SMS Marketing For Business [Ultimate Guide]

As we approach 2025, the marketing landscape is evolving. One strategy stands out for its growing significance: SMS marketing. Today, consumers are inundated with emails and social media ads, which makes text messaging a more direct and effective way to engage audiences. 

This blog will explore SMS marketing, including how it can drive measurable results for businesses.

Table of Contents

• What is SMS Marketing?
• Why Your Brand Should Use SMS Marketing in 2025

• 5 Ways SMS Marketing Improves Your Business
• 9 Top SMS Marketing Use Cases
• 8 Best Practices for SMS Marketing
• Advanced SMS Marketing Strategies for 2025
• SMS Trends for 2025

What is SMS Marketing?

SMS (short message service) marketing involves sending promotional text messages to customers who opt-in. These marketing text messages can be sent at scale and directly to a customer’s mobile device. SMS is now an integral promotional tool for companies looking to boost sales and strengthen their brands.

Here are a few text message marketing statistics to know:

• Smartphones dominate: Most Americans (97%) own a cell phone of some kind and nine in ten own smartphones.
• Open rate is sky-high: SMS has a 98% open rate, nearly five times the open rate for email marketing.
• SMS is a preferred channel: 19% of customers rank SMS as a preferred communication channel to speak with brands, second only to email.
• Immediate message delivery: SMS communicates time-sensitive information efficiently. In fact, most people read their texts within five minutes of receiving them.
• Text marketing is easy to use: SMS marketing platforms like Textedly ensure your brand can deliver promotional messages to your contact list at scale with ease. 

Why Your Brand Should Use SMS Marketing in 2025

As we approach 2025, SMS stands out as a pivotal, results-oriented channel. Let’s dive into a few of the top reasons businesses should consider using SMS as a marketing channel.

Smartphone shopping is up: An increasing number of customers are shopping from their mobile devices. In fact, it’s estimated that nearly 45 percent of total ecommerce sales in the U.S. in 2024 will come from a mobile device. This makes SMS marketing an effective way to grasp the device's attention, which more people use to buy products.

SMS engagement is unmatched: With open rates of 98%, your business can ensure your target audience sees your text marketing message. Your brand can deliver timely promotions, updates, and reminders directly to customers’ pockets. SMS marketing can help businesses cut through the advertising clutter to reach their target audience. 

High Return on Investment: SMS campaigns are relatively cost-effective and deliver high returns. SMS is an opt-in form of marketing, which means only the customers who want your promotional messages get them. This means that you’ll reach the right customers instantly and boost results without breaking the bank. SMS marketing platforms also let you segment contact lists to ensure every dollar spent is aimed at the right audience. These all contribute to a better ROI.

Immediate Communication: SMS marketing messages are delivered straight to users' mobile devices and read within minutes. This immediacy allows marketers to connect with their audience instantly to send time-sensitive promotions, event reminders, or special offers. SMS can drive action from customers quickly. 

Boost Customer Retention: Another benefit of SMS marketing is that it enables brands to stay top-of-mind for customers. This can encourage repeat purchases and remind customers why they choose your brand. Personalized offers and communication foster loyalty, as customers feel valued and understood. SMS allows brands to engage customers meaningfully to build long-term relationships.

5 Ways SMS Marketing Improves Your Business

How can SMS improve your marketing efforts? Here are five key reasons to add SMS to your overarching marketing strategy.

Increases Sales

Driving additional traffic to your website or retail store is easy with an effective SMS marketing strategy. For example, promoting sales, sending mobile coupons, or reminding customers of abandoned items in their online shopping carts can incentivize purchases. A winning SMS strategy will get the message to the right customers to increase sales.

Cuts Customer Churn

Did you know that boosting customer retention rates by only 5% can help you raise profits up to 95%? You can use SMS to encourage repeat buyers and stay top-of-mind for customers. Use a text message to reach out to customers who haven’t engaged with your brand in a while to encourage engagement and purchase.

