What is SMS Marketing and How to Use Text Marketing for Businesses for Revenue Growth? [2024]

A study by Bank Mycell estimates that 83.72% of people worldwide are smartphone owners. With such widespread usage, SMS marketing has become an essential tool for businesses to connect with their customers in 2024. Text marketing, also known as SMS Marketing, involves sending promotional messages to increase sales, promote products, and build brand awareness.

In this blog, we will delve into the world of SMS marketing and also guide you through the various ways you can leverage SMS marketing to your advantage. From crafting compelling messages to reaching the right audience, we will explore the best practices and strategies that can make your text marketing campaigns stand out. Prepare to unlock the untapped potential of text marketing and discover how it can become an integral part of your business's marketing arsenal in 2024.

What is SMS Marketing?

SMS marketing is the practice of using text messages (SMS) to send promotional campaigns or transactional communications for marketing objectives. The primary purpose of these messages is to inform customers who have opted in to receive text messages from your company about time-sensitive deals, updates, and alerts.

This interaction could take the form of a personal discussion between a staff member and a customer, an automatic text that is sent in response to a customer action, or even a mass text sent to a group of clients who have agreed to receive messages from your company.

Is SMS Advertising Effective?

When it comes to marketing, the success of SMS marketing relies on well-crafted messages that are targeted toward the appropriate audience. With 97% of US adults owning a cell phone, it has almost universal reach. Furthermore, people spend a significant amount of time on their phones, and studies show that customers are 4.5 times more likely to respond to an SMS message compared to an email, as per a survey of business owners.

It feels natural and practical to be able to text our favorite companies. We may feel in charge of whatever businesses are in our "favorites" because SMS needs agreement and is simple to opt-out of. Text marketing stands out for marketers as a channel that is particularly data-informed and quantifiable. 

It's important to note that SMS marketing shouldn't replace your email marketing efforts, as emails allow for longer messages and have their own advantages. However, incorporating SMS messages into your overall marketing campaign, particularly when you segment your audience based on factors like purchase patterns or region, can be a valuable addition.

3 types of SMS marketing

1. Transactional SMS Marketing

Sending text messages to consumers particularly to provide them updates on their orders is known as transactional SMS marketing. Order confirmations, shipment updates, notices of shipping delays, and delivery confirmations are just a few examples of the several SMS kinds that fall under the area of transactional messaging.

Transactional SMS is used as a customer care tool to update clients about their purchases, in contrast to promotional SMS, which primarily focuses on sales. Unlike emails, transactional texts often provide less creative latitude in terms of content and appearance but are nevertheless uncomplicated. 

2. Conversational SMS Marketing

Conversational SMS uses natural language processing to participate in more sophisticated digital discussions than two-way SMS, which relies on particular prompts.

Genuine conversational SMS solutions combine automated text technology with live customer care representatives who can intervene when discussions go beyond what the algorithm can handle. Enhancing customer service is one of the main uses of conversational SMS, which also increases customer retention, average order value, and customer lifetime value (CLTV).

3. Promotional SMS Marketing

For instance, you may send an abandoned cart text to a customer who has agreed to receive text messages from your business when they add an item to their cart but leave before checking out to persuade them to complete the transaction.

Promotional SMS messages, whether they come in the form of campaigns or automated flows, have a number of uses, including letting clients know when a new product will be released, providing unique discounts or promotions, and distributing business announcements. promoting events with a brand, giving advice on how to get the most use possible out of the goods you offer, etc. 

Benefits of SMS Marketing

Instantaneous Delivery

SMS messages are delivered immediately, guaranteeing that your time-sensitive or promotional messages are delivered to clients on time. Additionally, texts have the benefit of getting to your receivers faster than an email or Instagram post. When a customer receives a text message, they instantly receive a notice on their phone, unlike when they access other types of marketing that require them to open a social network app or email client.

Speed is essential in many aspects when it comes to text message marketing. There is no requirement to create supporting visuals for your text, unlike social media or email marketing. Text messages also have a character restriction, which prevents you from composing long messages. Because of this, the manufacturing and sending processes are rapid and easy.

High Engagement with Open and Response Rates

When compared to other marketing channels, SMS, with two-way messaging capability offers greater engagement rates. Text messages are more likely to be interacted with and read by customers, increasing conversion rates and boosting customer engagement.

Sending SMS is the most efficient strategy if your objective is to increase message open rates. Stunningly, 98% of the time, or as near to 100% as you can get, marketing texts are opened. In comparison, a Mailchimp survey found that the typical open rate for email marketing to consumers is just 18.39%.

Cost-Effective and Wide-Reach

Compared to conventional advertising techniques like print or television commercials, text marketing is typically more affordable. SMS messaging is a desirable alternative for organizations of all sizes due to the decreased expenses involved.

Given that the majority of people own smartphones, text marketing has a significant audience. It is an effective tool for reaching a wide range of consumers since you may contact customers regardless of where they are located and interact with a big audience.

