9 Key Benefits Of SMS Marketing You Need To Know

SMS marketing involves sending promotional messages or alerts to customers via text message. Many people are confused about whether it is still effective in this digital world.

Well, some key benefits of SMS marketing include high open rates, immediate delivery, cost-effectiveness, personalized communication, and increased customer engagement. With SMS marketing, businesses can reach their audience directly, deliver time-sensitive messages, and see quick results, making it a valuable tool for driving sales and building customer relationships.

Let’s explore further and learn how this marketing method can boost your business.

What Is SMS Marketing?

SMS marketing, short for short message service marketing, involves using text messages to communicate with customers. It’s a method where businesses send promotional messages, alerts, reminders, and other updates directly to customers’ mobile phones. These messages can include promotions, time-sensitive information, new product launches, feedback requests, and more. 

While SMS originally referred to text-only communication limited to 160 characters, it now encompasses any text message. SMS marketing is valued for its high return on investment (ROI) and ease of implementation. Customers appreciate its convenience, making it a low-cost, low-risk marketing tool. SMS marketing is effective due to its direct and immediate communication with consumers.

9 Benefits Of SMS Marketing

SMS (Short Message Service) marketing offers numerous benefits for businesses seeking to engage with their customers effectively. Here are some key benefits of SMS marketing:

1. Encourages Communication With Clients 

A major perk of SMS marketing is the increased likelihood of customer-business dialogue. Interactive SMS marketing allows firms to successfully engage their audience. 

Companies may increase engagement rates by making their content more engaging and amusing by framing messaging as polls or surveys. Giving people a method to quickly reply, like a toll-free SMS reply option, encourages two-way communication. 

Adding interactive media like movies or graphics makes interacting with the brand even better. With the proliferation of smartphones, it is crucial to include visual and interactive components in SMS campaigns, even if not all mobile phones have internet access. 

An impressive 98% open rate is a hallmark of text message marketing, proving its efficacy in reaching and engaging consumers. 

2. Opts Out For Uninterested Consumers. 

One great thing about SMS marketing is that customers can easily choose not to receive more texts. Stats show that about 64% of customers want to receive advertising texts from businesses. Interestingly, about 27% of people who get these messages are happy, 23% are excited, 17% are worried, and 15% are annoyed by them. Giving people the chance to withdraw is the law and shows respect for their choices. 

This feature is important because it keeps customers from being annoyed or overwhelmed by too many texts, which could make them think badly of the business. 

Giving customers a polite way to opt out lets companies maintain a good relationship with them and look for other ways to talk to them. SMS marketing systems that prioritize the user experience by making it easy to opt out help build trust and encourage good brand relations. 

3. Works With Other Methods Of Marketing 

Text marketing seamlessly integrates into your overall marketing strategy with other marketing platforms. It complements and enhances your existing marketing efforts, allowing you to reach customers effectively across various channels. For example, you can integrate SMS with your marketing automation software to send follow-up messages to customers who abandon shopping carts. 

This gentle reminder can prompt them to complete their purchases, boosting your sales conversion rates. With worldwide text messaging usage at approximately 65% of the population—nearly 5 billion people—SMS marketing provides a broad reach and a powerful way to engage with your audience. 

Its compatibility with other marketing methods makes it an essential tool for businesses seeking to maximize their marketing impact and drive results.

4. Better ROI Compared To Other Marketing Channels 

SMS marketing offers an exceptional return on investment (ROI), making it one of the most lucrative marketing channels. According to recent research, SMS marketing ranks second in ROI after direct mail, surpassing email, paid search, social, and digital display advertising. 

For every $1 invested in SMS marketing campaigns, there is a return of $25. This impressive ROI is attributed to two main factors. Firstly, SMS marketing boasts high engagement rates, leading to more conversions. Secondly, SMS advertising is cost-effective, allowing businesses to reach a large audience without significant expenditure.

With global spending on SMS marketing reaching $327.1 billion, it’s evident that SMS marketing offers substantial returns and is an excellent choice for maximizing ROI, particularly for e-commerce firms.

