The Ultimate Guide to SMS Marketing

Would you believe me if I said that one of the most effective digital marketing tools is something you use every day, but probably haven’t considered using for your business? Here’s a hint: it’s right in your pocket. Those simple text messages you get and send all the time can be harnessed into SMS marketing, the unsung hero of mobile marketing.

While email inboxes can quickly get cluttered and social media algorithms are an ever-shifting shell game, SMS marketing can snag you an open rate as high as 98%, which is a massive gap compared to the average for email (20%). With a number like that, it’s easy to think that SMS strategies could be the silver bullet to your engagement woes.

But here’s the catch: like any other strategy, it’s not foolproof. If you misuse SMS marketing, it can seriously backfire on your brand. If you end up failing to provide value, or worse, spam your customers, you may end up with more unsubscribes and turned-off users than sales.

So how do you strike the right balance? Fret not: in this guide, we’ll cover everything you need to know to unlock the potential of SMS marketing for your business. We’ll cover:

• Why SMS marketing can change the game.
• A fuss-free step-by-step process for launching your first SMS campaign.
• The common challenges that can ruin your efforts before you get a real start.
• Tools, apps, and other nifty tips to maximize your ROI.

Whether you’ve been looking for a new marketing avenue to cut through the clutter, or you simply want to refine your current mobile marketing approach, trust me: you’re in the right place. Let’s get down to brass tacks.

Why SMS Marketing Deserves Your Attention

Here’s a crazy statistic to chew on: the average U.S. adult checks their phone 344 times per day. That’s once every four minutes. While most marketing channels like SEO and social media ads have to fight for visibility, SMS messages already land directly in a customer’s hand, typically with a notification sound that gets their attention right away.

Unlike social media posts that users can scroll past or miss due to the algorithm, or emails that go straight to the spam folder, SMS can cut through the noise. Its directness can make it one of the most effective channels for time-sensitive campaigns like:

• Flash sales
• Event reminders
• Abandoned cart follow-ups
• Limited-time promotions

Okay, But Isn’t SMS Expensive?

Let’s get that myth about SMS and its ROI out of the way. One of the biggest misconceptions is that SMS marketing is too costly, especially for startups. Yes, SMS providers charge per message, but the return on investment is astronomical when done right.

For every $1 spent on SMS marketing, businesses can see an average ROI of $5 to $10. Compare that to paid ads, where ROI often fluctuate wildly, and it’s clear SMS is worth considering.

If you’re still worried about costs, start small. Platforms like SimpleTexting or Twilio offer affordable plans that startups should consider. And remember: it’s not about the number of messages you send, but the impact each one makes.

The Right Way to Approach SMS Marketing

SMS marketing is about strategy, timing, and understanding your audience at a deeper level. Missteps like sending irrelevant messages or mistimed promotions can quickly lead to frustrated customers and lost trust. So how do you ensure your SMS campaigns hit the mark?

Let’s break down the essential steps to craft a winning approach, from making concise messages to sending them out at the right time:

Know And Segment Your Audience

Before you send out that first promo message, ask yourself: who is your team texting? Are you sending something out to existing customers who already know and trust your brand, or are you (gulp) cold-texting strangers, which may come off as intrusive and spammy?

As with email marketing, segmentation can dramatically boost your SMS results. Think about your audience’s pain points, what would appeal to them, and what would turn them off. At the end of the day, what you’re trying to do is gauge the when, how, and what of your SMS campaign so you make it as easy as possible for them to engage with your business.

Many SMS platforms let you create segments based on purchase history, location, or engagement. Use them to send relevant content. After all, no one likes generic blasts.

Keep It Short, Sweet, and Scannable

Think of SMS as the X of marketing: with only 160 characters to get your message across, every word counts. Avoid fluff and focus on value. For example, instead of saying:

“Hello! We’re running an exclusive sale this weekend, and we think you’ll love what’s in stock! Check it out today.”

