SMS Marketing

The Ins and Outs of SMS Marketing

By Justin Schuback on July 11, 2023
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In today’s hyperconnected world, businesses are constantly seeking innovative ways to engage with their target audience. SMS marketing has emerged as a highly effective tool for businesses across industries to connect with customers directly on their mobile devices. In this article, we will explore the ins and outs of SMS marketing, highlighting its benefits, best practices, and the immense potential it holds for businesses looking to boost customer engagement and drive conversions.

The Power of SMS Marketing

1. Instant and Direct Communication: SMS marketing enables businesses to deliver messages instantly to their customers’ mobile devices. With a staggering 98% open rate, SMS messages are typically read within minutes of receipt. This real-time, direct communication offers unparalleled opportunities to engage customers promptly and effectively.

2. Wide Reach and High Engagement: Mobile phones have become an integral part of people’s lives, with an estimated 5.27 billion unique mobile users worldwide. SMS marketing allows businesses to tap into this vast user base and engage customers directly. Furthermore, the high open and engagement rates of SMS messages ensure that businesses can effectively convey their message and achieve their marketing goals.

3. Personalized and Targeted Campaigns: SMS marketing empowers businesses to personalize their messages based on customer preferences, demographics, and behavior. By segmenting their audience and tailoring messages accordingly, businesses can deliver highly relevant content, offers, and promotions, leading to improved customer engagement and higher conversion rates.

4. Enhanced Customer Experience: SMS marketing offers a convenient and non-intrusive communication channel for customers. By providing valuable information, personalized offers, appointment reminders, and order updates, businesses can enhance the overall customer experience. This leads to increased customer satisfaction, loyalty, and brand advocacy.

Best Practices for Successful SMS Marketing

To maximize the potential of SMS marketing, businesses should follow these best practices:

1. Obtain Explicit Consent: Ensure that customers have provided explicit consent to receive SMS messages from your business. This helps you comply with relevant regulations, such as the General Data Protection Regulation (GDPR) and the Telephone Consumer Protection Act (TCPA).

2. Craft Concise and Compelling Messages: SMS messages have a character limit, typically around 160 characters. Make every word count by crafting concise and compelling messages that grab attention and quickly convey the intended message. Use clear and action-oriented language to encourage customer engagement.

3. Personalize and Segment Campaigns: Leverage customer data to personalize SMS messages and segment your audience. Tailor your messages to specific demographics, preferences, or previous interactions to ensure relevance and maximize engagement. Customers are more likely to respond positively to messages that feel personalized and targeted.

4. Timing and Frequency: Be mindful of the timing and frequency of your SMS messages. Respect your customers’ preferences and avoid sending messages too frequently, as it may lead to message fatigue or opt-outs. Consider factors such as time zones, local customs, and the specific nature of your business to determine the optimal timing for sending messages.

5. Provide Value and Incentives: Deliver value to your customers through SMS messages by offering exclusive promotions, discounts, or valuable content. This incentivizes customers to stay engaged and increases the chances of conversions. Remember to strike a balance between promotional content and useful information to avoid coming across as too sales-focused.

6. Incorporate Call-to-Actions (CTAs): Every SMS message should have a clear call-to-action (CTA) that prompts customers to take the desired action, such as making a purchase, visiting a website, or subscribing to a service. Ensure that your CTAs are clear, concise, and easy to follow, guiding customers seamlessly towards the intended goal.

7. Measure and Analyze Results: Track and measure the performance of your SMS marketing campaigns using key metrics such as open rates, click-through rates, conversion rates, and customer responses. Analyze this data to gain insights, identify trends, and optimize your future campaigns for better results.

SMS marketing offers businesses a powerful and direct way to connect with customers on their mobile devices. With high engagement rates, personalized communication, and instant delivery, SMS marketing has the potential to drive customer engagement, boost conversions, and enhance the overall customer experience. By following best practices and leveraging the immense reach of mobile devices, businesses can unlock the true potential of SMS marketing and build stronger relationships with their customers in today’s mobile-first world.