Direct and Personal Communication

Text marketing makes it possible to communicate with clients in a direct and personal way. You may foster a sense of individualized attention and improve client connections by using recipients' names and adapting messages to their preferences.

Integration with Other Marketing Channels

SMS marketing can easily be incorporated with other marketing channels, including social media or email. You may strengthen your brand message and contact clients through several touchpoints by including SMS as part of a multi-channel marketing plan.

How does Text Marketing Work?

Instead of using complete phone numbers, short codes are used to send text marketing messages. These shortcodes typically include 5 to 6 digits and can either be shared among several senders or assigned to a single sender.

Regulators in several nations, including the US, forbid changing the sender's information. As a result, rather than from your company, your message will appear to have come from the short code used by your service provider. This emphasizes how crucial it is to include the name of your business in the message itself.

Two Basic Message Types of SMS Marketing

Campaigns

Bulk text messages sent on a "one-to-many" basis are known as campaign messages. They are frequently used for marketing initiatives, including the distribution of discounts, sales information, or general updates like event information or weather warnings.

Transactional

Personalized "one-to-one" messages sent in response to certain events or user behavior are known as transactional messages. An online purchase, for instance, can result in an order confirmation or a shipment notification. These communications provide specific recipients with timely information that is relevant.

Step By Step Process to Set Up & Use SMS Marketing for Businesses in 2024

Comparing SMS marketing to more complex strategies like email or social media marketing that include design elements, SMS marketing can be simpler and less time-consuming. Here is a step-by-step manual to assist you in beginning your SMS marketing campaigns:

Step 1: Obtain consent from your receivers

Before launching text marketing campaigns, it's important to be sure that you have received the recipients' express consent. Without their permission, you cannot text someone in the US or Canada. Ensure the accuracy of and keep a list of receivers who have consented to receive communications. While guaranteeing compliance, loyalty software may help collect consumer information.

Step 2: Use a trustworthy messaging app

You'll need the right software to automate your SMS marketing. It would take too long to manually email each consumer. With the latter choice, you can control sales, campaign monitoring, and customer data from a single platform.

Step 3: Create succinct and powerful messages

SMS communications need to be succinct and to the point, unlike wordy email newsletters. Aim for 160 characters, or around one or two sentences. Include a clear call to action, a relevant link, and a clear statement of the message's objective (such as an offer or a request for feedback).

Step 4: Target the right customers at the right time

Targeting particular client categories based on behavior and interests can help you reach the appropriate customers at the right time. You may greatly increase the effectiveness of your text marketing initiatives by skillfully segmenting your consumer base. 

Step 5: Monitor and evaluate outcomes

Tracking important data allows you to keep tabs on the effectiveness of your SMS marketing. Track the number of link hits, the use of special promo codes, and the subsequent sales. These numbers should be compared to the quantity of messages transmitted. 

Step 6: Offer an opt-out option

If a client decides they no longer want to receive SMS communications, it is critical to provide a mechanism for them to do so. Not only are opt-outs necessary by law, but they also show that you are committed to interacting with consumers in a sincere manner. You gain their trust and prevent coming off as spam by honoring their preferences.

Best SMS Marketing Strategies

Welcome Messages

Consider sending a welcome SMS to clients who register for your loyalty programme, much like you would with an email. As a token of thanks, you might even encourage them with a special discount to make more purchases in the future.

Year-round Sales Alerts

Text your consumers to let them know about the tempting deals when it's time to get rid of inventory during seasonal promotions. Send customized messaging based on your audience's past purchase patterns to maximize the success of your marketing. Send alerts of shoe sales, for instance, to clients who have previously purchased shoes from you. By enabling quick access to sales data, integrating your SMS marketing platform with your point-of-sale system makes the process simpler.

Promoting Multiple Social Media Accounts

Utilize your SMS marketing audience to expand your company's social media presence. Encourage clients to follow you on social media by sending them SMS messages. Consider pairing the offer with a social media-based giveaway or contest to make it more alluring.

Survey Requests

By asking them to participate in surveys, you may learn important details about what customers anticipate from you. Instead of using other marketing methods, send survey URLs over SMS to boost response rates. It's simple to construct brief surveys that clients may view and complete using software like Google Forms or SurveyMonkey.

Announcing the Launch of New Products

Utilize SMS advertising to let clients know they may begin shopping as soon as you add new arrivals to your store or website. This sparks interest in your new products and increases traffic. To prevent bombarding your clients with messages on a regular basis, it is advised to arrange these ads according to the seasons.

Special Flash Sales

Reward your program's devoted participants with limited-time flash deals that can only be accessed by SMS. To prove your importance to their business, give them a sneak peek or provide time-limited deals. This strategy generates a sense of admiration and exclusivity.

Who Can Benefit From Using SMS Text Marketing Services?

Who can benefit from using SMS text marketing services? Whether you run a small business or are in charge of corporate communications, including text messaging in your digital marketing strategies may be quite advantageous. They provide you with a special advantage by making it possible to convey important information in a trustworthy and effective way.

