The Ultimate Guide to SMS Marketing

CHAPTER 01 General Overview of SMS Marketing

A. What is SMS Marketing?

SMS marketing is the most attention-grabbing, immediate, and convenient way for businesses to reach their customers in today’s marketplace. However, with this great power comes the heightened risk of abuse. Through relevant and targeted text messages, businesses can find and message their customers in powerful and effective new ways.

Let’s cover exactly what SMS marketing is. SMS marketing (also known as text marketing) is short for text marketing. These messages are the same as the text messages you send every day to your friends and family, but marketing messages come from a business.

B. Is SMS Marketing Worth It?

Absolutely. In the past 5 years, nearly ⅓ of consumers have signed up for marketing alerts from brands, and ⅔ of those who subscribed have taken advantage of an offer sent to them and made a purchase.

All of this means that the implementation of an SMS marketing strategy can bring significant returns on investment for many brands, increasing web and in-store traffic, helping to generate sales and build relationships with customers. Here are some amazing statistics:

SMS Marketing Statistics

  • 98% of text messages are read, compared to just 22% of emails.
  • Over 60% of consumers would rather text than call when given the option for customer
    service.
  • 90% of text messages are read within
    three minutes.
  • In the 18-34 age range, texting is the preferred channel to communicate with
    businesses.
  • Text messages are responded to 7.5x more often and 60x quicker than emails.
  • 31% of consumers answer text-based surveys, and the average response time is
    under 6 minutes.
  • SMS marketing is estimated to see engagement rates 6-8 times higher than
    email marketing.
  • In-store coupons that can be redeemed on demand have a redemption rate of over 70%.
  • 89% of consumers say they want to text message to communicate with a business, but only 48% of businesses are equipped to do this.

C. Common Misconceptions of SMS Marketing

I. Is it legal? Yes it is. The government requires that anyone you message has to opt themselves in to receive these messages. This can be done in a variety of ways, including posting mobile keywords that customers text in to opt in, as well as online signup pages that allow contacts to opt in voluntarily. In addition, if you have written consent from contacts to receive SMS marketing messages, you can import their information into your marketing software. For more information, please refer to section 4 of this guide.

II. Is it expensive? No, in fact it is one of the most cost effective marketing channels! Every text message you send to a customer costs fractions of a cent. When you compare SMS marketing to radio, paper, or TV ads, the return on your investment is extensive. Text messaging companies typically sell “credits” that translate to a certain number of text messages. Text credit costs can vary by country due to service fees, and MMS messages typically cost more because more data is sent.

III. Do people want to receive marketing texts? Yes! In fact, 89% of consumers say they want to send and receive text messages to communicate with a business. Of course you have to have the contact’s permission to send them these texts, but opting contacts in to receive your messages is quick and easy.

IV. Is text marketing common? It’s not only common, it’s becoming one of the most popular ways to market to customers as certain industries realize the power and reach of text message marketing.