Consumers are bombarded with social media posts, emails and countless other forms of ad messaging, but one tool has proven to cut through the noise: SMS marketing.
When a text message lands in someone’s inbox, it’s almost certain to be seen. SMS marketing offers a direct line to your audience that’s hard to beat.
The near-instantaneous nature of text messages ensures that your promotions, updates and announcements are seen almost immediately.
But this begs the question: how effective is SMS marketing really? We answer all this and more as we unpack:
• What Is SMS Marketing?
• Benefits of SMS Marketing
• Use Cases of SMS Marketing Plans
• 4 Basic SMS Marketing Tips
• Need a New SMS Marketing Strategy?
What Is SMS Marketing?
Short message service (SMS) marketing involves sending promotional or transactional messages to customers via text.
It is a versatile yet straightforward tool that can be used for sending SMS marketing campaigns such as order updates, limited-time offers or even surveys.
Why Use SMS Marketing: Benefits of SMS Marketing
So, how effective is SMS marketing?
Many still refer to an old yet astounding statistic from a Frost & Sullivan 2010 whitepaper: SMS messages boasted an impressive 98% open rate, which was higher than email marketing and over-the-top (OTT) providers such as WhatsApp.
While the landscape has undoubtedly shifted since then, SMS marketing campaigns still deliver remarkably high open and click-through rates.
In a survey conducted in May 2023, 53.5% of business owners and marketing managers in the U.S. revealed that they turned to text marketing precisely because it offers superior open and click-through rates compared to other channels.
SMS marketing benefits:
• High engagement
• Personalization
• Customer retention
• Cost-effectiveness
• Integration
Let’s look at each of these SMS marketing benefits.
High Engagement
In the same 2023 survey, over 60% of respondents stated that SMS marketing offered higher engagement levels from customers. Text marketing is one of the most effective ways to ensure your messages reach your audience and encourage them to engage.
Personalization
One of the standout features of SMS marketing is the ability to tailor your messages to fit each customer’s unique preferences. By personalizing your texts, you can enhance the customer experience and make them feel valued and understood.
Customer Retention
SMS marketing is an efficient tool for customer support. By listening to customer needs and keeping your brand at the forefront of their minds, you foster a deeper connection that encourages repeat business and long-term relationships.
Cost-Effectiveness
When it comes to return on investment, SMS marketing often outperforms other channels. It’s a cost-effective way to reach a large audience without breaking the bank. This means even small businesses with lesser budgets can benefit.
Integration
SMS marketing can be seamlessly integrated with your email campaigns, social media efforts and other marketing strategies. With an omnichannel approach, you ensure your messaging is consistent and comprehensive across all channels.
The U.S. leads global ad spending in SMS advertising, contributing $310.40 million in 2024. Let’s look at more SMS marketing statistics that highlight how businesses are leaning on SMS marketing campaigns:
• The sector is anticipated to grow annually at a rate of 2.29% (CAGR 2024-2029), reaching an estimated $347.60 million by 2029.
• Average ad spending per person in the SMS advertising market is projected to be $0.91 in 2024.
• The U.S. is experiencing a boom in SMS advertising, capitalizing on its broad reach and cost-effectiveness to effectively target mobile-savvy consumers.
(Statista; Why use SMS marketing according to U.S. business owners and marketing managers)
Many business owners and marketing managers lean on text marketing to cater to younger demographics. Nearly a third (29%) also mentioned that younger customers prefer texting over other communication methods.
Use Cases of SMS Marketing Plans
Text marketing can be used for many targeted SMS marketing strategies. Here are some applications for your SMS marketing plan.
Appointment Reminders
Businesses like dental offices and beauty salons can use SMS to remind clients of upcoming appointments. A quick text saying, “Reminder: Your appointment with Dr. Smith is tomorrow at 3 PM,” can significantly reduce no-shows.
Flash Sales
You can launch strategic 24-hour sales during paydays. An SMS campaign can quickly spread the word, driving immediate traffic to your store. For example, “Flash Sale! 50% off all items today only. Visit us now!”
Event Invitations
Promote events such as webinars, grand openings or product launches. A message like, “Join us for an exclusive webinar on July 30th. Click here to register,” can inform your target market and boost attendance.
Order Confirmations and Shipping Updates
Keep your customers in the loop with order status updates. For instance, “Your order #12345 has shipped. Track it here [insert tracking link]” ensures customers are informed every step of the way.
Personalized Offers
Businesses can send targeted promotions based on customer preferences or purchase history. “Hi John, enjoy 20% off on your next shoe purchase!” makes customers feel special and valued.
Loyalty Programs
For those with loyalty points or rewards systems, you can engage customers with SMS updates. “You’ve earned 50 points! Redeem them on your next purchase” keeps them excited about your brand.
