Small Businesses

Should You Deploy an SMS-Based Marketing Campaign?

  • 6 min Read
  • October 7, 2020

Author

Escalon

Table of Contents

With consumers home now more than ever due to the pandemic, their phones are ubiquitous, and are largely their link to the outside world. Therefore, many entrepreneurs are considering using SMS-based marketing campaigns to reach them.

Businesses of all categories and sizes are leveraging SMS marketing to achieve different objectives. One study found that 39 percent of businesses use some form of texting with their customers and 60 percent of companies are planning to increase their SMS budgets. To help you decide whether to invest your time and money in SMS-based marketing, we’ve compiled a list of the pros and cons of this marketing method.

Pros of SMS-Based Marketing Campaign

Text message marketing is becoming more popular due to advances in technology and changes in customer preference. Following are some of the pros of using SMS marketing.

High Conversion Rate

Studies show that the conversion rates of SMS marketing campaigns can be as high as 45 percent. Some 85 percent of consumers in the report said that they prefer receiving a text message over a phone call or email.

High Response Rates

People often open, read and respond to marketing messages quickly. About 90 percent of people read a text message within the first three minutes of receiving it. Branded text messages have a high response rate: around 98 percent of consumers open branded text messages.

Cost-Effective

SMS-based marketing is a relatively low-cost option and is easy to set up as compared to other marketing activities. SMS marketing has the potential to provide high ROI due to the exceptional open and response rates; therefore, SMS marketing represents a cost-effective option for any business.

Customizable

You can incorporate personalized content into your SMS marketing strategy, and it’s a good idea to do so: Personalized content outperforms static content by 42 percent. Sending out a message to customers at the best time based on their past interactions with your SMS can optimize your marketing results. You can also target SMS subscribers based on their location, proximity to specific stores and more.

Easy Tracking, Optimization of Performance

Most SMS marketing platforms offer reports that make it easy to track campaigns’ performance. You can also measure the click-through rate of your campaigns through these platforms.

Boost Customer Engagement

SMS is one of the most engaging and highest ROI marketing channels. Call-to-action options in SMS can increase customer engagement. These let customers read, interact with and act on messages. You can provide a link to an event, a map, a video or a website where there are more details. Text messages are a trusted method for answering customer service questions and sending order confirmations for online purchases.

Reach Customers Instantly

When you send out an SMS, it gets delivered immediately. Many people view it almost instantly, and the average person replies within 90 seconds. SMS related to flash sales, event-related promotions and mobile coupons offer a great way of driving traffic. SMS marketing helps you build a database of engaged customers and prospects, which you can use to increase customer loyalty and convert leads into sales.

Create More Personalized Experiences

SMS can provide a more personalized experience to customers than social media marketing platforms are able to offer. It’s also easy to send promotional messages to an entire contact list, a group or an individual through SMS marketing. By sending consumers only relevant messages, an SMS campaign can achieve a higher response rate while delivering a better customer experience.

Reliable

Marketing messages can reach the intended recipient instantly, thus making SMS marketing an extremely reliable method of business communication. SMS is a cost-effective and highly customizable channel for marketing that allows businesses to expand their database of contacts and run engaging campaigns to achieve a high ROI.

Increase Brand Awareness

SMS marketing is an effective way to build brand awareness, attract a more robust audience, and increase event attendance. It can also encourage loyalty with weekly or monthly offers to customers.

Now Check the Cons

Like any other form of communication, SMS marketing has also its downsides. Here are a few cons of SMS marketing.

You May Need to Grow Your List

You can grow your list efficiently using strategies such as a text-to-win, coupon offers or contests, so that you can quickly create a list of interested audience members.

Requires Constant Monitoring

An SMS marketing strategy requires constant monitoring and improvement to optimize campaign results.

Customers May Avoid Long Texts

Customers often avoid reading long business text messages that are more than a few sentences.

Content Restrictions

Lengthy messages split across multiple texts could prove costly for the business and frustrating for the recipient. Also, you can face restrictions on the number of characters to use in one message, which is up typically to 160 symbols. Instead of using animations or images, you’ll need to work on writing engaging, quality content.

Maximize Your SMS Marketing Results

SMS marketing is the practice of sending special offers and information to customers who have opted into receiving text messages from you. Businesses can send SMS’ to prospects and customers to increase brand awareness, boost engagement and generate sales. Here are a few tips to improve your SMS-based marketing campaign results.

  1. Offer coupons, discounts or rewards to encourage new sign-ups or visits to your online or offline stores.
  2. Promote a sale.
  3. Announce new products, updates or events.
  4. Send appointment reminders.
  5. Collect customer feedback or ask them to cast a vote or participate in a poll.
  6. Always get permission to send SMS.
  7. Use SMS marketing tools to track and measure performance
  8. Personalize your SMS content, include a human touch or add humor.
  9. Keep your message short and direct.
  10. Choose the best timing based on previous interactions.
  11. Don’t use abbreviations.
  12. Define your brand clearly.
  13. Ensure that it’s easy to opt out if customers do not wish to receive further promotional messages.
  14. Don’t send too many SMS messages.
  15. Make sure to include a call-to-action, such as “text to win” or “buy now.”
  16. Segment your customers for targeted promotions.
  17. Begin lead capturing immediately.
  18. Leverage analytics and reporting to monitor and improve your SMS engagement.
  19. Analyze purchase history and location-based demographics so you can send the right messages to the right customers.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

Common Accounting Mistakes That Cost Medium-Sized Businesses Millions 

Accurate accounting is the bedrock of any successful business operation. Yet, medium-sized businesses—those that have grown beyond the small-business stage...

Read More
Taxes

1099 vs. W-2: How to Ensure Compliance and Reduce Risk 

Distinguishing between independent contractors (1099) and employees (W-2) is a pivotal compliance matter for U.S. businesses. Misclassification can result in...

Read More
Accounting & Finance

Capital Raising in Spring: How to Position Your Startup for Investor Interest

Spring symbolizes renewal, making it an apt metaphor for startups aiming to secure fresh capital to fuel their next growth...

Read More
uncategorized

Spring Clean Your Payroll: Essential HR Best Practices for Scaling Startups

Payroll is more than just issuing paychecks—it’s a complex, high-stakes process that can significantly impact employee satisfaction, legal compliance, and...

Read More
Accounting & Finance

How to Leverage Q2 Financial Data to Drive Startup Growth in the Second Half of the Year

For startups seeking sustainable growth, every quarter provides a treasure trove of data—but Q2 data can be particularly revealing. By...

Read More
Accounting & Finance

Q2 Business Planning: Adjusting Your Financial Strategy for the Rest of the Year

By the time Q2 rolls around, many startups have a clearer picture of their performance and market positioning compared to...

Read More
People Management & HR

5 Key HR Challenges to Address Before Summer to Keep Your Team Engaged

For many startups, the summer months can be a dual-edged sword. On one hand, warmer weather and looming vacations can...

Read More
Taxes

How to Maximize Your Tax Deductions: Essential Tips for Startups in Q2

Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...

Read More
Startups

Mid-Year Financial Checkup: How to Assess and Adjust Your Startup’s Budget 

The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...

Read More