How to Boost Your Business with SMS Marketing In 2023

With over 5 billion people owning mobile phones worldwide. SMS marketing has emerged as a powerful tool for businesses to communicate with their customers directly.

People check their phones over 150 times a day. and over 90% of these messages are read within 3 minutes of being received.

SMS campaigns have a response rate of 45%, compared to just 6% for email campaigns.

These numbers prove the powerful impact that SMS marketing can have on a business’s bottom line.

But what makes SMS marketing such a great tool for marketers?

SMS messages cost a fraction of the price of traditional advertising channels such as TV, radio, or print media.

SMS marketing allows businesses to easily segment and target their audience. Ensuring that messages are delivered to the right people at the right time.

And with the ability to personalize messages with customer data. such as names and past purchase history.

SMS marketing can help build stronger customer relationships and drive repeat business.

SMS marketing meaning

SMS marketing, or text message marketing, is a form of digital marketing that involves sending promotional messages to customers via SMS (Short Message Service) text messaging.

These messages can include a variety of content, such as promotional offers, event invitations, appointment reminders, and more.

SMS marketing campaign

An SMS marketing campaign is a powerful way to reach your audience through their mobile devices.

A successful SMS marketing campaign requires a clear goal, targeted messaging, a well-planned strategy, and effective execution.

Identifying the goal of an SMS campaign could increase brand awareness, promote a new product or service, drive sales, or encourage customer loyalty.

Once the goal is established, it’s time to identify the target audience. and craft relevant and compelling messages that resonate with them.

The next step is to create a strategic plan for the campaign, including the timing and frequency of the messages, the opt-in process, and any promotional offers or incentives.

It’s important to pay attention to timing and frequency to ensure that messages are not sent too often, which can lead to opt-outs, or not frequently enough, which may result in a lack of engagement.

To execute the campaign effectively, it’s essential to use a reputable SMS marketing platform that offers features such as automated messaging, segmentation, and personalization.

With these features, you can send personalized messages based on the customer’s behavior, interests, and preferences.

SMS marketing campaign examples

SMS marketing campaigns can be highly effective when executed correctly.

Let me provide you with some examples of successful SMS marketing campaigns.

Example 1: Starbucks

In 2016, Starbucks ran an SMS campaign where customers could text in a code to receive a discount on a drink.

The campaign was highly successful, with 400,000 customers redeeming the offer within the first week.

The simplicity of the campaign and the incentive provided by the discount encouraged customer engagement and led to increased sales for the company.

Example 2: Subway

Subway is another brand that has successfully utilized SMS marketing.

In 2014, they launched a campaign where customers could opt in to receive daily deals via text message.

The campaign led to a 50% increase in foot traffic and a 30% increase in sales for participating stores.

Example 3: Old Navy

Old Navy used SMS marketing to promote their “Black Friday” sale in 2016.

They sent out a series of texts leading up to the event, which included previews of the deals, reminders of the sale, and even an opportunity for customers to “skip the line” by showing their SMS coupon to a store associate.

The campaign was successful, with a 10% increase in sales compared to the previous year’s “Black Friday” sale.

SMS marketing benefits

SMS marketing offers several benefits that make it a powerful tool for businesses.

1. High open and read rates

SMS marketing has some of the highest open and read rates of any form of marketing. With an average open rate of 98% and an average read rate of 90%.

This is because SMS messages are typically short, to the point, and delivered directly to the recipient’s mobile device.

To put this into perspective, let’s compare SMS marketing to other forms of marketing.

Email marketing, for example, has an average open rate of around 20%. Meaning that only a fifth of the people who receive an email actually open it.

In contrast, SMS marketing has an open rate of nearly 100%. Making it a much more effective way to get your message in front of your target audience.

Another form of marketing that SMS outperforms is social media advertising.

While social media advertising can be effective in reaching a broad audience. It can also be easily overlooked or ignored by users who are bombarded with ads on a daily basis.

SMS marketing, on the other hand, offers a more direct and personalized way to reach customers. with a message that is more likely to be seen and read.

2. Instant delivery and engagement with customers

SMS messages are delivered almost instantly to the recipient’s mobile device.

