A Beginner's Guide to SMS Marketing

What SMS Marketing is?

Today, there are those who consider SMS as a limited channel that is destined to disappear in the face of the increasing use of instant messaging applications such as WhatsApp.

However, the truth is that SMS marketing is a growing channel.

In 2020, the market value of SMS globally sent by brands has been estimated around USD 68 billion for around 6 trillion SMS sent.

For the coming years, the estimate is growing steadily and is expected to reach a traffic volume of around 8 trillion SMS sent and revenues of around USD 83 billion in 2026.

5 facts that make SMS Marketing essential for your business

SMS marketing has considerable advantages compared to other marketing channels and if incorporated correctly into a marketing strategy can make all the difference in terms of return on investment.

Here is why you should give it a try (if you have not already!):

1. It’s direct

Everyone today has a Smartphone. And its use has increased dramatically following the Coronavirus pandemic, which has forced millions of people into their homes.

Today, users spend around 4 hours and 30 minutes a day on their smartphones, making these devices an indispensable point of contact for businesses.

SMS marketing makes it possible to reach recipients directly on their smartphones, at any time and without the need for an internet connection.

2. It’s versatile

SMS has a wide variety of uses.

They can be used to communicate promotions or discounts, but also information about transactions, orders and payments.

They are now widely used in the banking sector and by giants of the virtual commerce such as Amazon to communicate with customers about shipments. But not only that.

With the spread of the Coronavirus pandemic, many local authorities and governments are also using SMS to inform their citizens about developments in the health situation or service updates.

3. It’s cheap

Compared to advertising on traditional communication channels, SMS marketing is more economical, as it is characterised by lower costs but high return on investment rates.

4. It’s customisable

If you think that SMS is limited by the number of characters, you could be wrong.

Yes, text messages are short, but they can be made engaging for recipients by sharing links to e-commerce platforms, web pages and landing pages.

Plus, there is the option to make your text messages verified by including your company logo. This way, your customers will always know who they are communicating with.

5. It’s effective

SMS marketing has a very high probability of success: they have a 98% delivery rate and are usually read within just 3 minutes of delivery.

What is more, it is not a crowded channel (private messages are received by other platforms) so you can be sure that your communications will get straight to their destination and get the attention they deserve.

How you can use SMS Marketing to increase your revenue

If you are wondering how you could use SMS marketing to improve your earnings, here are some examples:

- Customer service

SMS can make all the difference in improving your level of service in the eyes of consumers. You can send automated text messages to welcome people to sign up to your newsletter, thank them for purchasing your products and provide an immediate channel for any enquiries.

All this will increase your brand authority and improve loyalty processes.

- Appointment/event management

If you need to communicate with your customers in a timely and easy way, SMS is for you. You can use it to communicate information about appointments (useful if you offer services by appointment) or to improve the management of events, both physical and digital, using SMS as a reminder.

You will improve the management of your activities and obtain higher success rates.

- Increase the visibility of other channels

SMS marketing amplifies the potential of the other marketing channels you have.

You can send text messages to your customers to alert them for an email sent a few days earlier, notify them of a flash promotion running on your website or remind them of products left on hold on your e-commerce platform.

Your chances of increasing sales will be much greater!

- Feedback and contests

Knowing what your customers think of your service is the first step to improving your brand and getting more revenue. SMS marketing allows you to receive and ask for feedback about your products or services through a simple link, and that is not all!

For your most loyal customers, you can organise contests to stimulate user engagement and increase revenue.

- Service Communications

If your company has an e-commerce and therefore offers the possibility to make purchases online, SMS can help you send payment confirmations, order confirmations, information on any delays but also support your customers in managing their credentials in a completely secure way.

In fact, SMS is perfectly suitable for two-factor authentication, which is widely used to limit the widespread phenomena of phishing and spoofing.

So, if you are not using SMS marketing for your business yet, now you know some good reasons to do so!