DTC Podcast: Bonus Episode Summary

Episode: The Smartest SMS Marketing Strategies for Shopify Brands with Postscript
Release Date: March 12, 2025
Host: Eric Dick
Guest: Sam from Postscript

Introduction: Emphasizing SMS as a Goldmine

The episode kicks off with Sam highlighting the critical value of owned marketing channels, positioning SMS as the next essential avenue for direct-to-consumer (DTC) brands. He states, “SMS as that like next owned channel that marketers have to invest in, they have to win. I see it driving a lot of revenue for marketers” (00:00).

Common Pitfalls in SMS Marketing

Eric Dick probes into the prevalent mistakes brands make with SMS marketing. Sam identifies a prevalent scarcity mindset among brands, where fears of cost lead to underutilization of SMS channels. He emphasizes an abundance mindset, stressing the importance of sending the right amount of messages to the right audience: “They're finding ways to send the right amount of text to the right subscribers” (02:33).

Strategic Segmentation for Maximum Impact

Delving deeper, Sam discusses smart segmentation strategies that tailor messages based on customer behavior and purchase patterns. He explains how different brands adopt varied approaches depending on their Average Order Value (AOV) and purchasing frequency. For instance, some brands send multiple messages daily to recent subscribers with high purchase potential, while others use educational content for customers with higher AOVs who purchase less frequently (03:35).

Personalization: The Jones Road Beauty Case Study

A standout example is Jones Road Beauty’s personalized SMS strategy. Instead of relying on discount codes, they utilize a skin type quiz that segments subscribers based on their responses. Sam praises their approach: “They have just taken this unique approach to try and get to know the subscribers or their customers as best as possible and serve them with recommendations in a personalized way” (06:31). This method not only enhances personalization but also maintains engagement without over-reliance on discounts.

AI Integration at Postscript: Current Implementation

Transitioning to technology, Sam outlines Postscript’s core principles for AI integration:

1. Brand Consistency: Ensuring AI-generated messages align with the brand’s voice.
2. Insight Provision: Focusing AI on generating actionable insights rather than just sending messages.
3. Revenue-Driven: Leveraging AI to drive measurable revenue growth (08:58).

He elaborates on the Brand Center feature, which allows brands to input detailed brand guidelines, ensuring AI outputs remain on-brand. This includes preferences for language style, emojis usage, and persona characteristics, thereby maintaining a cohesive brand voice across all messages (09:26).

Advanced AI Features: Infinity Testing

Postscript’s Infinity Testing is a pivotal feature that continuously tests and optimizes SMS messages for better performance. In automations like browse abandonment and cart abandonment, AI generates and tests multiple message variants to identify the highest-performing ones, leading to significant revenue lifts: “We're driving upwards of 20% lift on revenue for those automations and somewhere around 38% EPM lift on campaigns” (12:00).

Future Directions: Conversational Commerce and Beyond

Looking ahead, Sam envisions integrating Large Language Models (LLMs) with SMS to enable scalable, conversational commerce. This would allow brands to conduct one-on-one conversations with subscribers, enhancing personalized interactions at scale. He anticipates these advancements will soon be available to Shopify entrepreneurs, enabling sophisticated conversational experiences without the overhead of managing individual interactions (14:42).

Conversational Commerce: Scaling Human-Led Sales

Postscript’s latest offering, SMS Sales, leverages human-led conversations to drive purchases. This feature is particularly effective for larger brands with higher AOVs, enabling nuanced interactions that answer customer queries and facilitate informed purchasing decisions. Sam notes, “It drives incremental revenue not just on the channel, but at the store level” (15:48).

SMS vs. Email: Deliverability and Engagement

When comparing SMS to email, Sam highlights that SMS typically enjoys higher open rates and less filtering into spam folders. However, deliverability still depends on the vendor’s compliance with carrier regulations. He emphasizes the importance of partnering with reputable SMS providers like Postscript to ensure high deliverability and adherence to compliance standards (21:12).

Postscript vs. All-in-One Solutions: Specialization Matters

Addressing competition from all-in-one platforms like Klaviyo, Sam advocates for specialized SMS solutions. He argues that dedicated SMS platforms like Postscript offer superior functionality and ROI for SMS marketing compared to generalized tools: “We believe that a best in class solution, like Postscript, is going to make you more money” (23:33).

Effective Messaging Strategies During Sales Events

Sam underscores the effectiveness of strategically timed messages during sales events like Black Friday and Cyber Monday (BFCM). By employing multi-step campaigns that build anticipation and execute timed drops, brands can maximize engagement and revenue. He cites data showing that 60-70% of top-performing messages during such events are strategically timed drops (19:14).

Growth Trends in SMS Marketing

Postscript observes a significant uptick in SMS adoption among brands, with many scaling their SMS programs from tens of thousands to hundreds of thousands of subscribers. This growth is driven by the channel’s proven ROI and increasing maturity among marketers who are leveraging SMS beyond basic notifications to sophisticated marketing tactics (25:06).

Upcoming Events and Future Innovations

Looking forward, Postscript is actively participating in industry events like Shop Talk and hosting webinars to showcase their latest AI-driven features. Sam invites listeners to join their upcoming webinar on April 16, promising demonstrations of their new revenue-driving products and AI advancements (26:26).

Closing Remarks: A Call to Action for Leading Brands

In his closing statements, Sam extends an invitation to major brands like Alo Yoga and Skims to adopt Postscript’s SMS solutions, confident in their ability to enhance these brands’ SMS marketing efforts. He reiterates Postscript’s commitment to excellence within the Shopify ecosystem, aiming to be the go-to SMS partner for top-tier D2C brands (27:42).

Notable Quotes:

• “SMS as that like next owned channel that marketers have to invest in, they have to win. I see it driving a lot of revenue for marketers.” – Sam (00:00)
• “Brands who kind of just like pull back for the sake of pulling back and saving money, they're missing opportunities to like maximize that channel.” – Sam (02:44)
• “We believe that a best in class solution, like Postscript, is going to make you more money.” – Sam (23:33)
• “It's prime for conversations. We want everyone to have that SMS sales experience.” – Sam (14:42)

This episode provides invaluable insights into leveraging SMS as a potent marketing tool for Shopify brands. From strategic segmentation and personalization to the integration of AI for optimized messaging, Sam from Postscript offers a roadmap for DTC brands aiming to scale their marketing efforts effectively. Whether you’re a seasoned marketer or just starting with SMS, the strategies discussed are essential for maximizing revenue and fostering meaningful customer relationships.