Unlocking the Power of SMS Marketing: Why It's Essential for Modern Businesses

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Do you want to take advantage of a marketing strategy with 4x higher open rates than emails? SMS marketing is one of the easiest and most effective ways to reach your target audience in this digital age. This is SMS marketing, one of the most efficient and effective methods to reach out to your audience. This post will look at SMS Marketing, the different types of SMS campaigns, and some real-life examples of how companies use SMS to achieve their goals.

What is SMS Marketing?

Text marketing, or SMS marketing as it is also known, allows companies to communicate with customers via text message. The messages could be promotional offers, discounts or shipping alerts.

SMS marketing has many advantages over mobile marketing methods like push notifications and email marketing. One of the most significant advantages of SMS marketing is its nearly 100% open rate. That means you are more likely than ever for your customers to read your message.

Text marketing allows you to communicate with your audience clearly and concisely. You can text your customers about a sale, promotion or weekend event. If you run a restaurant, you could send out SMS with the daily specials.

What are the Different Types of SMS Campaigns?

SMS campaigns can be simple or complex. Two of the most efficient forms are:

Campaigns for Promotion

The purpose of promotional SMS campaigns is to create interest in products or services. These campaigns can offer discounts, coupons or other offers. A quality CTA can help you drive people to your website or store. This SMS example is from a fashion brand. It includes a customized coupon code and a link directly to their store page.

Campaigns for Transactional Marketing

These messages are delivered in response to a specific event or activity. They provide information to customers that are relevant and time-sensitive, like appointment reminders or shipping notifications. These messages have a very high open rate and effectively drive conversions because they're timely and relevant.

A transactional SMS is an example of an order confirmation for an online purchase. Baking Steel sent an SMS campaign that included order confirmations, tracking data and an option to unsubscribe.

SMS Marketing: Why do Businesses Use it?

Are you aware that 75% of consumers feel comfortable receiving SMS messages from brand names, provided they have opted-in? The SMS marketing strategy reaches out to your audience and provides them with relevant and timely information. That can increase engagement and brand awareness. You can do SMS marketing in several ways.

Reach Customers Faster

Text messages can be a great way to communicate urgent information since 90% are read within 3 minutes. You can send SMSs to your clients if, for example, there is a special offer that's only available during a specific period.

Increase your Response Rate

SMS is a great way to communicate with your clients directly through their mobile phones. Text messages are more likely to be read than any other form of marketing. The response rate can keep customers interested in your SMS marketing and provide opportunities to offer further promotions.

Try adding a CTA to your texts to increase the response rate. That will encourage people to move forward. You could, for example, include a CTA such as "Reply Yes to RSVP" or "Click on the link to find out more."

Other Marketing Channels can be used to Complement your own

Although SMS broadcast marketing is a powerful tool on its own, it can be enhanced by other social channels. You could use SMS to advertise a sale or contest on social media. Or you can include in your texts a link that will take the recipient to an email newsletter. To increase registrations, you could use SMS to remind your customers about an upcoming event or webinar.

Customer Loyalty

You can increase loyalty among your customers by using SMS marketing. It allows you to personalize messages and offer to each customer. It is an excellent way to increase your customer's loyalty and make them feel appreciated.

Revenue Increase

By driving customers to your website or store, SMS marketing will help increase sales. Use SMS for advertising special events or sales and include a "call to action" to encourage customers to benefit from the promotion. Use SMS to remind your customers to finish their purchase of items left in their cart.

Examples of SMS Marketing Campaigns

Are you ready to increase your SMS marketing efforts? You can start by using these creative SMS strategies and examples:

Welcome Messages for New Subscribers

Send a welcome message to the customer who has subscribed to your SMS campaign! You'll be able to let them know that they have been subscribed and engage in a conversation with them immediately. It also sets the tone for future communications. The welcome message can be straightforward. It's enough to say, "Thank you!" Include a special coupon or offer.

New Product Announcements

Announcing new products is another intelligent way to use SMS marketing. Let your subscribers know about a product or service that you are excited to have as soon (or even before it is available). It's an excellent way to create buzz and interest and get customers to return to your store to see what you've got.

Include a link to your storefront or website in your SMS campaigns. Text "Check out the new arrivals!" with a link to your online store or website. It can increase traffic to your website and encourage people to come back.

Shopping Carts that have Been Abandoned can be Followed up

Cart abandonment rates for online businesses average 69.82%. That is a tremendous amount of revenue left on the plate! You can recover lost sales by using SMS to send abandoned cart messages. That is done when customers leave items in their shopping carts. That is an example of SMS marketing from CB2, which sells home furnishings.

Notify Customers of the Availability of Products

Stock Items are one of the biggest frustrations for consumers. You can let customers know as soon as a product is back in stock so they can purchase it before it sells out again. Customers can be notified when products that they are interested in go on sale.

Collect Customer Feedback

Companies need to get customer feedback to know what's working well and how they can improve. Quick and easy SMS surveys are a great way to collect customer feedback.

Use tools such as Google Forms and SurveyMonkey for a quick survey. Then send the link via SMS techniques. You can also ask customers to rate your message from 1 to 5, then contact those who gave a lower rating.