5. Creates A Dedicated Opt-In Audience 

One of the significant benefits of SMS marketing is the creation of a dedicated opt-in audience. This means that customers actively choose to receive text messages from your business by opting in. When customers willingly sign up to receive promotional communications, they demonstrate an emotional investment in your brand. This engagement can lead to higher levels of trust and loyalty. Moreover, with opt-in marketing, you avoid bothering indifferent customers who may not be interested in your promotions.

Statistics show that over 30% of users check their messages within the first sixty seconds of receiving them, and approximately 80.5% reply within five minutes of receiving an SMS. These facts highlight the effectiveness of SMS marketing in quickly grabbing people’s attention and eliciting timely responses. 

Businesses can maximize the impact of their SMS marketing campaigns and engage with their audience more effectively. SMS marketing allows you to build a dedicated audience of engaged customers eager to receive your promotional messages, resulting in higher response rates and improved brand loyalty.

6. Efficient And Quick 

SMS marketing is a highly efficient and quick method of reaching many individuals simultaneously. Unlike other marketing channels, text messaging allows businesses to communicate with their customers instantly, delivering messages directly to their mobile phones. With people constantly on the go and their phones always within reach, SMS marketing ensures that your message reaches its intended audience promptly.

According to statistics, the US SMS marketing industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 20.3% from 2019 to 2025. By 2025, the American SMS marketing industry is projected to generate over $12.6 billion in revenue. These figures highlight the increasing importance and effectiveness of SMS marketing as a powerful tool for businesses to connect with their customers.

SMS marketing enables businesses to send their customers time-sensitive promotions, alerts, reminders, and updates, allowing for immediate engagement and response. The ability to reach many customers quickly and efficiently makes SMS marketing an invaluable tool for businesses looking to increase brand awareness, drive sales, and foster customer loyalty. 

7. Encourages Loyal Customers 

Encouraging loyal customers is one of the significant benefits of SMS marketing. With the overwhelming number of promotional emails flooding consumers’ inboxes, sending unique and tailored information and promotions via text message provides an innovative way to strengthen relationships. 

Unlike marketing emails, which may get buried in separate tabs, SMS messages are immediately visible on customers’ phones. Beginning a message with “loyalty” ensures that customers notice the incentive advertisement, fostering trust and value. 

Statistics reveal that SMS click-through rates remain high, with 70% of customers opting in to receive texts. Additionally, customers prefer having two-way conversations with the companies they love. This direct communication fosters loyalty and encourages repeat business, making SMS marketing an invaluable tool for businesses.

8. Boosts Interaction With Clients 

SMS marketing significantly boosts interaction with clients. Unlike email marketing, where messages can go unnoticed or be filtered as spam, text messages are typically opened and read promptly. Statistics reveal that more than half of customers who receive marketing texts go on to buy the product. This immediacy makes SMS marketing highly effective in reaching and engaging customers. 

Since most individuals carry their mobile phones with them at all times, text messages have a higher chance of being seen compared to emails. This direct and immediate communication channel allows businesses to connect with their audience more effectively and increase the likelihood of conversions. Additionally, customers appreciate the convenience of receiving relevant information directly from their phones, leading to a more positive interaction experience.

9. More Beneficial For The Consumer 

SMS marketing offers significant benefits for consumers. With personalized text messages containing relevant offers and information, customers can easily stay updated on communications from businesses. Unlike traditional methods, such as emails or website searches, receiving and accessing text messages is convenient and requires minimal effort. This accessibility enhances the consumer experience, making it more beneficial for them to engage with businesses via SMS.

Statistics reveal that more than half of customers who receive marketing texts proceed to purchase the advertised product. This high conversion rate highlights the effectiveness of SMS marketing in driving consumer action and engagement. 

By providing valuable offers and information directly to consumers’ mobile devices, businesses can effectively capture their attention and encourage them to take desired actions, resulting in increased sales and customer satisfaction. SMS marketing thus emerges as a powerful tool for businesses to connect with their audience and drive meaningful interactions.

