Why Texting Your Customers Is A Powerful Marketing Channel
Imagine having a direct line to your customers, right on the device they check constantly – their phone.
Attention is the name of the game but getting noticed is tough.
Emails go unopened.
Phone calls go unanswered.
Ads are unconsciously blocked before they even reach your customer’s awareness.
But (even today) text messages cut through the clutter like nothing else.
That near-perfect open rate isn’t just a number; it means people actually see your message, usually within minutes. This isn’t about complex tech; it’s about simple, direct communication.
You’re essentially sending helpful or promotional info via text. But here’s the key: it’s based on permission. People have to choose to hear from you (opt-in), which builds trust right from the start. This isn’t about spamming; it’s about having welcomed conversations.
Let’s explore how you can make this work for your business.
SMS Just Works
So, why is texting such a winner compared to other channels? Let’s break down the advantages.
First off, those engagement rates are unbeatable. We mentioned the nearly 98% open rate – compare that to email’s average of around 20%. It’s a huge difference! People glance at their phones constantly, and text notifications usually grab attention immediately. Think about it: how quickly do you check a new text message versus an email?
Plus, response times are lightning fast. If you ask a question or include a link, you’re likely to get a response much quicker than you would via email. This speed is perfect for flash sales or urgent updates.
Surprisingly, it can also be really cost-effective. Sending a text often costs less than you might think, especially compared to things like direct mail or some digital ads. When you combine low cost with high engagement, you get a fantastic return on your investment. This makes it a great tool whether you’re a small startup or a larger company.
Texting also lets you get personal. You can easily use a customer’s name and send offers based on things they’ve bought before. Imagine getting a text saying, “Hi [Your Name], those boots you liked are back in stock!” It feels relevant and helpful, right? That kind of personal touch builds stronger relationships. Personalization boosts connection.
It’s incredibly versatile too. You can use it for sales blasts, appointment reminders, shipping updates, customer service chats, gathering feedback – you name it! It fits into almost any part of your customer’s journey.
And finally, the opt-in/opt-out process is simple and clear. Customers choose to join, and they can easily leave if they want to. This means you’re talking to people who actually want to hear from you, leading to better results and happier customers.
The Nuts and Bolts: How Text Message Marketing Works
Okay, let’s get down to the basics. At its core, you’re using text messages to talk to customers, either to promote something or just share useful info. The cool thing is, SMS uses the regular mobile network, not a special app. This means you can reach almost any mobile phone, smartphone or not. It’s universally accessible.
A few key pieces make this system tick:
- Keywords: These are often how people first sign up. A keyword is a word people text to a special number (like texting “DEALS” to [NUMBER]). Choose keywords that are simple and related to your offer. Shortcodes make it easy for people to text you. You can get your own dedicated shortcode (just for your brand) or use a shared one.
- SMS Marketing Platforms: You’ll likely use a software platform to manage everything. These tools handle sending messages in bulk, sorting your contacts (segmenting), setting up automatic messages (automation), and tracking how well your campaigns are doing. They also help you follow the rules about getting permission and managing unsubscribes.
- Opt-In and Opt-Out: This is non-negotiable. You must get clear permission (explicit consent) before you text someone for marketing. This could be via a website form, a checkbox at checkout, or texting that keyword. Just as important, every message needs a clear way for people to unsubscribe, usually by replying “STOP”. Seriously, follow these rules. It keeps customers happy and keeps you out of legal trouble.
These platforms often let you do cool things like:
- Audience Segmentation: Divide your subscribers into groups (e.g., based on location, past purchases, interests). This lets you send messages that are way more relevant to each group. Sending local offers to local customers makes sense, right?
- Automation: Set up messages to go out automatically. Think welcome texts for new subscribers, appointment reminders, or even messages triggered when someone leaves items in their online cart if your online cart has SMS API integration.
- Analytics: See how many people opened your message, clicked your link, or made a purchase. This data helps you figure out what’s working and what needs tweaking.
Building Winning Campaigns: Smart Strategies to Use
First, build your subscriber list the right way. Ask people clearly if they want to receive texts from you. Put sign-up forms on your website, mention it on social media, or offer it in your physical store. A great tactic is to offer something valuable in return for signing up, like a 10% discount or early access to a sale. Need more ideas on this? Building an effective SMS marketing plan can give you a head start.