Try this to get the same information across in fewer, clearer terms:

“Flash 24-hour sale: 20% off sitewide. Shop now: (link to your website)”

My advice is to always have a strong call-to-action (CTA). Whether it’s “Claim Your Offer”, “RSVP Today”, or “Buy Now”, make it clear to the recipient what they need to do next.

Time It Right

This should go without saying, yet many businesses will willfully ignore it: nobody wants to be woken up in the wee hours of the morning by your “hot offer”. Respect your audience’s time by sending your messages solely during business hours.

Targeting multiple time zones? You’ll have to segment your list accordingly so you send it at the right time to the right areas. Studies show that the best times to send SMS messages that will reach your audience are:

• Mid-morning, a.k.a. 10 to 11 a.m.
• Early afternoon, or 2 to 3 p.m.

The “right” time, however, will depend on your audience, their unique pain points, and when you can count on them to be up and about. Experiment with different times and track your engagement rates to see what works best.

Controversial Take: Will SMS Replace Email Marketing?

Here’s a bold prediction that some of my peers have: SMS marketing might eventually dethrone email marketing. Why? Because people are overwhelmed by email. With their inboxes flooded by spam, promotions, and newsletters from a billion websites, many consumers have quickly learned to tune these messages out. SMS, on the other hand, may offer a more personalized, clutter-free experience.

I’m of the opinion that email marketing still has a place, and you can learn why in one of my other guides. This is because SMS marketing can’t and shouldn’t be used the same way as email marketing. While getting more than one email from the same entity won’t really ping alarm bells for a person, getting daily texts will likely annoy them.

The key is to use SMS strategically for high-impact messages. Which brings me to my next point…

They Can Coexist

Combining SMS and email creates a powerhouse marketing strategy, so don’t jettison one in favor of the other. Use email for more in-depth content like detailed, longer-term promotions or newsletters. SMS, on the other hand, is better suited for fast updates or time-sensitive promotions.

Here’s an example of how you can use the two to reinforce one message:

• Email: “Our Christmas sale is live! Shop now for exclusive deals on festive gifts.”
• SMS: “Last chance! Christmas sale ends tonight. Shop now: [link]”

How to Launch Your First SMS Campaign

Yes, launching your first campaign can be intimidating. But with a clear plan and thoughtful approach, it can quickly become one of your most effective marketing strategies. Here’s my step-by-step guide to walk you through the process, ensuring that your SMS campaign is not only fuss-free but also highly impactful:

1. Choose Your Platform

When it comes to SMS marketing, choosing the right platform can make or break your campaign’s success. Here are some of my personal favorites based on ease of use, pricing, and integration options:

• Twilio: This is a robust platform for developers who want to deeply integrate SMS with their apps.
• SMSBump: Best for those who do ecommerce on Shopify.
• Klaviyo: While it’s primarily known for email, this platform also offers SMS marketing tools. Consider using this to have both email and SMS marketing efforts tweaked and monitored on just one platform.
• EZ Texting: It has a user-friendly interface good for small to medium-sized businesses.

Make a quick list of the tools you’re already using, such as WordPress or Shopify. Then check if the SMS platform you’re eyeing has seamless integration with them. This will save you time and potential tech headaches in the long run.

2. Build Your List

As with email, you need people to text before you can start seeing any traction. Remember: quality trumps quantity every time, so don’t fixate on building on a long list: focus on acquiring leads with a high chance of converting into customers and advocates of your brand.

Here are a few quick ways to grow your SMS list:

• Make the most of your existing email list: If you already have an engaged email list, you should send out a campaign inviting subscribers to join your SMS list. Highlight the benefits of receiving your texts, such as exclusive offers or earlier, faster notifications about new items.

• Promote opt-ins where possible: Add sign-up forms on your website, promote SMS opt-ins via your social media channels, and include a link in your email signature.

• Offer incentives: Give potential subscribers an incentive if they join your SMS list, such as early access to products or SMS-exclusive discount codes.