Best Practices For Effective SMS Marketing

SMS marketing offers a direct and efficient way to reach your audience. Here are some best practices to ensure your SMS campaigns are effective:

1. Obtain Consent:

Verifying the receiver’s consent is essential before sending an SMS. Since sending unwanted texts is against the law in many places, you must have their consent before contacting them by SMS. In addition to helping with regulatory compliance, obtaining consent shows that you value the receivers’ privacy. 

Before starting an SMS marketing campaign, have the people on your contact list consent. Doing so increases your reputation and helps you stay out of legal hot water. Consent is essential to an ethical and effective SMS marketing campaign.

2. Use a Reliable Tool:

To streamline your efforts, choose a dependable SMS marketing platform or solution. Make sure the tool you choose has all the necessary capabilities, such as managing lists, monitoring campaigns, and personalizing messages. 

That way, you can keep tabs on your contacts, monitor how well your campaigns are doing, and tailor your communications to each recipient. You can automate mundane chores and devote more time to creating content people want to read with the correct technology. Search for platforms with intuitive UI and thorough support to get the most out of your SMS marketing.

3. Personalize Messages:

Create personalized communications that address the interests and preferences of your target audience. Keep your communications within 160 characters and make them brief. Brand recognition, an obvious call to action, and appropriate connections should all be included—better campaign performance results from increased engagement and recipients’ encouragement to take action via personalization. By making your messaging more personalized, you can improve your chances of getting people to pay attention and do what you want.

4. Segment Your Audience:

If you want your SMS marketing to be successful, you must segment your target. You may divide your contacts into different groups according to their geography, buying habits, and engagement level and then send them personalized messages that will connect with each one. 

Customers in certain regions may get targeted deals, and repeat purchasers may receive tailored suggestions. With this personalized strategy, your communications are more likely to be relevant, enhancing engagement and conversion. To get the most out of your marketing initiatives, it’s important to segment your audience so that relevant messages reach specific individuals at certain times.

5. Monitor Results:

Track the results of your SMS marketing initiatives to see how well they’re doing—attention to important data, including click-through, conversion, and opt-out rates. Customer behavior and marketing performance may be better understood by analyzing these indicators. 

Your SMS marketing campaigns may be fine-tuned by keeping tabs on the outcomes and using that information to inform data-driven choices. By regularly keeping tabs on your metrics, you can learn how your campaigns are doing and tweak your approach for maximum effectiveness.

6. Provide Opt-Out Options:

Make it possible for people to stop getting your SMS messages if they don’t want to. This protects recipients’ privacy and choices while also guaranteeing legislation compliance. 

Ensure there are obvious ways to unsubscribe, such as responding with a keyword or sending the phrase “STOP” to a certain number. Also, giving your audience a choice to opt-out shows that you are honest and forthright with them about your SMS marketing tactics, which will win their confidence and favor.

7. Ensure Timely and Relevant Messaging:

Successful SMS marketing relies on timing and relevance. Timing and content relevancy are two of the most important aspects of effective message marketing. Time zones, previous encounters, and purchasing history are some of the elements to consider when scheduling communications. 

By providing timely and relevant communications, you can boost engagement and the efficacy of your efforts. Ensure your communications connect with your audience by prioritizing their preferences and habits.

8. Stay Engaged and Responsive:

Responding quickly to questions and comments is a great way to keep in touch with your audience. Get them even more involved by sending them polls or surveys by text message; you’ll learn a lot that you can use to make your brand better. 

Your audience will feel appreciated and heard if you keep the lines of communication open, increasing loyalty and trust. Maintaining an active and responsive engagement with your customers may strengthen your ties with them, leading to greater happiness and loyalty over time.

Is SMS Marketing Digital?

Yes, SMS marketing is surely a part of digital marketing. It entails sending promotional messages and communicating with clients through mobile devices, which are digital channels. Unlike traditional ways of advertising, such as print ads or direct mail, SMS marketing uses modern methods to instantly and directly reach customers on their mobile phones.

Companies can effectively communicate with their target audience in real-time by sending them text messages containing promotional offers, updates, or other relevant information. Because SMS marketing campaigns are managed through digital platforms or software, message distribution can be automated, campaign performance tracked, and customer responses analyzed.

