Kaitlyn Orred
SMS is one of the most powerful ways to market your business. Consumers constantly check their phones to stay connected to the people and things they care about. With text message marketing, you build a direct line to your customers and grab their attention.
But before you can start using text to level up your marketing game, you need to know a few basics. Below, we break down what SMS marketing is, explore how it can benefit your business, and share strategies for leveraging SMS in your marketing strategy.
What Is SMS Marketing?
SMS marketing, also known as text marketing, is a form of digital marketing that uses text messages to promote your business directly to consumers’ mobile phones. It allows your business to reach customers quickly and effectively with targeted, concise, and engaging content.
First, you need to collect opt-in consent from customers to build a list of subscribers. Then, you use an SMS marketing platform to create and send targeted messages, track delivery and engagement metrics, and optimize future campaigns based on performance data.
Types of SMS Marketing
Just like there are different ways to approach traditional marketing, there are different kinds of SMS marketing messages. Depending on your strategy and goals, you can focus on one type of message or use a blend of several approaches.
Here’s a breakdown of the three main types of SMS techniques you can use to connect with customers and drive sales:
Transactional
Transactional SMS updates are all about keeping current customers up-to-date. Today’s consumers want as much information as possible about their purchases, including moment-by-moment updates on processing, shipping, and delivery. Transactional messages provide customers with essential information about the product or service they ordered.
You might send texts at several points between purchase and delivery, like:
- Confirming an order
- Shipping an order
- Communicating any shipping delays
- Confirming delivery
- Canceling an order
Although transactional messages don’t directly promote your products, they keep your customers engaged and informed, helping establish your company as a trustworthy, reliable brand. In turn, you encourage customers to make repeat purchases and recommend you to friends and family.
Promotional
When you directly advertise your business or products to your customers over text, you’re using promotional SMS messaging. You can set up personalized promotional messages that fit a customer’s unique situation, such as an abandoned shopping cart or someone browsing a particular product. You can also send promotional texts as part of a larger campaign or loyalty program.
Here are a few more situations where you might send promotional messages:
- Launching a new product
- Announcing a sale
- Offering personalized rewards
- Making company announcements
- Advertising company events
Engagement
Also known as conversational, engagement texts essentially involve having a two-way conversation with your customers. You can prompt customers to reply with certain words or phrases to learn more about a product, redeem rewards, get help with an order, or receive other types of support. Based on their responses, you’ll send an automated response with helpful information.
Check out these examples for inspiration:
- “Reply HELP to request a call back from a customer service associate.”
- “Text EXPLORE to get a link to our in-depth product guide.”
Some messaging services also provide more advanced options for engagement texting, leveraging generative AI technology to have full-on conversations with customers.
Benefits of SMS Marketing
Because text messages give you a direct line to your customers, SMS marketing has the potential to offer substantial ROI. Take a look at some of the key advantages compared to other forms of outreach.
High Open Rates
SMS marketing texts have an impressive open rate of 98%. That majorly outshines email marketing, which has average open rates ranging from 25% to 41% depending on the industry. The more people you can get to open your messages, the more likely you are to make a sale, which leads to higher conversion rates as well.
Immediate Delivery and Engagement
Because so many people rely on their phones throughout the day, text communication is one of the fastest ways to connect with customers. Case in point, 60% of people read their texts within just three minutes of receiving them. If you want near-instant engagement, text is the right move.
Direct & Personal
People use text to communicate with everyone in their circle, from friends to family to business contacts. By reaching out directly to your customers' text inboxes, you add a personal touch that’s missing from other methods. Some services, like Text-Em-All, will even let you customize texts by incorporating the customer’s name or other details.
Wide Reach
How many adults do you come across nowadays without a cell phone? If you’ve ever met one, they’re part of the mere 3% without one. Translation? SMS marketing makes your messaging available to the potential 97% of Americans with a cell phone close at hand.
High Engagement
Consumers prefer text messages to learn about their favorite products, access deals, and connect with the brands they love. Moreover, due to SMS's personal nature, engagement rates (such as click-through rates and conversion rates) tend to be higher compared to other marketing channels.
7 Ways to Use SMS Marketing
You can customize your text outreach strategy to gel seamlessly with the rest of your marketing. Here are just a few ideas to get you started.
- Deals and Discounts – Send out texts advertising buy-one-get-one deals, discounts, and other enticing promos to drum up extra sales.
- Loyalty Programs – Consider creating an exclusive text list to send special promotions to members of your loyalty program.
- Flash Sales – If you’re planning a flash sale that’s only live for a limited time, text is a great way to get the word out quickly and create a sense of urgency and excitement.
- Event Promotion – Have an upcoming local or national event? Send your customers and community all the details with a quick and easy text.
- Product Launches – Alert customers about new products that may interest them based on what they’ve bought from you in the past.
- Abandoned Cart Reminders – When customers leave their online shopping cart behind, send them a text a few days later to remind them to check out.
