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Updated Aug 16, 2024
Text Message Marketing: Annoying, Brilliant or Both?
Is SMS text message the second coming of email marketing or the new spam?
Written By: Mark FairlieSenior Analyst & Expert on Business Ownership
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Senior Editor & Expert on Business Strategy
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Table of Contents
Text messages can be annoying when you’re getting bombarded with them faster than you can unsubscribe. On the other hand, text messaging can be brilliant when your favorite restaurant texts you about a last-minute table available on a packed Friday night. When done well, text message marketing can increase client loyalty and drive valuable repeat business.
Read on to find out why text message marketing works so well in the age of WhatsApp and Facebook Messenger. Then, learn how your business can use text message marketing to increase sales.
Is text message marketing effective?
There are several reasons why text message marketing is effective.
It creates a sense of urgency.
When your phone beeps or vibrates to tell you that you’ve got a text, you open it and read it right away. That’s why people open 98 percent of text messages, compared with just 20 percent of emails, according to Subtext.
People trust text messages.
We trust texts far more than email, although spam texts are increasing. Text messages have a click-through rate of 20 percent, compared with just 3 to 5 percent for email, Sinch reported.
It’s inexpensive.
You can broadcast text messages in bulk for as little as 1 cent per send, which is similar to the sending fees for email broadcasting platforms.
Customers love the convenience.
When you use text messages to deliver offers and coupons to your customers, you are doing them a favor. Most people say they want to receive special offers via text message rather than email because texts are easier to find when they are in a store.
You get instant and measurable results.
Text message marketing campaigns generate immediate responses. That’s because 90 percent of them are read within three minutes, according to OpenMarket. You can also track message delivery, open rates and conversions much faster than you can with other marketing methods. If you’re having a slow day or week, a text campaign could drive additional revenue within minutes.
Did You Know?
Engineer Neil Papworth sent the first text message to Vodafone Director Richard Jarvis on Dec. 3, 1992, in England. It said "Merry Christmas."
You can get a campaign going quickly. Within a few minutes, you can send a message to thousands of people.
Recipients have opted in, so they’re interested.People voluntarily opt in to receive your messages. That’s a sure sign they like your business, and there’s a higher chance they’ll be interested in what you say.
Texting is a popular messaging channel.A whopping 97 percent of U.S. adults have a cell phone, according to Pew Research Center, and SMS campaigns have an average open rate of 98 percent, SMS Marketing reported.
Texting is easier for customers to use in the store. It takes only a couple of clicks to show your floor staff a voucher sent by text. Showing an email takes longer and is more of a hassle.
It is very cost-effective.For example, you can send texts with EZ Texting for as little as $20 per month.
Text messages are great for personalization.Hook your messaging platform up to your customer relationship management (CRM) software to address customers by name and remind them of previous purchases.
Texts can send appointment reminders. Text clients to remind them of their slot and ask if they’re still coming. Every missed appointment in a salon or health care clinic costs money.
Texts keep customers in the loop. If you have a new product you want to promote or you want to share an update to an existing product, let customers know right away via SMS.
Text messaging is a good form of two-way communication. Recipients can respond directly to your texts to ask questions, which is great for building relationships.
Cons of text message marketing
Some businesses hesitate to use text message marketing for these reasons:
You need permission to send texts.You can’t just send unsolicited messages in the hope that you find someone who’s interested.
It’s harder to build big lists. People are more protective of their cell phone numbers than their email addresses. Many are reluctant to share their number, even if they like and trust you.
You need to keep your messages short.Even for talented copywriters, creating a compelling sales message with 160 characters is a challenge.
Some people get upset. Certain people may forget that they opted in to your list and get angry with you for messaging them.
Scammers use text messaging. Because texts aren’t always filtered and blocked, scammers use SMS a lot. This makes many people wary of responding.
It’s another communication channel to manage.Texts can represent more work on top of your email and social media marketing.
FYI
Many of the best SMS marketing platforms allow you to send messages longer than 160 characters, but you’ll pay more for it. Most providers charge up to three times more for MMS messages than for SMS messages.
Text message marketing best practices
To get the biggest returns from your campaigns, you must know the best ways to use text message marketing. Follow these best practices to achieve success with your text message marketing campaigns:
Always get permission. Text message marketing laws mandate that you send only to people who have subscribed to your service. Text message marketing platforms can help you with this.
Make it easy to unsubscribe. Never outstay your welcome. Always include an unsubscribe option at the bottom of each message. Don’t make it hard for people to stop receiving texts from you.
Make every word matter. Focus on using only the words you need to convey your message and spark interest.
Account for people’s suspicions. Scammers send people dozens of texts a month trying to con people out of their money. If you include a link, make sure it goes to your precise website address.
Time your message well. Don’t send texts too early in the morning or too late at night. Try to time your messages for when people might actually need you. If you deliver pizzas and the big game is on, why not tempt customers with a match-day special an hour before kickoff?
Tie in messages with events. Get your CRM system to send reminders to users who fill their online shopping cart but don’t end up ordering. Send them a link to take them straight back to their cart. You can send them birthday messages, too.
Keep adding subscribers. Take every opportunity to get customers to share their cell numbers with you. For example, you could display a QR code that takes them to a website-based subscription form and include a business card containing an incentive to sign up for texts.
Send the right number of texts. If you send too many, it could feel like harassment. If you don’t send enough, recipients might forget they subscribed.
Segment your list. The more you can tailor your message to appeal to what customers are actually interested in, the better. One way to do this is to segment your database by types of items purchased. [Read related article: Top 5 Market Segmentation Trends for Business]
Leverage the fear of missing out (FOMO). Using limited-time offers or displaying how few of a particular item are left in stock can instill a strong sense of urgency, provoking recipients to respond.
Test and optimize. Many text message marketing platforms allow you to send different messages to test which types and styles of texts generate the best response.
Personalize your message. Integrate your texting platform with your CRM software to include recipients’ names and previous orders so your messages are more relevant and less likely to be viewed as spam.
Sam Bocetta contributed to this article.
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Written By: Mark FairlieSenior Analyst & Expert on Business Ownership
Mark Fairlie brings decades of expertise in telecommunications and telemarketing to the forefront as the former business owner of a direct marketing company. Also well-versed in a variety of other B2B topics, such as taxation, investments and cybersecurity, he now advises fellow entrepreneurs on the best business practices.
At business.com, Fairlie covers a range of technology solutions, including CRM software, email and text message marketing services, fleet management services, call center software and more.
With a background in advertising and sales, Fairlie made his mark as the former co-owner of Meridian Delta, which saw a successful transition of ownership in 2015. Through this journey, Fairlie gained invaluable hands-on experience in everything from founding a business to expanding and selling it. Since then, Fairlie has embarked on new ventures, launching a second marketing company and establishing a thriving sole proprietorship.