The Benefits Of Collecting User Data And Rewarding Loyal Customers Using An SMS Loyalty Program

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Customer Data Collection is, by far, the essential key to running a successful business. Without it, a company can spend thousands of dollars looking for new leads and still end up with almost nothing.

Customer Data Collection is, by far, the essential key to running a successful business. Without it, a company can spend thousands of dollars looking for new leads and still end up with almost nothing.

If there’s a more cost-effective way to get customers, it should be customer retention. It will provide more sales, upsells, recommendations, and even endorsements! Tune in as we tackle how a business owner can maximize customer data collection, make customers happy through SMS loyalty programs, and produce additional company revenue.

Benefits Of Collecting User Data

The main goal of customer data collection is to understand better how businesses work and what enables them to attract and retain more customers. Every piece of data collected from customers can help any business owner make decisions and improve the business. Take a look at some of its benefits and its purposes:

  • Helps to promote products with a simple communication channel
  • Allows customers to provide accurate feedback
  • Helps businesses do both general and personal marketing communication
  • Prolongs the lifetime value and loyalty of customers

User data collection can significantly benefit any business by analyzing and implementing strategies that will be convenient and keep existing customers happy. One approach is called the SMS Loyalty Program.

What Is An SMS Loyalty Program?

Nearly four billion people registered for loyalty programs in 2017, and forecasts believe that number has tripled since then.  

An SMS loyalty program serves as a strategy to keep customers coming back to your business through a continuous stream of relevant and personalized rewards, discounts, and VIP access.

Since almost everyone uses a mobile phone, the majority of the customers can participate. Because of the reward system, we believe that loyal customers are willing to provide authentic information that benefits both sides.

Here’s how you can take advantage of an SMS loyalty program:

  • Invite customers to sign up online or in-store. Announce the program to recurring customers and encourage them to join.
  • Promote the SMS loyalty program. Tell the customers how easy it is to sign up for the program through advertisements, social media, and even in-store promotions.
  • Tell the customers the incentive if they join. Explain the value they will get from the loyalty program.
  • Converse with the customers and keep them engaged.
  • Continue to improve and keep the customers coming back. Use the analytics available in the SMS loyalty program and keep track to see what works and what doesn’t.

That’s it! Simple and effective, isn’t it?

Using An SMS Platform To Collect Customer Data

An SMS loyalty program provides a simple, cost-effective, and long-term customer data collection strategy from signing up to reward redemption. However, it requires an SMS platform to run, which does all the work. Businesses invest in an SMS platform with careful planning before doing the one-time setup.

We suggest doing these steps to help businesses maximize an SMS platform when launching an SMS loyalty program:

  • Check local laws for regulations about how should businesses collect customer data
  • Think of a name for the SMS loyalty program, an easy to remember but an impactful one
  • Plan how customers can join and claim rewards using SMS
  • Decide what rewards should a business can offer
  • Set up autoresponders using an SMS platform
  • Promote an SMS program and get people to sign up

We recommend using an intuitive interface that allows customers to register and opt-in within seconds for the best results. Txtra is an SMS and text message marketing platform that offers loyalty program services like the Loyalty Rewards Kiosk feature. 

Let’s see how we can maximize Txtra or other SMS platforms when running an SMS loyalty program.

Maximizing An SMS Platform To Boost Customer Loyalty

There’s no doubt that customers love rewards, and businesses love to make everything easy for the customers. Using SMS platforms such as Txtra to run an SMS loyalty program will do the job. We recommend doing these loyalty-boosting activities for businesses who decide to use these features.

Providing Relevant Rewards

Punch cards can help customers receive relevant rewards, but losing the paper can confuse both customers and businesses. That is why Txtra offers an SMS Text Punch Card Loyalty Rewards as a solution to replace the archaic system without losing the personal touch. It will keep customers updated with the points and the rewards.

Offering Personalized Rewards

Providing choices almost always increases customer loyalty because it increases their sense of freedom. Personalizing the rewards will give a magnified impact, and its best form is in mobile coupons. Mobile Coupons help businesses offer personalized rewards with a simple system included in the SMS platform.

Sending Appointment Reminders

While SMS is a simple way to communicate, using it to remind customers to redeem their rewards also increases customer loyalty. With Txtra’s Text Message Appointment Reminders, businesses can now schedule personalized and timely reminders to confirm, cancel, and reschedule appointments. This feature works great in the medical field for doctors and dentists, and even reservations for salons/spas and restaurants!

Re-engaging Old Customers

Let’s admit it. Even the best businesses have customers getting bored with redundant offers. The good news is that businesses can keep customers returning by offering them rewards for their loyalty through Txtra’s Text Message Loyalty Rewards Kiosk. Our text message loyalty rewards kiosk builder makes it easy for businesses to track customers’ loyalty and reward them for it while growing SMS subscription lists and reaching them directly.

Whether it is asking for feedback or sending new product updates, businesses can now notify existing customers with a simple SMS update.


Using customer data for an SMS loyalty program will help customers and businesses build better relationships, increasing customer loyalty. While it reaches all customers with mobile phones, a company’s creativity limits the loyalty program. Thankfully, there are SMS platforms like Txtra that can help businesses get in touch with customers to offer the best rewards and services.

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