How To Use Instagram DMs To Convert Conversations Into Conversions

Most brands are aware of the value of Instagram as a sales channel. Companies use Stories, Reels, and comments underneath posts to push their products and services.

However, there is another way to sell to users on the platform: direct messages (DMs).

Instagram has a DM tool like other social media platforms (notably X and Facebook). It lets users message each other out of the public eye.

DMs are useful for everyone but particularly for brands wanting to sell more. Communicating with customers via this channel is more intimate and immediately grabs their attention (similar to SMS), making DMs an exciting new sales frontier.

This guide explains how to sell on Instagram DMs to convert conversations into conversions. We explore the benefits of selling through DMs, how to build a DM sales process, and where to include UGC in your efforts. After reading this, your Instagram marketing strategy will never be the same again!

What Are The Business Benefits of Selling Through Instagram DMs?

The business benefits of selling through Instagram DMs are tremendous. You can often make a far more substantial impact on prospects than through other strategies.

One benefit is the higher engagement rates you get. Unlike Reels, Stories, or public posts, direct messages foster one-to-one conversations, increasing the likelihood of response. Many brands prefer them because open and reply rates are higher, increasing sales opportunities.

Another benefit is the personalization DMs offer. Tailoring messages to the recipients’ needs increases the likelihood of making a sale. You can change your emphasis during conversations, reflecting their requirements.

Lastly, Instagram DMs provide greater insights into customers’ thoughts about your branding and services. Messages let you collect feedback (like surveys), allowing you to gauge interest in your new products.

Over time, this approach builds better long-term relationships. You can keep the conversation going and make clients feel more valued. DMs increase loyalty and make your marketing more personal.

Building an Instagram DM Sales Process: A Step-by-Step Guide

Given the enormous benefits of selling on Instagram DMs, how do you build a sales process around them?

1. Check You Can Sell

The first step is to check you can sell on Instagram DMs. The chat feature is only available to qualifying businesses.

To be eligible, you need an Instagram business account. You can obtain one of these if you have:

• A physical address
• A phone number
• An email address
• A shop for clients scrolling through your catalog

Instagram insists on these criteria to keep users safe.

2. Optimize Your Instagram Profile For Sales

Next, ensure your business profile is set up for sales. Customers will often check it before replying to your DMs.

Ensure your bio describes your business accurately and includes CTAs with links to your website. Also include plenty of posts answering FAQs and enable the “Message” button on your home page so users can contact you.

3. Find Customers In Your Niche

The next step is to find customers in your niche to sell to. This part of the process is similar to other outreach methods where you target people with specific needs you can solve.

You can identify customers to DM by:

• Searching for users posting with relevant hashtags
• Looking through influencer audience lists with similar followers to you
• Searching through commenters on your posts (or posts similar to yours)
• Reaching out to users who’ve messaged you before

This manual search method is labor-intensive but offers rich opportunities to learn more about the issues your prospective customers face and their demographics. Then, you can incorporate these into your conversations for increased impact.

4. Create A DM Sales Funnel

After that, look at how to encourage or automate generating DMs. For example, you could:

• Include CTA after Stories and Reels, like “DM us for more information”
• Use stickers and polls to encourage users to send DMs
• Leave messages offering deals or special offers to customers who DM you

5. Reach Out To Customers

The next (and most challenging) step is to reach out to customers. Starting the conversation is often the hardest part.

You can send DMs “hot” or “cold.” Hot DMs respond to existing conversations or continue messaging initiated in the comments section (or through other channels). With this approach, you’ve already introduced yourself to the customer and want to engage in a private back-and-forth with them.

Cold DMs are where you have identified potential customers on Instagram but haven’t communicated with them yet. These require a different approach.

When using cold DMs, do the following:

• Personalize the message to the individual, perhaps mentioning something you uncovered about them in your research
• Keep the message short and avoid overwhelming them with long paragraphs of generic, boilerplate text
• Engage them by asking questions
• Mention a problem they have and how you can solve it
• Offer some additional value upfront, like membership in a VIP service or useful information that could help them immediately
• Be authentic and respectful, thinking about the type of DM that they are most likely to respond to
• Leave the message open so they can respond to you

Hot DMs are simpler – you simply continue the conversation from before. As always, follow best practices such as personalizing your messages, showing respect, and offering value where possible.

Instagram uses message limits to reduce spam. These restrictions are helpful for users, but they can be annoying for businesses who want to connect with higher customer volumes.

Therefore, use a DM platform when reaching out to customers on Instagram. These plugins let you manage your messages on the social network.DM messaging services (like DMPro, ColdDMs, etc.) collect messages into a single inbox to make them more manageable. Solutions often have a shallow learning curve and make your outreach more scalable.

6. Use Sales Techniques

Once you have a rapport with the prospective customer, use conventional sales techniques to convert them. Tapping into human psychology encourages leads to take the next step.