This means that your message can be seen and acted upon within minutes of sending. Making SMS marketing an ideal tool for time-sensitive promotions and announcements.

In addition to instant delivery, SMS marketing also boasts high engagement rates with customers.

According to recent studies, the average response time for an SMS message is just 90 seconds.

This means that customers are more likely to engage with your message and take action.

Whether that be making a purchase, signing up for a service, or simply replying with a question or comment.

3. Cost-effective and measurable results

Compared to other forms of marketing. Such as print or television advertising, SMS marketing is relatively low-cost.

In fact, some SMS marketing services can cost as little as a few cents per message. making it an attractive option for businesses of all sizes.

In addition to being cost-effective, SMS marketing also offers measurable results.

By using analytics and tracking tools, businesses can track the success of their campaigns in real-time, and make adjustments as needed.

This allows businesses to optimize their messaging and targeting, leading to better results and a higher return on investment.

Moreover, SMS marketing is a measurable way to gauge customer engagement and feedback.

By including calls-to-action in messages. businesses can track customer response rates. and use that data to improve their messaging, promotions, and overall customer experience.

4. Personalization and targeted messaging

One of the key advantages of SMS marketing is its ability to provide personalized and targeted messaging to customers.

By collecting and analyzing customer data. Businesses can tailor their messaging to individual customers, increasing engagement and driving conversions.

For example, businesses can use customer data to send personalized promotions. and offers to customers based on their previous purchase history or interests.

This not only increases the likelihood of a sale. But also improves customer loyalty by showing that the business values their individual preferences.

Additionally, businesses can use targeted messaging to reach specific customer segments. such as geographic location, age, or gender.

This allows businesses to send relevant messaging to customers who are more likely to be interested in their products or services, resulting in higher engagement and conversions.

Moreover, studies have shown that personalized and targeted messaging can significantly improve the success of SMS marketing campaigns.

According to a report by Experian. personalized messages have a 29% higher open rate and a 41% higher click-through rate than generic messages.

SMS marketing best practices

Let’s explore some of the Best SMS marketing practices you should know.

Obtaining opt-ins

One of the key aspects of SMS marketing is obtaining opt-ins from customers.

Unlike other forms of marketing where customers might be bombarded with unsolicited emails or calls, SMS marketing is permission-based.

This means that customers have explicitly given permission to receive promotional messages from a business.

Obtaining opt-ins can be done in various ways. One of the most effective ways is by offering incentives to customers in exchange for their phone numbers.

For instance, a business can offer a discount or exclusive access to content to customers who opt-in to receive promotional messages.

Timing and frequency of messages

When it comes to SMS marketing, timing and frequency of messages are crucial to the success of your campaign.

With SMS, you have a direct line of communication to your customers’ pockets and you want to make sure you’re not bombarding them with messages at inconvenient times or too frequently.

Firstly, let’s talk about timing. Timing refers to the time of day or week that you send your messages.

You want to make sure that your messages are being sent at a time when your customers are most likely to be available and receptive.

For example, if you’re a restaurant, you may want to send your messages around lunch or dinner time when people are thinking about food.

According to a study by Omnisend, the best time to send SMS messages is between 10 am and 12 pm, and between 2 pm and 6 pm.

Next, let’s talk about frequency. Frequency refers to how often you send messages to your customers.

You want to make sure you’re not sending too many messages and overwhelming your customers. But also not sending too few messages and being forgotten.

It’s important to find a balance that works for your business and your customers.

A study by SimpleTexting found that the optimal frequency for SMS campaigns is 4-6 messages per month.

It’s also important to consider the type of message you’re sending when deciding on the timing and frequency.

For example, if you’re sending a promotional message, you may want to limit the frequency to avoid coming across as spammy.

On the other hand, if you’re sending time-sensitive information such as appointment reminders or urgent updates, you may need to send more frequent messages.

Crafting compelling and relevant messages

Since SMS messages have a limited number of characters, it’s important to make every word count.

A message that’s too vague or not relevant to the recipient is likely to be ignored, leading to a wasted opportunity.

To craft compelling and relevant messages, businesses must first understand their target audience and what they are looking for.

This requires thorough research and data analysis to identify customer needs, preferences, and pain points.

