Do you have any idea what the SMS open rate is? Ninety-eight percent. That's more than double the rate of emails, which is said to hover at around 42.35%. These numbers go to show just how relevant SMS marketing strategy is in the business world today. [1] [2]
But people opening that message isn't enough. You need to see a return on your investment. What better way to get that right than by understanding the ins and outs of this type of marketing?
This SMS marketing guide is going to take you through what this marketing approach entails so you can decide whether it's the best decision for your business.
Key Benefits of SMS Marketing
This marketing channel brings the following good tidings to the table:
- It has the potential to create stronger relationships. This is largely because texts create a direct line between you and your customer.
- It gives room to operational efficiency. Think appointment reminders, shipping updates, or order confirmations. All these little things save time and reduce no-shows.
- With the right analytics tools, you can see exactly who opened your message, clicked links, or made purchases. This data helps you tweak and improve your marketing efforts over time.
These are a few perks of SMS marketing. Here's an example to put them into perspective:
Say you own a salon. A simple text reminder saying, "Your haircut is tomorrow at 3 PM," could cut cancellations by half. Plus, if you're running a promotion, you can toss it in. It could be something like, "Bring a friend and both get 15% off!" Now you've got two happy customers instead of one.
If these are some of the benefits you'd want to reap, it may be a good idea to look into SMS marketing platforms like Solutions by Text or any others you know. Research the offers they have and how tailored they are to your business. If you like what you see, you can make a decision to take your marketing campaigns to the next level.
Setting Up Your SMS Marketing Campaign
An SMS marketing campaign can greatly benefit your business, but only when deployed the right way. Here's how to set your campaign up for success:
Step 1: Define Your Goals
Before you start blasting out messages, figure out what you want to achieve. Are you trying to boost foot traffic? Promote a new product? Maybe collect feedback from customers? Your answer will set the pace for how you proceed.
Say you run a coffee shop. One goal might be, "Increase weekend sales by 20%." Another could be, "Get 50 reviews on Yelp this month." Having clear goals keeps you focused. Otherwise, you'll end up sending random texts without knowing what exactly worked and what missed.
Step 2: Build Your Opt-In List
It's not uncommon to see people buy a list of phone numbers. Not only is this unethical, but it can also land your business in the proverbial hot soup in many jurisdictions. Instead, grow your list organically.
How? Offer incentives.
For instance, put a sign in your store: "Text 'COFFEE' to 555-1234 for 20% off your next drink." You could also add a form to your website asking visitors to join your VIP list. If you're the outdoorsy type, you could join a few local events and hand out flyers with QR codes people can scan to opt in. When you have your prospects join your SMS list willingly, they're more likely to be responsive to your messages.
Step 3: Choose the Right Platform
There are tons of SMS platforms out there. But which one should you pick? There are factors you need to look at. One question to ask yourself is: Do I want advanced features like automation or segmentation? If that's the case, you won't run short of options.
For example, you can engage platforms that go beyond basic SMS marketing and offer you top-of-the-range features such as ringless voicemail or others that can take customer engagement to the next level. Ringless voicemail delivers your message directly to a customer's voicemail without the phone ringing. This gets your message across without interrupting or intruding into their lives.
You also need to think about the volume of messages you're going to send. Will it be in the thousands or just a handful? How about the pricing? Is it clear, or you'll end up hit with hidden fees from every corner?
Best Practices for Effective SMS Marketing
Once you've got everything set up, your next biggest concern is making sure your texts hit the mark. Here are some tips to help you get it right:
Keep It Brief and to the Point
A typical SMS can accommodate only 160 characters when using the 7-bit GSM-7 encoding. Add fancy characters, and the number drops to 70. That said, you need to be wise about how you put this space to work.
Here's how you can go about it:
Focus on One Key Message
It's not everything that should go into one text. It's way better if you stick to one idea or offer. Here's an example of too much in one:
"New book in stock! Mystery genre. Author signing today. Limited copies. Free coffee with purchase."
It would have been way better if you went with: "New mystery book alert! Limited copies. Get yours today!" Here, the main point comes first. Everything else follows.
Use Short Words and Phrases
Shorter words save space and are easier to read quickly. For example, instead of, "We are thrilled to announce the arrival of an extraordinary mystery novel that will captivate your imagination," you're better off running with, "Exciting new mystery novel just arrived!"
Use Links to Add More Info
If you have a lot more to share, make good use of shortened links. These keep your message concise while giving customers a way to learn more. For example, you could write: "New mystery book alert! Limited copies. Learn more: bit.ly/mysterybook." This link takes them to a landing page where you can provide all the juicy details without overcrowding the text.
Test Different CTAs
Not every CTA carries equal weight. A good practice is to test out different ones to find out what works best for you. You could go with "Shop now!" "Get yours today!" "Limited stock—act fast!" or any other that works.
Segment Your Target Audience
It goes without saying that not everyone is after the same thing. That's why it's a great idea to divide your target audience into groups based on factors like age, location, or purchase history.
Say you own a clothing store. Send men's discount codes to guys and women's deals to ladies. Or target locals with an event invite while offering free shipping to out-of-towners. Segmentation makes your messages feel tailored, which can increase engagement.
