Think about it: most people keep their phones within arm’s reach 24/7.
That intimate connection makes SMS marketing one of the most powerful—yet underutilized—ways to reach customers.
This guide will help you understand SMS marketing and implement it effectively for three key reasons:
- It’s becoming essential
While email inboxes overflow and social media algorithms change daily, SMS remains a direct line to your customers. With open rates approaching 98% and most messages read within minutes, you’re missing out if you’re not using it. - It’s misunderstood
Many businesses shy away from SMS marketing, viewing it as intrusive or spammy. But here’s the truth: 75% of consumers actually want to receive offers via text. When done right, SMS marketing enhances the customer experience rather than disrupting it. - It’s evolving rapidly
The tools and capabilities for SMS marketing are expanding quickly. Understanding the fundamentals now will position you to take advantage of new opportunities as they emerge.
What is SMS marketing?
At its core, SMS marketing messages is a form of mobile marketing but focuses specifically on sending promotional, transactional SMS, or informational text messages to customers who have opted in to receive them. Think of it as email marketing’s more immediate, more personal cousin.
But there’s a crucial distinction: While email is like broadcasting to a room full of people, SMS is more like having a one-on-one conversation. This personal nature means both greater opportunity and greater responsibility.
When implemented thoughtfully, SMS marketing can:
- Reach customers instantly with time-sensitive offers
- Drive immediate action through clear calls-to-action
- Complement your existing marketing channels
- Build stronger customer relationships through direct communication
The key is understanding how to use SMS effectively without abusing the privilege of having access to your customers’ phones. This guide will show you how.
Benefits of SMS Marketing
Let’s explore why text message marketing deserves a place in your marketing strategy. The benefits are both immediate and compounding.
Unmatched engagement rates
Email marketers celebrate 20% open rates.
Social posts reach maybe 5% of followers.
But text marketing?
We’re talking 98% open rates and 45% response rates.
This isn’t just vanity metrics—it’s a fundamental difference in how people interact with text messages.
People check texts immediately, whereas emails and social posts often go unseen for hours or days.
Speed of delivery and action
Consider this scenario: You have excess inventory that needs to move today. An email might sit unread for hours. A social post might never surface in feeds. But an SMS will reach most recipients within 3 minutes. This immediacy makes SMS perfect for flash sales, limited-time offers, and urgent updates that require quick action.
Personal connection that scales
SMS marketing creates an intimate channel between you and your customers. It’s like having a direct line to their pocket. This intimacy comes with responsibility, but when handled well, it builds stronger customer relationships. Why? Because texting is how people communicate with friends and family. When brands enter this space respectfully, they can tap into that same level of trust and attention.
Cost-effective reach
The math here is simple: SMS messages cost pennies to send, reach nearly 100% of recipients, and generate engagement rates that often exceed other channels. This combination of low cost and high performance makes SMS marketing particularly attractive for businesses of all sizes.
Perfect complement to existing channels
SMS doesn’t replace your other marketing channels—it enhances them. Use it to amplify email campaigns, drive social media engagement, or increase store visits. The key is integration. SMS works best when it’s part of a coordinated marketing efforts, not a standalone effort.
The real power of SMS marketing isn’t just in these individual benefits—it’s in how they work together to create a more effective marketing program overall.
When you combine high engagement rates with speed of delivery and personal connection, you create a marketing channel that’s greater than the sum of its parts.
SMS Marketing Compliance and Regulations
Let’s address the elephant in the room: SMS marketing regulations. This might seem dry, but ignoring compliance isn’t just risky—it’s expensive. One violation can cost you thousands in fines.
Getting explicit consent
Unlike email, where implied consent might suffice, SMS requires explicit permission. This means subscribers must clearly understand they’re signing up for text messages. A phone number in your database isn’t enough. They need to actively opt in.
What does proper consent look like? A customer:
- Checks a specific box for SMS communications
- Texts a keyword to your number
- Fills out a form specifically requesting SMS updates
The opt-out imperative
Every message you send must include a way to opt out. Usually, this means telling recipients they can reply “STOP” to end messages. When someone opts out, remove them immediately. No exceptions, no “one last message.”
Identifying yourself clearly
Remember how confusing it is to get a text from an unknown number? Don’t do that to your customers. Every first message should clearly state who you are. For example: “Nike here! Welcome to our SMS updates…”
Timing and frequency
The law restricts when you can send messages. In the US, the TCPA prohibits sending texts between 9 PM and 8 AM in the recipient’s time zone. But legal hours don’t equal optimal hours—we’ll cover timing strategy later.
Geographic considerations
Different regions have different rules. The US has TCPA and CAN-SPAM. The EU has GDPR. Canada has CASL. If you’re messaging internationally, you need to understand and follow each region’s regulations.
Documentation matters
Keep records of:
- How and when each person opted in
- The exact language used in your opt-in forms
- When and why people opt out
- Changes to your SMS policies
This might seem like overkill, but if you’re ever questioned about your SMS practices, documentation is your best defense.