- Giveaways – Everyone loves free stuff. Engage your customers by sending giveaway and sweepstakes sign-ups straight to their phones.
Getting Started With SMS Marketing
Ready to incorporate texting into your marketing strategy? Follow these key steps to start on the right foot.
1. Review SMS Advertising Laws
Before you dive into the world of text message marketing, make sure you understand what you are and aren’t allowed to do. If you operate in the United States, you’re subject to SMS compliance laws that regulate your communications with customers.
Along with a few other stipulations, the law states that customers need written permission before you can send them texts. It also limits when you can reach out to customers and requires an opt-out option for recipients.
2. Develop a Strategy
What kinds of messages do you want to send to your audience? What tone of voice do you want to convey? Do you want to be more friendly and casual? Or more professional and straightforward? And what’s your company’s stance on emojis?
Developing brand guidelines for your texts can help you write effective messages that leave a stellar impression every time.
It’s also important to consider what kinds of promotional texts you want to send out and who you want to target with each message. You may decide to create multiple contact lists for customers with different buyer profiles or interests. Different providers may also offer personalization features, helping you connect more authentically with your audience.
3. Choose an SMS Service Provider
When companies use text message marketing, they don’t just go through contact lists and text numbers one by one. They partner with professional SMS services that automate the sending of mass text messages.
Research different providers and look for an option that offers the features and functionality you need. Factors to keep in mind include:
- Security – Use a trustworthy provider who will keep your contact lists and customer information private.
- Compliance – Although it’s important to stay on top of legal compliance yourself, it helps to collaborate with a partner who knows the ins and outs of text message marketing laws.
- Customer service – Explore reviews to ensure you pick a company that will help you troubleshoot technical issues quickly and efficiently.
- Analytics – To get the most out of your SMS campaigns, you’ll need performance data and analytics to tell you how your messaging is landing. Ask potential providers about which analytics features they offer.
4. Compile a List of Contacts
Start creating contact lists of customers who want to receive your marketing messages. Remember that customers must opt into marketing texts, so you need to get their permission first. (Steer clear of purchased contact lists and cold messages that may go against consumer privacy laws.)
You can get permission from customers in a few different ways, including:
- Providing customers with a checkbox to opt into marketing texts when filling out a form, making a purchase, or signing up for an account
- Asking customers to send an opt-in text to your company’s short code number
- Giving customers written forms when shopping in person
Prominently feature SMS sign-ups wherever you do business to make sure customers know that it’s an option. And, of course, highlight what’s in it for them: let them know the exclusive deals and updates available to opted-in customers. You can also offer one-time incentives for signing up, such as a coupon code or free gift.
5. Create a Schedule
Once your messaging and contact lists are ready to rock, you’re ready to build your messaging schedule. This’ll note what messages you’ll send to whom, and when.
When it comes to frequency, try to strike the perfect balance by reaching out once or twice a week. Sending too many messages could annoy your customers — and potentially cause them to opt out altogether. On the flip side, not sending enough messages could risk missing out on sales opportunities or customers forgetting why they signed up in the first place.
The time and day you send your messages can also make an impact.
Keep in mind that these days and times are general guidelines. You may find that your particular audience is more responsive earlier or later in the day.
Try experimenting with different times, then adjust your calendar as you learn about your audience’s habits.
Hot tip: Be sure to account for different customer time zones!
6. Optimize Your Messages
Once your text marketing system is off to the races, regularly adjust and fine-tune your strategy. Quality SMS providers will help you gather data about which texts are most successful.
Look for which messages have the highest conversion and engagement rates, and which ones underperform, then tweak the weak messages accordingly. You can also check out what types of promotions perform the best and when customers are most likely to open or click on your messages.
SMS Marketing Best Practices
Even if you already use text messaging in some capacity, these guidelines can help you maximize their impact:
- Follow the rules – Be vigilant about keeping up with text marketing regulations. Some States have their own unique rules, so stay on top of any updates in your area.
- Obtain consent – If a customer doesn’t consent to receive marketing texts, remove their information from your promotional contact lists.
- Respect opt-outs – Make sure you have a streamlined system for removing people from your marketing lists if they decide to opt out.
- Segment your audience – Create separate lists to make sure that different audience segments receive the texts that are most relevant to them.
- Keep it concise – Craft messages that are 160 characters or less to keep your audience’s interest.
- Make your CTAs clear – Guide your audience by letting them know what to do, whether it’s entering a promo code or exploring a sale page.
- Integrate multiple channels – Coordinate your marketing efforts across text, email, social media, and more to provide customers with a consistent experience of your brand.
Unlock the Power of SMS Marketing With Text-Em-All
SMS marketing provides businesses of all sizes with an affordable, scalable way to connect with customers. By incorporating texting into your business strategy, you can connect with hundreds of customers instantly, helping you drive conversions and fuel growth.