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SMS Marketing

SMS Marketing

SMS marketing, also known as text message marketing, is a method by which businesses and organizations send out specials, coupons, promotions, alerts, and more via highly targeted, permission-based, opt-in text messages. These messages are limited to a max of 160 characters.

Short message service: a system for sending short text messages, as from one cell phone to another or from a computer to a cell phone.

SMS (short message service) is a text messaging service component of most telephone, Internet, and mobile device systems.

It uses standardized communication protocols to enable mobile devices to exchange short text messages. An intermediary service can facilitate a text-to-voice conversion to be sent to landlines.

SMS, as used on modern devices, originated from radio telegraphy in radio memo pagers that used standardized phone protocols.

The first test SMS message was sent in 1992 and it commercially rolled out to many cellular networks that decade.

Why SMS Marketing

• Its permission based. Just like what we discussed in the last section, you can only send text message blasts to customers that have opted in to your communication. This makes your marketing lists extremely concentrated, as they contains customers who plan on patronizing your business, usually on a regular basis.

• It’s a mass communication tool. Just about everyone owns a cell phone. It’s more than likely that all these phones can receive texts. SMS marketing allows you to touch base with subscribers at the click of a button.

• It’s instant. Text messages are sent and received in a matter of seconds. Think about how powerful that is alone. It allows you to control the exact time and date that customers read your promotions.

• It’s tractable. It allows you to easily measure which messages/promos are working and which ones aren’t. This helps you constantly improve your text campaigns and marketing messages on all other promotional outlets.

Benefits of SMS Marketing

There are many different benefits of SMS marketing, and they vary based on the industry you’re in, and how you choose to use it. Here are some of the most common benefits experienced by marketers and business owners who use SMS.

• Increase foot traffic to your business
• Increase your sales and customer base
• Reward loyal customers while creating new ones
• Establish a stronger personal connection with your customers
• Instantly communicate with customers
• Customers can easily forward valuable text promotions to friends and family
• Customer stay in the loop with your business
• Customer won’t feel forgotten due to lack of marketing reach

SMS Marketing Statistics

Now that we have some background on why SMS marketing is so powerful, let’s take a look at just a few of the most important text messaging stats.

• 95% of text messages are read within the first 5 minutes
• 70% of Americans would like offers from their favorite businesses sent right to their cellphones
• The average American looks at their cellphone 150 times per day
• 22% of text messages with value are forwarded on to friends and family
• The average redemption rate for a mobile coupon is 20%

What Do Consumers Think Of SMS Marketing?

In general, it appears companies are afraid that they’ll be invading their
customers’ privacy by sending them text messages. Which is why it’s not surprising that one of the most common questions concerning SMS marketing online is, “Is text marketing legal?”
The answer is: Yes, absolutely.

In almost all cases, people need to opt-in to receive texts from your business. And this is a good thing, because opting-in is a great signal that someone is a good prospect, quality lead, or is likely to convert with promotional offers or upsells.
A lot of online marketers laugh at the idea of SMS marketing services because they think it’s more regulated than email marketing. Fortunately, that’s not the case. Other marketers shy away from text message marketing because it’s a new and therefore intimidating channel, or they feel it’s too intrusive to show up in their audiences’ text inbox. However, the data proves
out that this idea is also not the case.

Comparing SMS Text Messaging to Other Marketing Channels

The value of text message marketing is that it’s the most preferred way for billions of people to interact with one another. People keep their phones by their side at all times and are always ready to use them.

And once again, the SMS marketing statistics we’ve gathered make that crystal clear.

Why Is SMS Marketing Effective?

SMS is one of the most useful marketing channels at your disposal for several reasons:

• Ubiquity of Smartphones: With 81% of adults in the US owning a smartphone in 2019, SMS is an excellent way to these reach customers directly.

• By including a link in this text, you can drive engagement with your business online.

• Closes the Email Marketing Loop: Although email and SMS marketing have many similarities in their strategy implementation, they work best in tandem.

• As mentioned earlier, you can use SMS to send instant notifications, while email contains more long-form content.

• High Engagement Rates: SMS engagement rates are astronomical compared to email, with 90% of SMS messages read within 3 minutes of receiving them.

• This makes SMS very helpful in delivering critical information with a high success rate.

• Great for Emerging Markets: If your business is trying to operate in countries where data is expensive and Wi-Fi is less common, SMS is a much better channel to communicate information.

What is SMS Marketing Used For?

SMS can be used in a number of different ways. I will share with you some of the most common use cases to give you a better idea of what you can do with SMS and how it might help your business.

Short-Term Promotions for Retail for E-Commerce Businesses

Coupons and promotions are an excellent way to drive more people to your store or website. If you are conducting a limited-time sale or promotion, you obviously want as many people to hear about it as possible. SMS is a great channel to communicate these offers, especially if you want to let customers know while they are on the move. That way you can be sure that they don’t miss out because they didn’t get the message in time.

