Text Your Way To Success: How SMS Marketing Drives Business Growth

With over 6.71 billion mobile users worldwide, there’s no question that SMS marketing is one of the most effective ways to spread your brand’s message. The power of SMS lies in its simplicity: it’s direct, personal, and immediate.

via GIPHY

Whether kicking off a weekend sale or promoting a limited-time offer, SMS marketing puts your message into your customers’ hands — where it’s almost guaranteed to be read and acted upon.

Now, imagine having real-time insights right at your fingertips. With advanced analytics and a unified dashboard that merges email and SMS for marketing, you’ll make smarter, data-driven decisions while boosting your ROI.

In this article, we’ll unpack SMS marketing — an efficient, high-impact tool to elevate your business. From its unique benefits to strategic approaches, you’ll find practical tips to help you cut through the noise and connect with your audience.

About SMS: Instant Customer Reach

When it comes to SMS marketing, it’s all about a direct connection between businesses and their customers. That’s what text marketing offers — reaching prospects in the palm of your hand through mobile messaging.

Here’s why business owners choose text messaging apart from high open rates and immediate delivery:

Source: Statista

What sets SMS marketing apart is its unmatched engagement. With open rates five times higher than email’s modest 20%, there’s a significantly higher chance that your message will be seen.

Add to that a click-through rate of 9.18% click-through rate — a number that leaves email’s 2.5% in the dust — and it’s easy to see why businesses are shifting toward SMS as a key piece of their marketing strategy. 

Why Small Businesses Should Explore SMS Marketing

A recent study by Martech found that 75% of customers prefer to receive offers via text. 

Take Walkmart, for instance, whose influence in the retail e-commerce sector is significant. With over 240 million customers shopping across more than 20 countries each week, the company has proved the power of SMS marketing.

Here’s why SMS marketing is worth considering:

Instant Reach	SMS messages are delivered almost instantly, ensuring that your promotions or updates are seen right away — perfect for time-sensitive offers or urgent communications.
High Engagement Rates	SMS boasts an impressive open rate of around 98%, which is by far the highest open rate across marketing media.
Personalization	SMS marketing enables personalized communication by leveraging customer data. You can tailor messages based on user preferences, location, or purchase history.
Cost-Effectiveness	SMS marketing allows businesses of all sizes to connect with a wide audience without overspending.
High Conversion Rates	Due to the immediacy of delivery, SMS marketing often leads to higher conversion rates. Its direct nature leads to prompting quicker responses to your special offers and reminders.
Easy Integration	SMS marketing can be seamlessly integrated with other marketing strategies. For example, use it to complement email campaigns, social media promotions, or loyalty programs.
Opt-in Model	SMS marketing typically relies on an opt-in model, which means that your audience has expressly given permission to receive messages. This leads to receptive audiences and higher engagement without irritation.
Trackable and Measurable	With the right tools, SMS marketing campaigns can be easily analyzed. You can track delivery rates, open rates, and conversion rates to make data-driven decisions.
Segmentation and Targeting	Advanced segmentation options in SMS platforms enable targeted messaging, improving relevance and engagement.
Enhanced Customer Experience	SMS marketing enhances the overall customer experience by providing timely updates, reminders, and personalized offers, leading to a more direct connection.

Best Practices for Effective SMS Marketing Campaigns

Did you know 95% of SMS messages are read within just three minutes? Around 91% of consumers prefer SMS for quick, personal updates, a surefire way to strike a chord with your audience. 

With this in mind, here’s how you can maximize the impact of SMS marketing:

Get Permission	Always start by obtaining explicit consent from your recipients to ensure your messages are welcome and foster a positive relationship with your audience.
Personalize Your Messages	Use recipient names and tailor content to their preferences or behaviors to make messages more relevant and engaging.
Timing Is Key	Send messages at times when recipients are most likely to read them, especially during working hours. Avoid early mornings or late nights to prevent annoyance.
Keep It Concise	SMS messages should be brief and to the point. Focus on delivering a clear message within the character limit.
Include a Clear CTA	Ensure your message includes a specific, actionable step, whether a link to a landing page, a discount code, or an event reminder.
Optimize for Mobile	Ensure any links or content you include are mobile-friendly. A smooth mobile experience is crucial for retaining engagement.
Segment Your Audience	Audience segmentation is crucial. According to a McKinsey survey, 71% of consumers expect personalization, while 76% feel frustrated when it’s lacking. Segment your audience according to interests and behaviors, and you can deliver more targeted and meaningful messaging.
Monitor and Analyze Your Performance	Track open rates, click-through rates, and conversions to understand your campaigns’ performance.
Respect Users’ Privacy	Provide an easy way for recipients to opt out of receiving future messages to build more trust.
Stay Compliant	Familiarize yourself with SMS marketing regulations in your region to ensure your campaigns adhere to legal requirements.