Once businesses have this information, they can tailor their messages to resonate with their audience.

It’s also important to make messages actionable, with a clear call to action that entices recipients to take the desired action.

Whether it’s making a purchase, signing up for a service, or simply visiting a website, the call to action must be compelling and easy to follow.

Testing and optimizing campaigns

The best way to test and optimize SMS campaigns is to conduct A/B testing.

This involves splitting your target audience into two groups. and sending each group a slightly different message or call-to-action.

By comparing the results of each group, you can determine which message. or call-to-action is more effective and adjust your campaign accordingly.

Another way to optimize SMS campaigns is to analyze the data from your campaigns regularly.

This includes open rates, click-through rates, and conversion rates. By understanding the data, you can make informed decisions about what changes to make to your campaigns.

For example, if you notice that a particular message has a higher open rate but a lower conversion rate.

You may want to adjust the messaging or call-to-action to improve the conversion rate.

By continually testing and optimizing your campaigns. you can improve your SMS marketing strategy and achieve better results.

Studies have shown that businesses that conduct regular A/B testing. and optimize their SMS campaigns see a 36% increase in click-through rates and a 42% increase in conversion rates.

SMS marketing compliance

It is essential to understand that SMS marketing is regulated by laws to protect consumers’ privacy and prevent spamming.

Therefore, businesses must adhere to these regulations to ensure compliance with SMS marketing guidelines.

For instance, in the United States, the Telephone Consumer Protection Act (TCPA) regulates SMS marketing.

Requiring businesses to obtain explicit consent from customers before sending them promotional messages.

Failure to comply with the TCPA can result in hefty fines and legal consequences.

To ensure compliance with SMS marketing regulations. businesses should use a double opt-in process to obtain customers’ consent to receive promotional messages.

This means that customers should provide their phone numbers and confirm that they want to receive SMS marketing messages by responding to a confirmation message.

Additionally, businesses should provide an easy and straightforward opt-out process for customers who no longer wish to receive SMS marketing messages.

Customers should be able to opt-out by replying with a simple keyword, such as STOP, which should be clearly stated in the SMS message.

SMS marketing conversion rate

Conversion rate is one of the most important metrics to track in any marketing campaign, including SMS marketing.

In SMS marketing, conversion rate refers to the percentage of recipients who took a desired action after receiving your text message.

This could include making a purchase, filling out a form, or clicking a link.

To calculate your conversion rate. you simply divide the number of conversions by the number of messages sent, and multiply by 100 to get a percentage.

For example, if you sent 1,000 messages and received 50 conversions, your conversion rate would be 5%.

It’s important to note that conversion rates can vary widely depending on the industry and the specific goals of the campaign.

However, on average, SMS marketing campaigns have a conversion rate of around 14%, which is significantly higher than other marketing channels like email.

SMS marketing cost

The cost of SMS marketing can vary based on a number of factors. Including the size of your database, the frequency of your campaigns, and the platform or provider you choose.

However, SMS marketing can be a very cost-effective way to reach your audience.

The cost of SMS marketing is typically calculated on a per-message basis.

The cost per message can range from a few cents to several cents, depending on the provider and the volume of messages you send.

Some providers also charge additional fees for features like personalization or targeting.

SMS marketing ROI

ROI, or return on investment, is a critical metric in any marketing campaign, and SMS marketing is no exception.

It measures the revenue generated as a result of the money and resources invested in an SMS marketing campaign.

It is important to measure the ROI of an SMS marketing campaign to understand its success and to identify areas for improvement.

The formula to calculate the ROI of an SMS marketing campaign is simple: ROI = (Revenue – Cost)/Cost x 100.

For example, if a company spends $10,000 on an SMS marketing campaign and generates $50,000 in revenue as a result, the ROI would be calculated as follows: ($50,000 – $10,000)/$10,000 x 100 = 400%.

The higher the ROI, the better the campaign has performed. However, it is essential to remember that ROI can be impacted by a variety of factors.

Such as the size of the audience, the nature of the offer, and the effectiveness of the message.

