesses don’t utilize text message marketing for a few reasons.
- Their content with their earnings.
- They stick to what they know, regardless of more cost effective solutions.
- They don’t know how to effectively market.
- Believe it’s an added cost.
Can You Earn a Full Time Income with a SMS Customer Loyalty Marketing Business?
The answer to the above question is an absolute and complete YES!
For example, take a look at https://www.latextsavings.com/
The above company does exactly what I’m writing about in this article and has 96 clients of this post.
Even at this company’s lowest priced package of $99 per month, this company would be grossing a little over $114,000 per year!
Even if monthly costs were $1,000 per month that would equate to a net income of $102,000 per year!
Don’t Get Too Excited!
I want to be very clear when I state that this is not an easy sell to a business.
Simply making a marketing flyer and walking into a pizza shop, burger joint, car wash or any ideal business for that matter is a losing proposition.
How do I know this to be true?
This is a business a dipped my toe into approximately five years ago.
I made marketing flyers, pounded the pavement and sent emails to businesses consistently for over two months and had nothing to show for it other than 1 business.
I created my own website, optimized it and received plenty of inquiries.
However, after spending so much time and energy on the business I had no choice but to shut it down.
The fact of the matter is that I didn’t have the necessary time to devote to the business and I made a huge mistake in my online marketing.
The Mistakes I Made
- Many businesses are absentee run. Leaving behind marketing flyers did nothing other than contribute to the amount of trash the business would be throwing out.
- I created an online presence that was not localized.
- My explainer video was too long.
- I did no social media advertising.
- I did not properly secure my website, leading it to be hacked and erased.
How To Start Your Own SMS Customer Loyalty Kiosk Marketing Business and Avoid My Mistakes.
- Get inexpensive business cards and keep a few with you at all times. If you’re out shopping or out and about in your neighborhood, walk into the stores you feel would be a good fit. Ask for the owner and if the owner is not available explain your loyalty system and leave a card behind. Try your best to get the owners cell phone number or at minimum email address.
- Create a localized online presence. For example, if you live in Orlando Florida, use a name of Orlando SMS Loyalty or something similar with the name of your town in the domain name and in your business name.
- Keep your explainer video short and sweet – No longer than 1 minute.
- Properly secure your website! Whether your using WordPress or not be sure to secure your site.
- Get the businesses to come to you. For example, Facebook ad using your explainer video that goes to a sales funnel. A warm lead is the best lead.
Owning a SMS Customer Loyalty Kiosk Marketing business is a unique and low competition business where a person doesn’t have to be rich in order to get started.
This is a business I toy with getting into again from time to time but the simple fact is that my schedule doesn’t allow for me to devote the time necessary.
Should my situation change I may very well give it another go.
What do you think about this business?
Do you think you can be successful operating this type of business?
If you have questions please feel free to comment below of send me a message through the contact form.