case study · ecommerce · sms channel

How DiscountMugs Built a
$1.2M+ SMS Revenue Channel
From Zero in 90 Days.

A leading promotional products brand had strong traffic and a loyal customer base — but zero owned-channel SMS revenue. We built the entire program from the ground up and made it one of their top-3 revenue drivers.

client

DiscountMugs

industry

eCommerce · Promotional Products

service

Email & SMS Marketing

timeline

90 Days to First Milestone

$1.2M+ SMS-attributed revenue, first full program year
Top 3 Revenue channel ranking within 90 days of launch
90 Days from zero to first major revenue milestone
$0 SMS revenue before Axis engagement began

the challenge

A Brand Sitting on a Goldmine — Not Mining It

DiscountMugs was generating strong eCommerce revenue through paid search, email, and organic traffic. But SMS — one of the highest-ROI owned channels in eCommerce — was effectively nonexistent. Leadership knew the opportunity was there. They didn't have the in-house expertise or bandwidth to build it properly.

They needed a program built fast, built right, and delivering measurable results before the next budget cycle — or the investment wouldn't get renewed.

Zero SMS subscribers — no list, no opt-in mechanisms, no infrastructure
No internal team with SMS program experience or platform knowledge
Aggressive 90-day timeline to prove ROI before budget review
Crowded eCommerce market with highly price-sensitive customers
SMS compliance requirements across multiple states adding complexity

"Before Axis, SMS was an afterthought. We knew we were leaving money on the table — we just didn't know how much or how to fix it."

— Marketing Leadership, DiscountMugs
The Opportunity We Identified
Email list (existing)Large + active
SMS list (at start)Zero
Industry avg SMS conversion8–15%
Potential revenue upsideSignificant

the strategy

Build the Foundation First. Revenue Follows Infrastructure

We didn’t start by sending messages. We started by building the system — the right platform, the right opt-in mechanics, the right automation architecture — so that every send could be measured, optimized, and scaled.

01
Platform Selection & Setup

Evaluated and selected the right SMS platform for DiscountMugs' tech stack and compliance requirements. Configured the full account, set up sending numbers, established compliance protocols, and integrated with their eCommerce platform and email provider.

02
List Growth Architecture

Built multi-touchpoint opt-in mechanisms across the customer journey — checkout opt-in, website pop-up, post-purchase confirmation, email cross-promotion, and in-campaign list growth offers. Every opt-in touchpoint A/B tested from day one.

03
Automation Foundation

Built the core automation flows before launching any campaigns: welcome series, abandoned cart recovery, post-purchase sequence, and win-back flow. These automations generate revenue 24/7 without manual sends.

04
Campaign Cadence & Testing Framework

Established a structured campaign calendar aligned to promotional cycles. Every send A/B tested on message, timing, offer, and CTA. Results fed back into strategy weekly — no send was wasted on learning we couldn't use.

Why SMS Worked for DiscountMugs
Repeat purchase products — customers come back. SMS is ideal for retention.
Price-driven category — flash offer SMS converts higher than email.
B2B + B2C buyers — SMS reaches decision-makers directly without inbox competition.
Large existing email list — immediate cross-promotion list growth on day one.
Platforms Used

SMS platform integrated with existing email provider and Shopify store. Full attribution tracking connected from opt-in source through to revenue event — so every dollar of SMS revenue was traceable back to its origin.

the execution

Month by Month - How the Program Grew

The first 90 days were about infrastructure and proof of concept. Months 4–12 were about scaling what worked and eliminating what didn’t. Every week included a performance review and a strategy adjustment.

Days 1–30
Foundation Built

Platform configured. Compliance framework established. Opt-in mechanisms live across checkout, pop-up, and email. Welcome automation deployed. First 500 subscribers acquired. First SMS revenue in week 3.

Days 31–60
First Campaigns & Optimisation

Abandoned cart automation live — immediately one of the top revenue generators. First promotional campaigns sent with A/B testing. List growth rate increasing weekly. Revenue attributable to SMS crossing first significant threshold.

Days 61–90
Proof of Concept Hit

90-day revenue milestone surpassed. SMS confirmed as top-3 revenue channel. Post-purchase sequence deployed. Win-back flow launched. A/B test learnings systematised into permanent send strategy. Budget renewal approved.

Months 4–12
Scale & Compound

Full promotional calendar integrated. B2B vs B2C audiences separated with distinct message strategies. Seasonal campaigns built and optimised. Full-year SMS revenue crosses $1.2M — surpassing paid social as a revenue driver.

the results

Zero to Top-3 Revenue Channel in under a year

The numbers tell the story — but the more important outcome was structural. DiscountMugs now has a high-performing owned channel that compounds in value every month the list grows.

$1.2M+

SMS Revenue Generated

Total SMS-attributed revenue across the first full program year, from a starting point of zero. Every dollar tracked and attributed back to specific sends and automations.

Top 3

Revenue Channel Ranking

Within 90 days of launch, SMS became a top-3 revenue channel — ahead of channels that had been running for years. By year end it had surpassed paid social revenue.

24/7

Automated Revenue Running

Welcome, abandoned cart, post-purchase, and win-back automations run continuously — generating revenue without manual sends, around the clock, every day of the year.

"Before Axis, SMS was an afterthought. Now it's one of our highest-converting channels. The strategy, the execution, the results — all exceeded what we thought was possible in the first year."

— Marketing Leadership, DiscountMugs

The bigger picture

An Owned Channel That Can't Be Taken Away

Paid media performance fluctuates with CPCs and algorithm changes. SEO shifts with Google updates. But a well-built SMS list with strong subscriber relationships is an owned asset that compounds in value the longer it runs.

DiscountMugs now has a revenue channel that gets more valuable every month — not more expensive. The infrastructure built in year one continues to generate returns with no additional build cost.

Infrastructure built once, runs forever

Automations built in month 1 are still generating revenue today — with zero ongoing build cost.

List value increases monthly

Every new subscriber adds to a compounding asset. The ROI per subscriber improves as the automations get more refined.

Not subject to algorithm changes

Unlike paid or organic, SMS revenue doesn't disappear because a platform changed its rules. It's owned.

Cross-channel amplification

The SMS program actively grows the email list and vice versa — creating a flywheel between both owned channels.

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