To improve SMS marketing ROI, it is important to target the right audience with the right message, personalize messages as much as possible, and test campaigns to optimize performance.

sms marketing message sample

Here’s a sample SMS marketing message that you can use as inspiration for your own campaigns:

This message includes personalization by using the recipient’s first name, a clear call-to-action with a sense of urgency, and a promotional offer that encourages immediate action.

Keep in mind that the length of your SMS message should be concise, typically around 160 characters or less.

But remember, crafting an effective SMS marketing message is just one piece of a successful campaign.

It’s important to have a strategy in place that considers your audience, goals, and metrics for measuring success.

Common challenges in SMS marketing and how to overcome them

One of the biggest challenges is obtaining and maintaining a quality subscriber list.

It is essential to have permission from subscribers to send them SMS messages. and you should obtain consent in compliance with relevant laws and regulations.

Additionally, maintaining a quality list requires regularly monitoring. and updating it to avoid inactive or incorrect numbers.

To overcome this challenge, make it easy for subscribers to opt-in and provide clear value propositions for subscribing.

Consider offering incentives, such as discounts or exclusive content, to encourage people to sign up.

Another challenge is achieving high open and response rates. Unlike email, SMS messages have a limited amount of characters, so it’s crucial to make the most of that space to create engaging and compelling messages.

Consider using personalization, clear and concise language, and a strong call-to-action to increase response rates.

Additionally, be mindful of timing and frequency, as sending too many messages can lead to unsubscribes and a negative perception of your brand.

Compliance with relevant laws and regulations is also a significant challenge in SMS marketing.

These laws vary by country and can include requirements for obtaining consent, providing opt-out options, and avoiding certain types of content.

To overcome this challenge, make sure you are familiar with and follow all relevant laws and regulations. Consider working with legal experts to ensure compliance.

Lastly, tracking and measuring the success of SMS campaigns can be a challenge.

Unlike email marketing, there are no standard metrics for SMS campaigns, so it’s essential to determine what metrics to track based on your goals.

These can include open rates, click-through rates, conversion rates, and ROI.

To overcome this challenge, set clear goals and define your metrics upfront.

Use tracking and analytics tools to measure and analyze your campaigns’ performance and make data-driven decisions.

SMS marketing vendors

SMS marketing vendors are companies that provide software. and services to help businesses execute their SMS marketing campaigns.

These vendors provide a range of features. such as list management, message creation, campaign scheduling, and reporting.

One great example of an SMS marketing vendor is Salesmsg.

Salesmsg offers a user-friendly platform that is designed to help businesses communicate with their customers via text messaging.

Their platform is affordable and comes with a range of useful features. Such as automated messaging, personalized messaging, and campaign analytics.

Salesmsg offers pricing packages that start at $25 per month for 500 messages and go up to $249 per month for 7,500 messages.

This pricing is competitive in the industry and their platform is known for its ease-of-use and intuitive interface.

SMS marketing lists

SMS marketing list is the foundation of any successful SMS marketing campaign.

It is a list of subscribers who have opted-in to receive text messages from your business.

Growing your SMS marketing list is crucial for the success of your SMS marketing campaigns.

One way to grow your SMS marketing list is by using Facebook.

Facebook allows you to create ads that specifically target users who are likely to opt-in to your SMS marketing list.

You can also include a call-to-action in your Facebook posts to encourage your followers to opt-in to your SMS marketing list.

Another way to grow your SMS marketing list is by using other channels such as your website, email campaigns, and even in-store promotions.

You can also offer incentives such as exclusive discounts, freebies, or contests to encourage people to opt-in to your SMS marketing list.

It is important to note that you should always obtain consent from your subscribers before adding them to your SMS marketing list. This can be done through a web form, text message, or in-person.

In addition, it is important to regularly clean your SMS marketing list to ensure that your subscribers are still interested in receiving your text messages.

This can be done by sending a re-engagement campaign or by removing inactive subscribers from your list.

Final thought…….

SMS marketing can be a powerful tool for businesses to engage with their customers and drive conversions.

However, it is crucial to follow compliance guidelines. focus on conversion rates, manage costs, and choose the right vendor.

By implementing best practices and continually growing your subscriber list. You can achieve a high ROI and take your marketing efforts to the next level.

We encourage readers to share their thoughts and experiences with SMS marketing in the comments section below.