In this article, you’ll discover how SMS marketing can transform your business communications and why it outperforms many other digital channels. You’ll learn the practical steps to implement SMS marketing effectively, understand ACMA regulations to keep your campaigns compliant, and see real-world examples of successful SMS strategies. We’ll cover essential tips for crafting messages that drive action, timing your sends for maximum impact, and measuring your results. Finally, you’ll find guidance on choosing the right SMS platform for your Australian business.
Why SMS Marketing Outshines Other Channels
In today’s crowded digital landscape, getting your message seen is harder than ever. This is where SMS marketing truly shines.
SMS messages achieve a remarkable 98% open rate compared to email’s modest 20%. Even more impressive, 90% of these messages are read within three minutes of delivery. When you need immediate attention, nothing beats a text message.
Your customers are already glued to their phones. The average Australian checks their phone 85 times per day, making SMS a direct line to their attention. Unlike emails that get buried in crowded inboxes or social media posts that disappear in endless feeds, text messages command immediate attention.
“SMS is the only communication channel that combines mass reach with personal impact. It’s like whispering directly in your customer’s ear while broadcasting to thousands.” – Marketing expert Mark Ritson
SMS offers unmatched deliverability with no spam folders or complicated algorithms to navigate – your message reaches its destination reliably. The universal accessibility is another major advantage; unlike apps that require installation or emails that need internet access, nearly everyone can receive SMS. This universal reach translates into higher engagement, with click-through rates for SMS often exceeding 30% – far above email marketing averages. Finally, SMS campaigns typically deliver an ROI of 500% or more when properly executed, making them remarkably cost-effective.
Let’s explore how you can harness this powerful channel for your business.
Setting Up Your SMS Marketing Strategy
Before sending your first message, you need a solid strategy in place. Here’s how to build the foundation for SMS success:
Define Clear Goals
Start by identifying exactly what you want to achieve with SMS marketing. Are you looking to drive immediate sales with time-sensitive offers? Perhaps you want to increase appointment attendance with timely reminders. Many businesses use SMS to boost event participation with updates and information. Customer service improvements through delivery notifications can significantly enhance satisfaction. You might also gather valuable feedback with survey links sent directly to customers’ phones.
Your specific goals will shape everything from message content to timing and frequency. A retail store pushing flash sales will need a different approach than a medical office sending appointment reminders.
Build Your Subscriber List the Right Way
Consent is non-negotiable in SMS marketing. The Australian Communications and Media Authority (ACMA) enforces strict rules under the Spam Act 2003 that require explicit opt-in from recipients before sending marketing messages.
To build a compliant SMS list, consider adding SMS opt-in options at checkout when customers are already providing their information. Create dedicated sign-up forms on your website that clearly explain what subscribers will receive. In physical locations, use in-store signup sheets or QR codes that lead to mobile-friendly forms. You can also run promotions specifically designed to attract SMS subscribers, offering immediate value for joining. For businesses with existing email subscribers, consider running campaigns to convert these customers to SMS, highlighting the benefits of receiving time-sensitive offers via text.
Always make it clear what they’re signing up for and how often you’ll message them. Transparency builds trust and reduces opt-outs later.
Segment for Relevance
Not all customers need the same messages. Effective segmentation dramatically improves response rates and customer satisfaction. Divide your list based on purchase history to tailor offers to previous buying patterns. Location-based segmentation allows for region-specific promotions or information. Considering customer lifecycle stage helps you send appropriate messages whether they’re new customers or long-time loyalists. Understanding preferences through surveys or previous interactions ensures you’re sending content they actually want. Finally, segmenting by engagement level lets you send more messages to highly engaged customers while being more conservative with others.
The more relevant your messages, the better your results. A message tailored to a customer’s specific needs is far more likely to convert than a generic blast. One retailer found that segmented SMS campaigns generated 38% higher conversion rates than non-segmented campaigns.
Crafting Messages That Drive Action
The limited character count of SMS (160 characters per message) forces clarity and precision. This constraint becomes your greatest strength when used properly.
The Anatomy of an Effective SMS
Every successful marketing SMS contains several critical elements that work together to drive action. First, always provide clear sender identification – your business name should appear immediately so recipients know who’s messaging them. Next, offer valuable information or a compelling offer that gives recipients a reason to engage with your message. Include a strong call to action that tells customers exactly what step to take next – whether clicking a link, visiting your store, or replying to the message. Creating urgency drives immediate response, whether through limited-time offers or limited availability. Finally, always include an opt-out option, which isn’t just good practice but required by ACMA regulations.
Your messages should feel like a helpful service, not an intrusion.
