September 23, 2020
The Proof is in the SMS Pudding
Gianna Gard

Businesses that choose not to implement SMS marketing in their strategy aren’t simply missing out on additional revenue. They’re falling behind their competition. 

This might sound like an exaggeration, but consider the hierarchy of your daily communications and where text messages fall in that lineup. Cell phone users will very often turn off notifications from social media, or disregard emails in the off hours, but text messages rarely go ignored. Over sixty percent of smartphone users unlock their phones immediately after waking up, and nearly eighty percent within the first 15 minutes of their day. 

SMS marketing is efficient and provides businesses with an impressive return on investment.

However, not all SMS marketing campaigns are created equal. 

Is it safe to assume that this type of marketing always brings value to the end customer? A survey conducted by OpenMarket suggests that three-quarters of millennials consider that SMS messages and reminders are helpful, but only less than a third of them are actually receiving them from the brands and companies whose services they use. If you’re reaching out to your customers, make sure that what you’re sending is meaningful to them. This is why concepts like segmentation and behavioral personalization are important. 

All of your customers, recurring and lost, have the power to overhaul your business. Less talked about in the industry are the latter, but recaptured customers are an important factor in boosting your ROI. Consider this: a lost customer was, at one point, a follower of your brand. They saw the value in your product, prices, or overall mission. They made a purchase, perhaps more than once. They stopped purchasing for a reason you might not have identified yet: competition, financial constraints, relocation, the list goes on. The bottom line is at a certain point, they stopped seeing the value.

Intersecting the most powerful communication tool with customers who are already in your sphere of influence can produce some pretty powerful results. Imagine you reach out to these customers via an SMS campaign. How many customers do you think would open your messages? How many would engage with your content? How many might notice a discount or exclusive offer, and make a purchase?

We decided to take a closer look at some Happy Cabbage users’ ROI over the course of 90 days to get a better idea.


How soon after an initial SMS campaign can you expect to start seeing purchases? Over the last 90 days on average our retail customers saw 2.5% of customers they reached out to come into the store within 24 hours. But this is based on how they use the tool- retailers who leveraged Happy Cabbage's key opportunities campaigns saw up to 8% 24 hour conversion.

More key takeaways:

  1. The average retailer over the last 90 days saw $1.86 of sales per customer reached in the 24 hours after a campaign was sent.
  2. Ticket sizes averaged at $96 for delivery and $84 for retail (this was pretty constant despite the attribution window).
  3. The average retailer over the last 90 days saw $4.00 of sales per customer reached over a 3 day period after a campaign.
  4. The average ROI in the last 90 days was $6.00 per customer reached over 7 days. Customers who heavily leverage key opportunities can see up to $10 per customer reached over 7 days.
  5. Of all of the cannabis consumers we have recaptured for our customers in the last 90 days, 34% of them have already purchased again.

What does all of this mean really? First of all, it’s powerful to understand how customers make their purchase decisions via text message. Are they making purchases the instant they’re offered a promotion, or do they hold off until convenient times? If a customer is part of a marketing campaign, what are the odds that a purchase they make from that promotion will lead to future repeat purchases? Understanding your customers’ impulsivity, brand loyalty, and repeat purchases can all play a major role in when and how often you decide to send them an offer. Analytics aside, SMS marketing is a proven solution to the classic ROI challenge.

Given the diverse terrain of the cannabis industry, it’s always best to have a more measured approach towards calculating ROI, for both active and recaptured customers. If you’re looking for free access to our ROI calculator, or would like to learn more about how Polaris can target lost customers and boost your revenues, reach out to us at


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