Munk Store reaches customers with a data-based SMS strategy
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About Munk Store: From local store to online success
Munk Store first opened the doors to their physical store in Holstebro in 2008. Later, the chain got another clothing store under its wing in Thisted. Today, the store in Thisted is closed, while the store in Holstebro is still open. At the same time, their webshop, which opened in 2011, is now a vital part of the business.
Especially in recent years, the webshop has taken off. Back in 2018, the online store was only a small part of the company's total revenue. Today, the webshop accounts for around 70% of the company's total revenue.
There is no doubt that something has happened on the digital front, and that Munk Store and their team have done a great job driving impressive results.
Challenge: An SMS gateway that could do it all
As Munk Store's online presence grew, they faced some challenges in 2020. They needed new systems that could grow with the webshop, and talk to each other and share data across systems.
After deciding to move the webshop to Shopify and send emails from Klaviyo, in 2021 they started looking for an SMS gateway that could fulfil a number of requirements:
- The SMS system should be able to integrate with their other software.
- There should be access to competent, and preferably Danish, support.
- Their SMS gateway was designed to support Munk Store's desire to work more data-based and to utilise data better when communicating with customers.
Munk Store also wanted to start a new online customer club where members would have the opportunity to earn points and regularly receive relevant offers.
With their increased online presence and desire to establish a digital customer club, the SMS channel was the obvious choice for Munk Store. SMS offers a direct and immediate channel to customers.
The high average open, click, and conversion rates were only further motivation to work with SMS.
Solution: Data-based SMS strategy
After extensive research, inMobile was Munk Store's choice of SMS gateway. Here they saw a partner that met all their needs and wishes.
"We chose to use inMobile's SMS system for several reasons, but the combination of integration with all our other systems, Danish support, and a super competitive price makes inMobile the obvious choice for us. It all comes together."
Mathias Thulstrup, E-commerce Manager at Munk Store
Today, Munk Store uses SMS in various strategic ways.
Customer club
They have a customer club where they send weekly offers to relevant customer segments, among other things. The SMS message in the section above is an example of this type of SMS campaign.
Special campaigns
When communicating large-scale or exclusive campaigns, such as mid-season, summer offers, or Black Friday, SMS is always an important part of the marketing strategy.
Abandoned cart
Munk Store has set up an automated abandoned cart flow, where the numbers, according to Mathias Thulstrup, speak for themselves. Here they see a strong average conversion rate of 9.62%.
Munk Store really knows how to use SMS's many possibilities, and in conjunction with its other marketing efforts, this explains the company's great growth in its online universe.
Result: Increased revenue and awareness with SMS
When Munk Store sends out an SMS message, it usually results in an average revenue of 15,000-20,000 DKK per SMS. The great results are largely due to Munk Store's ability to transform data into relevant segments while utilising the competitive advantages of the SMS channel.
"SMS is a great addition to our marketing mix. Here you can interact with the customer right away, not the next day when they read their email. That's why the SMS channel is perfect for last minute offers and the like."
Mathias Thulstrup, E-commerce Manager at Munk Store
For example, Munk Store often uses SMS to send limited-time offers to their customer club members. This type of message usually performs extremely well.
Effective segmentation and SMSes that hit the mark
At Munk Store, they use data-based segments to target their SMS broadcasts. This means that not everyone on their SMS list will receive all campaign messages.
Not only is this a financially efficient strategy, but it also allows them to create a more relevant and personalised customer experience.
"With inMobile, we can synchronise all our contacts between Klaviyo and inMobile. We use this to send relevant SMS messages to specific segments based on our customer data - and that combination creates some crazy results."
Mathias Thulstrup, E-commerce Manager at Munk Store
There are many benefits to segmenting your recipient lists like Munk Store does.
First and foremost, it creates credibility among recipients. They know that when they receive an SMS message from Munk Store, it will usually be relevant and contain an offer that is relevant to the unique recipient.
"We have a sneaker segment, for example. So if we run an offer with free sneaker cleaning when you buy a pair of sneaks, that promotion is not sent to everyone, but only to those who are part of our sneaker segment. It works really well."
Mathias Thulstrup, e-commerce manager at Munk Store
Munk Store also saves costs by only sending SMS messages to the group of customers they believe are most interested in the message - rather than sending to their entire SMS list, paying more for the broadcast and risking diluting the target audience.
Black Friday success with a targeted SMS strategy
One thing that Munk Store really knows how to capitalise on is the big shopping days of the year. Black Friday is an excellent example of this.
In fact, Munk Store kick-started their SMS adventure with a Black Friday SMS in November 2021. The SMS message performed so well that they chose to integrate the channel as a regular part of their marketing mix.
See the message below.
In 2022, they continued the success with a Black Friday campaign consisting of 3 different SMS messages spread over 3 days during Black Week.
In total, SMS generated revenue of 130,000 DKK as a direct result of the three Black Friday messages. One SMS was sent the night before Black Friday and alone accounted for DKK 50,000 in revenue, corresponding to a ROAS of 8260%.
Read that again. Those are some crazy numbers!
The strategy that produced these results was very simple: every day of Black Week brought new offers. So-called daily deals. They were promoted day by day on different channels and to curated, relevant segments.
Only one SMS was sent to their entire SMS list, and it was the aforementioned SMS that delivered a ROAS of 8260% - or £82.60 earned per £1 spent.
With such impressive results, it's no surprise that Munk Store plans to continue their work with SMS on Black Friday, and for all other peak sales times of the year.
A vision for efficient SMS automation
Even though Munk Store can already boast great results on SMS, they are far from done exploring the channel.
Mathias, e-commerce manager at Munk Store, says that they plan to dive deeper into the many possibilities with SMS automation, because as he says: "The more we can automate, the smarter we can work".
That's why they will be trialling webhooks in Klaviyo, which make it possible to insert SMS messages directly into Klaviyo flows - while inMobile still ensures that the SMS message is delivered to the right recipients at the chosen time.
We look forward to following Munk Store's development with the SMS channel.