One of the key benefits of SMS marketing is its ability to create a direct, immediate connection with customers, ensuring they never miss an important update or offer. Inboxes are overflowing and social media algorithms are constantly changing. That is why businesses need a reliable communication channel that ensures visibility and engagement.
SMS messaging has transformed from a primarily person-to-person (P2P) communication channel to a new and innovative way for businesses to connect with customers. Today, Application-to-Person (A2P) SMS solutions drive user growth, augment marketing campaigns, and provide new levels of customer service through two-way communication.
With billions of mobile users worldwide, SMS marketing offers an opportunity to connect with customers wherever they are. Whether it’s a promotion, an exclusive discount, or a quick reminder, SMS messages are seen, prompting an action from customers.
How can you ensure your brand is utilizing SMS to bring the most impact to your communication strategy? Let’s explore benefits of SMS marketing and why it should be an important part of your marketing strategy.
Key takeaways
- Global reach: With over 91% of the world’s population using a mobile phone, SMS marketing provides a direct channel to engage with customers worldwide.
- High engagement rates: SMS achieves a 98% open rate and a 45% response rate, ensuring maximum visibility for your messages.
- Cost-effective: SMS campaigns are more affordable than traditional marketing methods while delivering high ROI.
- Instant delivery and read rates: 95% of SMS messages are read within the first three minutes, making them ideal for limited-time promotions.
- No internet required: SMS works without an internet connection, allowing businesses to reach customers in areas with limited connectivity and. This is one of the biggest advantages of SMS marketing.
- SMS is versatile tool: Businesses use SMS for promotions, customer support, appointment reminders, feedback collection, and more.
What is SMS marketing?
SMS marketing is a business communication strategy that utilizes text messages (up to 160 characters) to share promotions, limited-time information, updates, reminders, and customer engagement messages.
Businesses use SMS to:
- Share promo codes and discounts
- Drive traffic to websites or apps
- Connect customers with support agents
- Reduce call center queues
- Collect feedback via surveys
- Send appointment reminders
With high delivery rates, strong engagement, and low costs, SMS delivers a high ROI, making it an essential marketing tool.
10 benefits of SMS marketing
The importance of SMS marketing lies in its ability to create instant and meaningful connections with customers. Here is why businesses should prioritize SMS as a marketing channel:
1. Global reach
As previously mentioned, over 91% of the world’s population owns a mobile phone, and virtually all these devices can send and receive text messages. This widespread accessibility means businesses using SMS marketing can connect with nearly every customer, regardless of location and also allows brands to scale up their messages as needed.
A competitive advantage comes from using two-way SMS through a global communications platform. Our customers, for example, can send SMS messages to customers across the globe through our 800+ direct operator connections in over 190 countries.
2. High engagement and open rates
Compared to email marketing, which achieves an average open rate of around 20-30%, SMS messages have an outstanding open rate of 98%.
This near-total engagement will boost the chance of them acting on the message, making it a powerful channel for communication.
3. Cost-effective with high ROI
SMS marketing campaigns are significantly more affordable than traditional advertising channels yet deliver far superior engagement. With their higher open rates and response levels, SMS campaigns are a cost-effective way to reach customers. Businesses that embrace SMS marketing can expect to see a higher return on investment (ROI) than other advertising forms.
Moreover, the ability to track performance in real time makes it easy to make swift adjustments, ensuring continued effectiveness.
4. Fast delivery
SMS messages are delivered instantly, and most are read within 3 minutes. While other communication channels may face delays or be affected by spam filters or crowded inboxes, SMS ensures immediate delivery and quick engagement.
This fast communication makes SMS ideal for time-sensitive offers, updates, or alerts.
5. Versatile
Text messages can contain any form of written content, making it a quick and straightforward way to address any use case for your business. You can effectively communicate:
- Onboarding information
- Promotions
- Delivery updates
- Tracking information
- Appointment confirmations
- Surveys
- And much more
The 160-character limit for SMS messages encourages concise communication, allowing businesses to get straight to the point without overwhelming customers with lengthy text.
6. Reliable
SMS is one of the most reliable channels to ensure that customers receive and open your messages. If you use SMS through a well-connected platform, you can expect fast delivery with little to no downtime.
Additionally, 95% of text messages are opened within the first three minutes, so the probability that your message reaches its intended recipient is high.
7. No internet required
Unlike other digital marketing methods, SMS does not rely on an internet connection to be delivered, ensuring that your messages reach customers even in remote areas or regions with low internet connectivity.
This makes SMS an essential communication tool for businesses that serve rural or less connected communities.
8. Personalization and customer engagement
One of the key benefits of SMS marketing is the ability to personalize messages. By tailoring your messages based on user preferences, past purchases, and customer behavior, you can build a deeper connection with your audience.
Personalized content leads to more meaningful interactions, increasing the chances of customer engagement and loyalty.
9. Supports two-way communication
A2P (Application-to-Person) SMS enables dynamic interaction between businesses and customers.
Through features like automated responses, chatbots, and direct customer support, businesses can engage in real-time conversations, ensuring an enhanced and interactive customer experience.
