Most Companies are always searching for innovative ways to engage with their clients. Short Message Service (SMS) marketing has become a popular and efficient tool allowing brands to connect directly with customers through mobile devices.
In contrast to email marketing, which is often discarded in the spam folders or neglected, bulk SMS service guarantees a high response rate and instant engagement. With the rising cost of acquiring customers and a declining organic reach on social media, SMS marketing is fast becoming the go-to method for companies looking to increase sales and engagement.
In this article, we’ll go over everything you must be aware of in SMS marketing, from the basics of conformity to the latest strategies and trends.
What is SMS Marketing?
The SMS-based marketing method sends messages for promotions or updates and alerts directly to customers using text messages. It lets businesses engage with their customers directly and personally and ensures more engagement than traditional marketing methods.
The Evolution of SMS in Marketing
- In the early 2000s, SMS was mainly used to communicate with friends and family.
- In the mid-2000s, Companies began using SMS to notify customers and alerts.
- 2010s to Present: SMS marketing has become widespread, and brands could use it to promote promotions, abandoned cart recovery, and even engage in customer engagement.
The Benefits of SMS Marketing
Why should companies consider investing in SMS marketing? Here are the top advantages:
- Higher Open Rates SMS messages are open at close to 98%, much more than email marketing.
- Rapid Delivery – Messages are delivered to customers in real-time, making them ideal for time-sensitive promotions.
- Cost-effective Marketing via SMS is less expensive than direct mail or paid advertisement campaigns.
- Customized customer interaction businesses can personalize messages based on customers’ behavior and preferences.
- Higher ROI due to its high rate of engagement and SMS marketing services , it is often able to provide an impressive return on investment.
Understanding SMS vs. MMS
What is SMS?
- SMS (Short Message Service) is a text-only communication limited to 160 characters.
What is MMS?
- MMS (Multimedia Messaging Service) can send videos, images, and more than 1,600 characters.
When to Utilize SMS in conjunction with MMS
When to Use SMS vs. MMS
| Feature | SMS | MMS |
| Character Limit | 160 | 1,600 |
| Media Support | No | Yes (images, videos, GIFs) |
| Cost | Lower | Higher |
| Best Use | Promotions, alerts, reminders | Visual-based campaigns, product launches |
Short Codes vs. Long Codes
Companies can use SMS to send messages to different kinds of numbers:
- Shortcodes (5-6 numbers) – Ideal for marketing campaigns, shortcodes enable companies to send out large volumes of messages swiftly.
- Long-Codes (10-digit number) – Used for transactions and customer service but with a lower limit on sending.
SMS Compliance & Regulations
Why Compliance Matters
Failure to comply with SMS marketing laws could be punished with hefty penalties. To legally send out marketing messages, businesses must comply with the rules of:
- Telephone Consumer Protection Act (TCPA) – Requires organizations to obtain consent before sending SMS.
- Cellular Telecommunications Industry Association (CTIA) – Establishes guidelines for the use of wireless carriers.
Best Practices for Compliance
Get consent to opt-in before sending out messages.
Offer an easy way to opt out (e.g., “Reply STOP to unsubscribe”).
Be clear about the reason for the message when customers sign up.
Building an SMS Subscriber List
You must have a strong subscriber database to get the most out of your SMS marketing. Here’s how to increase it:
Passive Growth Techniques
- Web-based Pop-Ups: Utilize pop-ups to get users to sign up.
- Optional Checkouts: Offer a text message opt-in during checkout to receive special discounts.
- Print QR codes on the packaging, leading to a page for opt-in.
Active Growth Techniques
- Email campaigns Convert email users to SMS subscribers.
- Social Media Keywords Use posts with call-to-action inviting customers to use a text with a particular keyword to sign up.
Segmenting Your SMS List
Segmentation is vital to sending relevant and personalized messages. Here are key segmentation strategies:
- New and Old. Existing customers. Send welcome messages to new customers as well as loyalty rewards for customers who are returning.
- VIP customers offer exclusive discounts to customers who spend a lot.
- Abandoned Carts Help customers remember to finish their purchase by sending them customized messages.
Crafting Effective SMS Campaigns
To design efficient SMS campaigns, you must follow these guidelines:
- Keep it Simple: Use simple, concise messages.
- Utilize a powerful CTA that encourages immediate actions (e.g., “Shop Now,” “Claim Your Discount”).
- Personalize Your messages. Utilize customer names and purchase histories.
- Time It’s Correct Make sure you send messages in peak times (8 hours from 8 to 6 pm PST).
Types of SMS Campaigns
- Product Launch Announcements
- Holiday Sales & Discounts
- Restock Alerts
- Exclusive Promotions for Subscribers
Automation in SMS Marketing
Automating SMS campaigns can help save time and improve efficiency. Here are three critical automated workflows:
- Absent Cart Reminders: Remind customers to finish their purchases.
- Welcome Series – Introduce new customers to your company.
- Post-purchase follow-ups: Request comments or provide a coupon to purchase a future.
Measuring SMS Marketing Success
Key Metrics to Track
Subscription Rate – Try to achieve 1-2% or less.
Total Clicks & Unique Clicks – Measure engagement.
Revenue and Orders Track sales made by SMS.
Earnings Per Minute (EPM) – Higher EPM means a successful campaign.
Return on Advertisement Cost (ROAS) – Helps determine profitability.
Improving ROI
Reduce the frequency of messages when the rate of unsubscribes increases.
A/B tests different message formats.
Make offers more personalized based on customer behavior.
Future Trends in SMS Marketing
AI and Chatbots – Automate response for customer assistance.
Rich Communication Services (RCS) – Improved messaging that includes interactive features.
Omnichannel Integration: Combining SMS with email, social media, push notifications, and push notifications.
Conclusion & Next Steps
SMS marketing can be a game changer for companies seeking to improve customer interaction and boost sales. By following the best practices, ensuring compliance, and continually enhancing campaigns, companies can tap all the potential of SMS marketing.
Are you ready to begin? Apply these strategies now and be amazed at how your SMS campaigns flourish!
