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The Benefits of Running an SMS Marketing Campaign

Aug 14, 2017
5 MIN READ

Businesses always look for creative and cost-effective ways to deliver their message to the target audience. No matter what product or service you provide, it’s important to keep up with modern marketing trends and think from the perspective of your audience to find the right approach to interact with them.

With the increasing number of mobile subscriptions in the world, it becomes crucial for any business looking to grow to develop mobile-friendly marketing strategies. As a result, more and more companies adopt Mobile Text Marketing either as a great standalone communication channel or as part of a multi-channel marketing campaign.

Have you already considered integrating SMS messages into your marketing strategy? If not, it’s high time you did!

Being around for already 25 years, SMS marketing has stood the test of time as one of the most effective communication channels out there. Here are several irresistible benefits of using SMS marketing campaigns which explain why it should become part of your next marketing campaign.

 

 

 

What is an SMS Marketing Campaign?

 

SMS marketing is a way of mobile marketing that allows businesses to leverage sales and increase customer conversion through mobile phones, by sending out SMS, which stands for short message service. SMS marketing campaigns have grown in their popularity within recent years due to their effectiveness, high ROI and reaching potential.

SMS marketing campaigns have a simple logic behind them. Your business sends promotional text messages (or other relevant text messages concerning your product or service) to a specific list of targeted customers. SMS marketing is consent-based, meaning that you’ll be targeting users who have already expressed their interest in your product or service by opting-in for your SMS marketing campaign. As any other marketing technique out there, the goal of SMS marketing campaigns is not only to leverage more sales and generate greater revenue and turnover but also to build a good brand image and increase customer engagement and conversion.

 

SMS Marketing Ideas

There are countless ways to utilize SMS marketing and tailor it to your business needs depending on the industry. Here are some of the most popular ways companies use SMS marketing to their advantage. Have a quick look at these ideas for inspiration!

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Special Promotions

This is one of the most common (and effective) ways to use SMS marketing. Got any exciting offers for your customers? Whether you’re involved in the restaurant industry, retail or any other, make sure to inform your customers about that special offer they wouldn’t want to miss! Whether it’s sitewide free shipping, discounts on selected items, collections, the special menu offer on weekends, etc, drop your customers a text to let them know. Flash sales can be announced exclusively via SMS as well. Informing about these only via text is a great way to make your customers feel special.

Reminders

If you’re engaged in a service industry, such as cosmetological services, dentistry, legal assistance, or any other industry that makes appointments for that matter, sending reminders is a great way to use SMS marketing. Appointment reminders can significantly increase your appointment conversion rates, by reminding customers to show up on time.

Confirmation Texts

This method of utilizing SMS marketing can be quite universal too. Whether you’re a business that’s offering a service (such as streaming, news, network, etc) or a company that sells products, you can send confirmation texts for different customer actions. For example, you can notify your customers about a successful purchase, or a confirmation about a monthly payment for the subscription to your service.

Periodic Tips

This one is more creative than practical, but, nonetheless, can be quite effective in driving customer engagement up. If you’re in an information-industry, send weekly (or monthly) tips on a regular basis to your subscribers. For example, if you’re operating a gym, send weekly weight loss or healthy lifestyle tips to your customers. You can also link these SMS to a blog or any other web-based platform you want to increase traffic to. These short texts with tips can be a great way to provide value to your customers and make them feel cared for. 

There are many more ways to utilize SMS marketing in your business strategy. So get creative with your SMS marketing campaign and tailor it to your industry and business needs to get the most out of it!

 

Here’s why you should consider running an SMS marketing campaign

 

Immediate 

SMS is one of the most immediate marketing channels out there. With people having their mobiles at hand almost 24/7, it’s incredibly easy to get your message literally into the pockets of your audience. Advanced messaging services, like Textedly, allow for sending out bulk messages from web-based platforms to thousands of subscribers within a matter of minutes. And statistics show that 90% of the text messages are read within 3 minutes of being delivered. So you can easily count on Mobile Text marketing to enhance the effectiveness of your existing marketing campaigns or just deliver time-sensitive information to your customers.  

 

Cost-Effective

In a world where cash is king, it’s important to keep your marketing expenses under control. SMS Marketing is affordable for any company, including small businesses with a tight budget and non-profit organizations which mainly rely on donations. You don’t need to engage IT professionals or make heavy investments in text messaging apps to get your message to your audience. Text Messaging Services enable you to reach for your audience spending a few cents per message. Not only is SMS quite affordable for a business with any budget, but it also provides a healthy return on investment. Moreover, while being affordable, SMS marketing is one of the tools that have the potential to reach a large audience with diverse demographics, whether the target audience has an active internet connection or not. So, with SMS marketing, your business has a tool that helps to target, reach and convert a maximally large audience, timely and effectively, while keeping the costs to a minimum. Moreover, SMS marketing is cost-effective in the long run too. By gathering the trackable data on the engagement and conversion from your SMS marketing campaign, your business can save resources on target audience research in the future and use the data at your disposal for a better and more evolved marketing strategy.