There are several sectors that gain significantly from SMS marketing, despite the fact that it may be beneficial for many other types of businesses:

E-commerce Stores

SMS is a fantastic marketing tool for e-commerce companies. Text message marketing in e-commerce may successfully engage and inform your consumers, improving the whole e-commerce experience, whether you're sending out promotional campaigns or order/shipping confirmations.

Travel firms

SMS is a critical tool for providing updates to consumers while they are on the road. Real-time information is essential for travel firms. This ensures seamless and informed travel experiences and includes prompt information regarding flight schedules, gate changes, cancellations, weather alerts, and more.

Service Companies Relying on Appointments

SMS reminders may be a game-changer for companies that depend on appointments, such salons, spas, and healthcare providers. SMS customer service can enhance C-SAT by reducing no-shows and late arrivals to appointments.

Large Organizations with More Than 100 Workers

Email may be too sluggish for big organizations to use for urgent information. Internal SMS messaging guarantees that all staff members receive important updates on time, promoting effective and efficient internal operations.

Businesses may strengthen their communication strategies, enhance client experiences, and streamline internal procedures by utilizing SMS marketing in these particular industries.

Examples of Successful SMS Marketing

The Giveaway message

Host a text-to-win giveaway or contest if you want to increase the number of leads generated by your SMS marketing campaigns. These lead-generating techniques are effective & one of the best text message marketing examples, since they increase your consumer base without any more labor on your side.

The Abandoned Cart Message

An abandoned cart People who added items to their basket but didn't finish the transaction receive an SMS. SMS and email may both be used to follow up with abandoned carts and promote purchases. Abandoned cart SMS messages can result in increased click-through rates and purchases since individuals are more likely to see an SMS push notification than to notice an email in a busy inbox. 

The Flash Sale message

Who wouldn't like to get these offers from their favorite companies? Promoting one-time flash discounts or significant promotions is easy with a quick and snappy SMS.

The Feedback message

SMS is excellent for starting interesting discussions with your consumers since it is a conversational form of business. For instance, when we have a concept for a new product, we may send an SMS to our clients to get their feedback. If they respond, we'll have lively one-on-one conversations. Not only does this include our consumers in the production process, but they are also far more inclined to purchase the final product.

The Hype-Up text

Never start a flash sale without creating some buzz. An SMS sent a few days prior has a significant impact on conversion. It's a good idea to let your loyal consumers know before your offer goes live because many individuals want to consider their purchases in advance.

Time-sensitive special deals

If you want to ensure that your consumer has every opportunity to take part in a particularly exceptional promotion, SMS is fantastic. Add a little urgency to the phrase for the finest possible sales and promotions.

Personalized offers

Make clients feel like more than just a number by doing this. Mention key anniversaries like their birthday or their first year as a member of the special rewards program. 

Even better is a promotion that runs for a few days at this particular period. The best approach to implement this is with customized SMS messages, especially when internal links are included.

Why is the time to launch an SMS business marketing channel now?

Reaching consumers have grown more difficult as their tastes change towards contemporary, accessible brand engagements at their convenience. For e-commerce and retail firms, email click-through rates have decreased significantly over the last eight years by 75%, an average of 1.1%. Similar to this, digital advertising performance in social media and display has decreased by almost 50% in recent years. The challenges encountered by marketers have increased as a result of the changing privacy and data-sharing landscape, which includes versions like iOS 14.5, 15, and 16.

Brands must vary their channels and use text message automation tools to have personalized responses and respond quickly to enhance marketing success. Consumers view personalized text messaging as a direct channel to brands, whether for customer service in eCommerce or any other relevant industry, behind-the-scenes access, or updates on purchase status. Surprisingly, 91% of consumers say they would be interested in receiving text messages from businesses, but not all companies have taken advantage of this channel, losing out on potential sales and goodwill from customers. Businesses have a fantastic chance to grab customers' attention and boost e-commerce sales because the majority of consumers are showing a propensity for texting.

Conclusion

Overall, SMS marketing will be a crucial strategy for companies in 2024. Leveraging text marketing may greatly help your organization because of the widespread usage of mobile phones and the strong engagement rates connected to text messaging. You can efficiently boost sales, market items, and create brand recognition by creating well-written messaging and selecting the right audience. 

You may let clients know about new items, provide special specials, communicate corporate updates, promote events, and give helpful advice by including SMS campaigns or automated processes. Utilize SMS marketing to interact with your clients directly and produce significant business outcomes.

With App0, you can effortlessly establish connections with your customers through various communication channels, efficiently control user preferences from a central location, and harness the power of artificial intelligence to transform notifications into interactive conversations. This enables you to engage with your users at the right moment and through their preferred platforms, ultimately boosting customer satisfaction and achieving your desired outcomes. App0's AI for functionalities, including sentiment analysis, empower you to make informed business decisions based on data and further enhance the overall customer experience.

Just imagine the convenience of completing purchases & confirming payments via SMS by receiving a simple "Y" response from your customer.

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