Munk Store reaches customers with a data-driven SMS strategy

About Munk Store: From local store to online success

Munk Store first opened its physical shop in Holstebro in 2008. The chain later added another clothing shop in Thisted. The Thisted shop has since closed, while the Holstebro shop remains open. Meanwhile, its online shop, launched in 2011, is now a vital part of the business.

The online shop has really taken off in recent years. As recently as 2018, it accounted for only a small share of the company's total revenue. Today, that figure is around 70%.

There is no doubt that Munk Store has made significant progress online, with the team putting in a great deal of work to achieve these impressive results.

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Challenge: An SMS gateway that could do it all

As Munk Store's online presence grew, it faced some challenges in 2020. It needed new systems that could scale with the online shop and, crucially, communicate with one another and share data across platforms.

After deciding to move its online shop to Shopify and send emails via Klaviyo, Munk Store began looking for an SMS gateway in 2021 that could meet 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.
• The SMS gateway needed to support Munk Store's ambition to work in a more data-driven way and make better use of data when communicating with customers.

Munk Store also wanted to launch a new online loyalty club where members could earn points and regularly receive relevant offers.

With its growing online presence and plans for an online loyalty club, SMS was the obvious choice for Munk Store. It offers a direct and immediate way to reach customers.

The high average open, click, and conversion rates were only further motivation to work with SMS.

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Solution: A data-driven 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.

Today, Munk Store uses SMS in various strategic ways.

Loyalty club

Munk Store has a loyalty club where, among other things, it sends weekly offers to relevant customer segments. The SMS message above is an example of this type of campaign.

Special campaigns

When promoting major or special campaigns, such as mid-season sales, 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 SMS flow. According to Mathias Thulstrup, the figures speak for themselves: it achieves an impressive average conversion rate of 9.62%.

Munk Store clearly knows how to make the most of SMS. Combined with its other marketing efforts, this helps explain the impressive growth of its online business.

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Result: Increased revenue and awareness with SMS

When Munk Store sends an SMS campaign, it typically generates average revenue of DKK 15,000–20,000 per campaign. These results are largely down to its ability to turn data into relevant customer segments and make the most of the SMS channel's competitive advantages.

For example, Munk Store often uses SMS to send time-sensitive offers to its loyalty club members. This type of message usually performs extremely well.

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Effective segmentation and SMS messages that hit the mark

Munk Store uses data-driven segments to target its SMS campaigns. This means that not everyone on its SMS list receives every campaign message.

Not only is this cost-effective, it also creates a more relevant and personal customer experience.

There are many benefits to segmenting your recipient lists like Munk Store does.

First and foremost, segmentation builds trust among recipients. They know that an SMS message from Munk Store will usually be relevant and contain an offer that suits them.

Munk Store also reduces costs by sending SMS messages only to the customers it believes are most interested in the offer, rather than its entire SMS list. This lowers sending costs and avoids targeting an overly broad audience.

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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.

Together, the three Black Friday SMS messages generated DKK 130,000 in revenue. One message was sent the evening before Black Friday and alone accounted for DKK 50,000, delivering a ROAS of 8,260%.

Read that again. Those are some crazy numbers!

The strategy behind these results was simple: new daily deals throughout Black Week. Each day, they were promoted across different channels to selected, relevant segments.

Only one SMS campaign was sent to the entire SMS list. That was the campaign mentioned above, which achieved a ROAS of 8,260% – or DKK 82.60 in revenue for every DKK 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.

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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, explains that they plan to explore the possibilities of SMS automation in more depth: "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 seeing how Munk Store continues to develop its use of SMS.

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