How To Create an SMS Marketing List

It’s important to build a high-quality list and create a community that’s excited to hear from you

1. Give Them a Reason to Join

What’s in it for them? Offer something irresistible, like an exclusive discount, sneak peeks at new products, or VIP access to sales. Make sure they know they’re getting something special by signing up.

2. Make It Easy on Your Website

People are more likely to opt in if the process is smooth. Add sign-up forms in key spots on your site — a pop-up, sidebar, or during checkout.

3. Get Social

Utilize stories, reels, and posts to showcase the perks of joining your SMS community, which will make the sign-up process effortless or even enjoyable.

4. In-Store? Don’t Miss Out

Don’t forget about your in-store customers: signs at the checkout, flyers, or even a quick mention on their receipt can encourage them to join your list for in-store-only deals or promotions.

5. Use Catchy Keywords

Make your SMS messages memorable and easy to type, like “DEALS” or “VIP,” and watch your list grow. All they have to do is text the keyword to your short code, and boom — they’re in.

6. Host Events & Contests

Whether you’re hosting an event or running a contest, make signing up for SMS a part of the fun. People love a good competition, and offering a prize or exclusive event access can make signing up irresistible.

7. Get Email Subscribers On Board

Already have an email list? Let those subscribers know they’re missing out on exclusive SMS-only offers. Send a quick email promoting your SMS list and highlight the benefits of joining.

8. Run Targeted Ads

Create eye-catching Facebook or Instagram ads that explain the value of joining your SMS list, then direct them to a quick and easy sign-up page.

9. Play by the Rules

Make sure you’re following regulations like TCPA in the U.S. and GDPR in Europe. Let your subscribers know how often they can expect messages and what they’ll be receiving. Build a loyal, engaged group ready to act when your next message appears on their phone.

Compliance and Regulations in Modern SMS Marketing

SMS marketing compliance goes beyond legal requirements; it’s essential for building trust and avoiding costly penalties. Regulations like the TCPA and GDPR mandate clear consent before sending texts, ensuring customers understand what they’re signing up for. 

Implementing a clear opt-in process, providing honest messaging, and offering easy opt-out options are vital. When done right, compliant SMS marketing is not just a safeguard — it’s a way to connect with your audience on their terms.

Personalized SMS Marketing: Engaging Your Audience

To create a successful SMS campaign, gaining a deep understanding of your audience is essential, which involves analyzing data from past interactions, surveys, and your customer CRM system to uncover valuable insights into their preferences, behaviors, and demographics.

Timing is equally important. To boost engagement, send messages when your audience is most receptive — steering clear of odd hours or excessive frequency.

Personalized SMS offers several benefits, including increased relevance and timeliness. According to Omnisend research, in 2023, brands sent 150 million SMS messages, with automated messages seeing a 26% increase in conversion rates.

Source: Privy

G2 reports that over 50% of consumers make a purchase after receiving a marketing text, and fewer than 5% of SMS subscribers unsubscribe. Additionally, follow-up texts can boost email open rates by 20-30%.

Here are typical do’s and don’ts when personalizing an SMS campaign:

Source: Sinch

SMS vs Email Marketing Campaigns

SMS excels in immediacy and personal touch, while email offers depth and engagement opportunities. For optimal results, integrate both, using SMS for urgent updates and email for comprehensive content.

SMS marketing pros:

• Unbeatable open rates
• Immediate impact
• One-to-one connection
• Personal touch
• Vast reach
• No need for Internet or apps

SMS marketing challenges:

• SMS can’t handle images or rich media, and the 160-character limit can be restrictive for detailed messages.
• Instant delivery means texts can sometimes feel intrusive, especially if sent too frequently or inappropriately.