SMS marketing is more efficient, cost-effective, and convenient for businesses to connect with consumers. Since most people use mobile gadgets, SMS marketing provides a direct communication channel for reaching customers anywhere, anytime. Thus, it has become an indispensable aspect of many companies’ broader digital marketing strategies to enhance brand awareness, boost customer involvement, and increase sales volumes.

Is SMS Marketing Still Effective In 2024?

Yes, SMS marketing is still used as much as ever in 2024. It remains one of the most effective ways for businesses of all sizes to communicate with their target audience.

With SMS marketing, brands can initiate real-time conversations with their customers, thereby creating a sense of immediacy and personal touch. This type of marketing is known for its high engagement rate, with up to 45% responding to messages from brands that use this form of communication. In contrast, open rates for sms marketing campaigns rarely exceed 20%.

Additionally, SMS messages are typically opened within minutes after delivery, making them ideal for quick promotions or urgent communications. Unlike other forms of digital advertising, such as social media or email, SMS has minimal chances of being ignored or filtered out by algorithms, thus ensuring that your message reaches your intended recipients in time.

Studies have found that SMS marketing provides some of the highest returns on investment (ROI) in the industry, as it is capable of producing vast revenues. Its cost-effectiveness, together with its capability to send targeted messages to select groups, makes it an integral part of any marketing program.

In addition, texting continues to be a dependable tool through which business owners can fully meet their clients and involve them. Therefore, if you want an effective way to improve your firm’s promotional activities faster and more directly, then choose this kind of promotion method.

I hope you have a good idea about SMS marketing. If you want to learn more about its cost, read this article Cost Of SMS marketing.

FAQs

Is SMS marketing suitable for all types of businesses?

Yes, SMS marketing can benefit businesses of all sizes and industries. Whether you’re a local restaurant, an e-commerce store, or a multinational corporation, SMS marketing can help you connect with your audience, drive sales, and enhance customer loyalty.

How do customers perceive SMS marketing?

Customers often appreciate SMS marketing for its convenience and relevance when done correctly. Studies show that more than half of consumers receiving marketing texts are likely to purchase, indicating a positive response to well-targeted and valuable SMS messages.

Can SMS marketing comply with privacy regulations?

Yes, SMS marketing can comply with privacy regulations such as GDPR and TCPA by obtaining explicit consent from recipients before sending promotional messages. Businesses must follow legal guidelines and provide opt-out options to ensure compliance and maintain customer trust.

How can businesses measure the success of their SMS marketing campaigns?

Businesses can track the success of their SMS marketing campaigns through various metrics, including open rates, click-through rates, conversion rates, and ROI. Analyzing these metrics allows businesses to evaluate the effectiveness of their campaigns and make data-driven decisions for future improvements.

Are there any best practices for implementing SMS marketing?

Yes, several best practices can enhance the effectiveness of SMS marketing campaigns. These include personalizing messages, offering exclusive deals or promotions, timing messages appropriately, providing clear calls to action, and respecting customers’ preferences and privacy.

 How can businesses build their SMS marketing subscriber list?

Businesses can build their SMS marketing subscriber list by promoting their opt-in campaigns across various channels, such as their website, social media platforms, email newsletters, and physical stores. They can also incentivize sign-ups by offering exclusive discounts or promotions to new subscribers.

What are the main differences between SMS and email marketing?

While both SMS marketing and email marketing are effective communication channels, SMS marketing offers higher open rates, faster delivery, and greater immediacy compared to email marketing. Additionally, SMS messages are shorter, making them ideal for delivering urgent or time-sensitive information to customers.

If you want to learn more about SMS marketing and email marketing, you can read our article.

Related Post: SMS Marketing Vs Email Marketing: Which Channel Is More Trustworthy?

Need Any SMS Marketing Help?

Need assistance with SMS marketing? Oyolloo is here for you! Whether you’re new to SMS marketing or looking to optimize your current strategy, our team is ready to assist you. 

With our expertise, we can help you create effective SMS campaigns that engage your audience and drive results. Contact us today to learn more about how we can help you succeed with SMS marketing.