Pros and Cons of SMS Marketing Every Business Should Know

Nowadays, mobile phones become an extension of ourselves, always within arm’s reach. In fact, the average American spends around 4 hours and 25 minutes using a mobile device every day. 

That’s why SMS marketing has become a valuable tool for businesses looking to connect with customers directly and quickly. SMS allows you to send personalized messages, quick updates, and promotions right to the customer’s phone.

But while it’s highly effective at improving customer engagement and driving sales, this type of marketing isn’t without its challenges. 

In this article, we’re going to have a detailed look at both the pros and cons of SMS marketing to give you a clearer picture of how it might fit into your overall marketing strategies.

Advantages of SMS Marketing for Businesses

Consumers often prefer SMS for its convenience. Here’s an overview of why SMS marketing stands out for every business’s marketing strategy:

• The average click-through rate for a marketing SMS is about 20%-30%. This means it’s especially useful for delivery updates, appointment reminders, and quick promotions.

• SMS marketing boasts open rates of around 98%, compared to emails with only 20%. Also, 95% of text messages are opened and responded to within just three minutes of being delivered. 
• In 2024, 79% of customers subscribed to receive SMS marketing texts, which marks an 11% increase since last year. Additionally, 60% of customers like having the opportunity to message business back.
• SMS messaging is the preferred communication channel for businesses across various age groups.

Pros of SMS Marketing

SMS and MMS marketing comes packed with benefits that can increase customer engagement and deliver quick, tangible results for your business. Let’s look at some of the key advantages:

Immediate and Direct Communication

When you send out a text, it lands in your customer’s hands within seconds. 

This feature is incredibly useful for time-sensitive information, such as notifying customers of a flash sale or a last-minute appointment opening.

High Engagement Rates

Why do SMS messages engage people so effectively? Well, texts are typically short and to the point, and they tap into people’s habitual response to notifications. Most people find it hard to ignore a new text message.

Most SMS messages are opened within just a few minutes of being received. This is hard to achieve with other marketing mediums like email, where messages can get lost in an inbox.

Wide Demographic Reach

In many parts of the world, and even in rural spots within technologically advanced countries, reliable internet access isn’t a given. However, SMS simply needs a basic mobile signal to work. 

This means you can reach customers who are off the grid and rely solely on internet-based channels.

Personalization and Segmentation

Personalization in SMS marketing makes each of your customers feel like you’re speaking directly to them. Segmentation takes that personal touch to the next level. 

It means grouping your customers based on shared characteristics—things like their location, shopping habits, or past purchases.

Cost-Effectiveness

Compared to more expensive marketing channels, SMS marketing cost is relatively low. But the real value comes from how well these messages can convert. Most SMS are read within just a few minutes of being sent. 

Therefore, messages not only reach your audience quickly but also have a higher chance of prompting immediate action.

Cons of SMS Marketing

SMS marketing, while effective, does have its drawbacks that might affect how it fits into your overall marketing strategy. Let’s explore some of the potential downsides:

Limited Space

While SMS texts aren’t technically restricted to 160 characters, there’s a general expectation that they should be short and concise. This can sometimes pose a challenge when trying to convey more complex messages.

Risk of Being Intrusive

If not done thoughtfully, SMS marketing can feel a bit like barging into someone’s space uninvited. It’s important to be respectful of when and how often you send messages so you don’t end up annoying your customers.

Compliance Issues

Under regulations like the Telephone Consumer Protection Act (TCPA) in the U.S., getting a clear “yes” from your customers before sending SMS messages is a must. Customers need to agree to receive messages from your business, typically through a signup form or by texting a keyword to a specific number.

Just as important as opting in is making it easy for people to opt-out. Every message you send should include a simple way for recipients to say “STOP”. 

Costs Add Up

If you’re sending out thousands of texts, even the small cost per SMS can start to make a significant dent in your budget. This is particularly true for large-scale campaigns targeting a broad audience. 

Each message might only cost a few cents, but multiply that by thousands, and you’ll see how quickly it can add up.

Focus on targeting the right segments of your audience to ensure that each message has the highest possible impact.

How to Use SMS Marketing For Your Business

Integrating SMS marketing into your business strategy can be done in a variety of effective ways. Here are some ways to consider that can help you engage your audience and drive conversions:

Send Time-Sensitive Promotions

Use SMS and MMS marketing messages to deliver limited-time offers or flash sales directly to your customers’ phones. Tell customers exactly what the deal is, how they can take advantage of it, and, crucially, that it’s a limited-time offer. 

Phrases like “Today only” or “Expires in 3 hours” add urgency that can make people act on the spot. You can also add an image of the product you’re promoting, as this can make a big impact.

