What is SMS Marketing & How Does it Work?

Your competitors have started texting their customers. Should you start too?

SMS marketing is quickly becoming the norm, instead of exception. Before deciding if you should start texting from your business, let’s first see what all of this means, why it works, and what it looks like.

What is SMS Marketing?

By definition, SMS marketing means short message service marketing. This is a marketing technique which uses text messages to communicate offers, updates, and reminders to customers.

This communication might be a one-on-one conversation between a staff member and customer, it could be an automated text that is triggered by a customer action, or it could even be part of a mass text sent to a group of customers who have opted in to receive texts from your business.

The real question is, does text message marketing actually work?

‍

SMS Marketing Benefits

Text messages boast a 98% read rate with 95% being read in the first 3 minutes.

With so many benefits to text message marketing, let’s look at a few of the big ones:

1. Consumers preferred method of communication
Your customers WANT you to text them! 75% of customers are ok with receiving SMS messages from brands.

Additionally, 89% of consumers would prefer to interact with businesses via Text Messaging rather than a phone call.

This makes sense. Text messages are non-intrusive. I can glance at it now (or later), ignore it, delete it, respond to it, opt-out of it, or refer to it later. As a customer, it is the ideal way for a business to communicate with me.

‍

2. High read rate
SMS messages have a 98% read rate. Basically, if you hit "send" they are going to see it.

This doesn't mean you can send anything you want, whenever you want. As with any marketing communication method, too much messaging too often will turn off the customer and they will likely opt-out of your SMS communication.

However, when done with texting etiquette, your customer will want to continue receiving your communication.

‍‍

3. Cost-effective
You need to drive more sales. For many small businesses, this means dumping valuable marketing dollars into thousands of mailers that may or may not be seen by the recipients.

What if you could communicate these special offers, deals, and flash sales to all of your current/past customers at the touch of a button? I know what you're thinking, "We already do this via email." But don't forget the 98% read rate boasted by text message that will ensure every customer sees your special offer.

‍

How Does it Work?

How do you get started with SMS marketing?

First, find a text messaging platform that is a good fit for your company. Next, you can start getting current and potential customers to opt-in to text messaging. Add calls to action (CTA) on your other printed and digital marketing materials that invite people to text in to your number for offers or information.

Text messaging platforms like Kenect encourage you to work with the customer success team to ensure you are implementing texting in every possible way in your business.

What ways can you use SMS marketing in your business? Let's look at examples.

‍

SMS Marketing Examples

Now that we’ve learned what SMS marketing is, and why it is so beneficial, let’s dig into what exactly this looks like. Here are some examples of text message marketing:

1. Promotions
Eg. “Take 50% OFF all outdoor equipment this weekend only!”
Eg. “Special financing on all new RVs during month of July”
‍

2. Reminders
Eg. “Your bill of $454.35 is due on Wednesday, March 23”
Eg. “Don’t forget your appointment with Jim scheduled for 10/23/20 at 1:00pm”
‍

3. Notices
Eg. “There has been a recall on part #675582 of your boat, click link for more info.”
‍

4. Text Payments
Eg. “Thanks for coming in today! Below is the payment link for the deposit”
Eg. “You have an overdue balance of $133.00, click payment link below”
‍

5. Confirmations
Eg. “Thank you for your purchase, follow link below for accessories that may interest you.”
‍

6. Online Review Requests
Eg. “We hope you had a great experience with us, if you could leave us a review of our service we would be very appreciative! Link below”
‍

7. Service Updates
Eg. “We replaced the broken piece, your vehicle is now ready for pick-up.”

‍

Conclusion

SMS marketing allows you to communicate with your customers how they prefer. 

Through text message. 

Should you business start text messaging? According to consumer preference, the answer is a resounding “YES”.