The Case for SMS Marketing Campaigns

Although it might seem as though SMS marketing is a relatively new marketing channel, it has actually existed since the early 2000s. From its onset, many have seen the potential of the medium, yet just as many remain wary of it.


SMS marketing is an effective way to bring in customers.

In the past few decades, a lot has changed in marketing, including the changing emphasis on mobile marketing. What was once used by a few brave leaders is now becoming commonplace. However, there remains some who are still unsure whether it is something worth adopting or simply a passing fad. Some myths remain so entrenched that it is difficult to know the reality surrounding this highly-effective medium. By reviewing a few of these misconceptions, you will discover why so many have adopted it.

A Short History Lesson

Back in the early 2000s, Adage wrote an article about the promise of using SMS for marketing purposes. During this time period, texting was just starting to become widely popular, especially in Asian and European markets. Between 2001 and 2002, there was a surge of over 150 billion more texts sent per year, and in 2003, the first few commercial SMS services started to emerge.

The promise of this new marketing channel was obvious. It was seen as a way to be personal and directly communicate with individuals. Some major brands, including Nike and Coke, became early adopters. However, this marketing forum also saw a huge obstacle due to many carriers, and users, viewing it as spam or a passing fad. It ultimately took a back seat to some of the other marketing channels, such as email and social media.

Many of the benefits -- and concerns -- surrounding text message marketing still stand 15 years after the publication of this article. Despite the Adage writer seeing the benefits of this medium so many years ago, companies still hesitate to adopt it today. If this is you, there is no reason to continue to wait to see whether or not people will adopt SMS marketing. It is a highly relevant marketing channel with many people wanting to communicate with businesses through it. Not convinced? The following should help.

 

Percent of messages that are spam 1 percent
Conversion rate 32 percent
Open rate 98 percent
Time to read Under three minutes
Consumers who wish to communicate via text with businesses 70 percent
Number of consumers who wish to have SMS customer support 52 percent
Engagement rate 8x that of email

Myth 1: People Interact with Companies on Computers

With the growing importance of the internet, it is essential to have a web presence, including email and websites. In today's market, taking this presence into the mobile space is becoming more important than ever. More people interact with businesses or go online on their mobile devices than a computer, with mobile internet usage making up 70 percent of usage. The numbers are set to only increase, with the number of people preferring to access the internet via a mobile device rather than a computer expected to jump by 28 percent. This makes mobile marketing a priority for businesses, especially since people are looking for a mobile-first solution to their shopping needs.

Another reason SMS marketing has such power: people carry their phones with them everywhere. A significant portion of people who own a cell phone never have it out of reach, and they will check it multiple times per day. When they receive a text message, they open it within just a few minutes. Because more and more people also shop on their phones, they can easily take action on a text coupon by clicking to link and complete a sale.

Myth 2: Customers Do Not Want to Receive Texts from Businesses

A very prominent myth about SMS marketing that still reigns supreme is that customers do not wish to have businesses contact them via texting. However, that is not the case. Around 75 percent of consumers want businesses to communicate with them via text rather than targeted internet ads. In addition to receiving messages from the business, many consumers wish to interact with businesses via text, especially for customer service.


Customers do want to hear from you through text message.

There are many benefits to choosing to interact with consumers via texting. For one, it builds a more intimate relationship with consumers. You are texting with them in the same channel that they typically reserve just for their family and friends. Additionally, spam takes up just 1 percent of messages, so consumers will view each individual message as important.

Additionally, texting is a permission-based medium, which means that you are only communicating with those who wish to hear from your business. This makes the message have that much greater of an impact. When you market to people who already have a positive experience with your company, then they are more likely to take the intended action. This leads to SMS marketing having some of the highest numbers for conversion rates and engagement rate.

Texting has a strong engagement with customers, which helps you to build your business. Many people now shop based on their experiences and engagement with a company, rather than based on price and other factors. By using texting to engage with customers, you will be able to retain them and increase your number of loyal customers.

Myth 3: Only Young People Text

Millennials and Gen Z'ers are famous for their love of texting and mobile devices. This makes SMS marketing an ideal channel for marketing to younger consumers. In fact, 60 percent of Millennials prefer two-way texting, and more than 83 percent open their texts within 90 seconds. However, this is generally an underused medium, as only 60 percent of Millennials receive five or less marketing messages from businesses, and a full 20 percent do not receive any.


It is not just young people who text.

However, Millennials and Gen Z'ers are not the only ones who text, and thereby not the only ones who can benefit from this marketing tools. Baby Boomers and older also text in high numbers. Out of smartphone owners:

  • 100 percent of 18-29 year olds text
  • 98 percent of those aged 30-49 text
  • 92 percent of those over the age of 50 tex

. As you can see, implementing a text program will not eliminate your ability to target older demographics.

Myth 4: Other Marketing Channels Are Better

Many companies simply focus on other marketing channels, feeling that adding SMS marketing does not make sense. They feel that digital marketing, SEO, blogging, social media, and traditional advertisements go a lot further than texting. However, time and time again, SMS marketing has shown it reigns supreme:

These are just a few of the key statistics showing the power that texting has over other marketing channels. Additionally, more than two-thirds of subscribers to mobile marketing have made a purchase due to a relevant message.

SMS marketing is a cost-effective marketing solution that packs a punch. That does not mean it should be your only marketing channel. It works best as an integrated part of a comprehensive marketing campaign that utilizes multi-channels, including:

  • Social media
  • Websites
  • SEO
  • Content marketing
  • Radio and TV ads
  • Print ads
  • In-store promotions
  • Email newsletters

Every marketing channel has its strengths and weaknesses. However, you would be remiss to reject SMS marketing just because you feel that some of the other marketing channels are better.

Myth 5: It's a Passing Fad

Texting has not yet reached its peak as a marketing channel. It is expected to continue to grow and become an even more vital component of marketing. In the coming years, more automation and chat bots with state-of-the-art artificial intelligence will emerge and integrate with SMS marketing and messaging chat apps. The marketing channel is expected to continue to grow, with no end in sight. Therefore, there is no reason to simply not adopt it, thinking that it is simply a trend that will quickly go away.


Get your team together and start working on a plan for your program.

Now is the perfect time to add texting to your marketing strategy if you have been hesitant. It is continually increasing in its efficacy, and customers are primed to opt-in. Despite its many advantages, few businesses have adopted it, meaning that customers are not overcome by messages. This helps you to cut through the mess and compete, even with the larger corporations that might have more money for marketing and advertising.

SMS marketing has been around for 15 years, and it will be around for decades to come. Rather than believing the myths that continue to circulate around the medium, take advantage of the lucrative benefits of the medium and add it to your marketing campaign today. Get started by trying ClubTexting for free.

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