Next, don’t treat everyone the same. Segment your audience. Group subscribers based on things like where they live, what they’ve bought, or how they’ve interacted with you before. Sending a targeted message about women’s shoes only to those interested in women’s shoes will perform much better than blasting it to everyone.
Timing is crucial. Think about when your audience is most likely to read and act on your message. Avoid sending texts super late at night or early in the morning. Consider time zones if you have a wide audience. Sending a lunch special text around 11:30 AM makes more sense than sending it at 4:00 PM.
Keep your messages short, punchy, and clear. You don’t have much space, so get straight to the point. What’s the offer? What should they do next? Include a clear call to action (CTA) like “Shop Now,” “Reply YES,” or “Visit Us Today.”
Create urgency with time-sensitive offers. “Flash Sale: 30% off ends tonight!” or “Only 5 spots left – book now!” encourages people to act quickly. This is where SMS really shines due to its immediacy.
Use automation for sequences like welcome messages, birthday greetings, or reminders about abandoned carts. A series of helpful, timed messages can nurture leads and keep customers engaged without you manually sending each one.
Make it interactive! Use two-way messaging to answer questions or gather feedback. Send simple surveys or polls (“Reply A or B to vote!”). This makes the conversation feel more personal and helps you learn more about your customers. Want to boost interaction? Check out tips for improving SMS engagement rates.
“The goal of marketing is to make the customer feel smart.” – Joe Chernov (Okay, not a real quote block interrupt per se, but a relevant thought!)
Different Flavors: Types of SMS Campaigns You Can Run
SMS isn’t just for one thing. You can tailor your approach depending on your goal. Here are the main types:
- Promotional Texts: These are probably what you think of first – sending special offers, discounts, new product alerts, or event invitations. Think “Weekend Sale: 25% off everything!” or “New Arrivals just landed! Shop now: [link]”. The goal is usually to drive sales or attendance quickly.
- Transactional Texts: These are super helpful automated messages triggered by something the customer did. Examples include order confirmations (“Your order #123 is confirmed!”), shipping updates (“Your package has shipped! Track it here: [link]”), appointment reminders, or password resets. They provide value and improve the customer experience.
- Conversational Texts: This involves actual back-and-forth chatting. It could be for customer support (“Text us your questions here!”), collecting feedback (“How was your recent visit? Reply 1-5”), or offering personalized advice. It builds stronger relationships.
- Informational Texts: Used for sharing important news or updates. This might be about changes in business hours, service interruptions, or company announcements. Because texts get read quickly, it’s great for time-sensitive info.
Here’s a quick look:
| Campaign Type | Description | Use Cases | Example Keywords/Triggers |
|---|---|---|---|
| Promotional | Drive sales with offers, discounts, new items, events. | Flash sales, limited offers, event invites, product launches. | “SALE”, “NEW”, “EVENT”, “OFFER” |
| Transactional | Automated updates based on customer actions. | Order confirmations, shipping info, reminders, password resets. | Order placed, item shipped, booked appt. |
| Conversational | Two-way chat for support, feedback, personalization. | Customer service, surveys, Q&A, recommendations. | Customer texts first, survey response. |
| Informational | Share important news, updates, or alerts. | Service changes, hour updates, company news, emergency alerts. | Scheduled send, specific event trigger. |
Playing by the Rules: Best Practices for Happy Customers
To make SMS marketing work long-term (and stay legal!), follow these guidelines:
- Get Explicit Permission (Opt-In): We can’t stress this enough. You need a clear “yes” before you send marketing texts. Keep a record of how and when they agreed.
- Make Opting Out Easy: Every message must include simple instructions to unsubscribe, like “Reply STOP to end messages.” And you must honor these requests immediately.
- Respect Frequency and Timing: Don’t bombard people with texts. Find a sending schedule that makes sense and isn’t annoying. Stick to reasonable hours.
- Keep it Short and Sweet: Get to the point quickly. Use clear, concise language. Remember the character limits!
- Identify Yourself Clearly: Start your message by saying who you are (your brand name). Don’t make people guess.