10. Complements other marketing channels
SMS marketing perfectly complements other marketing strategies such as email, social media, and push notifications.
By incorporating SMS into a comprehensive omnichannel approach, businesses can ensure they are reaching their customers across multiple touchpoints, enhancing brand awareness and driving more conversions.
SMS marketing best practices
It is one thing to implement SMS as a new marketing channel, but if you want to see the best results and genuinely understand whether SMS marketing is effective, there are a few best practices you should follow:
Collect opt-ins
Before you start reaching out to your customers via SMS, it’s important to collect a clear opt-in from them. You can do this through their communication preferences when signing up for your service, at checkout when they make a purchase, or through other channels such as on the phone or email. Whether you’ve collected their phone number through previous interactions, customers must opt-in to receive marketing text messages from your business.
You must make sure customers know:
- Messaging or data rates may apply
- How often you’ll be sending messages (how many times a day and if the frequency can be changed)
- When you’ll be sending messages (time of day)
- What kind of content you’ll be sending (and if they can choose different content)
NOTE: The consequences of not getting consent and spamming customers can include steep fines or being banned from sending future messages.
Offer opt-out options
Like email subscriptions, it’s best to provide a clear opt-out option for customers who wish to stop receiving your SMS marketing messages.
You can communicate this through a text message, offer it through your other forms of communication, or have a clear place on your website or app where they can change their preferences and opt out of specific channels.
Follow SMS limits
We highlighted the details about SMS limits and the best practices for navigating them. Although there are ways around the 160-character limit, such as turning UCS characters into GSM ones, it’s best to stick to the initial limit to avoid potentially fragmenting your customer experience.
Messages that exceed the SMS character limit will be delivered in broken pieces which can lead to confusion and poor engagement.
Send messages at the right time
Many tools and solutions are available to businesses that want to optimize customer communication. Using artificial intelligence for your SMS marketing efforts can help you analyze your customers’ engagement history, so you know the best time to send a message.
The right timing of a message can influence its open and engagement rates. Imagine the difference in your engagement with messages you receive at 1 am when you’re most likely sleeping versus at 1 pm when you’re most likely scrolling your phone during a midday break.
Use SMS as a fallback channel
SMS is an even more powerful channel when used as part of a wider omnichannel communication strategy. Businesses can use SMS as a primary marketing channel or set it up as a failover option to other channels, such as push notifications.
Due to its high deliverability rates and no reliance on internet, brands can implement cross-channel communication to ensure customers receive their messages and can reach their support teams anytime.
Make it conversational
Customers today expect more than just information, they seek an interactive experience.
When two-way communication is used thoughtfully, it creates a more engaging and enjoyable journey for your audience.
Why is SMS marketing important?
- Consumers understand the value of SMS for security, verification, transactions, updates, and business communications. A2P SMS is an exceptional channel for marketing, support, and customer growth because it’s direct, personal, and simple.
- SMS marketing perfectly complements existing digital channels and is especially effective for real-time offers and specials. SMS augments other marketing channels and offers customers choice over how, when, and where they hear from companies. Pair that with an average 98% open rate and 45% response rate, and SMS promotions have a strong appeal for reaching your most engaged customers.
- Opting in to receive messages, especially texts, signals not just interest but customer engagement with your brand. Engaged customers are more likely to participate in loyalty programs, coupons, surveys, and updates.
- SMS also reduces customer support pain points. From quick answers to simple questions to an alternative to waiting on hold, SMS provides an alternative way for customers to get their support queries resolved.
SMS marketing use cases
As we mentioned above, SMS can be used for a variety of marketing use cases. Here are a handful of ways you can connect and engage with your customers through text messages:
Welcome message
Welcome messages are a great way to say “Hi” to new customers and share your most important details. They’re also a great way to confirm that they opted in and can now expect to receive SMS messages from you. Give them a warm welcome and use the opportunity to direct them to your website or app.
Hi July, we’re excited to have you here. As a thank you, enjoy 10% off your first order with code WELCOME10. Shop now: shop.com/welcome10.
Promotional discounts
Use SMS to inform customers of your latest promotions or give them an extra discount code for opting into your SMS marketing communication.
Upgrade your wardrobe with 20% off all summer styles. Use code SUMMER20 at checkout. Don’t miss out and shop now: shop.com/summer20!
Seasonal campaign
Seasonal campaigns or products only last for a limited period and SMS is the best channel to ensure your customers receive and read the details about your latest offers on time.
Pumpkin spice & everything nice! Our fall collection is here – cozy blankets, scented candles, and more. Order now & get free shipping: shop.com/app.
Upsell or cross-sell
Tap into customer purchase or conversation history to suggest new products or services related to their previous interactions. Remember that personalized SMS marketing is the best way to increase engagement.
Hi Tim, since you loved our protein bars, we think you’ll love our new protein shakes! Get 15% off on your next favorite snack. Shop now: shop.com/15.
Loyalty programs
Remind customers of their current point balance and what they can purchase with them. Share other details about your loyalty program they might not know about and influence engagement on your website or in your app.