Distribute Mobile Coupons

Coupons delivered via SMS have a higher redemption rate compared to other forms. They are easy for customers to carry around and use since most people always have their phones with them. 

You can send a text message that includes a special offer, like “Get 20% off your next purchase with this code!”

Alert Customers to New Arrivals and Restocks

Notify customers about new products or when out-of-stock items are available again. Customers who’ve shown interest in certain products or categories can be the first to know when those items are available again. 

If you segment your audience effectively, these alerts can be tailored to the specific interests of different customer groups.

Conduct Polls and Surveys

Engage with your customers by asking for their opinions directly through text messaging. This not only provides you with valuable feedback but also makes customers feel involved and valued. 

Keep the surveys short and sweet to encourage participation.

Send Order Updates and Confirmations

We all know how comforting it is to get immediate confirmation after placing an order. Once a customer places an order, send an SMS confirming that their order has been received. 

Then, as their purchase progresses through different stages—like processing, shipping, and delivery—they send updates right on their phone.

Offer Exclusive Content or Tips

When you offer exclusive tips or content, you’re showing that your business isn’t just about selling products or services but also adding value to your customers’ lives. 

Each SMS message can include a call to action, inviting customers to engage further.

Integrate SMS into Your Loyalty Program

Use SMS to manage your customer loyalty program by sending members special offers, birthday discounts, and bonus points alerts. A special “thank you” message each time a customer makes a purchase or reaches a new loyalty tier makes them feel valued. 

Or perhaps sending them a birthday message with a special discount or bonus points to celebrate their day.

How to Send SMS Campaigns Using Textellent

Getting started with SMS marketing is a quick process with the right SMS marketing platforms. Here’s a step-by-step guide to help you make the most of your marketing strategy:

Step 1: Sign Up with Textellent

Sign up for Textellent to access all the necessary features and start launching effective text message campaigns.

Step 2: Integration (Optional)

For a more seamless operation, you might consider integrating Textellent with your existing systems. The platform offers easy-to-use options like a Chrome extension, Zapier actions, and APIs, which help connect Textellent to your current tools and workflows.

Step 3: Build Your Subscriber List

Next, organize your contact list. Create a compelling keyword that customers can send to a short, easy-to-remember shortcode to subscribe to your messages. This method is great for growing your list, especially through promotions on social media or other advertising.

Step 4: Craft Your SMS Message

When crafting your messages, keep them concise and focused. Whether you’re promoting a deal or sending updates, ensure the main points are immediately clear. And don’t forget to add an image if you’re promoting a product.

Step 5: Select Your Audience

Textellent allows you to carefully select your audience based on various criteria, such as their previous interactions or interests. This ensures your messages are targeted and relevant, increasing the likelihood of engagement.

Step 6: Launch Your Campaign

Once everything is set, send out your campaign. An SMS marketing platform like Textellent provides the flexibility to send messages immediately or schedule them for later. You can also use automated campaigns and ready-made templates to simplify the process.

Step 7: Monitor and Adjust

Lastly, monitor the performance of your text message marketing using Textellent’s detailed analytics features. Keeping track of delivery and engagement metrics helps you understand what works and what doesn’t.

Start An Engaging SMS Marketing Campaign with Textellent

Thinking about improving your SMS marketing strategy? Discover what Textellent has to offer by signing up for a free trial or scheduling a demo consultation today.

Find out how easily Textellent’s SMS marketing services can simplify your appointment scheduling, launch promotions, and customize interactions with your customers. Start improving your customer relationships with Textellent today!

FAQs About SMS Marketing Campaigns

What are the best SMS marketing practices?

The best SMS marketing practices involve obtaining explicit consent from recipients before sending messages, personalizing content to increase relevance, keeping messages concise and direct, including a clear call-to-action, and ensuring compliance with all relevant regulations. 

What is SMS marketing used for?

SMS marketing is used to reach customers directly through their mobile phones with various types of content. This marketing method is especially effective for sending timely promotions, exclusive deals, appointment reminders, and urgent updates due to its high open rates.

How can I ensure my SMS marketing is cost-effective?

Keep an eye on your return on investment (ROI) by comparing how much you’re spending on your SMS campaigns against the revenue they’re bringing in. Then, adjust your approach by dividing your audience into different groups and customizing your messages to meet the specific needs and preferences of each group. Finally, make it a regular habit to review and adjust your strategies. 

How should I respond to customer replies in SMS marketing?

It’s important to handle replies promptly and appropriately. Use an automated system to manage common queries and set up human responses for more complex questions. Ensure your customer service team is well-equipped to handle SMS inquiries efficiently.