Blog Article

Why Text Message (SMS) Marketing is Effective for Small Businesses

Author: Katya Heckendorn 2-minute read

Effectively communicating with you customers is key to gaining their loyalty. But while getting the message out might be simple, getting it noticed isn't always easy. 

Social media and email are both great ways to communicate with your customers, but there’s no guarantee they’ll see or read your message. 

So what’s the solution? Text them. 

What is SMS marketing? 

SMS marketing, or text message marketing, is the sending of time-sensitive offers, promotions, or notifications to an individual’s mobile phone. Text messages are one of the most effective ways you can communicate with your customers because they’re instant and highly personalized. SMS open rates are as high as 98%, which means it’s almost guaranteed that your customers will see your messages. 

How does SMS marketing work?

In order for you to be able to send your customers marketing messages via text, they’ll need to give their permission to be marketed to. This can be done through an opt-in form, contest entries, or when they sign up for a loyalty rewards program.

In fact, SMS marketing is particularly effective as part of a loyalty strategy because it allows you to send your most valuable customers, or members, exclusive offers in just a few clicks. This means instead of making all your offers available to the general public, you can use your promotions and discounts much more strategically.

SMS marketing tools can be part of a suite of communication tools or a platform that allows you to manage all your communications and opted-in customers. For example, our text message marketing tools come as part of our suite of customer engagement software which includes a loyalty program. With our platform, you can create your message and send it to all your members in a few clicks. 

Why SMS marketing gives small businesses an advantage:

1. You can market to your customers anywhere
The Pandemic changed a lot of things in 2020, including how customers interact with businesses. With people going out less, many businesses struggle getting customers to visit and purchase more regularly which is where SMS marketing comes in. For instance, did you know that 75% of people say they regularly look through their inboxes for discounts? Imagine how much more likely they would be to spend at your business if they got an offer via text and didn’t have to do the work of searching.

2. Customers prefer texts
66% of people prefer to communicate with brands via mobile messaging. By communicating with your customers in the way that best suits them, you’ll build stronger relationships and keep them choosing you.

3. You'll see better returns
Some businesses have seen 2x as many return visits as a result of sending their customers SMS offers. People also appreciate personalization when they're being marketed to with 82% of people saying personalized and exclusive offers increase how often they shop with a brand. Because most of us check out text messages more often than our email, offers sent via text message are the ones that grab our attention and stay top-of-mind. 

4. Its more affordable and effective
Big brands might have more ad dollars, but often text message marketing is much more effective than traditional marketing. A small investment in an SMS marketing tool can give small businesses a competitive edge and bigger returns. For example, 59% of people say that a promotional SMS has led them to visit a store or go online to check out a brand, and 50% of people make a direct purchase after they’re sent an SMS offer.

Tips to get started with SMS marketing: 

1. Find a solution that offers everything you need
Consider whether you’ll be using text messaging along with other solutions like loyalty programs and email marketing. Ensure all the tools you need fit within your budget and work together seamlessly. You can check out some of our pricing here

2. Don’t forget about scheduling and timing
Because text messages have an urgency associated with them, make sure you’re scheduling your messages at times that make sense, i.e. not in the middle of the night. 

3.Keep them short and sweet
Think about the best way to phrase your messages and what offers make the most sense in text message form. Here are a few examples: 

  • Receive 10% off your purchase this week! Show us this text at checkout. 
  • This Wednesday, loyalty members get 25% off purchases over $30,00. 
  • We restocked! Come get your [insert product] before they sell out again. 

 

Check out our article 6 Loyalty Strategies to Boost Sales for more ideas on how to use SMS marketing.

Ready to learn more about tools to help you engage customers and increase revenue. Check out the features of our engagement software. 

Katya Heckendorn
ABOUT THE AUTHOR

Katya Heckendorn

Katya Heckendorn is a content marketing strategist specializing in the fundraising space. She likes all things peanut butter and thinks dogs are pretty cool.