Hey Sarah, you have 200 loyalty points waiting for you! Use them for a free latte or keep saving for even bigger rewards. Check your balance: latte.com/points.
How to set up SMS marketing
Option 1: You can choose to set up SMS marketing messages on your own or purchase SMS messages from a carrier and start sending them to customers. However, this practice has seen less than optimal results in most cases since it can be expensive and time-consuming.
Option 2: SMS API is an efficient and scalable option for setting up SMS marketing messages. You can set up automated messages, schedule sending, URL tracking, and language configuration via API. SMS API is easily integrated into your existing marketing systems so you can instantly start setting up your campaigns.
Option 3: Alternatively, you can find a communications provider that does all the heavy lifting for you. These providers have worldwide connections already set up and often offer an easy-to-use solution to make messaging fast and effective.
Omnichannel communication solutions can make setting up SMS marketing messages easy. A drag-and-drop interface can help you set up dynamic messaging flows that trigger specific automated messages based on customer behavior. Solutions that use customer data to create customer profiles will help you personalize marketing messages and increase engagement.
An omnichannel customer engagement solution can have added benefits, including send-time optimization functionalities and real-time analytics and reporting. Leveraging technology such as artificial intelligence to make data-driven decisions will help you improve your overall SMS marketing results.
SMS marketing success stories
Here is how brands around the world have used SMS as a key marketing channel:
- GOAT Interactive enhanced customer engagement by implementing two-way SMS and one-time passwords (OTPs). This strategy delivered 47.3 million messages with an 87% delivery rate, significantly improving user interaction and security.
- LankaBangla Finance effectively communicated with its customers through personalized SMS messaging. This approach resulted in a 90% delivery rate, ensuring that important financial information reached clients promptly and reliably.
- Wefarm, a platform connecting small-scale farmers, relied on two-way SMS to facilitate knowledge sharing among its members. By enabling farmers to ask questions and receive answers via SMS, Wefarm achieved a 97% member retention rate, building a strong and engaged community.
The future of SMS marketing
From browsing and ordering to delivery and feedback, everything can be managed with a few texts rather than a series of emails, phone calls, or app notifications. SMS seamlessly integrates into any communication environment, enabling accurate omnichannel communication and marketing.
As technology advances, the capabilities of SMS as a marketing channel will evolve too. With the metaverse on the horizon, developments in AI, and 6G on its way, SMS will continue to play a significant role in successful communication strategies for brands worldwide.
SMS marketing FAQs
You can measure the success of your SMS marketing efforts by tracking the following key metrics:
Open rate: The percentage of recipients who open your SMS messages (SMS generally has a 98% open rate).
Response rate: The percentage of recipients who take some sort of action after receiving your message (replying to the message, clicking a link, etc.)
Conversion rate: The percentage of recipients who take the desired action, such as purchasing a product, clicking a link, or booking an appointment.
Unsubscribe rate: Track the number of users opting out of your SMS list. High opt-out rates may signal that your messaging strategy needs adjustment.
ROI: Calculate the return on investment by comparing the revenue generated from your SMS campaign to the cost of running the campaign.
Delivery rate: Ensure your messages are successfully delivered and not blocked or filtered out.
Yes, there are several legal considerations for SMS marketing:
Consent: You must obtain explicit consent from recipients before sending them marketing messages. This is often done via an opt-in process.
Compliance with regulations: Follow the rules established by laws like the Telephone Consumer Protection Act (TCPA) in the U.S., or the General Data Protection Regulation (GDPR) in Europe, which govern how businesses can collect and use customer data. In addition to government laws, you must also comply with carrier regulations. This includes registering your sender ID before sending marketing messages, content monitoring to ensure compliance, and avoiding being labeled as spam by the carrier if you don’t abide to their rules.
Opt-out option: Always provide recipients with an easy way to opt out of receiving future messages (e.g., “Reply STOP to unsubscribe”).
Data privacy: Be mindful of privacy laws and how you store, manage, and use customer information.
Message frequency: Avoid spamming recipients by sending excessive messages. Respect the frequency preferences they have set.
SMS marketing offers unique advantages compared to email and phone calls.
One of the biggest strengths of SMS is its exceptionally high open rate, with nearly 98% of messages being opened, most of them within three minutes of delivery. This makes SMS highly effective for ensuring your messages are seen quickly, especially for time-sensitive offers or updates.
In contrast, while email marketing can also reach a wide audience, its open rate typically stays around 20-30%, and emails may not always be seen immediately due to factors like inbox clutter or spam filters.
On the other hand, phone calls have a high potential for engagement if answered, but they require more time and direct interaction, which can sometimes be less convenient for recipients.
Each channel (SMS, email, and phone calls) has its place in a marketing strategy. SMS is best for quick, high-engagement messages, email serves well for longer-form content, and phone calls offer a more personal touch when needed. Depending on the situation, all three can maximize your ability to reach and engage your audience effectively.
Experience the benefits of SMS marketing and learn how to integrate it into your strategy
