In today’s business world, you’ve likely interacted with SMS (short message service) marketing in some form. Maybe you’ve signed up for a retailer’s text alerts to get 10% off your first purchase. Or you opted in to receive text updates from your doctor’s office. SMS Marketing is a quick, simple, effective way to reach customers on a device they have with them all the time. 

If you haven’t implemented SMS messaging into your marketing strategy, it’s time to consider it. But adding a new technology can be daunting, so we’ve broken down SMS marketing into the essentials for you: What it is, how it works, and why it’s so popular.

The What:

SMS marketing is a form of direct marketing that uses text messages to promote products or services to customers who’ve opted in to receive such notifications. It’s an effective marketing tool that businesses can use for promotional and transactional purposes. Something to remember, though, is they’re subject to legal regulations, such as obtaining consent before sending messages.

The How:

So how exactly does SMS marketing work? That’s a great question. SMS marketing starts with businesses obtaining a list of mobile phone numbers from customers who’ve opted in to receive text messages from the company. Businesses then use these numbers to send promotional, transactional, or informational messages to existing and potential customers. Businesses can obtain mobile numbers through various means, such as sign-ups on their website, in-store registration, or purchasing a list of numbers.

Once they obtain a list of phone numbers, businesses can use an SMS marketing platform to compose and send text messages to these customers. These platforms typically offer features such as scheduling messages in advance, creating personalized message templates and analyzing the performance of campaigns.

Customers who’ve opted in to receive texts will receive the message and can interact with it by following links, replying, or making a purchase.

It’s important to note that in most countries, businesses must obtain consent from customers before sending them text messages and must provide an easy opt-out option for customers who no longer want to receive texts.

The Why:

Why is SMS marketing so popular? Well, there are several reasons. From convenience to high open rates to cost-effectiveness, it’s clear why so many businesses have adopted it into their marketing strategies. Here are just seven reasons why SMS marketing has increased in popularity. 

1. High open rate:

Text messages have a high open rate of over 98%. Why is it so high? Typically, people read texts within minutes of being received and are less likely to be overlooked or deleted than other digital communication forms. Think about how quickly you look at your text messages⸺your customers are probably doing the same. 

2. Targeted messaging:

SMS marketing allows businesses to target specific segments of their customer base with tailored messaging. Which helps increase the relevance and effectiveness of the marketing message.

3. Cost-effective:

It’s relatively inexpensive compared to other forms of direct marketing. It does not require expensive design or production costs, and businesses can reach many customers with a single message. With automation features, SMS marketing can also save you and your team a lot of time. And time is money, as they say.

4. Personalization:

SMS marketing allows businesses to personalize the message, addressing the customer by name and making the message more relevant. People know that when they opt-in for texts from a company, they will likely be bulk messages sent from a template. Making them more personal shows your customer a level of care and consideration that could lead to more trust in your business.

5. Convenient:

Text messages can be sent and received on any mobile device, making it a convenient communication method for businesses and customers. You don’t even need a smartphone! Which allows you to reach many different demographics that you might not reach with other forms of marketing.

6. Measurable:

Businesses can track their campaigns’ performance and measure their efforts’ ROI with ease, allowing them to make data-driven decisions. Many SMS marketing services offer analytics to capture that data and make your marketing strategy much more effective.

7. Compliance:

SMS marketing is subject to legal regulations. Businesses can ensure they comply with these regulations by obtaining customer consent before sending messages and providing an easy opt-out option. It’s simple, straightforward, and efficient.