SMS marketing, also known as text message marketing, allows businesses to connect with customers through promotional text messages. It is an opt-in form of mobile marketing where customers consent to receiving texts from a company.
Similar to email campaigns, SMS marketing requires permission. However, text messages have a key advantage - they tend to be read faster than emails. The concise, 160-character format lends itself well to time-sensitive offers or reminders designed to inspire immediate action.
Latest research puts the number of text messages sent daily in the US at over 6 billion. That’s a lot of people talking to each other over SMS and text. With heavy competition, businesses can use SMS and text to differentiate themselves.
With high open rates compared to other channels, SMS represents an effective way for brands to provide value, encourage loyalty, and boost engagement with their audience. And with nearly every consumer now carrying a mobile device at all times, it offers an convenient path for ongoing dialog.
Let's look a little deeper into how SMS could help your business.
Benefits of SMS Marketing
Use Targeted SMS Messaging
Generic marketing messages often fail to connect with audiences. Imagine having a one-on-one conversation and you can tailor your words to the individual. SMS marketing enables this personalized approach, with texts crafted for each customer based on demographics, preferences, and behaviors. Targeted communication demonstrates relevance and value.
By avoiding blanket blast texts that lack context, brands can reduce noise and ineffective outreach. When every message relates directly to the recipient, engagement and trust builds over time. SMS allows ongoing dialog that nurtures customer relationships through thoughtful, customized interactions.
Audiences grow weary of broadcast content with no clear purpose. But with SMS technology, marketers can segment and speak to interest groups with meaningful offers shaped specifically for them. This targeted approach breaks through the clutter to deliver utility and reinforce loyalty.
Near-perfect Open Rates
Capturing audience attention is vital for marketing success. And no channel delivers higher open rates than SMS messaging. An incredible 98% of text messages are opened by recipients, near perfect readership.
Compare that to email, where retail campaign open rates hover around 20%. A study from HubSpot found industry averages even lower across education, non-profits and more. Why such dismal engagement? Inboxes overflow with promotions that are easily ignored or dismissed as spam.
But text messages are different. Their presence is prominently displayed on lock screens the instant they arrive. This visibility and sense of urgency prompts nearly all recipients to immediately open and read. For marketers seeking direct consumer connections, SMS represents the most direct pipeline to engage interest, spark action and drive results.
No other format can match the 98% open dominance that text messaging enjoys. Success depends on eyeballs, and SMS delivers them at unrivaled rates.
High Response Rates
Open rates of SMS marketing translate into similarly high response and click-through ratios. With texts instantly visible on lock screens, nearly half of recipients not only read but actively engage with text promotions. Boasting a nearly 50% response average leaves email marketing click-through rates in the dust - a mere 7% on average never come close to generating the same interaction.
This massive difference in audience behavior stems from the nature of the SMS channel itself. Text messages command attention in ways no inbox can match, prompting users to immediately consume content and react accordingly. The promotional links, calls-to-action and offers conveyed via SMS surface just as rapidly. Consumers click through at exponentially higher levels as texts inspire quicker decisions and response timeframes compared to email.
SMS Marketing Best Practices
SMS marketing doesn’t have to be complicated. In fact, it’s even easier than email or social media marketing since there’s no design component required.
Get a List of Customers You Have Permission to Message
In most places it’s illegal to text people that have not given you explicit permission to do so. Before you send an messages to them, make sure your list of recipients has given you permission to do so. Loyalty software can help you collect customer info and ensure you remain compliant.
Crafting Your Messages
Your texts don’t need to be long, remember, the shorter the better. Stick to about 160 characters, which is a sentence or two.
Here's an example text. Hi [name], it's [your name] from [business]. I'm reaching out because [reason for text - offer, ask for review, etc]. Could you take a moment to [clear call to action]? [Link]
Correct Messaging For Your Customers
Customers have different needs based on how they shop. A frequent in-store shopper wants different messaging than an occasional online buyer. Happy customers also expect different marketing than unhappy ones.
Segment your customers automatically based on POS data like purchase history and preferences. This saves time while ensuring accuracy. The right messaging for each customer segment boosts engagement and sales. Let your point of sale and loyalty program do the heavy lifting.
Give Customers a Way to Opt Out
Give customers the option to opt out of SMS messages. Opt outs are legally required and show you respect customer preferences. An opt out demonstrates good faith communication, not spam. Keeping open engagement channels helps connect with interested customers.
Related: The 5 Stages of the Customer Journey
SMS Marketing Strategies to Try
Welcome New Customers
Send a welcome text when someone joins your loyalty program. Include an exclusive new member discount to encourage repeat purchases.
Announce New Arrivals
Notify customers by SMS when you add new products. Drive traffic and buzz for the latest items, but limit to once per season to avoid over messaging.
Offer Flash Sales
Reward loyal customers with limited-time flash sales exclusively for your SMS list. Give them early access to show you value their business.
Send Seasonal Sales Alerts
Clear inventory with end-of-season sales alerts. Use customer data to segment and target relevant offers, like shoe deals for past shoe buyers.
Request Customer Feedback
Collect feedback through SMS surveys. The text channel often gets higher response rates than email. Learn what customers expect from your business.
Cross-Promote on Social Media
Grow your social media followers by texting customers links to follow you. Pair with contests for added incentive.
Final Thoughts
Customers are constantly connected to mobile devices. Tap into this channel with targeted SMS offers that catch their attention. Build your messaging around real customer data from your point of sale system. When you combine purchase history and SMS in one integrated platform, you can craft relevant offers tailored to buying behavior. This personalized approach boosts results for your text message marketing campaigns. Meet customers where they are which is reachable across all channels.
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