Businesses of all sizes are swiftly realizing the benefits of integrating text message marketing into their overall marketing strategy. Research indicates that 97% of Americans own a cell phone, with 85% explicitly owning a smartphone; interestingly, most of these individuals prefer texting over talking, making SMS marketing an appealing marketing solution.
Acquiring customer phone numbers is a simple task that can be accomplished through various methods. Once you have curated your customer database and established a well-thought-out SMS marketing strategy, text message marketing can be an excellent means of connecting with customers and boosting sales. This article gives us 13 benefits of SMS marketing and its importance for businesses.
1. Higher Open Rate
Text messages have consistently proven to have the highest open rates compared to phone calls or emails. An astounding 98% of the messages sent are opened, making SMS services an invaluable tool for enterprises seeking quick and effective customer service. Moreover, the impact of text marketing is further amplified by the fact that 90% of text messages are read within the first three minutes of being received.
It means your messages have a significantly higher chance of reaching your target audience promptly and making a lasting impression. With such impressive statistics, it’s evident that leveraging SMS services can significantly enhance your communication strategies and drive better customer engagement.
2. Cost Effective
SMS marketing is an excellent choice for brands with limited budgets. The cost of your SMS messages will vary depending on the text message marketing platform you use, typically averaging around $0.01 per SMS per recipient. Additional platform fees may apply depending on your SMS marketing provider. For instance, JookSMS provides reasonably priced services starting at 0.011 per message.
Compared to print and television ads, which can run into thousands of dollars, SMS marketing is a more affordable option for businesses. Its cost-effectiveness makes it an incredibly lucrative solution for small and medium-sized enterprises looking to reach their target customers without breaking the bank.
To put this into perspective, consider that the average Facebook Ads cost per thousand impressions (CPM) is approximately $13.97, equating to about $0.014 per impression. Furthermore, an additional fee of $0.99 per click is incurred when someone clicks on an ad.
3. Reach a Wide Demographic
With the estimated global mobile user count projected to reach 7.49 billion by 2025, SMS marketing presents an effective avenue for businesses to connect with a diverse customer base. One of the critical advantages of bulk SMS marketing is its ability to reach customers without internet connectivity; a simple working phone suffices.
In today’s mobile-centric world, SMS emerges as a valuable asset, allowing businesses to engage with customers at their fingertips and tap into a broader target audience. Marketers can leverage various SMS marketing tools to segment their audience and craft personalized messages that resonate with different demographics.
4. Fast Delivery
SMS marketing enables you to connect with your customers promptly. Remember our previous mention about customers opening texts within three minutes? It means there’s a high likelihood that they will see your message shortly after it’s sent.
SMS is excellent for swift customer outreach, such as notifying them about a flash sale or updating their orders. Most mobile carriers support the delivery of text messages worldwide in under five seconds, making SMS marketing a convenient and efficient means of communication.
5. Mobile-Friendly
One of the many advantages of text message marketing is its universal reach. Regardless of the mobile device or telecom provider, SMS messages can be conveniently received anytime and anywhere. It makes text message marketing a widely accessible and effective method of customer communication and marketing across the globe.
Moreover, SMS marketing allows for integrating multimedia elements such as photos and videos, making it an engaging and dynamic platform for businesses to showcase their products and services.
6. Compatible with Other Types of Marketing
SMS is a reliable, independent channel that effortlessly integrates with your current digital marketing channels and tools. This seamless integration lets you synchronize data across platforms and create a comprehensive omnichannel marketing experience.
For instance, Textline seamlessly integrates with popular tools such as Facebook, Instagram, Shopify, and more. You can streamline your operations on a single platform with easy setup and centralized mobile communication management. This compatibility makes SMS marketing a versatile and efficient solution for businesses of all sizes.
7. Flexible and Customizable
SMS marketing isn’t just about blasting generic messages to your customer base. It’s a versatile tool that allows for the customization and segmentation of customers according to preferences, purchase history, location, and more.
