7 Advantages of SMS Text Marketing

Posted by Scott Eidam on Fri, Apr 05, 2013 @ 01:16 PM

SMS text marketing has quickly become the leader in mobile marketing for good reason.  Although its viability is supported by many stats, SMS (Short Message Service) text marketing is a polarizing subject.  Many consumers prefer SMS texts over email or other forms of traditional marketing.  Others feel it is an intrusive form of marketing.  Whatever your personal opinion of SMS text marketing, many businesses of all sizes are using it successfully.  When considering your marketing options, you should know the unique advantages that SMS text marketing offers.    

Let’s look at 7 reasons why SMS text marketing is so effective:

1.  High Open Rate – Your message can’t influence purchasing behavior unless it is read.  With SMS text marketing your message is delivered to the pocket of your customer and breaks through the clutter of marketing material vying for their attention.  95% of SMS text messages are read within 15 minutes of being sent.  Compare that to social media stats like 84% of Facebook news feeds are not read and 71% of Tweets are ignored, while 88% of emails remain unopened before getting deleted*.  When is that last time you didn’t open a text sent to you.

2.  Excellent Response Rate - It makes sense that a high open rate leads to a high response rate.  The response rate for SMS text marketing averages around 20% or higher.  The average response rate for TV, radio and direct mail is about 1.5%.  

3.  Reach - 95% of the U.S. population has a cell phone** that can receive SMS text messages.  Compare that to the percentage of your customers that read the newspaper or listen to the radio.  There is not yet a spam filter for SMS texts and that increases reach and effectiveness.

4.  Cost/ROI - SMS text marketing is the least expensive and most effective way to reach your customers and increase sales. The cost of one small newspaper ad is more than a month of SMS marketing and will not be as effective at bringing in customers. With monthly costs lower than $30 to send 500 text messages and redemption rates of 20% or more, it costs less than .30 cents per customer in your door.

5.  Preferred Method of Communication - SMS text offers are only sent to customers who opted in to receive them.  Many people prefer SMS text over email or traditional routes.  Young adults age 18-24 send/receive an average of over 100 texts per day*.  Adding one more to that total is not intrusive if the customer has opted in and will be welcomed when there is consistent value in the messages.

6.  Speed/Timing of Message - SMS text messages are quick and easy to put together and get delivered to your customers within seconds of you sending them.  When that delivery is timed right, it will be a call to action to which your customers will respond.  For instance a 10:30 a.m. delivery about a lunch special will get people in the door that day.

7.  Green/Waste Free – Green is good business.  With SMS text marketing there is no paper to waste or buy and no coupons to throw out.

    The advantages of SMS text marketing over traditional and social media are clear.  The bottom line is SMS text marketing is a powerful tool that can increase sales for a low price and should be one of the arrows in your marketing quiver.  Interested in text marketing?  Check out our email and text marketing tool Simpli!  


    *Research by Mogreet, Nov. 2012

    **Survey by Forsee, Dec. 2012

    Tags: Loyalty Marketing