Urgent Updates About Events or Customer Orders

There are a lot of moving parts that go into planning and executing an event. The more people you have attending the event, the more challenging it becomes to communicate the necessary information to everyone. With SMS, you can easily communicate any changes, cancellations, general information, or updates with better real-time engagement than email or other channels.

Appointment Reminders

If your business runs on scheduled appointment times, then you know the frustration of having clients forget appointment times and showing up late. Even more frustrating, is when clients fail to show up at all. Not only does this throw off your schedule, it wastes your time. It means that you may have turned down other appointments because that appointment slot was taken. Sending reminder text messages is a fantastic way of making sure
that people don’t forget their appointments and show up at the right time.

Who Can Benefit From Using SMS Marketing Services?

Text messages can be a great addition to your digital marketing efforts regardless of what business type you have. They serve the unique function of communicating very urgent information in a highly reliable way.

But, there are certain businesses that cannot live without SMS in their marketing strategy:

• E-commerce stores: Whether you’re sending a promotional
campaigns, or order/shipping confirmations, SMS is a great tool for e-commerce stores.

• Travel companies: SMS is essential to travel companies because customers need real-time information. This includes flight time updates, gate changes, cancellations, weather alerts, and many more. With SMS you are able to tell customers exactly what they need to know, without having to worry about if they will see it in time.

• Service businesses that require appointments: Make sure that your clients never miss another appointment by sending them SMS reminders. This will save you tons of time and money wasted on noshows and late appointments.

• Large organizations with 100+ employees: Internal communication is important, but it’s hard to communicate with every employee in a large company. For urgent information, email is too slow. Using SMS for your internal communication is the best way to ensure that every employee gets the information you want to send them at the right time.

Can SMS marketing work for your business?

Only one to find out – test it on it your audience! If you’re already using email marketing (or considering it), try including SMS in your strategy.

Now you should have a better idea of what SMS marketing is, and why it is great. Here’s a quick recap of some of the pros:

• Reliable delivery
• Direct line to the customer
• High engagement
• Compliments your email marketing strategy

If you sign up for Sendinblue, you can send promotional and transactional SMS messages from the same platform as your email marketing campaigns. You can also track engagement with SMS and email campaigns side-by-side in your Sendinblue dashboard. This lets you see exactly how you’re performing across all channels. SMS marketing continues to validate its place as an effective channel.

SMS marketing statistics and facts demonstrate that mobile marketing is an effective channel to engage and deliver a measurable, positive return on investment.

Here is a collection of 10 SMS marketing statistics that reinforce the fact that SMS marketing is a key channel marketers need to consider in their mix.

1. Approximately 50% of consumers in the U.S. make direct purchases after receiving an SMS branded text/QR code/discount coupon. This is a pretty astounding number, and an incredible SMS marketing fact. Half of those exposed to mobile messages make a purchase.

This fact demonstrates that marketers who do not consider SMS marketing may be leaving money on the table. There aren’t many channels that make a claim to converting half of consumers to take a behavior or action.

2. SMS campaigns have over 7 times greater performance than email campaigns. Email marketing continues to be an important workhorse for many customer marketing efforts.

However, it turns out that SMS marketing campaigns produce greater results than email campaigns. This SMS marketing fact demonstrates the effectiveness of SMS marketing campaigns. SMS marketing messages do get read, while email messages tend to only reach a percentage of the targeted universe, based on average open rates. All channels work well together than independently, and mobile phone numbers must be provided
by a consumer, accompanied with their opt-in.

This SMS marketing statistic demonstrates the effectiveness of SMS marketing, and can be enough to convince any marketer that this is a channel worthy of consideration.

3. 79% of smartphone users rely on an SMS opt-in or other mobile device service to assist them in making purchasing decisions while shopping.

This SMS marketing fact seems high on the surface. Then I reflect back to my last three shopping trips and realize I used my phone to read a review or show an item to a salesperson. SMS marketing helps ensure you are reaching and influencing consumers.

4. 90% of mobile device users who were enrolled in SMS loyalty clubs felt they had benefited from being involved in the program. Users who engage with SMS marketing programs see benefits.

According to Hip cricket, 90% of mobile device users who were enrolled in SMS loyalty clubs felt they had benefited from being involved in the program. By definition, consumers must opt-in to receive SMS marketing messages.

They are actively agreeing to participate in the program and have decided that they want to receive messages. This engagement might play a role in their satisfaction with SMS marketing programs, but either way it is a validating statistic to see that 90% of users see benefits in SMS loyalty programs.