With this feature, businesses can tailor their messaging to specific customer segments, increasing the likelihood of conversion and building meaningful relationships with customers.
Instead of traditional marketing, approach this communication as if conversing with a friend. This approach helps establish a personal connection with the consumer, and you can further enhance the personal touch by customizing your messages.
8. Opt-In Option
Traditional advertising methods often rely on the law of large numbers for success. By broadcasting your marketing message to a broad audience, you increase the chances of reaching potential customers. However, this approach requires spending money on messages many consumers quickly need to remember.
In contrast, SMS marketing relies on consumer opt-in. Your target audience must willingly sign up for promotional messages about deals and promotions. Opt-in marketing offers significant advantages for businesses. Firstly, those who receive your messages are already deeply interested in your brand or product; otherwise, they would have needed to sign up. Secondly, you avoid wasting time and resources on customers who aren’t interested.
By embracing opt-in marketing, businesses can establish a more engaged and receptive audience, leading to more effective communication and higher conversion rates.
9. Opt-Out Option
Competition is fierce in small businesses, and customers bear the brunt. Your company is likely one of many bombarding each customer with ads, promotions, and other content. While customers may feel trapped in this never-ending cycle, they can opt out of your marketing texts. Like email marketing, most SMS marketing tools offer a straightforward process for users to opt-out.
Surprisingly, this is one of the critical advantages of text marketing. Customers overwhelmed with texts from your business may become annoyed and decide not to purchase. In such cases, it is crucial to respect their decision to opt-out. After giving them some time and space, consider reaching out to these customers through alternative channels to regain their interest.
10. Better Communication with Customers
Establishing customer loyalty is crucial for e-commerce brands aiming to achieve long-term success. Fortunately, SMS provides an efficient means to achieve this goal. By using SMS marketing, businesses can establish more direct and personal communication channels with customers.
With SMS, you can send exclusive discounts, grant VIP customers early access to product launches, and offer one-of-a-kind deals. These special privileges create a sense of exclusivity and belonging, fostering customer loyalty and repeat business. Moreover, they demonstrate your dedication to nurturing strong relationships with valued customers.
SMS is also valuable for sending helpful order reminders, providing personalized product recommendations, and offering customer support through text. You can elevate the overall customer experience by leveraging these capabilities, ensuring your subscribers stay engaged and connected to your brand.
11. Possibility to Use Shortcode
Shortcodes are shortened phone numbers businesses can use to send and receive text messages. They offer an easy way to send bulk SMS and allow customers to reply directly to the sender.
Shortcodes are valuable because they’re easier for consumers to remember, making it more likely for them to interact with your brand via text message. Additionally, this feature allows you to personalize your messaging and incorporate call-to-action buttons that are easier for customers to click.
12. Direct Channel for Communication
SMS is a powerful tool for relaying time-sensitive information to your customers. Whether shipping delays or delivery notifications, texting ensures you can provide the necessary details quickly and conveniently. Unlike emails, which can get lost, texts guarantee that your customers receive the information they need without searching for it themselves.
Moreover, SMS lets you notify customers about essential sales and exclusive, limited-time offers they might otherwise miss out on. By doing so, you can drive traffic and boost sales with ease.
13. Time Management
Managing and automating business processes can save time, money, and stress. Text marketing is no exception to this rule. With features such as automated campaigns, scheduled messages, and easy-to-use templates, most of your SMS marketing efforts can be managed beforehand.
As a result, you can focus on other aspects of running your business while keeping customers informed and engaged. SMS marketing can streamline your communication process and improve overall time management.
What is SMS Marketing?
SMS marketing involves sending offers, promotions, and reminders via text to subscribers’ mobile devices. With a character limit of 160, it supports plain text, numbers, and emojis. MMS marketing takes SMS to the next level by allowing multimedia content such as videos, images, audio, and GIFs. Like email marketing, SMS marketing offers a personalized and measurable approach for brands to engage with consumers.