Offers Customer Support

Nine out of ten consumers prefer texting with businesses over phone calls. Using SMS to improve customer support is a huge timesaver. SMS customer service messages convey helpful information about service inquiries while providing an on-brand customer experience.

Customer support applications include sharing:

• Appointment reminders
• Order and shipping confirmations
• Pickup notifications
• Urgent service requests
• Emergency alerts
• Refund updates
• Chat follow-ups

Strengthens Customer Loyalty

Sending personalized, targeted messages makes customers feel seen and valued. When you anticipate your customer’s needs by sending the right offer at the right time and answering product questions quickly, you increase the likelihood of getting loyal customers.

Increases Event Attendance

It can be challenging to boost attendance for concerts, charity galas, or other in-person events. However, SMS can help ensure a successful turnout. For example, businesses can send a text message to send event invites, advertise the date in advance, and send event reminders.

Example: 

Hi [Name], 

[Artist Name] has a show at [Venue Name] on [Date]! Buy tickets now and get a free parking pass: [Link]

9 Top SMS Marketing Use Cases

Let’s look at nine creative ways you can use SMS marketing to your advantage. 

Promote Seasonal Sales

Did you know that 75% of people want to receive promotional offers through SMS? The most obvious use of marketing channels is to communicate your products and services with personalized messages that attract your ideal customers. Promoting seasonal sales via SMS is a great way to boost revenue during particular months.

See how companies like Starbucks are using mobile marketing. 

Recover Abandoned Carts 

Most online businesses deal with abandoned carts, which leaves money on the table.  Abandoned cart texts can help businesses recover this lost revenue. Sending timely, personalized text messages gently remind customers to complete a purchase. Businesses can use a text message to simply remind customers of items left in their cart, offer free shipping, or a discount to incentivize them to place an order.

Share Discounts & Coupons 

SMS marketing is an excellent way to share discounts and coupons with customers, driving both engagement and conversions. By sending personalized text messages with exclusive promo codes or time-sensitive offers, businesses can create a sense of urgency and encourage immediate purchases. SMS allows brands to target specific customer segments, sending tailored discounts based on their shopping behavior or preferences, which enhances the likelihood of conversion. Whether it’s a special birthday discount or a flash sale coupon, SMS ensures your message reaches customers quickly, making it easy for them to redeem offers with just a tap.

Run Text-To-Win Contests

SMS marketing is a fun and engaging way to run text-to-win contests that can boost brand awareness and customer interaction. By encouraging customers to enter contests through a simple SMS response, businesses can easily gather participant data and drive excitement around their products or services. These contests are highly shareable, often incentivizing users to forward the message to friends or family to increase their chances of winning. Whether offering a free product, exclusive discount, or entry into a larger sweepstakes, text-to-win contests create a direct line of communication with customers while fostering a sense of community and engagement with the brand.

Interactive Marketing Campaigns

You can make your SMS marketing campaign even more effective by encouraging recipients to interact with your text messages. These campaigns encourage customers to text in responses to win a free product or ask questions. Two-way texting is also a great way to show that you care about meeting your customer’s needs as you engage in real conversations with them. 

Share on Social Media 

Encouraging customers to share content on social media, amplifies your brand’s reach and visibility. By sending text messages with exclusive content, limited-time offers, or referral links, businesses can prompt customers to share their experiences or promotions with their followers. This type of engagement not only boosts your brand’s social media presence but also builds a community of loyal customers who help promote your business organically.

Conduct Polls and Surveys

SMS can help brands collect information from customers. Customer satisfaction is a top success metric for businesses, so keeping your finger on the pulse of your audience ensures that you know what they want.

What’s the difference between polls and surveys?

Text message polls usually ask a single multiple-choice question, giving quick insights into customers’ choices or preferences. Polls require little to no analysis to tabulate results.

Text message surveys provide more feedback because they allow write-in responses to multiple questions vs. choosing predetermined answers to a single query. Surveys are more in-depth and take longer for customers to complete. 

