SMS marketing is not a new technology, but, at the time of this writing (2024) SMS messaging has become highly relevant for two main reasons:
- Mobile adoption
- The declining effectiveness of modern online marketing
Let me explain…
Mobile Usage
In Australia, there were 19.9 million mobile users in 2017, the number of Australian smartphone users is expected to increase by 3.7 million to 23.6 million by 2026 the population right now is 26 million.
Traditional online effectiveness
Secondly, let’s take a look at the effectiveness of online marketing:
Google Ads
Average search ad CTR: 6-7%
Average display ad CTR: Below 1%
Facebook Ads
Average Facebook ad CTR: 0.89-1.11%
YouTube Ads
Average YouTube video CTR: 4-5%
Email Marketing
Average email open rate: 17-28%
Average email CTR: 2%+
These are all numbers that marketers and companies are accustomed to but what about SMS marketing?
SMS marketing
98% open rate
6.16% click-through rate
The personal nature of texting makes SMS an unbeatable channel for getting attention and driving engagement.
A major challenge for companies is not just having to compete with other companies but also having to compete with online algorithms that were initially designed to reduce spam/scams but negatively impact legitimate messages.
Since SMS is not an online communication channel is can sidestep all of this and deliver content straight to the customer with virtually no resistance.
Main Types of SMS Campaigns
Promotional Campaigns
The most common use of SMS is sending special offers, coupons, discounts and other promotional content designed to drive interest and sales.
The limited character count forces marketers to craft highly concise and engaging copy and means that the customer can read a text message in seconds. A well-timed promo code via text can be incredibly effective for driving customers into your store or website.
Transactional Notifications
In addition to promotions, businesses use SMS for sending transactional messages like order updates, shipping notifications, appointment reminders and more. The high open rates of texts ensure these time-sensitive messages get seen. SMS transactional campaigns keep customers informed throughout the lifecycle of a purchase or service.
Conversational Messaging
Conversational SMS utilizes two-way text messaging to mimic real conversations between businesses and consumers.
Companies can have a 1-to-1 dialogue with any of their customers which is great for customer service reps, or intelligence gathering (i.e. feedback, polls, etc.)
Key Benefits of SMS Marketing
While the initial stats on open and engagement rates are compelling, SMS marketing offers several other powerful benefits:
- Instant Delivery: Texts bypass spam filters and go straight to the mobile inbox.
- High Engagement: Low inbox competition, combined with the fact that people place a higher priority on SMS over email, push notifications, ads, etc. means instant attention on you and your message.
- Cost Effective: While pricing for online marketing channels seems to only increase, SMS pricing either gets cheaper or stays the same.
- Easily Integrates: SMS can complement other digital marketing efforts seamlessly with an API.
- Builds Relationships: Personalized text communications help strengthen customer loyalty.
SMS Marketing Best Practices
To get the most out of your SMS campaigns, follow these proven best practices:
Only Message People Who Have Asked To Hear From You
Never buy mobile phone lists and message people who haven’t asked to hear from you. There are heavy fines for this type of black hat marketing. The ultimate way to increase sales or move people towards a specific action is to have them opt-in to your SMS list.
Remind Them Of Who You Are
It’s likely that your SMS will come from an unknown mobile number so make sure that your business name is in the first few words.
Keep it Concise
Effective SMS copy should get to the point quickly within 160 characters or less. Use clear, compelling calls-to-action and value propositions frontloaded in your messages.
Set Messaging Frequency Expectations
Don’t overwhelm subscribers with too many messages, but communicate frequently enough to stay top-of-mind. Setting expectations around messaging frequency will opt out.
Integrate with Other Channels
While powerful on its own, SMS can also complement and drive traffic to your other marketing efforts like email, social media, apps and more. Use texts strategically as part of an omnichannel approach.
Continually Optimize
Like any marketing strategy, use data to analyze performance, and audience segments effectively, test creative ideas and optimize your SMS campaigns for better results over time.
Creative SMS Marketing Tactics
When done correctly, SMS can be an incredibly effective marketing tool. Here are some innovative ways businesses are leveraging text messaging:
- Abandoned cart reminders to reduce e-commerce drop-off
- Exclusive VIP offers and loyalty program communications
- Customer satisfaction polls and reviews
- Time-sensitive flash sale alerts
- Two-way order status update conversations
- QR code coupons for in-store redemption
- Text-to-subscribe options for easy mobile opt-ins
The possibilities for creative, engaging SMS campaigns are endless when you put the customer experience first. By meeting your audience directly on their mobile devices, SMS marketing can drive brand awareness, engagement and sales like no other channel.
No matter your industry, adding an SMS element to your marketing mix allows you to reach your customers in a powerful, personalized way. With some strategic planning and compelling messaging, SMS can become an indispensable part of your company’s promotion and communication efforts.
Email Marketing 101
Email marketing remains one of the most effective digital channels for businesses to reach and engage their audience.
While SMS marketing offers unique advantages, email provides a complementary avenue for delivering marketing content to customers’ inboxes.
Here’s a quick primer on email marketing fundamentals.
What is Email Marketing?
Email marketing involves sending commercial messages, promotional campaigns, and other marketing efforts through electronic mail.
Companies use email to nurture leads, share news and updates, provide customer support, and ultimately drive engagement and sales.
Main Types of Email Campaigns
Newsletters
Newsletters are periodic email updates that share company news, industry insights, product information, and other valuable content with subscribers.
Consistent newsletters help build brand awareness and keep your audience engaged.
Promotional Emails
Similar to SMS promotions, email is a powerful channel for advertising sales, discounts, limited-time offers, and other marketing campaigns designed to drive conversions and revenue.
Automated Email Sequences
Email automation allows businesses to send targeted sequences of messages triggered by specific user actions or timelines. Common examples include welcome series, abandoned cart reminders, order confirmations, and re-engagement campaigns.
Key Benefits of Email Marketing
- Cost-effective way to reach a large audience
- Measurable results and easy performance tracking
- Ability to segment and personalize messaging
- Complements other marketing channels in an omnichannel strategy
- Builds relationships and nurtures customer loyalty
Email Marketing Best Practices
- Focus on providing value, not just selling
- Write compelling subject lines to improve open rates
- Optimize emails for mobile with a responsive design
- Leverage automation and segmentation for personalization
- Integrate with other channels like SMS, social media, etc.
- Analyze metrics and continually test and optimize campaigns
Creative Email Marketing Tactics
- Interactive email experiences with gamification, quizzes, etc.
- User-generated content showcases and customer spotlights
- Embedded video content and animated GIFs
- Personalized product recommendations and re-marketing
- Partnerships and co-marketing with complementary brands
By mastering email marketing alongside SMS and other digital channels, businesses can create cohesive, multi-touchpoint experiences that resonate with customers and drive better overall marketing results.