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How does receiving SMS from customers help your SaaS business?

How does receiving SMS from customers help your SaaS business?

November 25, 2022

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Over 5 billion people own phones and spend an average of 3 hours, 15 minutes on that device daily. This allows companies to receive SMS from customers all around the world. The point of these figures is to show you the massive opportunity available for your SaaS business.

With the invention of smartphones and new apps launching every day, people are increasingly glued to their phones. At parties, on dates, in cafes, and in restaurants, one of the most common activities is checking one's phone.

SMS messaging has been around for a long time, but only recently have SaaS businesses begun to realize how powerful it is as a channel for receiving messages from customers.

Why should two-way communication with customers be important to your SaaS business?

As a SaaS business owner, you should know that customer engagement significantly boosts retention if you can ensure a positive customer experience.

However, most SaaS businesses interpret “customer communication” as one-way messaging to inform customers about brand updates. Businesses post on social media occasionally and leave it at that. Many do not actually engage in a proper conversation.

Establishing two-way communication helps you connect with your customers.

First, you will learn to understand your customers’ needs. People’s needs change constantly. Who better to learn about those changing needs from than your customers themselves?

Knowing what customers expect from you is crucial. It allows you to target their needs and meet their expectations.

You will also be able to identify their concerns and address their problems. This can also assist with product development, as you can hear about what’s missing or needed—directly from your customers.

SaaS businesses typically don’t meet their customers face-to-face. You don't get to see how they react while using your service. Hearing from your customers via SMS will greatly help you see things from their perspective, which will further help you cater to their needs.

Even when you encounter an angry customer with harsh criticism, you can still benefit from the conversation. How? You can identify the issues that might pile up and lead a customer to switch to your competitors. This helps you work on those problems and improve the overall customer experience.

Moreover, communicating with customers can greatly help build loyalty. If a customer has a positive experience while chatting with your SaaS business and feels genuinely valued, they are likely to keep coming back and potentially recommend your service to other business partners.

Besides, two-way communication provides plenty of opportunities to upsell or cross-sell. If a customer is already engaged in a conversation with you, they are more likely to trust your recommendations. Thus, if you suggest that your customers invest in additional software services or upgrade their current plan, you can at least expect them to seriously consider your suggestions.

Lastly, having two-way communication with customers is a great way to generate more word-of-mouth. If you want some numbers, 72 percent of customers who have had a positive experience will tell at least 6 people about it. That means more sales coming your way!

Why is receiving feedback from my clients via SMS important?

Feedback reflects how customers perceive your service. As we mentioned earlier, no one knows what your customers think of your SaaS business better than the customers themselves.

Moreover, as previously noted, SaaS businesses don't have the opportunity to observe the problems customers face in real-time. Gathering feedback is the only way to bridge the value gap—that is, delivering value that aligns with their expectations.

But can’t I just read reviews and leave it at that?

Not really. While you can glean some opinions and pain points from reviews, you won't get a holistic picture of your SaaS business. Not everyone takes the time to write a review, especially if they’ve received good service. They’ll just leave a 5-star rating for your software and move on. While those ratings are great, they don’t provide details about customer expectations or specific issues.

Reviews and feedback serve slightly different purposes for SaaS businesses. Positive reviews act as social proof for your brand, while feedback tells you what your customers like, what they don’t, and how you can improve your service.

Customer feedback via SMS

SMS surveys have made effective customer feedback channels much easier to manage than in the past.

Screen Shot 2020 12 15 at 5
Source: Neil Patel

Since text messages are read almost immediately, timing is everything. You can automate texts to be sent right after someone uses your service, downloads an app from your site, or uses that app a certain number of times.

But why use SMS?

For SaaS businesses, engagement and communication are more important than you might think. When it comes to maximizing your customer interactions, you’d be hard-pressed to find a better option than SMS.

Emails can sit collecting dust in an inbox for days, or even go straight to the spam folder, never to be opened. Texts aren't like that. People typically read SMS messages right after receiving them.

And we aren't just guessing here. SMS marketing boasts a 95 percent read rate and a 45 percent conversion rate. Who would’ve thought, right?

Moreover, SMS is a trackable channel. You can see who opened your messages, check if recipients clicked on your links, and even identify how many people ignored the texts.

You can easily gather feedback by asking the right questions and requesting that recipients reply with a "yes," or by including a link to a short survey for a chance to win an enticing prize.

Also, by automating your SMS, customers receive texts instantly. If they reply using the code letter or word provided in the text, they receive instant follow-ups as well.

Lastly, texts are cost-effective. Especially when purchased in bulk, you’ll find that the cost per message is quite affordable. Sending SMS is the most budget-friendly way to add a personal touch to your customer communications.

If you want to enjoy these benefits yourself, it would be a good choice to invest in Octopush’s SMS Pro service. In addition to all the benefits listed here, you can also send messages that are longer than 160 characters. This is a feature you can never get by texting through personal mobile numbers.
You can also integrate Octopush’s SMS API and manage inbound SMS messages from your contacts from your mobile software or app.

Does SMS marketing actually work?