These are some of the best opportunities to send an SMS poll or survey:

• Immediately after a sale or service
• Immediately after a customer service call or chat
• A few weeks after your last interaction

Read: Text Message Survey: 5 Tips to Collect Customer Feedback.

Drip Campaigns 

Running drip campaigns provides businesses with a way to send a series of automated, personalized messages that nurture leads and guide customers through the sales funnel. By sending a sequence of well-timed SMS messages — such as welcome offers, product recommendations, or educational content — you can keep your brand top of mind while gently encouraging customers to take action. Drip campaigns through SMS are particularly effective for customer onboarding, re-engagement, or post-purchase follow-ups, delivering relevant content at the right moment and increasing the chances of conversion over time. This approach creates a seamless, ongoing connection with customers that feels personal and timely.

Invite Customers to Events

Inviting customers to events via SMS offers a direct and immediate channel for communication. By sending personalized text messages with event details, RSVP links, or exclusive invitations, businesses can drive higher attendance and excitement. Whether it’s a grand opening, product launch, or special promotion, SMS ensures your message reaches customers quickly and effectively, with a higher chance of being seen and acted upon. Additionally, SMS can be used to send event reminders or last-minute updates, keeping customers engaged and informed every step of the way.

8 Best Practices for SMS Marketing 

Adhere to these eight SMS best practices to ensure the best results for your text marketing campaigns:

Follow Opt-In (and Opt-Out) Rules

A vital element in starting any SMS marketing campaign is getting permission to send promotional text messages. Attaining express written consent doesn’t have to be complicated, but you must follow the rules to avoid violating TCPA laws.

You can ask for opt-ins on your website, via email, or through social media channels. You can also use a keyword for customers to text to your dedicated short code or 10DLC number.  

In addition, you must include instructions for customers to opt out of receiving text messages from your business. Texting people who no longer want your messages will likely result in a loss of customers and sales. Therefore, providing opt-out instructions is a best practice and a legal requirement for marketing communications. 

Examples: 

To unsubscribe from our text messages, reply STOP.

Text STOP to end

Watch Your Timing

In addition to knowing how to send text messages, knowing when is also essential. Since it’s possible to text 24/7/365, it’s easy to forget that some hours during the day are inappropriate for marketing. 

The following are generally considered the best times for businesses to send marketing text messages:

• Between 9 am and 12 pm and 5 pm and 9 pm on weekdays 
• Between 10 am and 12 pm on Saturdays and Sundays
• Between 4 pm and 7 pm on Sundays

Remember that acknowledging special days like birthdays and holidays could positively impact your brand’s reputation and customer base.  

Identify Yourself

Your customers likely don’t have your phone number saved. Therefore, identifying yourself at the beginning or end of your message is vital to ensuring that customers immediately connect to your message.

Example: 

[Brand name]: Hi [Name]! Did you know you can get hotel discounts when you book your airfare through us? Reply VACATION to learn more about our special pricing!

Text STOP to end

Add Compelling CTAs and Links

For your campaign to be truly effective, you must create enticing and clear CTAs that capture people’s attention and compel them to take action. 

Examples:  Buy Now, Shop Now, Visit Our Store

However, without adding a link, your recipients can’t take action. Therefore, including relevant links to your store, a blog post, or a landing page will help you generate more leads that become sales opportunities. 

Be Clear About Your Purpose

Keep the focus of your message clear from the jump to avoid confusion and to increase the chances of your recipients taking action.  Keeping your message concise also makes texts easier to read.

A standard SMS message is up to 160 characters long. However, Textedly’s platform lets you compose texts up to 300 characters, allowing you to communicate with your audience more effectively.

Measure the Results of Your Campaigns

Measuring the results of your SMS marketing campaign is crucial for gaining insight into its effectiveness. Seeing whether or not your efforts are paying off can improve your text messages while saving time and money in the long run.

It’s wise to calculate the number of people who opted in and out and monitor the number of recipients who acted on your CTAs. Doing so helps determine whether your campaign investment has paid off, and will help you turn future campaigns into successful ventures.