Remember: Compliance isn’t just about avoiding fines—it’s about respecting your customers. When you follow these rules, you build trust. And trust drives engagement.
Building an SMS Subscriber List
Growing your SMS list isn’t like building an email list. People guard their phone numbers more closely than email addresses. And for good reason—their phone is personal space.
But that selectivity is actually good news. When someone gives you their number, they’re showing real interest in your brand. These aren’t casual subscribers—they’re potential super fans.
Start with value
Before asking for phone numbers, answer this question: What’s in it for them? Your offer needs to be compelling enough to overcome the natural hesitation people feel about sharing their number.
Common incentives that work:
- Exclusive discounts not available elsewhere
- Early access to new products
- Instant rewards or loyalty points
- Behind-the-scenes content
But avoid the temptation to offer massive discounts just to grow your list quickly. You want subscribers who’ll stick around after that first purchase.
Multiple touchpoints
Place opt-in opportunities where your customers already are:
Your website’s homepage is obvious, but think broader. Add SMS sign-ups to your checkout process, product pages, and customer account portal. If you have physical stores, train staff to collect numbers at checkout.
The key is making sign-up feel natural, not forced.
Quality over quantity
A smaller list of engaged subscribers beats a large list of uninterested ones every time. Focus on attracting people who actually want to hear from you.
This means being crystal clear about:
- What kinds of messages you’ll send
- How often you’ll send them
- The value they’ll receive
Cross-channel promotion
Your existing marketing channels are powerful tools for SMS growth. Tell your email subscribers about exclusive SMS offers. Promote your text program on social media. Include SMS calls-to-action in your packaging.
But remember—each channel should highlight the unique benefits of an SMS subscription. Don’t just duplicate your email content over SMS.
Track and optimize
Pay attention to where your best subscribers come from. Which opt-in points drive not just sign-ups, but engaged customers? Double down on what works, and don’t be afraid to cut what doesn’t.
Building a quality SMS list takes time. But done right, it creates a direct line to your most valuable customers.
Types of SMS Marketing Campaigns
Most brands start with basic promotional texts. But SMS can do so much more. Let’s explore the main types of SMS campaigns and when to use each one.
Promotional campaigns
The bread and butter of SMS marketing. These are your sales announcements, special offers, and product launches. But effective promotional SMS isn’t just about blasting discounts.
What works:
“Last chance: Your 20% off ends at midnight”
What doesn’t:
“SALE SALE SALE!!!! CHECK IT OUT NOW!!!”
The difference? The first creates urgency while respecting the recipient’s intelligence. The second feels desperate.
Transactional messages
These are the workhorses of SMS marketing—order confirmations, shipping updates, and delivery notifications. They’re expected, appreciated, and drive customer satisfaction.
But don’t waste these touchpoints. A shipping confirmation can also suggest complementary products. A delivery notification can request feedback. Each message is an opportunity to add value.
Appointment and event reminders
Whether you’re running a retail store, salon, or medical practice, no-shows hurt your business. SMS reminders can reduce them dramatically. They’re also perfect for event promotion and updates.
The key is timing. Send reminders when people can actually act on them—not too early to be forgotten, not too late to be useful.
Conversational campaigns
This is where SMS shines. Unlike email, SMS enables real two-way communication. Use this for:
- Customer service inquiries
- Product recommendations
- Quick feedback collection
- Q&A sessions
But remember: If you invite responses, be prepared to handle them promptly.
Customer service updates
Sometimes customers just need quick answers. “Is my order delayed?” “Do you have this in stock?” SMS can handle these queries efficiently, reducing support costs and improving satisfaction.
The best SMS marketing strategies use all these types in harmony. A customer might receive a promotional offer, make a purchase, get shipping updates, and then receive a feedback request—all through SMS.
The goal isn’t just to sell. It’s to create a seamless customer experience where SMS feels like a natural, helpful part of their relationship with your brand.
SMS Marketing Best Practices
The difference between SMS marketing that works and SMS that annoys comes down to execution. Here’s what separates the best from the rest.
Keep it concise
You have 160 characters to make your point. That’s not a limitation—it’s a gift. It forces you to be clear and direct. Cut every word that doesn’t serve a purpose.
Bad:
“Hey there! We just wanted to let you know that we’re having an amazing sale on all our wonderful products that you might be interested in checking out when you have the time!”
Good:
“Flash sale: 30% off sitewide. Today only. Shop now: [link]”
Timing matters
The best message sent at the wrong time is still a wrong message. Consider:
- Your customer’s time zone
- Their typical shopping patterns
- The urgency of your message
- Industry-specific timing (like lunch rushes for restaurants)
Most importantly, respect quiet hours. Nobody wants marketing texts at midnight.