Always make user consent and compliance a top priority. Be mindful of regional regulations (like TCPA in the U.S.) that require subscribers to explicitly opt in before receiving marketing messages. Provide a clear disclaimer, and ensure your subscribers know what they’re signing up for.

3. Create Your Campaign

Once your list is ready, it’s time to craft a killer SMS campaign. The key here is brevity and clarity. With limited character space, every word matters.

• Keep it short and simple: People skim messages quickly, so grab their attention with a concise headline or intro and get straight to the point, whether it’s a flash deal or promo announcement.

• Have a clear CTA: Make it very obvious what you want people to do once they get the message. “Shop Now” and “Sign Up Today” are all simple yet powerful calls to action.

• Trackable links: Always include a trackable link so you can measure exactly how many people clicked through. This data is gold for optimizing future campaigns.

Personalization goes a long way. If your SMS tool allows for merging customer names or specific product recommendations, use it. A personalized text is far more likely to convert the recipient than a generic message.

4. Test Your Message

Testing is the difference between a good campaign and a great one. I’ve A/B tested countless campaigns and am consistently surprised by what resonates best with an audience. Here are some experiments you can try to get a better feel of what works:

• Test different offers: Not sure which incentive will drive the most sales or sign-ups? Run split tests with different offers and see which one has a better follow-through rate (e.g. 10% discount versus free shipping).

• Vary the CTA: Try different calls to action like “Claim Your Discount Now” or “Get 15% Off”. Sometimes a minor tweak with wording can boost your conversions.

• Experiment with timing: Think about your audience’s daily routine. Try sending a text in the evening for one group, and sending one in the morning for another group. Track which time slot gets the best response.

While I’m a big fan of testing your message, don’t run too many tests at once. Just pick one or two variables to test, then gather the data and refine your strategy. This ensures you know exactly what’s affecting your results.

5. Monitor Results

Once you hit “send”, the real fun begins. Tracking and analyzing results gives you the insights to refine future SMS campaigns and other marketing efforts. Here are some key results to constantly examine:

• Open rates: With SMS, open rates can skyrocket as high as anywhere between 90% to 98%. Use your platform’s analytics to confirm that people are reading your texts. If your numbers aren’t up to scratch, that’s when you know you have to tweak something.

• Click-through rates (CTR): Check how many subscribers followed your link. This helps measure the immediate effectiveness of your message and offer.

• Conversions: This is the ultimate metric that says it all: how many people made a purchase, signed up for your loyalty program, or completed your desired action after clicking through?

Keep a spreadsheet or log of each campaign’s metrics. Document the send time, message content, offer, and results. Over time, patterns will emerge and show you what resonates the most with your audience.

Tips to Maximize Your SMS Marketing Results

Getting started on your SMS campaign is one thing, but turning it into a results-driven powerhouse is another. Here are strategies that can add value and make your campaigns truly shine for your target audience:

• Set abandoned cart reminders: For ecommerce businesses, a well-timed SMS can nudge a shopper to complete their purchase.

• Have welcome sequences: After someone opts in, send a warm welcome message, then a follow-up with exclusive tips, then an offer.

• Create win-back campaigns: If a customer hasn’t engaged or purchased in a while, send a friendly “We miss you” message combined with an offer to reel them back in, such as a special discount.

• Explore multimedia messages (MMS): If text alone seems limiting, consider exploring MMS, which lets you send images, GIFs, or even short videos to grab attention. While MMS can be slightly more expensive and not all phones display multimedia perfectly, it can help you stand out in a sea of plain text messages.

Typical SMS Marketing Challenges (And How to Conquer Them)

While SMS marketing has incredible potential, it has its own set of challenges. You’re right to be worried about issues like compliance, appearing spammy, or managing message frequency, but they shouldn’t keep you from leveraging this high-performing channel.

