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10 Things You Need To Know About SMS Marketing


More than two decades after the invention of the text message, SMS marketing is still a mysterious concept for many business owners. However, if done properly, SMS marketing can be a very effective tool for expanding your business. In this article, we’ll go over ten crucial things you need to know regarding SMS marketing.

1.   SMS Marketing Requires User Opt-In

Using SMS marketing, you can deliver promotional messages to existing and prospective customers through text. This form of marketing relies on the recipient’s consent; thus, customers must willingly “opt-in” to receive texts from businesses. They should also be able to “opt-out” of getting texts. This sets it apart from social media marketing, in which marketers publish public content for others to like or follow.

All contacts must have explicit written or digital consent as required by the Telephone Consumer Protection Act (TCPA). When a customer buys from you, that doesn’t mean that you are entitled to send them text messages. You also can’t buy or rent a phone number list, just like with email marketing. Violations of this requirement are punishable by severe fines.

2.   SMS Messages Have a Higher Open Rate Than Emails

SMS marketing is a quick, easy, and cost-effective alternative to emailing your target customers. According to studies, SMS open rates can reach 98%, yet only 20% of emails are opened. In addition, it takes an average of 90 seconds for people to respond to a text and 90 minutes for anyone to reply to an email. Considering that 75% of consumers say they’d appreciate receiving an SMS offer, it’s no surprise that 65% of marketers believe SMS marketing to be a “very effective” strategy.

3.   SMS Marketing Has an Average ROI of 500%

According to studies, text marketing campaigns offer a 500% return on investment (ROI). As a result, when you launch a strategic SMS marketing campaign related to an offer or discount, you can anticipate getting around five times your money back. This impressive ROI can be attributed to SMS marketing’s lower cost. In general, you can expect only to spend about $.01 to $.05 per SMS message.

4.   The Most Effective Campaigns Are Those That Target Abandoned Carts

Shoppers are reminded of things they were on the verge of buying when they see abandoned cart alerts. They went through the effort of placing your product in a shopping cart but didn’t complete the transaction, possibly because of second thoughts or the need for more research. Marketers who use SMS to persuade customers back to a product they’d previously abandoned will get great results thanks to the high level of buying intent. Abandoned cart campaigns produce click through rates of 16.2%, conversion rates of 9.1%, and a whopping $8.11 per message throughout all industries.

5.   Conversion Rates Go Up Across the Board With SMS Marketing

Text messages improve conversion rates in a wide range of industries. Research reveals that SMS messages have conversion rates of up to 9.1% and click through rates of up to 30.3%, earning up to $8.11 for each message. SMS marketing helps enhance conversions because of the high open and click through rates.

6.   More Than Half of Consumers Respond to Texts Within Three Minutes

Apart from opening and reading texts more frequently, consumers are also much more likely to reply. In fact, more than half of text message recipients answer within three minutes, and 78% do so within ten minutes or under. Social media and email are completely outclassed by these metrics. When compared to emails, text messages get 4.5 times the response rate from customers. Furthermore, SMS texts have a response rate of 209% higher than phone calls, emails, and Facebook. As a result, this casual, quick mode of communication is critical to every brand’s strategy and results in satisfied customers.

7.   Keywords Are Effective

An SMS keyword is a term or phrase that a customer uses to communicate with a company via text message. For instance, a restaurant might urge customers to text the word TASTY to a specific number to obtain a particular product deal. Or, a clothing business can encourage customers to text the word LESS50 to get a discount. It’s a clever approach for companies to attract customers to sign up for SMS message communications. Keyword promotions have a click through rate of 30.3%, a conversion rate of 7.7%, and a profit of $5.79 per message across all sectors.

8.   Be Mindful of When You Send Your SMS Messages

Since SMS messaging might be a less formal way of marketing in some situations, it’s critical to strike the right balance when timing your messages. Your company might have a policy that protects the privacy of its customers. As a result, timeliness should be considered in these policies. To keep your business professional, maintain a boundary between you and your customers.

In addition, The Cellular Telecommunications Industry Association (CTIA) has guidelines for sending messages to contacts, including how often and when to send them. The best practice is to send one message per week during the daytime hours of the contact’s local time. These guidelines can help you maintain a healthy SMS campaign while also ensuring that wireless carriers see you favorably.

9.   Identify Yourself During SMS Campaigns

Nobody likes getting text messages from people they don’t know. Unidentified text messages are rarely opened. Even more so, the TCPA mandates that text message senders disclose their identity. In most text messages, the sender’s name appears first. This is necessary for brand awareness as well as common decency to your customers.

10. Spamming Is a No-no

Do not bombard customers and clients with irrelevant bargains or offers that are unlikely to meet their specific demands if you want to receive the best possible response from them. Sending SMS messages en masse is a bad idea since this kind of text is typically too generic to pique people’s interests. Personalized text messages that are more relevant will get buried among the generic ones, reducing the effectiveness of your SMS marketing approach.

The Bottomline

SMS marketing, when done correctly, can be a very successful strategy for growing your brand. If you are still on the fence about implementing this strategy for your marketing, we hope the facts we’ve presented above can help with your decision. We’ve also provided a few pointers that we hope may save you from problems in the future.

Would you like to learn more about SMS Marketing? Visit our website, Create By Influence, or book a consultation today.

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