Email marketing pros:

• Personal touch

• No limits on links or media
• Easy sharing
• Interactive features (dynamic templates, forms, and product previews)
• No need for immediate attention
• High ROI (up to $36 for every dollar spent)

Email marketing challenges:

• Emails may land in spam folders.
• The high volume of emails can lead to message fatigue.

How To Track the Performance of Your SMS Marketing Campaigns

If you want to assess how well your marketing messages perform, consider answering these questions:

1. Are Your Messages Reaching Their Destination?

Without high delivery rates, everything else will be in vain — your customers never received the message to begin with. A low delivery rate indicates invalid numbers, poor network coverage, or messaging provider failures.

SMS Delivery Rate = (Delivered Texts / Total Sent Texts) * 100

To improve your SMS delivery rate, focus on the quality of your message and check whether you’re sending them to the correct phone number.

2. Are Recipients Engaging With Your Message?

The CTR measures the percentage of recipients who clicked on a link within your SMS. Low CTRs may require revising your CTA or A/B testing different offers to see which resonates more with your audience. 

SMS CTR = (Click-Generating Texts / Total Sent Texts) * 100

To improve CTR, experiment with message length, positioning, and timing.

3. Are You Meeting Your Conversion Goals?

The crown jewel of all metrics is your conversion rate, revealing how many recipients took the desired action — making a purchase, registering for a webinar, or offering feedback.

SMS Conversion Rate = (Conversion-Generating Texts / Total Sent Texts) * 100

Simple tweaks, such as clearer CTAs or targeted offers, can improve conversion rates.

4. Are You Keeping Subscribers Engaged?

While all marketing campaigns will lose some subscribers over time, a spike in the unsubscribe rate signals something’s amiss. The unsubscribe rate measures how many people opt out of your SMS list after receiving a message. 

SMS Unsubscribe Rate = (Texts Generating Unsubscribes / Total Sent Texts) * 100

I advise being mindful of message frequency and ensuring your content is relevant to the audience.

5. Is Your Subscriber Base Expanding?

The SMS marketing list growth rate measures how quickly you gain subscribers over a specific period. A growing subscriber list signals that your SMS marketing is resonating, while stagnant or declining growth means your campaigns may fail to attract or retain subscribers.

SMS List Growth Rate = [(New Subscribers – Lost Subscribers) / Initial Subscribers] * 100

6. Are You Getting a Return on Investment?

Finally, the SMS campaign ROI (Return on Investment) tells you whether your campaigns are cost-effective:

SMS Campaign ROI = [(Revenue – Costs) / Costs] * 100

To boost ROI, review the previous metrics — each one directly affects your profitability.

Automate Your SMS Marketing with Phonexa

At its core, SMS marketing automation utilizes sophisticated software that sends pre-scheduled or event-triggered messages to subscribers. Typical triggers include inquiries, new sign-ups, purchases, and special occasions like birthdays. 

Automation helps build an intelligent dialogue between the brand and the customer, and this is where LMS Sync shines. One of the Phonexa’s eight performance marketing solutions, LMS Sync unlocks profound web lead insights to help you understand your customers better. 

Here’s how LMS Sync works:

 

However, while LMS Sync is a powerful tool when used alone, it’s much better when integrated with Phonexa’s performance marketing ecosystem. If done correctly, the eight-in-one performance marketing software suite covers your marketing from top to bottom, including SMS, email, social media, affiliate, and referral avenues.

 

Here are the eight proprietary solutions you get at a single price starting at $100 a month (online price calculator):

 

Take the first step in optimizing your performance marketing — build your plan today or request a demo.

Frequently Asked Questions

What is SMS marketing?

SMS marketing is a direct way to reach customers through text promotions, alerts, and updates, ensuring immediate engagement. With high open rates and instant delivery, SMS marketing is a powerful tool for driving quick responses.

How does SMS marketing personalize messages for subscribers?

You can use data on the subscriber’s behavior, preferences, and past interactions to tailor content that resonates with their needs and wants.

What key metrics are used to measure SMS marketing performance?

The performance of SMS marketing is measured through key metrics such as delivery rates, open rates, click-through rates (the number of clicks on links within the message), and conversion rates (the percentage of recipients taking the desired action, such as making a purchase, downloading a guide, or else).