Text-based Customer Service

Text messages can be used to offer customer service. It benefits companies that employ mobile workers, such as plumbers and delivery drivers. A customer can send a message to someone instead of calling them. It can be a time-saver for customers and less stressful for businesses. U-Haul offers its customers the option to check in or out by text.

Request Production or Service Reviews

SMS is a popular way for companies to collect feedback about the service they provide or their staff. Uber is a company that asks customers to give feedback on drivers. It's a good idea to ask for customer feedback and find out what needs improvement.

The company reports that 92% of customers trust the recommendations made by family members, friends, and other clients. Consider displaying your customers' reviews on your social media sites, website, and SMS messages.

Promoting Online and Offline Events

Promote your events via SMS to get people interested and excited. You can send SMS reminders for events to:

  • Your event's date, time and place.
  • CTAs are designed to get people to sign up or buy tickets.
  • Link to the event or website.
  • What to expect at the event.
  • Promote hashtags on social media.
  • Emojis can increase engagement.

Include an RSVP link to your message if you only have limited spots. That will allow subscribers to reserve their place immediately.

Create a VIP Program

Your customers and subscribers will be more loyal if you offer a VIP program. Make your customers feel exclusive by giving them VIP discounts and early access to new products, sales, and promotions.

Include a link to sign up for your VIP program in your SMS message when a customer purchases a product. Your VIP program can be promoted on social media or your site. Use an SMS service that lets you segment your subscribers to send them different messages. By segmenting your mailing list, you can send the most relevant message to each recipient group. That will increase engagement and lead to more conversions.

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Follow These Four Best Practices for SMS Marketing

After discussing how you can use SMS for marketing your business, let's look at the best practices to help your campaign succeed:

Send Texts Only to People Who Have Opted-in

Send texts only to people who explicitly give you their permission. Include an opt-in box on your site or online channel. It's still a good idea, even if an opt-in is in place, to thank a new subscriber for signing up and ask them to confirm their opt-in by replying "Yes" or "No".

Customers Can Opt out Quickly

Include an option for unsubscribing so customers can quickly stop receiving your texts. You can do this by replying to the message with "STOP" (or "Unsubscribe") or simply "unsubscribing".

Brand Identification is Essential

Please introduce yourself to your client when you get their phone number. You don't need them to delete the text because it will appear as an odd number. That is called SMS branding. Including your brand at the start of your message will let customers know you immediately and engage them with your content.

Short and Direct Messages are the Best

You can only use 160 characters in an SMS to convey your message. It's essential to avoid unnecessary fluff and get straight to the point.

Use this structure to help you create your text:

  1. Company name
  2. Name of the Customer
  3. Promotion or Offer
  4. Conditions applicable
  5. CTA
  6. Option to opt-out

Consider using a short link that customers can use to get more information.

What are the Benefits and Drawbacks of SMS Marketing?

SMS is the future of messaging. Email and SMS are preferred communication channels between businesses and customers. More than 39% prefer SMS to other channels like mobile apps, messaging apps or social platforms.

But SMS remains a largely untapped channel. In 2020, 83% will receive an SMS from a company. However, brands only use the medium 70% of the time to reach out to their customers and employees.

This article will help if you are one of those businesses that have yet to embrace SMS marketing. We'll go over the pros and cons of SMS marketing. Let's first examine why SMS is a good marketing tool. We'll then briefly discuss how your business can utilize text marketing.

It's a great channel for your business, but it could be better. We'll detail the benefits as well as their downsides below:

The Benefits of SMS Marketing:

  • SMS opens at a rate of 98%. That is relatively high compared to the 14.5% email opening speed. You can be sure that your clients will spread a message you sent them via text.
  • 83% of the millennial generation opens their text messages within 90 seconds. Text messages are the most efficient and reliable way to send an urgent message.
  • Personalized: According to the State of Customer Engagement Report, 98% of companies believe that personalization improves customer engagement, while 83% of consumers agree. While SMS can be an excellent channel for promotional messaging, it is essential to do things sparingly.
  • You were sending or receiving texts starting at $0.0075, cheaper than clicking on an ad. With a CTR of 36%, as we've mentioned earlier, you can be sure your customers will use your message effectively. You want to know how much it is worth for your business. See for yourself with our ROI text marketing calculator.
  • Permission-based: If you text your customer, they have asked for it. You received their number, and they explicitly permitted you to text them. If they get a text message from you, then it is almost always something they request.
  • Engagement: PPC, TV ads or billboards don't allow customers to engage. Email and text will enable them to do so. You can ask your customer about specific campaigns or promotions, which will immediately transform the conversation into an opportunity to increase sales.

