A guide to using SMS for B2B marketing

Is SMS a valid channel for B2B marketing?

Absolutely. Business owners who have opted in to receive messages will respond positively to SMS marketing messages when they are appropriate, timely, and contain information that saves them time, money, or helps their own business to run more efficiently.

With studies showing that over 80% of recipients check their text notifications within five minutes, open rates are high, and people are quick to engage with relevant messages.

Whether they are restock reminders, time sensitive bulk discount offers, or updates on their loyalty program status, there is a definite place for text messages in B2B marketing communication, provided they are well executed. Ensuring messages are relevant, timely, and respectful of the recipient’s preferences will result in closer and more profitable business relationships.

SMS vs Email for B2B marketing messages

Brands don’t have to choose between SMS and email for their B2B communication. They both have their pros and cons and can be used to complement each other.

For example, the business email addresses that are used are often generic shared mailboxes like [email protected] that either don’t get checked very often, or are crowded with SPAM, so important messages may get missed.

On the other hand, mobile phone numbers are almost always connected to a specific person in the company. This could be the business owner, or a specific person responsible for a key function like procurement, event management, or catering.

By matching your SMS messages with the right buyer persona can amplify the effectiveness of the channel. However, that doesn’t mean that SMS can or should replace email. It is worth making a side-by-side comparison of the two channels to identify their best uses.  

SMS and email – a comparison

1. Open rates: SMS messages have an open rate of around 98%, significantly higher than that of email, which is usually around 20-30% for B2B marketing messages
2. Immediate delivery: SMS messages are delivered nearly instantly, while emails can be delayed during busy times due to deployments getting queued by the mail server or throttling being applied. The immediacy of SMS therefore makes it ideal for time-sensitive communications.
3. Channel usage: Generally, people don’t check their email as frequently as their SMS messages. When people are out and about, the ping of a text message notification will have them reaching for their phone, which is not usually the case with email.
4. Engagement: SMS messages often have higher engagement rates due to their concise nature and fast delivery. When a message is triggered by some action that a B2B customer takes, then you know they will see the message straight away.
5. Direct communication: As we mentioned, SMS can provide a direct line to a specific person in the target business, usually leading to quicker responses and a higher conversion rate.
6. Opt-In requirements: In most territories the rules for opt-in and opt-out are comparable. See the section on B2B SMS marketing opt-in rules for more detail.
7. Character limits and rich media: SMS messages are limited to 160 characters, which restricts the amount of information they can convey. SMS messages can include links, but no images, rich media, or attachments – which are all natively supported by email. The key is to match the channel with the use case as both have their strengths. For a message like “” no images or excessive text are required.
8. Conversational communication: Although there is a limit on the length of messages and therefore the complexity of interaction that can be achieved, the immediate nature makes it better suited than email for brief but important conversational exchanges.   
9. Cost: Email marketing is generally more cost-effective on a per message basis, but the .
10. Automation: Both email and SMS marketing can be easily automated, although there are generally more mature automation features available with email as it has been used as a B2B tool for longer.
11. Analytics: Both email and SMS platforms provide detailed analytics, helping you track open rates, click-through rates, and conversions.
12. SPAM filters: Emails can be filtered into spam folders, reducing their visibility.
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B2B SMS marketing use cases

The most effective use cases for promotional business-to-business SMS messages lean on the specific strengths of the channel. It is extremely effective for short, direct messages like restock reminders, product updates and specific promotional campaigns that don’t require a lot of contextual information.

1. Targeted promotional campaigns

2. Appointment booking and reminders

3. Product launches and updates

4. Content distribution

Opt-in rules for B2B SMS marketing

While the exact rules are slightly different between regions, there are some definite common themes. Let’s look at two major regions that have well documented rules for SMS marketing opt-in – the United States and Europe.

United States

In the US, B2B SMS marketing is regulated primarily by the Telephone Consumer Protection Act (TCPA) and the guidelines set by the Cellular Telecommunications Industry Association (CTIA).

Here is a summary of the key rules, but we strongly recommend referring to the guidance on the TCPA website.