Writing Tips for Higher Conversion
When crafting your SMS marketing messages, front-load your content by putting the most important information first. Many people only read the beginning of messages, so lead with your main point or offer. Use simple, conversational language rather than marketing jargon – write as if you’re speaking to a friend. Creating genuine urgency through limited-time offers or exclusive opportunities drives immediate action rather than allowing customers to postpone decisions. Whenever possible, personalize messages with the customer’s name or relevant details about their previous interactions with your business. Finally, focus on benefits rather than features – explain what’s in it for the customer rather than just describing what you’re offering.
Here’s how this looks in practice:
❌ Poor Example:
“We’re having a sale with many items discounted at various percentages off the regular retail price. Check our website for more information on the specific items included in this promotional event.”
✅ Better Example:
“Hi John! FLASH SALE: Get 25% off winter jackets today only at Smith’s Outfitters. Show this text or use code WINTER25 online. Reply STOP to opt out.”
The difference in impact is dramatic. The second message immediately identifies who it’s from, what’s on offer, the benefit, how to redeem it, and how to opt out – all in a personal, concise format.
Timing Your SMS Campaigns for Maximum Impact
When you send matters as much as what you send. SMS creates an immediate interruption, so respect your customers’ time.
Best Practices for Timing
Effective SMS marketing requires thoughtful timing to maximize impact while respecting your customers’ boundaries. Generally, stick to business hours only – sending between 9am-6pm on weekdays ensures you reach customers when they’re alert and receptive without disturbing personal time. Avoid early mornings and late evenings, as no one appreciates marketing texts at 6am or 10pm. Consider the purpose of your message when determining timing – appointment reminders work best 24 hours in advance, while delivery alerts should arrive in real-time. Be especially careful with weekend messages; unless your offer is specifically weekend-related, professional communications generally perform better on weekdays. Finally, mind your frequency – even your most loyal customers don’t want daily texts from your business.
Research shows that Tuesday through Thursday typically sees the highest engagement rates for marketing messages. For retail, Thursday often performs best for weekend promotions.
One restaurant saw a 27% increase in Tuesday night bookings by sending offers on Monday mornings instead of Monday afternoons – timing that caught customers before they made other plans.
The contextual relevance of your timing can dramatically improve results. A café sending breakfast specials at 7am will likely see better engagement than the same message sent at 2pm. Similarly, a bar promoting “after work” specials will find 3pm a more effective sending time than 10am.
Staying Compliant with ACMA Regulations
The Australian Communications and Media Authority (ACMA) strictly enforces the Spam Act 2003, which covers SMS marketing. Violations can result in penalties up to $2.1 million per day for corporations.
The Three Pillars of Compliance
Understanding ACMA compliance means mastering three fundamental principles. First, consent forms the foundation of all legitimate SMS marketing – you must have express or inferred consent before sending marketing messages. Express consent means the customer has specifically agreed to receive SMS marketing from you. Inferred consent may exist in an established business relationship where the customer might reasonably expect to receive related messages.
Second, identification is essential – clearly identify your business in every message so recipients immediately know who’s contacting them. This transparency builds trust and reduces complaint rates.
Third, every message must include a functional unsubscribe option. This mechanism must be working, easy to use, and processed immediately when requested.
Practical Compliance Tips
Maintaining compliance requires ongoing attention. Keep detailed records of how and when consent was obtained – whether through web forms, in-store signups, or other means. These records provide crucial protection if your messaging practices are ever questioned.
Honor opt-out requests immediately and ensure your systems are set up to prevent accidental messages to unsubscribed numbers. Resist the temptation to disguise marketing messages as something else – transparency builds trust and reduces complaints.
Maintain a comprehensive suppression list of numbers that have opted out, and ensure this list is checked before any campaign is sent. Finally, review your messaging practices regularly to ensure ongoing compliance as regulations and best practices evolve.
This isn’t just about avoiding fines – it’s about respecting your customers and building trust. Compliance creates a foundation for successful customer relationships.
Measuring SMS Marketing Success
Like any marketing channel, SMS requires measurement and optimization.
Key Metrics to Track
Effective SMS marketing relies on tracking several critical metrics to gauge performance and guide improvements. Your delivery rate (the percentage of messages successfully delivered) provides baseline information about list quality and technical performance. Click-through rate (CTR) measures the percentage of recipients who clicked on included links, indicating message engagement and interest. Conversion rate tracks the percentage of recipients who completed your desired action, whether making a purchase, booking an appointment, or another goal. The opt-out rate shows the percentage of recipients who unsubscribed after receiving your message – a key indicator of message relevance and frequency appropriateness. Finally, ROI (return on investment) measures the actual business impact of your SMS campaigns by comparing costs against revenue generated.
These metrics work together to form a complete picture of campaign performance. A high delivery rate with low conversion suggests your message isn’t compelling, while a high conversion rate with a high unsubscribe rate might indicate an effective but possibly too aggressive approach.