Personalization

Personalization is key to successful SMS marketing, and there are several best practices businesses can adopt to make their messages resonate with customers. Use the customer's name in your messages to create a friendly and approachable tone, and consider referencing past purchases or interactions to make the communication feel more relevant. Timing is also crucial—sending messages during special occasions like birthdays or anniversaries can enhance the personal touch. Finally, always encourage feedback and allow customers to choose their preferences, ensuring your messages remain aligned with their interests.

Advanced SMS Marketing Strategies for 2025

Now that you know the basics to succeed with SMS marketing, let’s look at some advanced strategies to excel in 2025.

Combine SMS with other channels

You can use several digital marketing methods to connect with your customers. But are you combining your channels to create a cohesive multi-channel communication strategy? Omnichannel marketing is the future.

Email is an effective communication channel that has been used for decades. However, did you know that the average email click-through rate is 2.6%, while the average SMS click-through rate is 19%? Moreover, the average person takes 90 minutes to respond to an email but 90 seconds to respond to a text.

SMS marketing doesn’t have to exist in a silo. SMS and email marketing are quite complementary. Creating campaigns in each channel and then cross-promoting enables you to provide detailed information via email and boost that information via SMS.
Additionally, combining SMS campaigns with your social media channels is a no-brainer. Promoting keywords on platforms like Facebook, Twitter, and Instagram generates interest in text-only offers and can increase subscribers to your text marketing database.

Implement Automation and AI to Save Time

Automation transforms SMS marketing by enabling businesses to implement triggered campaigns that respond to customer actions in real-time. With automation tools, brands can send personalized messages based on specific triggers, such as abandoned carts, recent purchases, or customer anniversaries. This saves time and ensures that the right message reaches the right customer at the right moment, increasing the likelihood of engagement. By leveraging automation, businesses can create a seamless and responsive communication experience that nurtures customer relationships and drives sales.

Additionally, integrating AI into SMS marketing strategies can significantly enhance targeting and engagement efforts. AI can identify patterns and preferences by analyzing customer data, allowing businesses to craft highly personalized messages that resonate with individual users. This technology enables brands to automate message customization based on factors like browsing behavior, purchase history, and even sentiment analysis from previous interactions. As a result, businesses can deliver timely offers and tailored content, fostering stronger connections with customers and driving higher engagement rates. 

SMS Marketing Trends for 2025

Here are some trends poised to disrupt SMS marketing in 2025 and beyond.

Rich Communication Services: Rich Communication Services (RCS) is set to revolutionize SMS marketing by offering a more interactive and visually engaging messaging experience. Unlike traditional SMS, RCS allows businesses to send multimedia content, such as images, carousels, and buttons, directly within the messaging interface. This enhances customer interaction by enabling features like quick replies and integrated links, making it easier for users to engage with brands. With RCS, businesses can deliver rich, branded messages that stand out in crowded inboxes, ultimately driving higher engagement rates and improving the overall customer experience. 

Chatbots and AI-Driven Insights: The integration of chatbots and AI-driven insights into SMS marketing is set to enhance customer engagement and streamline communication. Chatbots can provide instant responses to customer inquiries, handle transactions, and offer personalized recommendations, all within the SMS channel. This real-time interaction improves customer satisfaction and frees up valuable time for businesses. Additionally, AI-driven insights enable brands to analyze customer behavior and preferences, allowing for more targeted messaging and improved campaign performance. By harnessing these technologies, businesses can create a more dynamic and responsive SMS marketing strategy that meets the evolving needs of their audience.

Meet Textedly, your SMS marketing powerhouse 

SMS marketing is essential for business success because mobile usage is continuously growing. Nearly every person in the world has a mobile phone, making text messaging one of the most effective marketing channels.

Although text marketing can be incredibly effective, it must be done correctly. Before you can get a campaign up and running, you need to find an SMS platform that can offer you the services you need. 

Textedly provides simple, affordable SMS solutions for businesses in every industry. Learn how easy it is to start texting your customers. Sign up for a free Textedly trial today!