Drawbacks of SMS Marketing:

  • Text message length is limited to 160 characters. You'll need to pay extra for longer messages. Customers expect brief and concise texts. It's just the way the medium is. You're better off using social media platforms or email if you cannot condense your message down to 160 characters.
  • It's easier to keep smaller lists. While buying a new phone number may be cheap, opening another email account is more challenging (or simple). That is one reason why consumers protect their mobile contacts. Your SMS list will be smaller than your email database because consumers expect more communication via SMS from companies.
  • Texts are sent less frequently: 56% of people receive between 25 and 100 emails a day. However, only 15 texts per person are average. Your SMS list will not be updated as frequently as your Instagram or email lists.
  • You'll need to take care of an extra channel: text message marketing requires more effort. You'll have to be proactive and thoughtful when managing this channel. Be consistent, strategic, and responsive. That is another medium to be addressed, and it will require time and resources.

What is Customer Service via SMS?

The Versatile

The old saying is true: big things can come in little packages. In a 160-character box, SMS marketing has infinite potential. These are just some of the many ways that businesses can utilize it:

  • New Customers Welcomed.
  • Offer an easy payment option and remind customers about upcoming bills.
  • Cancel, confirm or reschedule an appointment.
  • Run flash sales.
  • Exclusive discounts for VIP Customers.
  • Order confirmation and shipment updates.
  • Provide tech support.
  • Send out customer satisfaction surveys.

The possibilities for engaging customers with text message app messages are limitless once you begin brainstorming.

Read More: Email Marketing Automation Complete Guide

Customizable

You can engage customers using SMS marketing based on data and preferences. For example, you can determine how you want to contact your clients, the type of communication they would like to receive and how frequently you wish to reach out to them. Customers will have a more positive user experience with your company if you customize your user communication to their wishes.

Zero-Party Data

Consumers are concerned about privacy, so brands need help adjusting to the new data-sharing restrictions between apps. SMS marketing allows you to collect zero-party information that the consumer has communicated directly with your brand. You can use this data to personalize the experience of customers.

Low Prices

Most companies do not use SMS marketing, although texting is almost universal. It's easier to get noticed in this space than in platforms such as email. You also have less competition.

Cost-Effective

SMS marketing campaigns can be cheaper than other forms of advertising and marketing. They are versatile, customizable and can produce a much higher return on investment. You can better understand your campaign performance with SMS because you have access to more data than you would from a television or streaming advertisement, where you don't know what customers did after watching the advert.

The Data Friendly

You can also collect behavioural data, such as what type of transactional messages subscribers read and click on. You can use this data to refine your future messages and optimize performance.

Appealing

Marketing messages sent via SMS appeal to customers, particularly when customized for the receiver. When a client gives their mobile number to you, it's an act of great trust. SMS marketing is the perfect way to reinforce customer loyalty and strengthen brand satisfaction.

Use SMS Marketing to Grow Your Business

Are you curious about how SMS marketing can engage your customers? Many ways. Below are some of the ways that businesses most commonly use SMS marketing:

  • Discounts: Send exclusive coupons and sales offers to SMS subscribers.
  • Inform your customers about any changes to store hours and new products.
  • Text messages can be used to provide customer service, tutorials or onboarding.
  • Sweepstakes or contests: Hold a giveaway to get new SMS subscribers.
  • Use polls to learn more about your clients and their preferences.
  • Weekly SMS Newsletters: Regularly inform your audience about new deals or content.

SMS Marketing: What's The Future?

The future of SMS is being shaped by new technology and changing consumer behaviour. More brands are expected to adopt SMS marketing to create personalized relationships with their audiences:

RCS Messaging

RCS, or Rich Communication Services (RCS), is a newer version of SMS that integrates the features found in texting applications like iMessage, WhatsApp, and other texting services. RCS messaging includes reading receipts and typing notifications, GIFs, and images.

RCS will shape the future of SMS Marketing because the technology allows companies to interact one-on-1 with customers and send rich media that helps them make informed decisions.

Discussional Marketing

Brands should abandon the outdated, formal style of messaging. Instead, they should adopt a conversational approach, using SMS to create two-way communications with their clients. Here are some scenarios where a conversational approach to SMS/voice marketing would be beneficial:

  • Welcome Text - A genuine thank you message to the customer after they have purchased on the website or created an account is a great way to start a dialogue with them and encourage their return.
  • Carts Abandoned - When online shoppers add items to their cart but still need to complete the transaction. Reminding the customer is an easy way to bring them back to complete the sale. A small discount is also a good idea!
  • Invites to Events - When your business plans an event, send your clients a text message with a customized invitation explaining why your event would benefit them.
  • Releases of New Products - Let your clients know about the latest product they would enjoy based on previous purchases.

Personalized Marketing

The generic language and flat tones make many SMS texts appear like scams. The generic language and balanced tone make many SMS marketing texts look like scams. The future of SMS marketing will need to make opt-ins more obvious and personalize the messages to each customer.

It is expected that SMS marketing will become more personal to consumers in the future, with more interaction between brands and their customers, as well as seamless integration into your daily life. That allows for a more personalized conversation, with less emphasis on sales and more on building a lasting relationship between the brand and the consumer.

The future of SMS Marketing provides solutions to over 25 different marketing requirements, from event management to loyalty marketing. Thanks to the easy-to-use texting platform, SMS marketing is now easier than ever. You can try us out for free!

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Conclusion

Modelling an effective SMS campaign requires creativity, research knowledge, and analytical abilities. To get the most ROI, tailor your campaign to your target audience.