Continuous Improvement
Use A/B testing to systematically improve your SMS marketing results. Test different message wording to see which phrasing drives more action. Experiment with various offers to determine which provides the most compelling value to your customers. Try different call-to-action phrases to identify what language most effectively motivates your audience. Test sending times to find the optimal moment when your messages are most likely to be read and acted upon.
One retailer discovered that adding the recipient’s first name increased click-through rates by 17%, while another found that sending at 2pm outperformed 10am sends by 23%.
Continuous improvement requires both rigorous testing and careful interpretation of results. Small changes often yield significant improvements when applied consistently over time.
Integrating SMS with Your Wider Marketing Strategy
SMS works best as part of a cohesive marketing approach. Here’s how to make it work with your other channels:
Email marketing and SMS complement each other perfectly. Use SMS for time-sensitive offers and important alerts where immediate attention matters, while reserving email for detailed information, longer-form content, and messages that don’t require instant action. This combination respects the urgent nature of SMS while leveraging email’s greater space for elaboration.
Social media platforms offer excellent opportunities to promote exclusive SMS offers, helping grow your subscriber list while providing existing followers with access to special deals. Your website should feature SMS opt-in forms on high-traffic pages, making it easy for interested visitors to join your list while they’re actively engaging with your brand.
For businesses with physical locations, point-of-sale interactions provide natural opportunities to collect phone numbers with proper permission. Staff can explain the benefits of SMS updates, such as early access to sales or special member-only offers. Customer service communications are another natural fit for SMS, particularly for appointment reminders, delivery status updates, and feedback requests.
This multi-channel approach creates multiple touchpoints with customers throughout their journey.
For example, a successful campaign might include a social media post announcing a coming sale, followed by an email with full details of all products included. When the sale goes live, an SMS alert notifies customers of the limited-time opportunity, with a final SMS reminder sent when the sale is ending soon to create urgency.
Each channel plays to its strengths while supporting the others, creating a seamless customer experience that drives engagement and conversion.
Choosing the Right SMS Platform for Your Business
With your strategy in place, you need the right tools to execute it. Here’s what to look for in an SMS marketing platform:
Essential Features
Finding the right SMS platform means looking for features that support your specific business needs. Two-way messaging capability allows customers to reply to your texts, creating interactive conversations rather than one-way announcements. Personalization options let you insert customer names and other custom fields, making messages feel individually crafted. Comprehensive contact management tools help you segment and organize your list effectively based on various criteria. Scheduling capabilities allow you to set up campaigns in advance, ensuring timely delivery without requiring manual sends at specific times. Detailed delivery reporting helps you confirm your messages reached their destinations and track campaign performance. Finally, simple opt-out management keeps you compliant with regulations while maintaining clean, engaged lists.
These features work together to create an effective, manageable SMS marketing system that drives results while minimizing administrative overhead.
Questions to Ask Providers
When evaluating SMS marketing platforms, ask if they provide Australian sender IDs, which improve recognition and trust. Inquire about their deliverability rates to ensure your messages actually reach customers. Confirm how they help ensure ACMA compliance to protect your business from regulatory issues. Check if they offer message scheduling for optimized timing without manual intervention. Understand their technical support options and availability for assistance when needed. Finally, explore what integration options they offer to connect with your existing systems like CRM, e-commerce platforms, or booking software.
160.com.au has been providing SMS solutions to Australian businesses since 2000, offering all these essential features with no monthly fees and a reputation for excellent service. Their cloud-based platform allows you to send messages from anywhere, with enterprise-level security and easy API integration for connecting with your existing systems.
Taking the Next Step with SMS Marketing
SMS marketing offers something rare in today’s digital landscape: a direct, almost guaranteed path to your customer’s attention. With open rates approaching 98% and most messages read within minutes, no other channel offers such immediacy and impact.
To succeed with SMS marketing, start small by testing with a segment of your most engaged customers before expanding to your broader list. Respect the channel by only sending messages that provide clear value – quality always trumps quantity with SMS. Write in a conversational tone as if texting a friend, avoiding corporate language that creates distance. Stay rigorously compliant with ACMA guidelines to protect both your reputation and your business. Finally, measure your results carefully and continuously improve based on what the data tells you.
The most successful businesses view SMS not as a standalone tactic but as an integral part of their customer communication strategy. They use it strategically, respecting both its power and its personal nature.
When you’re ready to experience the impact of SMS marketing firsthand, consider starting with a platform built specifically for Australian businesses. With no monthly fees, simple integration options, and over two decades of experience helping businesses communicate effectively, 160.com.au offers everything you need to launch successful SMS campaigns that drive real results.