• Obtain specific consent: You must get express written consent from recipients before sending them marketing messages. There are lots of ways that this can be done – see the detailed section that covers them..
• Provide clear disclosure: When obtaining consent, you must clearly disclose the identity of your business, the types of messages recipients will receive, the frequency of messages, any potential costs, and how they can opt out if they choose to.
• Opt-out mechanism: Every SMS must include a clear and simple way for recipients to opt out of receiving future messages. This is usually by replying with “STOP”.
• Double opt-In (Recommended): While not legally required, it is recommended to use a double opt-in process. This involves sending a confirmation message after the initial opt-in to ensure the recipient definitely wants to receive your messages.
• Record keeping: You must retain records of all consents received, including the date, time, and method of consent.
• Timing: Messages should always be sent during appropriate hours to avoid disturbing recipients.

Europe

In Europe, B2B SMS marketing is regulated under the ePrivacy Directive and the General Data Protection Regulation (GDPR).

Again, we recommend that you refer to the detailed rules, but here is a summary of some of the key points.

• Opt-In consent: In most cases you need explicit consent from recipients before sending them marketing messages. This means they should have taken a clear action to agree to receive your messages.
• Soft opt-In exception: In the European legislation there is an exception known as “soft opt-in.” If you obtained the recipient’s contact details during a sale or negotiation for a sale, and the marketing relates to similar products or services, you can send messages without explicit consent. However, every message must receive a simple way for recipients to opt out.
• Legitimate interest: In some cases, you can rely on legitimate interest as a legal basis for processing personal data for marketing. However, this is more complex and still requires a careful assessment to ensure it doesn’t override the recipient’s rights and interests.
• Opt-out mechanism: As in the US, every SMS must include a clear and simple way for recipients to opt out of future messages, for example by replying “STOP”.
• Timing: Messages should be sent during sociable hours to avoid disturbing recipients

Getting numbers for B2B SMS marketing

There are a number of options for collecting phone numbers for business contacts that can be used for marketing purposes.

• Website forms: Include an opt-in checkbox for SMS communications where it makes sense, for example on your contact forms, newsletter sign-ups, and brochure requests. Be sure to convey the value that the person will get from signing up.
• Events and webinars: Collect phone numbers during event registrations or webinar sign-ups. By providing relevant and valuable content makes it more likely that people will provide their details.
• Email campaigns: Use your existing email list to promote SMS sign-ups to highly engaged recipients. Include a clear call-to-action in your emails explaining the benefits are of signing up for SMS communication.
• Incentives: Offer incentives such as discounts, free trials, or exclusive access to events for those who sign up for SMS updates.
• Customer support: Train your customer support team to ask for phone numbers during interactions, highlighting the benefits of SMS alerts for updates and promotions.
• Gated content: Offer valuable resources like industry reports or case studies that require users to provide their phone numbers to access.
• Partnerships: Collaborate with complementary businesses to cross-promote each other’s SMS lists, expanding your reach.
  

5 best practices for B2B SMS engagement

We have touched on some of the best strategies for engaging with your business customers and prospects via SMS, but it is worth recapping and covering some general best practices.

1. Keep within SMS character limits

We all know that there is a 160-character limit on text messages. What you might not know is what happens when links or hidden characters cause you to exceed this limit. Read all about SMS character limits here but be aware that when you go over 160 you might end up paying for two messages, or some of the message may be discarded.

2. Think about the timing of messages

Generally, business hours are best for B2B communications, but with many businesses open 24/7 or on weekends then there are exceptions. For example, a targeted campaign linked to an event that takes place on a weekend would be one. Or when you need to send a reminder about an appointment scheduled for a weekend or after usual business hours, for example systems maintenance or scheduled downtime.

That said, in some countries it is actually illegal to send business SMS messages on a Sunday, France being one. Refer to our detailed blog on global SMS compliance laws to ensure you don’t break any laws.

3. How do you personalize a message to a business?

That is a trick question! Even when sending text messages to a business it is a person that will be reading them, and that person will have a specific role in the company and their own preferences and requirements. Make sure that this information is captured, and that you use it to ensure your messages are always relevant for the recipient.

4. Provide clear value

Even if you get the personalization aspect of your message right, it is just as important to make it clear what value you are providing. If it is an exclusive time-sensitive offer or a reminder about a key event, then the recipient should be able to tell from a glance what you a presenting.

5. Include a clear CTA

Following on from a clear value proposition, the message must include an unambiguous and compelling CTA. Whether it’s visiting a website to redeem a discount, signing up for a webinar, or responding to a survey, make sure the action is easy to understand and execute.