Factors Affecting the Effectiveness of Promotional SMS Communication in the Sri-Lankan Fashion Retail Sector

This study was undertaken to explore the determinants that can influence effective targeted promotional SMS communication in the Sri-Lankan fashion retail sector. The objective of this study is to examine the current context of targeted promotional SMS communication in Sri-Lankan fashion retail sector. This study is also aimed at examining the relationship between dynamic customer segmentation via transactional and loyalty-card data utilization for targeted promotional SMS communication and provide relevant recommendations to improve effectiveness of SMS promotional communication. This study uses a deductive research approach. Hypothesis were generated and tested via a survey in Colombo, Sri-Lanka with 347 responses. Based on the regression analysis, all the independent variables of loyalty-card data utilization, past purchase data utilization and dynamic customer segmentation had a strong positive relationship and a positive relationship towards the independent variable of effectiveness of SMS Communication and all the hypothesis were accepted along with the conceptual framework that 72% represents towards (Impact on) Effectiveness of SMS Communication by all the independent variables considered. Research was limited to the fashion retailing sector and only the retail customers were surveyed and new customers are excluded from the study benefits. As a research implication, adoption of big data and business-intelligence practices are highly recommended. Most of the prior literature is on the USA and Europe region and some are biased to eCommerce whereas this study focusses on the Sri-Lankan region and use of offline data sources for targeted SMS promotions.