Surveys and Feedback
SMS marketing is useful for gathering customer feedback through quick surveys. “We value your opinion! Please take our 2-minute survey,” helps you improve your services and shows customers you care about their input.
Limited-Time Offers
Create a sense of urgency among your customers with time-sensitive deals sent through SMS. A message like “Hurry! 30% off ends tonight at midnight” encourages quick action from your audience.
Product Launch Announcements
To drive curiosity and engagement, you can inform customers about new product arrivals through timely SMS marketing. Send messages like “New Collection Alert! Check out our latest styles now.”
Abandoned Cart Reminders
eCommerce businesses can also recover lost sales by reminding customers of their abandoned carts. “Don’t miss out! The items in your cart are waiting for you. Complete your purchase now,” can nudge them to finalize their orders.
4 Basic SMS Marketing Tips
Getting started with SMS marketing can be incredibly rewarding if you follow some basic guidelines. Here are a few essential tips to help you maximize the impact of your campaigns:
1. Choose the Right Platform
2. Build Your List (or Clean It)
3. Personalize Your Messages
4. Find the Right Timing
1. Choose the Right Platform
Selecting the right SMS marketing platform is crucial. Look for features like automation, personalization and analytics to track your campaign’s performance. Popular options include Klaviyo, Twilio, EZ Texting and SimpleTexting. These platforms offer user-friendly interfaces and robust capabilities to streamline your SMS marketing efforts.
2. Build Your List (or Clean It)
A clean and segmented list is the backbone of successful SMS marketing. Start by encouraging opt-ins through forms on your website or social media channels. Use double opt-in processes to ensure you have genuine subscribers. Regularly clean your list by removing inactive numbers and segmenting your audience based on preferences and behaviors. This ensures your messages reach the right people at the right time.
3. Personalize Your Messages
Personalization goes a long way in making your messages resonate with recipients. Use custom fields to address customers by their names and tailor the content to their preferences. Always include a clear and strong call-to-action (CTA) to guide your audience on what to do next. Ensure your messages stay on brand with consistent grammar and tone.
Example: “Hi [First Name], thanks for being a loyal customer! Enjoy 20% off your next purchase with code THANKYOU20. Shop now at [Your Website].”
4. Find the Right Timing
Timing is everything in SMS marketing. Avoid sending messages during early mornings and late nights unless it’s for event reminders. Midday campaigns are ideal, especially targeting specific segments during lunch breaks. Understanding your audience’s routine can help you schedule your messages for maximum engagement.
Example: If you run a restaurant, sending a lunch special offer at 11:00 AM can catch your customers just as they are planning their lunch breaks.
By implementing these basic SMS marketing tips, you can enhance your engagement and ensure your messages are well-received by your audience.
Remember, a thoughtful and strategic approach will always yield the best results.
📗 Related read: How To Use SMS Marketing This Holiday Season
About the Telephone Consumer Protection Act (TCPA)
The Telephone Consumer Protection Act (TCPA), enacted in 1991, is a federal law designed to protect consumer privacy. This legislation was a response to the increasing number of unsolicited and often intrusive telemarketing calls and faxes.
The TCPA sets strict guidelines for telemarketing communications, including voice calls, SMS texts and faxes.
It imposes limitations on telephone solicitations and the use of automated phone equipment. It restricts the use of automatic dialing systems, pre-recorded voice messages and unsolicited SMS texts and faxes. Essentially, without explicit consent from customers, companies must follow stringent rules when reaching out to consumers.
Under the TCPA, consumer consent is not just a courtesy. It’s a legal requirement.
Businesses that communicate directly with consumers via voice calls or texts must prioritize obtaining explicit consent. This ensures compliance with the TCPA and builds trust with your audience.
Always make sure you have clear, documented consent from customers before sending any messages.
Here are a few more SMS marketing strategies for TCPA compliance:
• Respect your customers’ time by avoiding messages during odd hours. Stick to reasonable times when sending your communications.
• Don’t overwhelm your customers with too many texts. Strike a balance to keep them informed without being intrusive.
• Keep your messages concise, relevant and actionable. Ensure that every text adds value to the recipient.
• Always provide clear and easy ways for customers to opt out of future messages. This shows respect for their preferences and helps maintain a positive relationship.
Following these SMS marketing strategies and guidelines not only keeps you compliant with the TCPA but also enhances your SMS marketing effectiveness by respecting your customers’ preferences and privacy.
Need a New SMS Marketing Strategy?
Simply put, SMS marketing gives you a direct line to your audience that few other channels can match. By leveraging the power of SMS marketing, you can connect with your audience in a meaningful way and drive real results for your business.
So, if you haven’t already, it’s time to tap into the potential of SMS and see how it can elevate your business’s marketing game.
Thrive Local’s SMS marketing experts are here to help you — send us a message.