Types of SMS Campaigns
There are different types of SMS campaigns. A healthy mix of the following can help you build one that resonates with your crowd:
Promotional Messages
The bread and butter of all SMS campaigns are the promotional ones. In this category, there are no blushes. The message is loud and clear: "We want to sell, and we'd like you to buy from us."
You often use this format to announce sales, discounts, or new arrivals. A good example of such SMS is, "Flash Sale Alert! Save 30% on all items today only. Code: FLASH30."
Transactional Messages
Someone has made an order in your store or business, or has just recently booked an appointment. How do you let them know, for example, the ETA of the order or whether the appointment has been scheduled? Transactional messages. For instance:
"Your pizza will arrive in 30 minutes. Track delivery here: [link]."
Engagement Campaigns
Selling is central, but it isn't always the point. Sometimes you want to hear more from your customer. You could run polls, surveys, or contests to gauge their perception, thanks to engagement campaign messages. A text like this can work:
"Rate your meal (1-5). Reply 5 for a chance to win dinner for two!"
Customer Loyalty Programs
Customers who've been with you through thick and thin deserve some love. Loyalty programs can see to it that you reward them with perks like freebies or exclusive access.
You can send them one such message, for example: "Earn double loyalty points this weekend. Spend USD$50, get USD$10 back!"
Compliance and Regulations
People spend about a third of their waking lives on their phones. Your marketing messages are quite likely a part of what they'll see when they're using their devices. [3]
This level of intimacy and access can open the door for abuse, and that's why checks and balances are in place to stop that from happening. Here are some of the regulatory authorities whose rules you need to pay heed to when running your SMS marketing campaign:
TCPA (U.S.)
The Telephone Consumer Protection Act says you must get explicit consent before sending marketing texts. That means people need to opt in willingly. An example of an invite to get them on board could look like:
"Text 'JOIN' to 555-1234 to receive exclusive offers. Reply STOP to unsubscribe."
If someone texts "STOP," honor it immediately. Sending another message after they've opted out isn't only likely to put them off but can also get you in trouble with the powers that be.
GDPR (EU)
If you have customers in Europe, GDPR applies. It's all about transparency. You need to tell people exactly why you're collecting their numbers and how you'll use them. For instance, when someone signs up, include a note like this:
"We'll send you occasional promotions and updates. You can unsubscribe anytime by texting STOP."
Measuring SMS Marketing Campaign Success
So, you've sent your first batch of texts. Now what? Time to check how well it went. Here's what to keep an eye out for:
Delivery Rate
This tells you how many messages actually reached people's phones. Most platforms will show this automatically. Aim for 95% or higher. Anything lower might mean issues with your provider or formatting.
Open Rate
Since texts are almost always opened, focus on whether people engaged with your content. Did they click a link or reply? For example, if you sent a coupon, track how many people redeemed it. That gives you a clearer picture of success.
Conversion Rate
How many people took the action you wanted? Whether it's buying a product, signing up for an event, or leaving a review, conversions show real results.
Say you ran a promo offering 20% off shoes. Out of 1,000 texts sent, 200 people used the code. That's a 20% conversion rate, and it's a good one, by the way.
Engagement Metrics
Did people text back? Click links? Share your message? These smaller interactions prove your audience cares about what you're saying. Use analytics tools built into your SMS platform. They'll save you hours of manual tracking.
Common Mistakes to Avoid
You already know how to get your campaigns on the right track. Now, here are some pitfalls that you should be aware of so you can steer clear.
- Overloading your subscribers with daily texts is a fast way to lose them. Stick to once or twice a week unless it's urgent.
- Sending generic messages like, "Hey, we've got a sale!" That's always a bad idea. Instead, personalize. Take the extra step to address your customers by name or reference past purchases. For instance: "Hi Sarah, enjoy 20% off your favorite jeans today only!"
- Ignoring opt-outs is another mistake. If someone texts "STOP," respect it. Continuing to send messages after they've asked you not to is illegal and disrespectful.
Avoiding these mistakes can help you establish a good rapport with your customers, which may increase the odds of them buying from you or even spreading the word to their connections about your products and services.
Closing Thoughts
SMS marketing has the potential to bring your products and services right to the clients in an intimate and personal way, turning them into customers and ambassadors of your brand. But keep in mind that the goal isn't just to send texts. It's to build meaningful connections with your audience.
Treat them like humans, not numbers on a list. Offer value, respect their time, and listen to their feedback. Learn from what works and what doesn't. Over time, you'll develop a strategy that feels natural and drives real growth.
Sources
- "Unlock Business Growth With SMS: Why Texting Is Essential," Sources: https://www.forbes.com/councils/forbestechcouncil/2024/06/06/unlock-business-growth-with-sms-why-texting-is-essential/
- "Email Open Rates By Industry (& Other Top Email Benchmarks)," Source: https://blog.hubspot.com/sales/average-email-open-rate-benchmark
- "People devote third of waking time to mobile apps," Source: https://www.bbc.com/news/technology-59952557
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