On the surface, SMS marketing is exactly what it sounds like: promotion done by SMS messages. But there’s much more to it. Done well, SMS marketing drives sales, keeps customers happy, gains positive reviews, and grows your business without barriers. It’s cost-effective, affordable, and surprisingly popular with audiences around the world.
Despite its potential, there are many misconceptions about SMS marketing. Many people think SMS messages have gone out of style or aren’t legal to use in light of laws like the TCPA (Telephone Consumer Protection Act) and CAN-SPAM Act. But the truth is different. In 2022, Omnisend merchants sent 36% more SMS campaigns and quietly increased conversions by 28% in the process. This article explores the real impact behind SMS marketing and why you should incorporate this valuable channel into your strategy.
What is SMS Marketing?
SMS marketing is a form of direct marketing that involves sending promotional offers, updates, and news to customers via text messages. It’s an easy and convenient way to communicate with customers because of its relative speed and positive reception.
Businesses use SMS marketing to share:
- Promotions
- Reminders
- Time-sensitive updates
- Personalized discounts
- Order delivery updates
Using these SMS text campaigns allows for promoting products and building good customer relationships simultaneously.
Is SMS Marketing Legal?
Yes, SMS marketing is legal. However, there are important regulatory requirements that businesses must adhere to. In the United States, SMS marketing is governed by laws like the TCPA and the CAN-SPAM Act. The TCPA, in particular, outlines rules for obtaining consent from customers before sending promotional messages via SMS.
To ensure SMS marketing compliance, businesses should:
- Obtain explicit opt-in consent
- Avoid misleading or deceptive content
- Identify themselves and the purpose of the message
- Respect do-not-call lists and time restrictions for sending messages
- Provide clear and easy opt-out options (e.g., reply STOP to unsubscribe)
Understanding and following these regulations is crucial to avoid potential legal issues and reputational damage. Using a reliable and compliant SMS service provider can help navigate these legal requirements effectively.
Benefits of SMS Marketing
Brands deploy SMS marketing plans for three main reasons: to increase brand awareness, boost engagement, and generate more sales. Let’s explore these benefits in detail:
1. Cost-Effective
Compared to other forms of marketing collateral, SMS messages are one of the cheapest forms of outreach. Sending a text message also happens to have one of the highest ROIs, making it a boon to your budget and top-line profits. For example, Omnisend reports SMS to the US costs less than two cents per message, with an ROI of up to 113x.
2. Direct Communication
A study found that Americans spend an average of 4 hours on their phone each day. SMS marketing allows you to hit your audience where they already spend a lot of their time. This direct line to customers is incredibly valuable for real-time updates and promotions.
3. Perfect for Real-Time Updates
SMS campaigns are received and read almost immediately after sending. Most text notifications remain on screen until the message is read, making SMS marketing campaigns great for hyper-time-sensitive offers.
4. Ridiculously High Open Rates
Approximately 98% of all business SMS messages are read by customers. This high open rate means your messages are almost guaranteed to be seen, unlike emails or social media posts that can be easily overlooked.
5. Proven Ability to Sell
About one-third of SMS recipients engage with the message’s CTA, and of that engaged group, 47% will make a purchase. During the holiday season, SMS marketing shines, with significant increases in promotional messages leading to higher sales.
How to Use SMS Marketing
Build a List of SMS Subscribers
Your subscriber list is the most valuable piece of the SMS marketing puzzle. Tips to grow your SMS list include:
- Securing explicit opt-in consent
- Staying informed about SMS marketing regulations
- Prioritizing quality over quantity in obtaining subscribers
- Implementing gamified popups on your website
- Offering a “Text to Join” option for easy subscription
Get an SMS Marketing App
SMS marketing software refines text marketing plans into cohesive strategies. Apps allow you to manage messages at scale by tracking compliance data, automating messages, and providing reporting data for deeper insights.
Create Your SMS Campaigns
Creating effective SMS campaigns involves crafting concise, valuable messages with a clear CTA. Proper grammar and avoiding text slang are essential to maintain professionalism. Personalize your campaigns to resonate with your audience and build stronger relationships.
Define Timing and Send
Choose the optimal time to send messages, typically during active hours (8 AM to 5 PM). Automation platforms can help select the best time for each customer, ensuring messages are received when customers are most receptive.
Automate as Necessary
Automation can significantly enhance the effectiveness of your SMS marketing. For example, an automated abandoned cart series can convert a substantial portion of potential lost sales into actual purchases.
SMS Marketing Best Practices
- Get Permission (and Keep It) The opt-in rules for email marketing apply to SMS marketing. Gaining explicit consent is essential for legal compliance and maintaining trust.
- Mention Your Company Always identify your business in each message to ensure recipients know who you are and the context of your message.
- Add a Call to Action Include a clear CTA in every SMS to encourage recipients to take the desired next steps.
- Send at the Right Time Choose the best times to send messages based on your data or automation tools to avoid inconveniencing recipients.
- Personalize Your Campaigns Use segmentation and personalization to send relevant messages based on subscriber’s location, previous purchases, and other data.
- Align SMS to Your Overall Marketing Strategy Integrate SMS with your overall omnichannel marketing strategy to avoid misaligned data and enhance your marketing efforts.
SMS Marketing Examples
- Welcome Offers Sending a discount code via SMS as a welcome offer can enhance the customer experience and drive immediate sales.
- Special Time-Sensitive Offers SMS is ideal for urgent promotions, playing on the fear of missing out (FOMO) to drive engagement.
- Order Confirmation and Shipping Updates SMS messages for order confirmations and shipping updates provide transparency and enhance customer trust.
- Customer Service Use SMS for proactive customer service, addressing issues before they become problems and maintaining customer satisfaction.
- Time-Limited Sales and Promos Capitalize on current events to send relevant, timely SMS promotions.
- Personalized Offers Send personalized messages for special occasions, like birthdays or anniversaries, to strengthen customer relationships.
- Thank You Offers Simple thank you messages can engage customers and foster loyalty.
- MMS Messages Enhanced SMS messages with images or GIFs (MMS) can create more compelling and visually appealing messages.
Best SMS Marketing Software
Several SMS marketing platforms offer robust features for effective campaigns. Some top options include:
- Omnisend: Known for its omnichannel capabilities, Omnisend offers comprehensive SMS marketing tools integrated with email and web push notifications.
- SlickText: Offers robust automation workflows and MMS tools, though it is limited to SMS.
- Twilio: Provides custom workflows through SMS APIs, requiring coding skills for initial setup.
- Simpletexting: Known for its intuitive messaging platform, though it can be pricey.
- Klaviyo: Popular for its email and SMS automation, though it comes at a higher cost.
Summary
SMS marketing is a powerful tool for businesses, offering cost-effective and direct communication with customers. With high open rates, immediate delivery, and proven ability to drive sales, it’s a channel worth incorporating into your marketing strategy. By following best practices and leveraging the right software, businesses can effectively use SMS marketing to boost engagement and sales, ensuring long-term growth and customer satisfaction.