SMS funnel guide: What text funnels are & how they work

SMS funnels have emerged as a powerful tool for guiding leads through the sales funnel stages, from initial interest to conversion. By integrating timely, personalized text messages into your overall marketing strategy, you can engage audiences where they spend the most time: on their phones.

In this guide, we’ll explain what an SMS funnel is, how it enhances the customer journey, and how to create one that converts. Whether you’re targeting users in the awareness stage or nurturing those who are ready to buy, SMS is a low-friction, high-conversion way to move people through your sales process.

What is an SMS funnel?

An SMS funnel is a structured sequence of business text messages that guides prospects through the buyer’s journey, from awareness and interest to decision and action. Also called a text funnel or SMS sales funnel, it mirrors a traditional digital funnel but leverages the immediacy and intimacy of texting.

The process starts when users opt in to receive text messages, usually via a sign-up form or keyword text (e.g., “Text DEALS to 12345”). From there, they are moved through a sequence that educates, builds trust, and eventually drives them to take action. Whether that’s signing up for a free trial, claiming a special offer, or making a purchase.

Why SMS funnels work so well?

Compared to other digital channels, SMS offers unmatched engagement. SMS funnels consistently deliver high response rates, especially when paired with behavior-based targeting and real-time delivery. Here’s why SMS funnels are such a powerful tool in any marketing strategy:

• Unmatched open rates: With up to 98% open rates, SMS drastically outperforms email (average: 20%).
• Immediate engagement: 95% of SMS messages are read within three minutes, keeping your call-to-action (CTA) top of mind.
• High personalization: SMS lets you deliver personalized text messages based on real-time behavior.
• Streamlined delivery: SMS messages cut through the clutter and reach your audience directly—no spam folders.

The 3 core stages of an SMS funnel

Just like any sales process, an effective SMS marketing funnel follows a structured path. Here’s how to align text messaging with each funnel stage:

Awareness: Building your subscriber list

The awareness stage is all about attracting attention and generating interest.

Tactics:

• Use a sign-up form on your website or landing page.
• Offer incentives like special offers, early access, or a free trial in exchange for opt-in.
• Ensure users receive text messages only after clear consent (TCPA/GDPR compliant).

Tips for Integrated marketing managers: Integrate SMS opt-ins with other acquisition channels like paid ads and email to build a unified funnel.

Example CTA:

Consideration: Nurturing leads with drip campaigns

Here, you’re nurturing interest and encouraging deeper engagement. Use Infobip’s People CDP to segment new leads by source and send automated educational content tailored to their interests.

Tactics:

• Share social proof (reviews/testimonials)
• Offer content that adds value (e.g., product comparisons, FAQs, or insider tips)
• Use behavior-based triggers (e.g., product views, link clicks)

Tips for Digital campaign strategists: Use data to segment users and time messages to maximize response.

Decision: Driving conversions and encouraging action

Once a prospect reaches the decision stage, your SMS strategy should focus on overcoming the final barriers to purchase. These users are often ready to buy, but may need a well-timed reminder, a nudge of urgency, or a tailored incentive to commit.

Here’s how to create an SMS sales funnel that seals the deal, with real tactics, examples, and tools you can apply right away.

Tactics to create SMS funnels

Tactic 1: Send reminders for abandoned carts or trial expirations

Using Infobip Moments, you can build a cart abandonment flow triggered when a user adds items to their cart but doesn’t complete checkout within a defined time window (e.g., 1–2 hours), all through a simple drag-and-drop journey builder (no development work required). You can also A/B test message timing and incentives to continuously optimize performance.

Flow example:

Why it works: Time-based reminders reduce drop-off and turn window-shoppers into buyers with minimal effort.

Tactic 2: Create urgency with time-sensitive offers

Behavioral triggers, like a viewed product page or unclaimed discount, can launch real-time SMS alerts that tap into urgency and scarcity. With custom attributes and tags in our People CDP, you can track each user’s activity and send off perfectly-timed SMS nudges.

Use case example: A user clicks through a product page via email but doesn’t buy. You trigger this follow-up:

Bonus tactic: Layer in urgency countdowns for limited-time discounts, or alert users when a promotion is ending (e.g., “Only 2 hours left!”).

Tactic 3: Use a compelling CTA to drive response

A strong CTA turns passive reading into instant action. CTAs should be clear, urgent, and aligned with what the user wants most—convenience, savings, or access. Use short links and click tracking to measure performance. Every link in your SMS can be tracked to see what’s driving actual conversions. 

CTA examples that convert:

What to include in every decision-stage SMS:

• CTA button or shortened link
• Incentive or benefit statement
• Time sensitivity (“Today only”, “Expires in 24 hours”)
• Brand name or clear sender ID

Bring it all together with a smart funnel

Here’s what a complete decision-stage SMS funnel could look like in Infobip:

This can also be adapted for subscription renewals, expiring free trials, or exclusive event registrations.

Best practices for building an effective SMS funnel

To create an SMS sales funnel that delivers real results, follow these best practices:

• Start with compliance: Always get explicit opt-in consent and make it easy to opt out.
• Segment your audience: Tailor messages based on user behavior, location, or stage in the buyer’s journey.
• Time it right: Use data to determine when your audience is most responsive.
• Keep it short: SMS has a 160-character limit. Make every word count.
• Include a clear CTA: Always guide the user toward the next step in the customer journey.
• Test and iterate: A/B test subject lines, message length, CTAs, and sending times. Track which messages lead to more customers engaging, and refine your funnel based on performance data.
• Track results: Use real-time analytics to monitor open rates, click-throughs, and conversions.
• Data & analytics: Incorporate SMS data into broader marketing dashboards using attribution models to track multi-touch conversions.

A well-crafted SMS funnel is a powerful tool for driving conversions, building relationships, and guiding customers through every stage of the sales funnel.

Whether you’re helping users discover your product, nurturing them through a text funnel, or nudging those who are ready to buy, SMS offers speed, scalability, and personalization unmatched by other channels.

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