Credit: iStock.com by Anita Kot
Eric Netsch
Source: www.mytotalretail.com, April 2023
Apple has once again thrown e-commerce marketers a curveball with the release of iOS 16. While the previous updates focused on data privacy, the latest update is centered on giving mobile users more control over their devices. This includes controlling their SMS experience, which is a big deal for marketers and e-commerce brands.
The new feature will filter text messages into different categories and subcategories, making it less likely for users to see brand messages, resulting in a drop in SMS open rates and placing the retention strategy at risk. Moreover, the “Report Junk” button in iOS 16 makes it easier for users to opt out of SMS campaigns, increasing opt-out rates.
When a user reports a brand’s SMS campaign as junk, this data will be sent back to the user’s mobile carrier, making it more likely for the carrier to block and interrupt the brand’s campaigns. Eventually, many of these brands will get flagged as spammers.
The Safety Net of Push Notifications
With these new filtering features, SMS open rates are expected to decline anywhere from 30 percent to 40 percent. To ensure effective communication channels, brands are turning to push notifications, which convert 10x higher than email and 5x higher than SMS. With the iOS 16 update, push notifications are now the only channel where open rates will continue to exceed 90 percent. Shoppers land right on the app’s home screen, unaffected by the iOS 16 update, and brands can effectively guarantee that their users will see their message.
While SMS and push notifications have often worked hand in hand as retention marketing tools, a clear line has been drawn between these two channels with Apple’s latest update. Innovative brands need to proactively plan for this impact and leverage push notifications to maintain their retention marketing strategy.
It’s worth noting that you shouldn’t rely solely on push notifications. It’s essential to have a multichannel approach to retain customers effectively. Use SMS and push notifications with other marketing channels, such as email marketing and social media advertising, to maintain your customer retention strategy.
Harness Mobile Apps as Retention Marketing Tools
One way that brands are proactively planning for this impact is by investing in developing their own mobile app. While SMS and push notifications have often worked hand in hand with one another as retention marketing tools, with Apple’s latest update, there has been a clear line drawn between these two retention marketing tools.
In addition, mobile apps allow brands to create a more personalized and engaging shopping experience for their customers. Brands can use features like in-app messaging, personalized recommendations, and gamification to create a more immersive and rewarding user experience.
However, developing a mobile app isn’t an easy task. It requires significant investment in time and resources. Brands must also ensure their app is optimized for various devices and operating systems to reach the widest audience possible.
Implement Social Media Ads
Another way brands respond to the iOS 16 update is by exploring new channels for reaching their customers. For example, some brands turn to social media platforms like Instagram and Facebook to promote their products and engage with customers. These platforms offer brands the ability to target specific audiences with highly personalized content and can effectively drive engagement and sales.
Ultimately, the iOS 16 update is just the latest challenge that e-commerce marketers and brands have had to face in an ever-changing digital landscape. However, by staying ahead of the curve and proactively planning for these changes, brands can continue to connect with their customers and drive sales in new and innovative ways.
Eric Netsch is the co-founder and CEO of Tapcart, a codeless mobile app builder that helps Shopify’s fastest-growing brands to create an owned marketing channel.
