What is SMS Marketing

In today's digital world, SMS marketing is a powerful tool for businesses wanting direct engagement with customers. With over 5 billion mobile phone users worldwide, SMS reaches people effectively by sending clear messages straight to their phones. This direct communication helps businesses cut through traditional advertising noise and connect personally with customers, boosting engagement, sales, and loyalty. As marketing evolves, SMS continues to be essential, efficiently bridging the gap between businesses and their customers.

SMS marketing with Ozeki NG SMS Gateway

The Ozeki NG SMS Gateway offers several powerful features including automation, scheduled messaging, and bulk messaging. With automation, you can set up automatic replies for actions like sign-ups or purchases. Scheduled messaging allows you to plan and send messages at specific times, while bulk messaging enables you to quickly and reliably reach a large audience for promotions or updates. You can send SMS through the gateway either by connecting a GSM modem via USB or using internet protocols like SMPP, UCP, CIMD2, HTTP, HTTPS, and REST.

sms marketing
Figure 1 - SMS marketing with Ozeki NG SMS Gateway

What is SMS marketing?

SMS marketing means businesses sending text messages to customers' mobile phones. These messages can promote products, share offers, or give information. It is a direct way to reach people quickly and effectively. SMS marketing is popular because many people use their phones all the time, making it easy to connect with them directly.

SMS marketing with Ozeki

Here you can see the features of Ozeki that could help you build your SMS marketing campaign and make your overall communication better and more efficient:

sms marketing
Figure 2 - SMS marketing with Ozeki NG SMS Gateway

Why should you use SMS for marketing?

High open rates:

Text messages are opened quickly because they go directly to people's phones. This means your messages are more likely to be seen compared to emails, which can sometimes be overlooked or lost in spam folders. It ensures that your communication reaches a larger audience promptly and effectively.

Automated engagement:

You can automate SMS messages to send automatically based on specific actions, such as a customer making a purchase or signing up for updates. This automated approach allows you to stay in touch with your audience without manually sending each message. It is convenient and ensures consistent communication with your customers, keeping them engaged with your business effortlessly.

Our brain and SMS:

Receiving a text message triggers the release of dopamine in our brains, associated with pleasure and rewards. Short, intriguing messages, like a brief 160-character text, stimulate this response. Effective SMS marketing capitalizes on this by delivering concise, attention-grabbing content that fits seamlessly into customers' daily lives, driving engagement and interest.

Customization

SMS marketing lets you connect with customers using their specific data and preferences, such as their preferred contact methods, types of messages they want, and desired frequency of communication. By personalizing your messages to match each customer's preferences, you enhance their experience with your brand, leading to greater satisfaction and engagement.

Personal touch:

SMS marketing excels in fostering engagement between brands and customers. Messages delivered directly to personal devices make recipients feel valued and exclusive, receiving privileged updates and offers. By bypassing email spam filters, SMS ensures messages are seen and considered, building trust and strengthening the personal connection over time.

Real-time tracking and insights

Marketers can track SMS campaign metrics in real-time, providing valuable insights into customer behaviour and engagement levels. Metrics such as open rates, link clicks, and responses help refine marketing strategies on the fly, optimizing campaign effectiveness. SMS also supports precise targeting, including location-based messaging, and integrates seamlessly with web platforms. This versatility enhances the ability to reach and engage mobile audiences effectively, driving higher conversion rates and ROI.

Maximizing ROI

SMS marketing is highly cost-effective, with an average cost of approximately €0.02 per SMS. This affordability allows businesses to reach a wide audience without exceeding their marketing budgets. The high engagement rates and measurable impact on sales contribute to a significant return on investment (ROI). Whether for small businesses or large enterprises, SMS marketing ensures that marketing expenditures translate directly into tangible results, making it a powerful tool for driving revenue growth and customer engagement.

Cost-effective

SMS campaigns are more affordable than traditional marketing and advertising methods. Despite their lower cost, they offer a high degree of versatility and customization, leading to a much higher return on investment (ROI). SMS marketing provides detailed data and analytics, allowing for a nuanced understanding of each campaign's performance. Unlike TV or streaming ads, where tracking customer actions can be challenging, SMS marketing enables precise measurement of engagement and response rates, giving you clear insights into what works and what does not.

Effective SMS marketing tactics

Personalize your messages

Personalized marketing messages are more successful than generic ones. Use words like "you" and "I" to create a personal connection. Incorporate keywords and triggers relevant to your audience, such as location details, age groups, and interests, to tailor your campaigns effectively.

Entice customers

Create exclusive offers with unique coupon codes to drive engagement. Make offers time-sensitive to encourage immediate action, such as "For the next 24 hours" or "This week only". Align your promotions with holidays and seasons to capitalize on peak shopping times.

Monitor performance

Tracking your SMS campaign's success is crucial. Measure click-through rates (CTR) to gauge engagement and adjust your strategy as needed. Monitor opt-out rates to understand subscriber behaviour and ensure compliance with privacy regulations. Track delivery rates to ensure messages reach your audience effectively.

Calculate ROI

Evaluate the cost per conversion of your campaigns to measure their effectiveness. Consider using multimedia messages (MMS) to enhance engagement and stand out from competitors. Regularly analyse performance metrics to refine future campaigns and improve overall ROI.

Build your audience

Grow your subscriber base by acquiring dedicated numbers for two-way communication. Encourage opt-ins through keywords or online sign-ups, ensuring compliance with consent regulations. Collect mobile numbers during in-store interactions and account sign-ups to expand your reach effectively.