Let’s tackle those matters head-on and see how you can overcome them to build trust with your audience:

“Isn’t SMS Spammy?”

Yes, it can be but only if you make it that way. The key is to respect your audience. Don’t send irrelevant messages and always provide value.

Note that carriers can block large volumes of identical messages sent too quickly. Rotate your sender IDs if your platform allows it, or use unique shortcodes if necessary. Most importantly, don’t buy SMS lists. It’s not just unethical; it can also trigger carrier blocks and land you in hot water.

“What About Compliance?”

SMS marketing is regulated, so make sure you’re compliant with laws like the TCPA in the U.S. and GDPR in the EU. This means getting explicit consent from recipients before sending them messages, as well as providing a clear opt-out option.

“Should You Send Them Out Weekly, Monthly, or Whenever?”

There’s no universal sweet spot for how often you should text your subscribers. However, the debate usually boils down to “frequent, short bursts” vs. “occasional, high-value blasts”. Send too often, and people will opt out. Send too infrequently, and they’ll forget you exist.

Testing is your best friend here. Try a weekly schedule and track your opt-out rates. If you sense audience fatigue, scale back. If your engagement rate remains high, you might be able to keep that frequency or even ramp it up.

The Future of SMS Marketing

Now that you know what you can do in the present with SMS marketing, what does tomorrow hold for it? While its fundamentals for things like compliance and direct communication will remain the same, emerging tech and evolving consumer behaviors promise these interesting shifts:

AI-Powered Personalization

AI is moving from a buzzword to reality, especially in marketing. Future SMS platforms will likely offer deeper, automated personalization based on real-time data. Think along the lines of:

• Smart product recommendations: If a customer has shown interest in scented candles and warm-toned decor, an AI-driven SMS could automatically recommend products and scents that align with their past picks.

• Predictive deals: Platforms are likely to make it easier to create text messages tailored to a customer’s likelihood of buying in certain seasons or after specific events; think winter deals or post-payday treats.

Rich Communication Services (RCS) and Multimedia Expansion

RCS combines many of the interactive elements found in messaging apps like read receipts and higher-quality media, but with the simplicity of standard texting. Although its adoption varies by country and carrier, it has the potential to transform plain SMS into a more dynamic, app-like experience.

RCS could mean the following for your marketing strategy:

• Clickable carousels where you can showcase multiple products in just one message.
• Branded message threads including your brand images, logos, and colors.
• More accurate read receipts and engagement metrics built right into the messaging ecosystem.

Chatbots and Conversational Commerce

We’re seeing the rise of “conversational commerce,” where customers can chat with brands, ask questions, and even make purchases directly through a text-based interface. Future-forward marketers might develop chatbot-driven SMS experiences that handle support queries, recommend products, and facilitate transactions in real time – all without ever leaving the text message thread.

Here’s a quick example:

• A user texts your short code: “I’m looking for a gift.”
• The chatbot replies: “What’s your budget?” or “What’s the occasion?”
• The conversation continues until the user finds a suitable product, then completes the purchase through a secure link or integrated mobile payment system.

Final Thoughts and Next Steps

SMS marketing isn’t just about firing off quick promotional messages. Rather, it’s a potent tool that can help you build genuine relationships with your audience. Sure, it comes with controversies and misconceptions, but so does every marketing channel worth exploring. When done thoughtfully, SMS can become your brand’s secret weapon, bridging the gap between digital and real-life connection in a way that other methods like social media ads can struggle to replicate.

Tired of shouting into the void of social media algorithms or losing emails to spam folders? It might be time to give SMS marketing a shot. Approach SMS with empathy, respect, and a focus on providing genuine value. Do that, and you just might discover a marketing channel that not only boosts your sales, but deepens your customer relationships in ways you never expected.

Ready to make the leap? Your audience’s phones are waiting, and they might just light up with excitement the moment you send that first well-crafted text. Go forth, create those compelling texts, and let SMS marketing be the new hidden gem in your marketing strategy!