 

High Open and Response Rates

Unlike other marketing channels which often rely on “spray and pray” strategy to reach out to their audience, SMS provides a better customer outreach regardless of time or internet connection. With people checking their mobiles around 150 times a day, text messages are more likely to catch the attention of the target audience. Research shows that Text message marketing trumps email with a staggering open rate of 98%, compared to the average 27-38% open rate of the latter. Next to this, the response rates are vastly different. SMS messages have a response rate of 45%, while for emails the response rate usually sits between 6-7%.

 

Flexible

Great SMS Marketing services make it possible to customize your SMS campaign based on the needs of your subscribers. Blast out thousands of SMS messages to your entire list or segment it into specific groups and send targeted messages based on your customers’ specific needs and previous buying behavior. In addition, you can schedule your campaigns in advance to ensure that your messages are sent on time no matter how busy you are.

Being a highly efficient standalone marketing channel, SMS can be perfectly integrated into other marketing campaigns. It’s known that email and social media are not the best way to deliver time-sensitive messages. You can send text messages to remind your customers to check an email sent a few days ago or to direct them to your website by inserting a hyper-link in your message. This will also help you track the click-through rate of your messages and the overall effectiveness of your SMS campaign.

 

Direct Communication

Smart marketers know that the key to a successful marketing campaign is the ability to maintain a genuine and creative communication with the target audience. One of the greatest benefits of SMS Marketing is that it allows you to start a direct, real-time dialogue with your audience and learn about their needs or interests. Text message services with a two-way texting feature enable advertisers to interact with their customers guiding them through the buyer’s journey, resolving any doubts they have and collecting valuable information for future marketing campaigns.

 

Unobtrusive

In order to receive your SMS updates people first need to opt-in for your messaging service. This means that an SMS campaign targets people who have a genuine interest in your services, and your texts aren’t likely to annoy them. People feel comfortable with SMS as a personal and unobtrusive way of communication. As such, text messages are a good alternative for direct phone calls from call center agents. Even though most recipients view text messages immediately after receiving them, they don’t have to respond or take action straight away. Unlike direct calls, SMS doesn’t put people on the spot. Instead, customers get time to think and take action at their convenience. Besides, they always have the option to unsubscribe from further text messages, which means you’ll not be sending unwanted texts to those uninterested.

 

 Eco-friendly

And last but not least, let’s not forget about the environment. As more and more people are becoming concerned about the negative influence humans have on the planet, many businesses choose to adopt eco-friendly marketing practices. SMS marketing is an easy way to engage with potential and current customers without affecting the environment. Using SMS instead of flyers or large ad posters, you’ll not only reduce the environmental impact of your business but also connect with an eco-conscious audience.

There you have it, the most important benefits of SMS marketing. Now you know why you should put your confidence in this powerful communication channel to grow your business at an unprecedented pace.

 

SMS marketing ROI breakdown

Calculating ROI for your SMS marketing campaign is quite simple. In general, calculating ROI involves comparing costs to revenue. However, in the case of marketing ROI, the metrics are open, which means that they can be tailored to fit the needs of your business best. You can either calculate the ROI on your SMS marketing strategy in a given time period (monthly or annually), or you can calculate the ROI per each campaign individually. This will give you a good idea about what works well, what could be improved, as well as help to track your progress. Regardless of the calculation method and frequency, it’s crucial to compare your calculations. If you pick time periods as your calculation units, compare those, if you choose individual campaigns, compare those. If you truly want to see the real results and the effect SMS marketing has on your sales, customer engagement and conversion, the comparison is essential. You will be able to see what and why needs more focus, what should be a priority and how to implement your future strategies. It’s important to pick the right parameters and your units of measurement if you want the results to give you useful information.

Here are some metrics to keep in mind when calculating the ROI of your SMS marketing strategy:

  • The cost of your SMS marketing (per month or per year)
  • The number of your mobile subscribers (your lists should always be up to date, well-documented and organized)
  • The number of SMS marketing campaigns you plan to implement in the upcoming period (a month or a year)
  • The average read rate of your SMS
  • The estimated SMS response rate (you can and should use data from previous SMS campaigns to better understand and analyze this metric)
  • The average cost of the products or services you are promoting in your SMS marketing campaign

You can also use a very simple formula, for example, subtracting your initial investment in your SMS marketing campaign from the gross revenue from the leveraged sales at the end of the campaign. However, this will only give you a general idea about how well your campaign did, but it will not provide you with insights on what specifically did well and what needs to be improved.

 

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Takeaway: 

SMS marketing is a great tool, which provides you with a simple, yet highly successful means of communication with your target customers. It’s an amazing tool to promote your product and service and provides you with trackable data to analyze and improve your marketing strategy in the future. Regardless of how you choose to calculate the ROI of your SMS marketing campaign, it is important to remember that the data you gather should be analyzed thoroughly and used in a smart way to get the most out of your SMS marketing campaign.

 

Need a hand executing your SMS campaign? Have some questions in mind? Don’t worry, we’re here to help! Textedly team believes in the importance of customer experience and aims to provide easy-to-integrate solutions for your business. Get started with Textedly’s free trial to kickstart your SMS marketing campaign.