It’s been forecasted that in 2023 there will be 7.33 billion mobile phone users globally, nearly all having the capability to send and receive SMS – making SMS the most ubiquitous communications channel in the world.
However, SMS messaging has evolved from a primarily person-to-person (P2P) communication channel to a new and innovative way for businesses to connect with customers. Today, Application-to-Person (A2P) SMS solutions drive user growth, augment marketing campaigns, and provide new levels of customer service through two-way communication.
But still, text messaging is more than a reliable channel for reaching customers—A2P SMS should be a key part of your growth and marketing plans.
Here we highlight what SMS marketing is, the benefits of SMS marketing for businesses, best practices, and how you can get started.
What is SMS marketing?
SMS marketing is a strategy businesses use to communicate promotions, time-sensitive information, reminders, feedback, and more to customers through text messages of up to 160 characters.
Businesses can use SMS to share promotional codes and discounts, lead customers to their website or app, connect customers to agents, minimize call center queues, and collect feedback through surveys.
Customers must opt-in to receive SMS marketing messages from businesses, compared to social media marketing, where communication is public.
With high delivery and open rates, and relatively low costs, SMS is a marketing channel with high ROI for businesses – which is why we’ve seen more brands turn to SMS to improve their marketing efforts.
In fact, according to our latest messaging trends report, there were 75% more SMS interactions between businesses and customers on our platform in 2022 compared to 2021. And 16% of these interactions facebook database were related to customer engagement and marketing interactions.
Why SMS marketing is important?
Consumers understand the value of SMS for security, verification, transactions, updates, and now business communications. A2P SMS is an exceptional channel for marketing, support, and customer growth because it’s direct, personal, and simple.
SMS marketing is a perfect complement to existing digital channels and is especially effective for real-time offers and specials. SMS augments other marketing channels and offers customers choice over how, when, and where they hear from companies. Pair that with an average 98% open rate and 45% response rate; SMS promotions have a strong appeal for reaching your most engaged customers.
Opting in to receive messages, especially texts, signals not just interest but customer engagement with your brand. Engaged customers are more likely to participate in loyalty programs, coupons, surveys, and updates.
SMS marketing eases customer support pain points, too. From quick answers to simple questions or an alternative to waiting on hold, SMS provides another way for customers to connect with your agents alongside phone or email.
Benefits of SMS marketing
SMS marketing has many benefits for your business and customers. Below are the top ways marketing through text messages can help you reach your goals:
1. Global reach
As we mentioned above, most of the world’s population (approximately 93%) own a mobile phone – and most of these phones (if not all) can send and receive text messages. This means businesses using the channel have the potential to reach almost all their customers anywhere in the world.
A competitive advantage comes from using two-way SMS through a global communications platform. Our customers, for example, can send SMS messages to customers across the globe through our 650+ direct operator connections in over 190 countries.
2. Cost-effective
SMS campaigns cost less than traditional forms of marketing and advertising. They see higher engagement, including high open and response rates. Businesses that implement SMS marketing can expect higher ROI than other marketing mediums. It will also be easier to track performance and make changes along the way.
