Luksusbaby gets +2000% ROAS with SMS
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About Luksusbaby.dk
Luksusbaby.dk was founded in 2014 by husband and wife Morten and Ann-Louise. They started the webshop with the intent to create a platform where parents could buy everything they needed in one place while enjoying a unique and personal shopping experience.
When they became parents of twins, they realised that no online children's clothing store existed where parents could buy quality children's clothing while becoming part of a universe focused on personality, content, and uncompromising customer service.
It's fair to say that their vision has become reality. Today, they have established themselves as a trusted source of high-quality baby products among Danish and international parents.
Average ROAS +2000% on one SMS message
Luksusbaby.dk has been using the SMS channel since the end of 2020. They decided to try SMS because they needed a communication channel that could bring them closer to their most loyal customers.
"We had this group of customers who just couldn't get enough. These are the people who shop with us the most often - and of course we need to increase our exposure to them. SMS solved that problem for us." says Morten Grabowski Kjær, co-founder and CEO of Luksusbaby.
The company needed a place where they could communicate more directly and personally with customers than their existing channels allowed. Text messaging became their solution.
"We can usually see that visitors start flocking to the site just a few seconds after we send an SMS."
Morten G. Kjær, Founder and CEO of Luksusbaby.dk
When Luksusbaby sends an SMS message to their members, they experience an average ROAS of +2000 %.
In short, this means that when Luksusbaby.dk spends £1 on SMS, they get an average of £20 back through sales. That's a result you can feel!
SMS message from Luksusbaby with a CTR of 11.32%
This kind of ROAS doesn't happen by itself, of course, and Luksusbaby.dk has put a lot of thought into both the target group they send SMS messages to and the content of those messages.
"We don't want to bother anyone or be pushy. That's why we only use SMS for customers who just can't get enough. The ones who really want to know when we have a good sale or when something new is happening - and fortunately, there are a lot of customers who do."
Morten G. Kjær, Founder and CEO of Luksusbaby.dk
From January to April 2024, the SMS channel accounted for DKK 500,000 in turnover at Luksusbaby.dk. This was through SMS messages like the example above.
Luksusbaby activates their members with SMS
Luksusbaby.dk has a customer club. It's free to join, but in return, members agree to receive emails and text messages from the company.
As a member of the customer club, you will receive SMS messages when new products, great offers, or special sales are available on the website. Many of Luksusbaby's customers ask for these types of updates, and SMS is a great way to reach out to those customers.
SMS message from Luksusbaby with a CTR of 12.57%
The SMS message above is an example of a message Luksusbaby sent to their members during Easter in 2024. The message works really well for several reasons.
Luksusbaby.dk uses a link in their SMS message, which enables link tracking. That's smart!
A link directly to the offer advertised in the SMS makes the message extremely user-friendly and the offer easy to redeem - just one click and the recipient is in the right place.
"SMS is a great way to respond quickly and efficiently. It's very 1:1.
We always have our mobiles nearby and so do our customers, and we're used to reading and responding instantly to SMS. That's why it's super-efficient for a company like ours that wants to have closer contact with customers!"
Morten G. Kjær, Founder and CEO of Luksusbaby.dk
Another reason why Luksusbaby's use of link tracking is so effective is that it gives them a very clear CTR (click-through rate) and therefore useful data to work with.
The Easter Hunt message achieved a CTR of 12.57%. This means that 12.57% of the customers who received the message also clicked through to the Luksusbaby website.
Over time, this click-through rate can be compared to the click-through rates of other message types, giving Luksusbaby valuable insight into what works well and what doesn't on SMS - and thus what type of SMS messages their target audience prefers to receive.
17,000 SMS permissions just via check-out
In the first three years Luksusbaby.dk has worked with SMS, they have managed to collect an impressive +17,000 permanent SMS permissions for their member club, which they now send SMS messages to on a regular basis - and the collection has only happened through check-out on their website.
By using SMS as a direct and immediate communication channel, the company has managed to create a closer connection with their customers on a channel where customers can easily respond to offers and other messages without having to go through a complex process.
"When we share information that we want customers to react to quickly, we know that SMS is the only channel that really works."
Morten G. Kjær, Founder and CEO of Luksusbaby.dk
Plans to expand on the SMS channel
Luksusbaby is very happy with the results the SMS channel creates for them. SMS marketing has given them more tools to communicate with customers, which helps to capture their attention and ultimately drive conversions.
That's why they are planning to expand their SMS strategy to include a dedicated loyalty club in the future.
"Loyalty clubs are gaining a lot of momentum, and it's definitely something we need to get involved in," says Morten Grabowski Kjær.
There are also plans to develop a customer app where SMS marketing will be an integral part. This allows for an even stronger and more active community.
We at inMobile are proud to be part of Luksusbaby's SMS journey and excited to see what the future holds!