Gemini said

To maximize the high engagement and conversion rates unique to SMS, businesses must pivot from “broadcasting” to “conversational” marketing. In 2026, SMS is no longer just a delivery vehicle for links; it is a relationship layer where 95% of messages are read within 3 minutes, offering a level of intimacy that email cannot match.


Best Practices for SMS Marketing Success

1. Obtain Explicit Written Consent

Consent is the bedrock of SMS marketing. Under TCPA (Telephone Consumer Protection Act) and GDPR (General Data Protection Regulation), you must obtain prior express written consent.

  • Action: Never use pre-checked boxes. Ensure your opt-in clearly states that the user is agreeing to receive automated marketing messages and that consent is not a condition of purchase.

  • Compliance: Maintain timestamped records of when and how consent was given to protect your business from legal risks.

2. Craft Concise, “Front-Loaded” Messages

With a strict 160-character limit, every character counts. In 2026, the trend is to “Front-Load the Value.”

  • The Hook: Put your biggest offer (e.g., “30% OFF”) in the first three words.

  • Tone: Use a conversational, friendly voice that feels like a message from a peer rather than a corporate robot.

3. Personalize Beyond the First Name

Personalization is no longer a luxury; it’s an expectation. Use Zero-Party Data (data users give you directly) and First-Party Data (purchase history) to segment your audience.

  • Segmentation: Group users by purchase history, location, or browsing behavior. For example, send a weather-appropriate promotion to users in specific zip codes.

  • Dynamic Content: Reference recent purchases or abandoned carts to make the message feel uniquely relevant.

4. Timing, Frequency, and “Quiet Hours”

Timing can make or break an SMS campaign. Sending a message too early or too late is not just annoying—it’s often illegal.

  • Respect Quiet Hours: Generally, avoid sending messages before 8 AM or after 9 PM in the recipient’s local time zone.

  • Frequency: Limit your marketing sends to 1–2 times per week. Over-texting is the #1 reason for high opt-out rates.

5. Provide Irresistible Value and Incentives

SMS should be reserved for your most “VIP” content. If a user gives you access to their text inbox, they expect exclusive rewards.

  • Exclusives: Offer “text-only” flash sales, early access to new product drops, or back-in-stock alerts.

  • Utility: Use transactional SMS for order confirmations and shipping updates to build a cohesive, helpful brand experience.

6. Incorporate Strong, Singular CTAs

Every message must have one clear goal. A confused customer never buys.

  • Direct Links: Use shortened, branded URLs that lead directly to a mobile-optimized landing page.

  • Action Verbs: Use urgent language like “Shop Now,” “Claim Your Spot,” or “Grab 20% Off.”

Conclusion

SMS marketing is a powerful tool for driving immediate action and building deep customer loyalty. By treating the text inbox with respect—prioritizing consent, value, and conversational engagement—you can turn a simple notification into a long-term revenue driver.

To learn how to integrate SMS with marketing automation for higher ROI: CLICK HERE

FAQ: SMS Marketing Benchmarks for 2026

 

What is a “good” open rate for SMS in 2026? Open rates remain consistently high, averaging around 95–98%. However, the real metrics to watch are Click-Through Rate (CTR) and Conversion Rate, as these prove the value of your content.

How does “Two-Way Messaging” improve my results? Two-way messaging allows customers to reply to your texts with questions or feedback. In 2026, interactive messages like polls and surveys convert at 70%, compared to just 36% for static, one-way texts.

Can I send images and GIFs in my text messages? Yes, this is called MMS (Multimedia Messaging Service). While MMS allows for richer content and higher engagement, it typically costs more per send and has a larger file size, which can affect delivery in low-connectivity areas.

What should I do if my opt-out rate is high? High opt-out rates (above 2%) usually mean you are either texting too frequently or your content isn’t relevant to that segment. Try reducing your frequency to once a week and use more precise segmentation to ensure value.

Is it okay to use emojis in professional SMS marketing? Absolutely. Emojis can add personality and save character space. However, know your audience—younger demographics prefer emojis and pop culture references, while older audiences often respond better to clear, plain-text messages.

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