Utilize multiple channels

Integrate SMS with other marketing channels like Facebook Ads to enhance reach and engagement. Use lead ads to gather customer data and segment subscribers for targeted messaging. Schedule automated messages to nurture leads and incentivize customer retention over time.

Maintain transparency

Always disclose your marketing intentions to customers when collecting their contact information. Provide clear opt-out options to comply with privacy laws and build trust with your audience.

Tips for a successful SMS marketing campaign

Character length: Use fewer characters to avoid breaching the 160-character limit. Exceeding this limit can double your costs with a multi-part message. Use the GSM alphabet to stay within 160 characters. If you use Unicode, the limit drops to 70 characters.

Message clarity: Write clear and concise messages in plain English. Avoid abbreviations, emojis (unless they apply to your audience), and all caps. Do not write open-ended messages. Focus on one offer per SMS campaign.

Structure: Include your business name as the sender or at the start of the message. Personalize the message by including the recipient's name. Detail the sale, coupon, or new product. Mention any special conditions in a "fine print" section. Explain how to redeem the offer simply. Include an expiration date to create urgency. Provide an opt-out option to comply with legal requirements.

Check spelling and grammar: Double-check your grammar and spelling to ensure accuracy. Avoid slang or colloquial language. While SMS can be more informal, maintain a friendly yet professional tone. Service providers and companies should strike a balance between approachability and professionalism.

Perfect timing: Timing is crucial. Customers usually have their phones nearby, but they do not want messages during meals, holidays, or late at night. Use market, location, and user data to schedule messages for when customers are most receptive. For events, send messages close to the event time. Be aware of legal restrictions, for example, in the US, commercial texts are only allowed between 8 am and 9 pm local time. Schedule messages in advance using an SMS platform to accommodate different time zones and busy schedules. Stagger bulk SMS campaigns to avoid overwhelming your system with responses.

Track customer behaviour: Sending messages during unexpected times can sometimes yield better responses than peak times. Note seasonal holidays like Christmas, Valentine's Day, and Mother's Day, which drive purchases, but be mindful of others like Ramadan. Track customer spending habits and interests. Test different variables and correlate them with conversions to optimize your campaign. Maintain consistency in style.

Start small: Begin with small-scale tests, such as A/B testing, to optimize your campaigns before expanding them. This approach helps refine your strategies and reduces costs when scaling up.

How does SMS marketing work?

SMS marketing works when businesses send messages directly to customers' mobile phones using SMS (Short Message Service). Here is how it usually happens:

  • Permission: Customers agree to receive SMS messages by signing up on websites, mobile apps, or by texting a specific word to a given number.

  • Message creation: Marketers create short messages with offers, promotions, reminders, or useful information for their audience.

  • Distribution: Businesses use an SMS platform to send these messages to their subscriber list. They send messages in bulk to efficiently reach many people at once.

  • Delivery: SMS messages are sent and received almost instantly on recipients' phones, ensuring timely communication.

  • Interaction: Customers can respond to messages by replying. They might redeem offers, give feedback, or opt out of future messages.

  • Analytics: Marketers analyse how well their campaigns perform using metrics like delivery rates, open rates, click-through rates, and conversion rates. This helps them improve future campaigns.

  • Compliance: SMS marketing must follow legal rules, such as getting consent from recipients and offering an opt-out option in every message. This ensures businesses comply with privacy laws like GDPR or TCPA in the U.S.

Is SMS effective for marketing?

SMS marketing is effective for several reasons, such as:

  • Direct reach: Messages are sent directly to customers' mobile phones, ensuring they receive and see your promotions or updates promptly.

  • High open rates: SMS messages are read quickly—often within minutes of being received—resulting in high open rates compared to other forms of communication.

  • Immediate delivery: Unlike emails or social media posts that can be easily overlooked, SMS messages are delivered instantly, making them ideal for time-sensitive offers or urgent messages.

  • High engagement: Customers are more likely to engage with SMS messages by responding, clicking on links, or redeeming offers, thanks to the direct and personal nature of SMS.

  • Personalization: SMS allows for personalized communication by addressing recipients by name or tailoring messages based on their preferences, enhancing relevance and customer satisfaction.

  • Cost-effectiveness: SMS marketing is cost-effective with low costs per message and a potential for high return on investment, especially when targeting a specific audience.

  • Compliance and trust: Adhering to legal requirements, such as obtaining consent and providing opt-out options, builds trust with customers and ensures compliance with privacy regulations.

Frequently Asked Questions (FAQs)

How do I get customers to opt-in for SMS marketing?

To encourage customers to opt-in, offer perks like discounts, special offers, or contest entries. Make the sign-up process easy, whether it's online, in-store, or by texting a keyword to a specific number. Clear and enticing perks can significantly increase opt-ins.

How often should I send SMS messages?

The ideal frequency varies, but a good rule of thumb is to send 2-4 messages per month. Avoid bombarding your customers with too many texts to prevent them from opting out due to annoyance. Finding the right balance helps maintain customer interest and reduces opt-out rates.

How can I measure the success of my SMS campaigns?

Measure success by looking at metrics like open rates, click-through rates, conversion rates, and opt-out rates. Additionally, track increases in sales, website visits, and customer engagement from your SMS campaigns. These metrics help improve future campaigns.

Summary

In today's digital age, SMS marketing is a great way for businesses to directly engage with customers. With over 5 billion mobile phone users around the world, SMS can reach people easily by sending messages straight to their phones. This type of direct communication helps businesses stand out from traditional ads and connect personally with customers. This connection boosts customer engagement, sales, and loyalty. As marketing changes, SMS remains crucial, effectively bridging the gap between businesses and their customers. SMS marketing is simple, fast, and highly effective, making it a key tool for any modern business.

More information