Integrating text message marketing into the company’s marketing campaign gives businesses many advantages. These include reaching a broader audience, personalizing messages, establishing customer loyalty, and automating processes. With the increasing reliance on mobile devices for daily activities, SMS marketing has become an essential tool for modern businesses.
Related Article: What is SMS Marketing?
Who Should Use SMS Marketing?
SMS marketing is beneficial to various industries and businesses of all sizes. Almost all sectors use text messaging for different purposes. Some industries utilize text marketing:
- Retail – Sends promotional deals, product launch updates, and customer service messages.
- Banking – Uses SMS for fraud alerts, balance notifications, and other critical information.
- Healthcare – Sends appointment reminders, health tips, and prescription refill reminders via text.
- Hospitality – Uses texts to send reservation confirmations and special offers to guests.
- Real Estate – Sends property listings and open house reminders to potential buyers.
- Restaurants – Sends coupons, promotions, and reservation confirmations via text.
- Non-profit – Uses SMS to send donation requests, event reminders, and updates to supporters.
- Human Resources – Uses texts to send interview reminders, onboarding information, and policy updates.
- Education – Sends school closures, emergency alerts, and other announcements via text.
Why is SMS Marketing Important?
SMS marketing provides a quick and direct channel of communication with customers. Over 5 billion people use mobile devices globally. It makes SMS one of the most effective channels to reach target audiences.
Many individuals are frequently invited to subscribe to receive promotional offers and updates through SMS. In marketing campaigns, numerous brands use SMS to remind or follow up with customers to encourage them to open their emails.
SMS can enhance rich media campaigns, allowing e-commerce companies to combat cart abandonment, increase sales, send order confirmations, provide delivery updates, and gather valuable feedback through SMS marketing.
Is SMS Marketing Effective?
SMS marketing is rapidly gaining popularity and is projected to increase by 52% by 2023. According to the 2020 Global Messaging Engagement Report, SMS is the second-most preferred communication channel worldwide across generations.
However, not all text message campaigns are created equal. Some drive high conversion rates and customer engagement, while others lead to frustration, unsubscribes, and damage to brand reputation. It’s crucial to craft impactful campaigns that resonate with your audience and deliver exceptional results.
Here are some case studies to draw inspiration from if you consider this marketing strategy.
- Dell – Dell is one of the world’s most prominent vendors of PCs and monitors. They leveraged the power of text message marketing to manage order confirmations and customer alerts effectively. Through this medium, they provided timely updates to customers regarding their orders and informed them about credit card holds. The immediate nature of these updates allowed customers to swiftly take action through an alternative payment method or contact their credit card company for resolution. With an impressive 98% read rate within 4-6 minutes of delivery (compared to 22% for email), Dell successfully ensured that customers remained well-informed.
- Pottery Barn – Pottery Barn is a highly regarded brand in the home furnishing industry. The company utilizes business texting to communicate the latest deals effectively, provide delivery updates, and share exciting in-store and online events with customers. Many companies employ sending promotional offers as a widely adopted and successful method of obtaining customer opt-ins. Pottery Barn uses this strategy to its advantage and regularly sends promotional offers to entice customers. As a result, they have seen an impressive 98% open rate and 45% conversion rate for their text campaigns, making it one of their most effective marketing channels.
- SalesForce – SalesForce is an established customer relationship management platform. The company uses text messaging to send personalized follow-ups to customers who have recently made a purchase. Including a discount code and product recommendations in the message entices customers to make additional purchases. This strategy has resulted in an 80% response rate from recipients and significantly increased their overall sales.
What are the Statistics about SMS Marketing Effectiveness?
Discover a comprehensive list of SMS marketing statistics that delve into the effectiveness of this marketing approach. Explore why SMS marketing has emerged as the ultimate method to connect with consumers and uncover valuable insights on seamlessly integrating it into your business strategy.
- According to statistics, about 90% of individuals respond to a text message within the first 3 minutes of receiving it (Viber).
- Text messages have an impressive average open rate of 98% (Crazy Egg).
- Research indicates that over 50% of customers purchase after receiving a marketing text (Attentive Mobile Consumer Report).