- Know the Regulations: Understand the rules like the TCPA (in the US) or GDPR (in Europe) that govern electronic messages. Compliance isn’t optional.
- Always Provide Value: Make sure every text offers something useful – a discount, helpful info, an important update. If your texts aren’t valuable, people will opt out. Focus on helping, not just selling.
Did it Work? Measuring Your SMS Success
How do you know if your texting efforts are paying off? You need to track your results. Here are the key things to watch:
- Click-Through Rate (CTR): If you included a link, what percentage of people clicked it? This shows how engaging your message and offer were.
- Conversion Rate: What percentage of people took the desired action (like making a purchase) after getting the text? This ties directly to your business goals.
- Opt-Out Rate: How many people unsubscribed after receiving a message? A high rate might mean your messages aren’t relevant, are too frequent, or aren’t offering enough value. If you’re seeing high opt-outs, exploring low SMS response rate solutions might offer insights.
- Return on Investment (ROI): How much revenue did your campaign generate compared to how much it cost? This is the bottom line for profitability.
Most SMS marketing platforms provide reports with these numbers. Use this data! If your CTR is low, maybe your call to action needs work. If opt-outs spike, perhaps you sent too many messages that week.
Don’t forget qualitative feedback too. If you’re doing conversational SMS, pay attention to what customers are saying. Their direct input is gold. You can also try A/B testing – sending slightly different versions of a message to different small groups to see which performs better.
Seeing it in Action: Real-World Examples
Many businesses are rocking SMS. Imagine:
- A clothing store texts customers who viewed an item that just came back in stock. Super relevant, high chance of purchase.
- An online shop sends a text reminder with a small discount code to people who left items in their shopping cart. This recovers potentially lost sales.
- A local restaurant texts its loyalty members about a “members-only” happy hour special tonight. Builds loyalty and drives traffic.
- A festival organizer sends text updates about schedule changes or weather alerts right before and during the event. Keeps attendees informed and happy.
What makes these work? They are often personalized, create a sense of urgency, and offer clear value.
Choosing Your Toolkit: Selecting an SMS Platform
You’ll need software to manage your campaigns effectively. When picking an SMS marketing platform, look for:
- Bulk Sending: Ability to text many people at once.
- Segmentation: Tools to group your contacts for targeted messaging.
- Personalization: Features to add dynamic content like names or past purchase info.
- Reporting: Delivery reports.
- Compliance: Features to manage opt-ins and opt-outs easily.
- Integration: Ability to connect with other tools you use (like your email marketing platform or CRM).
Popular options exist, but the best one depends on your specific needs – your list size, campaign complexity, and budget.
Potential Downsides (and How to Dodge Them)
While powerful, texting can backfire if not done right.
The biggest risk? Annoying your customers. Too many texts, irrelevant offers, or messages sent at unusual hours are quick ways to get blocked or reported as spam. Always prioritize value, respect frequency, and target carefully.
Costs can add up, especially with huge lists. Plan your budget and choose a platform with pricing that fits. Look for ways to optimize, like using link shorteners provided by the platform.
Compliance is key. Not following opt-in/opt-out rules can lead to hefty fines and damage your brand’s reputation. Treat consent seriously.
Think of it like texting a friend – you wouldn’t spam them with non-stop ads, right? Be respectful and helpful.
Some Final Words…
So, there you have it. SMS marketing is a straightforward, surprisingly effective way to connect directly with your audience. Its incredible open rates mean your message gets seen, and its immediacy drives quick action.
By understanding the basics, using different campaign types smartly, following best practices (especially around permission!), and measuring your results, you can build stronger customer relationships and achieve real business goals. Yes, there are pitfalls, but they are easily avoided with a thoughtful, customer-first approach.
If you’re looking for a reliable and easy-to-use platform to get started, especially if you’re based in Australia, consider checking out 160.com.au. We’ve been helping businesses connect via text since 2000. Our platform is cloud-based, offers features like personalization, automation, Email to SMS, and robust reporting, all with no monthly fees or lock-in contracts. We focus on making SMS simple and effective for you.
Ready to cut through the noise and start having more meaningful conversations with your customers? Give texting a try!