Yes. But don’t just take our word for it.

Consider the case of Netflix, a popular subscription-based SaaS company that we all know and love. Devika Chawla, a Director of Messaging Engineering at Netflix, thinks that mobile messaging is a way to keep customers happy. Devika’s team knew the importance of diversifying communication channels. Not everyone checks their emails every day, and so it is pointless to continuously use that as the only medium of communicating with subscribers.

At first, Netflix used SMS messages to resolve the problem most customers face – resetting passwords. They offered SMS verification to solve password issues. The customers can now log in with the help of automated texts sent from Netflix.

Netflix also said that they derived useful insights from their callback API.

Whenever there are issues with SMS to customers, they can place a voice call. In situations like this, a virtual number can greatly help you since customers across different countries can directly give you a call.

And if you want to integrate such features yourself, you can rent a virtual number from Octopush. Or if sending bulk messages with a personal touch is more your style, Octopush’s SMS Pro service is the way to go.

In a nutshell, how can SMS help your SaaS business?

Use cases and marketing campaigns vary by industry, but here are some common ways SaaS businesses around the globe use SMS.

  • Automate SMS to be sent instantly for events like password resets, new user signups, or payment failures.
  • Enhance your software security by adding two-factor authentication codes sent via SMS.

For promotional campaigns like free trials, coupons, or discount codes, SMS is a lifesaver. You can send messages to customers whenever you like, and buying bulk message packages can really help with this.

Other ways to communicate with customers?

We sense a question coming. As a SaaS business owner, you might wonder why you shouldn't just use other messaging channels.

And we’re here to tell you that you should. Specifically, we’ll now cover the benefits of using virtual numbers and WhatsApp Business.

What are the benefits of using virtual numbers?

Virtual numbers offer a cost-effective way to manage communication. By using Octopush’s virtual mobile number service, you can manage local numbers in over 40 countries remotely. Using a local number signals a local business presence for receiving customer SMS, which can make them feel more comfortable using your services.

Besides, having a unique number for your business helps you appear more professional to potential customers. Using various personal numbers often comes across as unprofessional.

Since virtual numbers can be set up anywhere, they give you the flexibility to choose which employees answer them. Your team doesn't need to be in a specific call center or geographical area. You can choose whoever you deem best, regardless of their location.

Moreover, using virtual numbers is very secure. Organizations can track who has been called or texted, and at what cost. Plus, you never have to miss a call again. A virtual number allows you to connect to a call through different devices. So, you’ll never lose a customer just because they got tired of calling and not getting through.

What are the benefits of using WhatsApp Business?

WhatsApp Business is an instant messaging app that can bring significant value to your SaaS business. It is a platform that enhances customer communication by allowing you to send images, audio, and video. So, how can this add value to SaaS businesses?

You can automate conversations for certain scenarios and set up an automated greeting message to welcome anyone who contacts you.

Conversations initiated by customers via SMS are also free.

Moreover, you never have to worry about privacy. Conversations on WhatsApp are end-to-end encrypted.

You can also create a business profile on WhatsApp. Add useful information such as your website URL, email address, descriptions of the various plans and services you offer, and more.

WhatsApp Business can also help you stay organized by categorizing your contacts using labels. For example, you can tag customer numbers as “new customer,” “payment due,” or “paid,” saving yourself significant time and money with this enhanced communication medium. Visit Octopush to learn more.

What do you need to do to start receiving messages from your clients?

Whatever SMS communication your SaaS business requires, there is one simple solution: Octopush. All you need to do is follow 4 easy steps:

1) Visit Octopush and create a free account.

You can select the language you are most comfortable with on the website.

Screen Shot 2020 12 15 at 5.58.25 pm

Don’t worry. You have just created an account; you haven’t made any commitments yet.

2) Import your SMS contact list

It only takes 2 clicks!

3) Build your SMS campaign

Now is the time for action. Create the message you want to relay to your customers about your SaaS business. You can set up options for sender personalisation, personalisation merge tags, scheduling messages, campaign templates, and delivery receipts.

What’s more, you get free messages to test it out before sending! This means you can literally try out the entire SMS campaign sending process for absolutely free before you top up your account with credit to start sending for real.

And don’t worry about the prices at all. We offer the best rates. Prices vary depending on the country and the volume of messages you purchase. So, no matter how many messages you send, you’ll be paying the lowest possible price with Octopush.

Finally, hit send.

4) Monitor your SMS campaign’s statistics

You can check the numbers to see how successful your campaign has been. You can view your campaign history and access reports on your message delivery.

And that’s not all. Octopush has a wide range of mobile marketing services for your SaaS business that you can view here.

Some good news

Octopush offers a free trial on all its services. So, if you’re unsure which service to choose, no worries! You can try them out for free to see if they’re the right fit for you.

We understand how important SMS communication with customers is for your SaaS business. Receiving messages from customers, gathering feedback, using virtual numbers, or WhatsApp for Business – all of these can make or break how customers perceive your service. And there’s no one better to trust with this crucial task than Octopush’s team of professionals.

So, what are you waiting for? Get started today with Octopush!

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