Personalization with purpose
Using someone’s first name isn’t real personalization. True personalization means sending relevant messages based on customer behaviour:
- What they’ve bought
- What they’ve browsed
- When they last purchased
- Their location
- Their stated preferences
Make it actionable
Every message should have a clear next step. Don’t make customers guess what you want them to do. One message, one call-to-action.
Test everything
Small changes can have big impacts. Test:
- Message timing
- Offer presentation
- Call-to-action phrases
- Message length
- Personalization elements
But test one element at a time. Otherwise, you won’t know what caused the improvement.
Channel integration
SMS works best as part of a broader strategy. Use it to:
- Follow up on abandoned carts identified by your website
- Complement email campaigns
- Drive in-store traffic
- Support social media initiatives
The goal is seamless customer experience across all channels.
Remember: Every text you send either builds or erodes trust. There’s no neutral interaction. Make each message count.
SMS Marketing Strategy and Automation
Your SMS strategy shouldn’t rely on manually sending texts. That’s inefficient and inconsistent. Instead, build automated journeys that engage customers at exactly the right moments.
Abandoned cart recovery
Cart abandonment is a major revenue leak for online retail. SMS can help solve it.
Timing is crucial here:
- 30 minutes: “Still thinking about [product]?”
- 24 hours: Add urgency or social proof
- 48 hours: Final reminder, maybe with an offer
The key is focusing on removing obstacles, not just offering discounts.
Browse abandonment
Someone looked but didn’t buy. Maybe they need a nudge. But be careful—this can feel creepy if done wrong.
Good:
“The [product] you viewed is almost sold out. Want to take another look?”
Bad:
“We noticed you were stalking our website earlier…”
Back-in-stock alerts
This is pure service to your customers. They wanted something you didn’t have. Now you have it. Tell them.
Make these messages personal and specific:
“The red dress you wanted is back! 6 in stock. Shop now: [link]”
Post-purchase follow-up
The sale isn’t the end—it’s the beginning. Use SMS to:
- Confirm orders
- Share tracking info
- Ask for feedback
- Suggest complementary products
But space these out. Don’t bombard customers right after purchase.
The power of automation isn’t just in saving time. It’s in creating consistent, timely experiences that build trust and drive sales.
SMS Marketing Software and Tools
Choosing the right SMS platform is crucial. The wrong choice can limit your growth or leave you rebuilding from scratch months later.
Let’s focus on what actually matters when selecting your SMS marketing software.
Core Platform Requirements
First, evaluate the four essential capabilities:
• Deliverability: Can they reliably get messages to phones?
• Integration: Does it work with your existing tech stack?
• Automation: How sophisticated are the targeting options?
• Analytics: Can you measure what matters?
Deliverability
Your platform needs direct carrier relationships and high delivery success rates. Without reliable delivery, nothing else matters. Look for providers with proven track records and strong compliance management tools.
Integration Capabilities
Your SMS platform should seamlessly connect with your:
• Ecommerce platform
• CRM system
• Email marketing software
• Analytics tools
If it doesn’t integrate well, you’ll create data silos that hurt your marketing effectiveness.
Cost Considerations
Look beyond the per-message price. Consider:
• Monthly minimums
• Additional feature costs
• Support fees
• Training requirements
A platform that costs more but drives better results is ultimately cheaper than a budget option that underperforms.
Remember: You’re not just buying software—you’re choosing a partner for your SMS marketing journey. Take time to evaluate options thoroughly. The right choice depends on your technical capabilities, growth plans, and budget constraints.
Measuring Success and Analytics
Numbers tell stories. In SMS marketing, they tell you whether you’re building relationships or burning bridges. Let’s explore how to measure what matters.
Key Performance Indicators (KPIs)
Delivery rates come first. They tell you if your messages are reaching phones. Aim for 97% or higher. Anything less suggests problems with your phone number list or carrier relationships.
Click-through rates reveal engagement. The industry average hovers around 15%. But don’t obsess over benchmarks – focus on improving your own numbers over time.
Conversion rates matter most. Track both:
• Direct conversions (immediate purchases)
• Attribution window conversions (purchases within 7 days)
More granular metrics worth tracking:
Response rates show how many recipients engage in two-way conversations. High response rates usually indicate relevant, engaging content.
Opt-out rates serve as your canary in the coal mine. A spike in unsubscribes often means you’re messaging too frequently or missing the mark with content.
List growth rate indicates program health. Track both new subscribers and list churn to understand your true growth.
Testing for Improvement
Don’t guess what works – test it. Start with:
- Message timing – Find your audience’s sweet spots by testing different send times.
- Copy variations – Test different tones, lengths, and calls to action.
- Offer structure – Compare discount types, urgency elements, and value propositions.
But test one element at a time. Multiple changes make it impossible to know what drove results.
Revenue Attribution
Connect SMS engagement to actual sales. Look beyond last-click attribution to understand how SMS influences the customer journey. Many purchases attributed to other channels started with an SMS.
Remember: Metrics should drive decisions. If you’re tracking numbers but not acting on them, you’re just collecting trivia.