Urban Outfitters Cracks the SMS Code - 10/29/24

Plus, Why Your Retention Strategy Falls Short

Welcome to The Retention Newsie by The Email Marketers, the retention building experts for 8-& 9-figure e-commerce brands.

Every week we bring you the best case studies, strategies, and tips around keeping more customers, turning them into raving fans, and increasing revenue.

Up this week:

  • 📱 Unlocking Urban Outfitters’ SMS Strategy

  • 📧 The Key to Unlocking Better Retention

  • đź“Š Boosting Loyalty, Connecting with Customers Passions & More!

Reading time: 4 minutes 15 seconds

Urban Outfitters’ SMS Marketing Breakthrough

In 1970, across from the University of Pennsylvania, a small store opened its doors, sparking the rise of what would become a global retail icon—Urban Outfitters.

Built on a foundation of creativity, unique products, and a deep understanding of culture, it’s grown to more than 200 stores across the US, Canada, and Europe.

But their reach goes beyond physical stores. Urban Outfitters has mastered the digital world, especially in SMS marketing, using mobile messages as a powerful tool to keep customers engaged and coming back.

Seeing the shift toward mobile, Urban Outfitters partnered with Attentive to launch its text message marketing channel, with results that were nothing short of remarkable.

"Given that push notifications are an important driver of most mcommerce businesses, Urban Outfitters was initially looking for a dedicated push solution, but once they started working with Appboy, they realized the potential of a strong multi-channel messaging strategy."

Mark Ghermezian, co-founder & CEO of Appboy

Urban Outfitters' SMS marketing is a perfect example of how precise segmentation and timing can drive success. They split their text messaging file into two primary groups:

  • Inactive users (subscribed to SMS but not active on other UO marketing channels)

  • Active users (subscribed to SMS and active in other UO marketing channels).

Surprisingly, the active customer group showed higher engagement and demand. Building on this, they divided these customers into test and control groups.

The results were striking: the active test group saw a 13% jump in demand over the control. Even more impressive, email-active subscribers experienced a 19% surge in demand.

But Urban Outfitters didn't stop there. They used Intelligent Delivery, an algorithm that targets consumers with the right message at the right time based on previous interactions. This strategy paid off handsomely, with over 100% improvement in performance.

One standout example is their one-week retention campaign directed at male Urban Outfitters members, which saw an incredible 138% increase in retention rate.

Urban Outfitters' SMS success goes beyond simply sending messages—it’s about delivering the right message at the perfect moment.

They personalize promotions with gender-based segments, offering discounts like 25% off grooming or beauty products. Using location-based targeting, they send winter arrival updates to customers in colder states, ensuring every message feels relevant and timely.

  • Refine Your Segments: Go beyond broad categories—understanding customer behavior in detail can reveal hidden opportunities.

  • Always Test for Results: Use control groups to measure the real impact of your marketing efforts across different audience segments.

  • Send at the Right Time: Invest in tools that ensure your messages reach customers when they’re most likely to engage.

  • Make Every Message Count: Personalize your communication using all available data, like location or preferences, to drive better engagement.

  • Combine Your Channels: A multi-channel approach boosts response rates—ensure your marketing works together across all platforms.

We help 8-& 9-figure e-commerce brands increase revenue and build strong customer relationships through retention marketing: Email, SMS, direct mail, subscriptions, memberships, loyalty programs, and more.

The Missing Piece in Your Retention Puzzle

A lot of businesses focus on adding more touchpoints, but the real secret to better retention is creating an educational experience for your customers. Here's how to shift your retention strategy by putting customer education first:

Start with Educational Ads 

Don’t just sell—educate. Create ads that not only capture attention but also provide quick, useful lessons that clear up doubts and show your product’s value.

Address your customers' pain points directly, clearly demonstrating how your product solves their problems. Explain why it stands out from the competition, making it the best choice.

By educating while selling, you build trust and confidence, turning potential buyers into loyal customers.

Craft an Educational Homepage Experience 

Your website should educate, not just display products.

Use compelling copy to highlight problems, tasteful graphics to show solutions, and clear CTAs to drive action. Testimonials build trust, making your site a place where customers feel informed and ready to engage.

Implement Post-Purchase Education Flows 

The sale is only the beginning. Use email and SMS to keep customers engaged by educating them on product benefits and uses. Set up automated flows that:

  • Provide valuable insights

  • Recommend complementary products

  • Share practical usage tips

Plain-text messages from company leaders can create a personal touch, resonating more deeply with customers and strengthening their connection to your brand.

Create a Continuous Learning Loop 

Extend education beyond the purchase with a content strategy that keeps adding value. Keep customers engaged and informed about:

  • New ways to use your products

  • Exciting features and updates

  • Products that work well together

This approach creates a knowledgeable customer base that truly appreciates your brand, building stronger relationships and encouraging repeat business.

Embedding education into every step of the customer journey goes beyond selling—it builds knowledgeable, loyal brand supporters. This strategy can increase repurchase rates and turn retention from a challenge into a success story.

Remember, in the world of retention marketing, knowledge isn't just power—it's profit. Educate your customers, and watch your retention rates soar.

  • Temu faces a new class action over SMS marketing, stressing the need for compliance.

  • A new Virginia law requires companies to notify consumers of cancellation options before charging for subscriptions.

  • Asian coffee shops boost loyalty through personalized social media marketing aimed at younger customers.

  • Explore the value of connecting with consumers’ passions to enhance marketing.