For example, you could offer them limited-time offers. Telling them there is a short window of opportunity for them to make a purchase can be an excellent way to motivate action.

Another option is to provide them with social proof using UGC. Billo allows you to create as much user-generated content as you want using a scalable platform. As we discuss in the next section, UGC is one of the most powerful ways to drive DM sales.

Reciprocity is also a tool you could use. Offering to do something for leads in the DMs for free creates pressure for them to buy from you. Don’t give away all your secrets: just provide something small to encourage them to use your full services.

Finally, you could use fear of missing out (FOMO). Telling customers they could miss an opportunity for a fantastic experience or wonderful product is an excellent way to motivate action and encourage them to take the next steps.

7. Qualify Your Leads

During the sales process, you should qualify your leads. Working out how much value they have tells you where to focus your energies.

Qualification should involve:

• Finding out what services they want from you
• Learning more about their goals
• Discovering their concerns and expectations
• Understanding their income or wealth bracket

8. Provide Visuals

Simultaneously, look for ways to showcase your products and services using visuals. Giving your followers something tangible they can use to imagine what you offer can be helpful and engaging. (At Billo, we think UGC is perfect for this, which we discuss in the next section).

9. Make Payment Seamless

Finally, make payments seamless. Fortunately, Instagram offers a native DM checkout feature, meaning you don’t have to use complicated third-party tools to get paid. You can collect money through the payment suite (depending on location), reducing transaction friction.

You can also send a link for customers to make a payment through services like SagePay or Venmo. These introduce low friction, but not much.

10. Measure Your Sales Process

Finally, measure and track your DM sales processes. Monitor metrics like conversion rates and customer satisfaction to see how to improve. Collect feedback at various friction points.

These measurements will help you improve your sales channels and determine where you are going wrong.

Leveraging User-Generated Content To Drive DM Sales

User-generated content (UGC) is one of the most powerful tools for driving DM sales. It helps you leverage social proof to sell through messages, making you less reliant on corporate promotions. Prospects can see peers just like them benefiting from your products, which builds immediate trust.

Some brands use UGC to start conversations with prospects. For example, they might post a piece of UGC on their Instagram home page and then include a DM-focused CTA at the bottom, encouraging leads to continue the conversation. Here, the UGC comes first, and the sales process follows soon after.

UGC also builds authenticity. For example, you could target DM generation by sharing testimonials and product unboxings from real shoppers. Then, you could use this to start a conversation by adding something like “DM us to discover how you could use our products” at the end of the content.

But where can you find this user-generated content?

Fortunately, Billo makes collecting UGC straightforward. The platform connects you to thousands of pre-qualified creators who generate the content you need for DM marketing campaigns on demand. Real users (and customer peers) produce UGC reviews, testimonials, unboxings, recommendations, and how-tos, explaining how your products/services work and why your audience should use them.

Furthermore, Billo’s UGC is scalable because you pay by the video. Simply place your order, provide the creator with a brief, and then wait a short period for the content. Then, you can use this in your Instagram DM sales funnel, attracting more prospects to your brand.

Encouraging your customers to share their experiences while featuring your products is another option. For example, you could:

• Offer discounts or perks to customers to post unboxings with a specific hashtag on their Instagram pages (and provide you permission to repurpose their creations)
• Run campaigns asking customers to share their experiences of using your products, similar to Gymshark (which gets users to wear its apparel)

This approach is less reliable but can work for many brands.

How To Nurture Long-Term Customer Relationships Through DMs

Nurturing long-term customer relationships through DMs is the gold standard of Instagram marketing. Staying in touch can increase the customers’ lifetime value and allows you to cross-sell and up-sell.

But how do you nurture these long-term relationships?

1. Personalize every interaction

Don’t treat your long-term customers as a number or a cog in your marketing process. Instead, talk to them like a friend, personalizing every interaction.

If the customer is a shopper, use DMs to recommend products to complement what they already have. Remembering their recent purchases can be an excellent way to show you understand their preferences.

If the customer is a long-term client, use DMs to maintain their interest in using your services. Keeping the conversation going proves you want to continue supporting them.

2. Don’t spam

When messaging clients long-term, avoid spamming them. Messaging them every few days about your latest offers and deals can put them off. Instead, engage with them consistently. This keeps the relationship interesting and strong.

The best approach is to offer them occasional personalized marketing. DMs should be novel and match their interests or respond to their questions. You can also message them on special occasions (like their birthday) if there aren’t other opportunities.

3. Acknowledge their loyalty

You also want to acknowledge customers’ loyalty where possible, celebrating their time with you. This tactic improves engagement and continues to nurture the relationship.

For example, you could:

• Send them thank-you messages into their DMs
• Create VIP groups where your most loyal customers get first access to your new products
• Include loyal customers in your Stories and Reels

4. Build A Community

Finally, you can nurture long-term customer relationships through DMs by inviting clients to join an exclusive community. These deepen emotional connections and show followers that you value their input.