What is SMS Marketing?

Businesses spend a lot of money on marketing. It can cost five times more to acquire a new customer than it would to lure back a customer that has already purchased one of your products. Being able to communicate with your customers is essential. SMS marketing is one of the newest ways that businesses are able to connect with existing and potential clients alike, and it helps to reduce the amount of money spent on ineffective marketing campaigns.

What Is SMS Marketing?

SMS stands for short message service, and people now refer to it as texting. SMS marketing is using text messages to market your product or service by reaching out directly to your potential customers. People are much more likely to check their text messages these days than they are to see an email or pick up the phone when you call them. Many people screen phone calls and spam filters make it difficult for your emails to get in front of peoples' eyes.

SMS Automation can make it a lot easier for you to get a single message out to a large number of people. Some businesses allow customers to subscribe to an SMS campaign in exchange for discounts, providing an added incentive to receive regular communications. This is not only useful when marketing your products and services, but is now also being used by businesses to streamline communications to their employees.

Why is SMS Effective?

The reason that SMS marketing is more effective is because people prefer sending text messages to talking on the phone or checking their email. It's a lot easier to get a text message noticed because most phones have push notifications that appear whenever a user receives a text message. People may also prefer the ease of typing out a short reply rather than having a conversation over the phone. Email marketing has lost its effectiveness because people will often lose interest immediately after skimming the subject line.

Most people today have cell phones. In fact, more people have access to text messages than the internet. While sending emails requires people to check those emails via an internet connection, all that is needed to reach someone via cell phone is to send the message with your company information available so that the potential customer can get a hold of you in return.

SMS marketing doesn't only allow businesses to reconnect with their potential clients, but a lot of information can be collected that will help improve business practices and the layout of their websites. People may leave the site because of an error or because the layout made it difficult for them to complete the sale. When you communicate with these clients over text, you can learn what you can do to increase your sales while saving a lot of lost opportunities by offering concessions or discounts to encourage customers to complete a transaction.

Sending a text message usually guarantees a quick response. Nine in 10 text messages are read within five minutes of being sent. As long as you are targeting your potential customers during waking hours, it is almost certain that your message will be received. This is why there is a significantly larger engagement rate with text messages compared to email marketing.

How Does SMS Marketing Work?

Your messages will be sent out under a special type of phone number called a short code. These texts might be sent out for the purpose of promoting a new product, for confirming appointments, providing order confirmation, providing shipping updates and more. You can use them to advertise an upcoming sale, to keep customers updated on policy changes or even to communicate with your employees with greater effectiveness.

Some marketing campaigns use SMS marketing to bring people back to online stores using a method called shopping cart recovery. This can boost sales by reminding people of a product or service they were considering before leaving the website. If the potential customer provided a phone number while signing up for your site, a message can be sent to the number to close the sale. Some sales can be saved if the customer is able to communicate with a customer service representative who can resolve whatever issue the customer had that prevented the sale.

SMS Statistics

Some business owners may feel that SMS marketing is too aggressive or off putting to potential clients, but the data suggests otherwise. Nearly four out of every 10businesses are incorporating text messages into their customer service. Over half of people from every demographic surveyed indicated that they actually want businesses to communicate with them via text message because it is easier and less stressful.Despite this fact, only one in every ten businesses actually uses SMS to advertise their products or services.

Most people include checking their phones as part of their morning routines. At least half of those surveyed said that they check their phones within three minutes of waking up. Because people are always checking their phones, SMS messages are 450% as effective as email marketing campaigns. Successful strategies now incorporate both email and SMS messages.

SMS Marketing Automation

Automation allows businesses to set certain conditions and triggers for SMS messages.Examples may include sending messages to customers with promotions on their birthdays. This makes the recipients feel appreciated and if they are offered an incentive, they are much more likely to purchase something. Other forms of automation include shopping cart recovery, customer feedback messages, holiday marketing campaigns and more.

Some businesses are able to use automation to remind customers when it's time to stock up again on a product they previously purchased, to schedule an appointment or when they might miss out because an item is running out of stock. You can also reach your entire subscriber base immediately whenever you come out with a new product or service. It's for these reasons that many businesses are adding some form of SMS automation strategy to their existing marketing campaigns.

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