In a world where most of us are never more than an arm’s length away from our smartphones, SMS (Short Message Service) marketing is a fantastic way for a business to connect with its customers.
By the numbers, it’s a pretty impressive marketing strategy. The average open rate for text message marketing is 98%. Compare that to only 20% for email marketing, and it’s easy to see the appeal.
But the super stats don’t stop there:
- 45% of people will actually reply to an SMS message, sparking a conversation with the business.
- 51% are more likely to make a purchase if the message includes a QR code, discount or ad.
- For every dollar your business spends on SMS marketing, you can expect to receive an average of $71 back.
With these facts and figures in mind, let’s take a deeper look at how SMS marketing works. Then, we’ll examine whether it’s the right strategy for your business.
How Does SMS Marketing Work?
It all starts with a subscriber list. It’s not too difficult to get people to opt in to receiving your texts. A bit of bribery goes a long way. Most will agree to receive your texts in exchange for a discount on their next purchase.
But it’s crucial that everyone on your list has opted in. The Telephone Consumer Protection Act (TCPA) has strict rules in place … and strict penalties for breaking them.
Once you have your list, you can segment it based on different criteria such as purchase history, location or customer behavior. This allows you to send targeted messages that are more likely to resonate with specific groups within your audience. (A good customer relationship management tool is a godsend here.)
After your campaign is set up, you send out your messages through an SMS marketing platform. A good platform will come with analytics tools to track important metrics that show you whether your campaign is working.
How to Use SMS Marketing
An email might get lost in your spam filter. A sales call will likely go unanswered. A social media ad might not show up in your algorithm.
But the vast majority of text messages are opened — and that’s one of the biggest benefits of SMS marketing.
Many businesses use SMS marketing for time-sensitive offers. For instance, a local pizza joint could push out a text at 3:30 p.m. offering BOGO pies from 5 to 8 p.m. tonight only. The timing makes the option much more tempting, even if someone wasn’t even considering ordering pizza prior to seeing the message.
SMS marketing is also ideal for abandoned shopping cart reminders. Someone who was considering making a purchase yesterday could be swayed by a text offering a 25% off coupon code for the item they left behind.
A pharmacy could use SMS to send refill reminders. A retailer could use it to announce their summer clearance sale. A musician could use it to invite people to their next gig.
SMS marketing can do practically anything email, phone calls or ads can do. The difference is that it has a much higher chance of being noticed and acted upon.
When SMS Marketing Goes Wrong
For all the benefits of SMS marketing, it has its drawbacks, too.
Some people may feel texts are intrusive, especially if you’re sending them too often. You might notice that a lot of customers who had previously opted in have suddenly opted out. If this happens, you must get to the root of the problem before you hemorrhage your whole list.
Although SMS marketing can work for any generation, it needs to be tailored differently for each. For instance, Baby Boomers prioritize relevant, straightforward messages, while messages that contain pop culture references, memes and inside jokes resonate better with Gen Z.
Finally, SMS marketing won’t work for every type of business. Companies that operate in niche markets or sell high-ticket items that require more consideration won’t be able to capitalize on the immediacy SMS relies on.
Are You Ready to Give SMS Marketing a Go?
Many businesses have found tremendous success with SMS marketing, but it’s not a one-size-fits-all solution. If you can tailor it to your audience’s wants and needs, however, it’s a great strategy to add to your arsenal!
Are you ready to get started with text-based marketing? Mischa Communications can help. Here’s how to get in touch!