Luksusbaby achieves over 2,000% ROAS with SMS
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About Luksusbaby.dk
Luksusbaby.dk was founded in 2014 by husband and wife Ann-Louise and Morten. They launched the online shop to give parents a place to buy everything they needed while enjoying a unique, personal shopping experience.
When they became parents to twins, they realised there was no online children’s clothing shop where parents could buy quality clothes while becoming part of a brand experience built around 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 of over 2,000% per 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. They include the people who shop with us most often, so of course we want them to hear more from us. SMS solved that problem for us,” says Morten Grabowski Kjær, co-founder and CEO of Luksusbaby.
The company needed a channel where it could communicate more directly and personally with customers than its existing channels allowed. SMS messages became the solution.
When Luksusbaby sends an SMS message to its members, it sees an average ROAS of over 2,000%.
In short, for every DKK 1 Luksusbaby.dk spends on SMS, it generates an average of DKK 20 in sales. That’s a tangible result!
SMS message from Luksusbaby with a CTR of 11.32%
Of course, results like these don’t happen on their own. Luksusbaby.dk has put a lot of thought into both the audience for its SMS messages and the content of the messages.
From January to April 2024, SMS generated DKK 500,000 in revenue for Luksusbaby.dk, partly through SMS messages like the example above.
Luksusbaby engages its members with SMS
Luksusbaby.dk has a customer club. It’s free to join, and members agree to receive emails and SMS messages from the company.
Customer club members receive SMS messages about new products, great offers and special sales on the website. Many of Luksusbaby’s customers actively want these updates, and SMS is an ideal way to reach them.
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 includes a link in its SMS message, allowing it to use link tracking. 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.
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 opt-ins collected through checkout alone
In its first three years using SMS, Luksusbaby.dk collected more than 17,000 active SMS opt-ins for its customer club. It now sends these members SMS messages regularly, and every opt-in was collected through the website’s checkout.
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.
Plans to expand 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 becoming increasingly popular, and it’s definitely something we want to be part of,” says Morten Grabowski Kjær.
There are also longer-term plans to develop a customer app with SMS marketing built in. This would open up the possibility of an even stronger, more active community.
We at inMobile are proud to be part of Luksusbaby's SMS journey and excited to see what the future holds!