5. Applying SMS marketing techniques is predicted to contribute a 40% growth rate of revenues by 2017. BIA/Kelsey predicts a 40% growth rate of revenues gained by spending generated with SMS marketing techniques, starting from $3.2 billion in 2012 to $16.8 billion in 2017.

SMS marketing has already been established as an effective marketing channel. This is likely to continue to increase as consumers become more comfortable with this technology and more marketers adopt this channel.

This is a pretty astounding number and underscores the level of consumer acceptance and predicted increase in adoption of SMS marketing.

6. Over 50% of mobile search users decided to make a purchase based on the results of their search. Most mobile device users are conducting searches on their phones.

According to Google, 9 out of 10 mobile device users perform searches on their device. Of that group, over 50% decided to make a purchase based on the results of their search. SMS can increase engagement even further, as users have opted in and have a greater propensity to act. When exposed to a persuasive SMS marketing message, users are more inclined to do a
quick search on their smartphone, especially if the message is relevant to the user.

7. Coupons delivered via SMS have redemption rates 10 times higher than those of printed coupons. Consumers are receptive to mobile coupons. Mobile coupons are convenient for users, demonstrated by the fact that redemption rates are significantly higher than traditional printed coupons.

Not only can coupons and discounts attract customers, they can increase customer retention through ongoing engagement.

8. 75% of mobile phones worldwide are enabled to receive SMS. The good news for marketers is the majority of phones in today’s world are SMS enabled. Industry experts expect that percentage to rise to nearly 90% over the next 10 years, making it imperative that companies build SMS marketing campaigns into their marketing mix.

9. Only about 10% of SMS marketing messages received are considered spam. This is an important indicator on consumer perceptions regarding SMS messages. Consumers generally feel SMS marketing messages are a valued touch point. This also directly increases the impact of SMS marketing messages because users aren’t as prone to deleting messages without first reading them.

CONNECT WITH THE RIGHT PERSON, IN THE RIGHT MOMENT, WITH THE RIGHT MESSAGE.

Mobile features connect you with your on-the-go customers through any channel. Use real-time interactions with push notifications, SMS and MMS messaging, and other helpful tools to reach your customers — wherever they are. Calculating the Conversion Rate for SMS Marketing.

If you’ve come across our marketing material, you may have seen us referencing the fact that SMS has an average open rate of 98%. It’s crazy to us how highly underutilized SMS messaging is by marketers.

Even if you don’t care about sky-high open rates, response rates that are eight times higher than email, and click-through rates of 36%, you’ll find the conversion rate of SMS marketing impressive. Instead of one single conversion rate metric, here are a couple:

Salesforce found a conversation rate of 45% for brands using SMS.

According to a study of 3.5 million lead records, texting a prospect after initial contact increased conversion rates by 112.6% SEJ reported a conversion rate of 17% for text advertising campaigns.

Our customer, Whisker Seeker, routinely seeks a 25% conversion rate on its SMS promotions.

Tore Eyewear increased its e-commerce store is conversion rate by 200% using text marketing.

What is the Conversion Rate for SMS Marketing?

From a variety of sources, we can see the average SMS marketing conversion rate is 29%. In terms of the average increase in conversion rates attributed to text message marketing, it is 156%. The conversion rate for SMS is much higher than other digital marketing channels:

3.26% for email marketing
3.17% for Google Ads
9.21% for Facebook ads

SMS marketing’s conversion rate is 200% higher than the next best performing marketing channel.

How to Increase Your SMS Conversion Rate

In a world where people spend an average of 20 hours a week on their mobile phones and send 60 texts per day, your mobile marketing strategy should include bulk SMS marketing. Here are three tips on how to convert more text message recipients.

1. Include a Clear Call to Action (CTA)

Even though text messages are short, you need to communicate what you want your recipient to do quickly and clearly. The call to action should be immediately apparent to your recipient. No clever wordplay or unnecessary words are needed here.

Most phones only display the first few words of a text message in the phone’s messaging app. This means it’s essential to communicate what the text is about in the first sentence. Otherwise, you risk your customer deleting the message before they even read it.

2. Personalize Your Message

As a marketer, you know that personalization matters. One study from marketing charts found that visitors who viewed three pages of personalized content converted at double the rate for those who only saw two pages with customized elements.

While personalizing web content and landing pages can be a complicated undertaking, it is not hard to send personalized texts. A lifestyle brand may decide to address customers by their first names, whereas a financial services company may wish use to use a title and surname for a more professional feel. With Simple Texting, you can do both.

Using our keyword-based Data Collection feature, you can collect information such as your contact is first and last name, as well as email.

3. Use SMS A/B Tests

Brands that run A/B tests for email campaigns report a 37% higher email marketing ROI than brands that do not run any A/B tests. The same is likely true for SMS campaigns. This article walks you through how to run an A/B test to improve your SMS marketing. You could test out the impact of different offers on conversion rates.

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