- Approximately 33% of customers are willing to receive a text message if the content is relevant to them (Attentive Mobile Consumer Report).
- According to the Attentive Mobile Consumer Report, studies have revealed that 96% of marketers who have utilized SMS marketing have experienced a boost in revenue.
- Approximately 60% of marketers have reported significant revenue generation thanks to the implementation of SMS marketing, as per the Attentive Mobile Consumer Report.
- Research conducted by Adobe indicates that coupons received through SMS are redeemed ten times more frequently than any other medium.
- According to Attentive Mobile, SMS marketers generate an impressive return on investment of $71 for every dollar spent.
- Text messages boast an outstanding open rate, with 98% of consumers reading them upon receipt (Aviaro).
- Compared to other channels, text messages exhibit a significantly higher response rate of 209% (Salesmessage).
- The average response time for an SMS message is a mere 3 minutes (Smsglobal).
- Statistics reveal that 95% of SMS messages receive a reply (Smsglobal).
- The finance and banking industry has the highest response rate at 57% (Sender).
- The SMS Loyalty program has proven beneficial for 9 out of 10 customers who enroll, according to Mobivity.
- Startup Bonsai reports that approximately 41.3% of businesses have experienced a significant increase in opt-in messages.
- Studies conducted by Rebrandly indicate that texting is a preferred communication method for about 40% of women.
- According to Marketing Dive, approximately 25% of women use SMS to vote for television shows.
According to researchers, by 2022, an estimated 92% of individuals will possess at least one mobile phone, regardless of whether it is connected to the Internet. Text messages have proven more effective than online marketing strategies for companies when reaching a broader audience.
The advancement of AI technology has revolutionized SMS marketing, making it faster and more efficient than ever before. AI now sends reminders, provides prompt answers, and addresses frequently asked questions.
Moreover, incorporating SMS for customer service and support has enhanced customer retention. It also generated a significant increase in positive reviews and direct brand recommendations.
Related Article: Statistics About SMS Marketing
What are the Challenges of SMS Marketing?
While SMS marketing presents many opportunities, it has its challenges. A primary concern for marketers is the potential for intrusion and harassment, as text messages are a very personal medium. Therefore, ensuring timely, relevant, and welcoming messages is paramount to customer trust.
Additionally, compliance with various national and international regulations, such as the U.S. Telephone Consumer Protection Act (TCPA) and the General Data Protection Regulation (GDPR) in Europe, can be complicated. Finally, creating concise yet compelling messages within the 160-character limit presents a unique challenge for marketers.
What are the SMS Marketing Tools?
Various SMS marketing tools can be used and integrated into your business strategy. The most suitable text message marketing service depends on your needs and the size of your target audience. Here are some of the SMS marketing tools for business:
- JookSMS – JookSMS offers a comprehensive text message marketing service with features such as mass texting, scheduled messages, saved replies, and more. It also offers competitive pricing plans for businesses of all sizes.
- Klayvio – Klayvio is a popular email marketing platform offering SMS services. With its user-friendly interface, businesses can easily create and schedule text messages to send to their customers.
- EZ Texting – This tool provides an easy-to-use platform for sending mass texts and features such as drip campaigns and two-way messaging. It also offers a free trial for new users.
- SlickText – SlickText offers a customizable text marketing platform with features such as automation, targeted campaigns, and integration with CRMs. It also provides competitive pricing options for businesses looking to implement SMS marketing.
- Clickatell – This platform offers various SMS marketing services, such as bulk, two-way, and transactional messages. It also has many integrations with popular CRMs and eCommerce platforms.
Can Templates be Used for SMS Marketing?
Yes, templates can be used for SMS marketing to ensure consistency and save time in messaging. Many SMS marketing tools offer pre-designed templates that can be personalized according to your brand and campaign needs. Using templates can also aid in achieving the goal of creating concise yet compelling messages with a 160-character limit. However, it is essential to ensure that the SMS marketing templates are regularly updated and personalized based on customer data to maintain relevance and avoid repetitive messaging.