12 Reasons Why SMS Marketing Is Beneficial For Your Business

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Businesses have been skeptical about SMS marketing due to the potential of spam messages or because of fear that they might seem intrusive. They worry that their customers will be overwhelmed with too many promotional messages and it could lead to a negative customer experience.

However, with the rise of mobile-first technology, businesses are now seeing the potential of this type of marketing as an effective way to reach out to their customers. They are recognizing that it can be used as an efficient way to communicate with their customers and build relationships.

It is also becoming more affordable for businesses, making them more open to trying out this type of marketing strategy. With careful planning and implementation, businesses can use SMS marketing as a powerful tool for customer engagement and retention.

In the article below, we share twelve incredible reasons why SMS communication is beneficial for your business and how it can be your greatest marketing tool.

Reasons Why SMS Marketing Is Beneficial For Your Business

High Open Rate

Due to its high open rate, SMS marketing is becoming an increasingly popular way to reach customers and prospects. Compared to other forms of digital communication, such as email, social media, and even phone calls, SMS messages have some of the highest open rates in the industry.

In fact, 98% of all SMS messages are opened and read by the recipient. This means that when a business sends out a message via SMS, it can be sure that it will be seen by a large portion of its customer base.

Furthermore, this high open rate also allows businesses to quickly communicate important information and offers to their customers without having to wait for them to check their emails or social media accounts. With the right strategy in place, businesses can take advantage of this high open rate and use it to increase engagement with their customers.

Allows Global Reach

Approximately 92% of people in the world own a mobile phone, which makes it easy to send and receive texts. Businesses can reach their customers almost anywhere on the planet by using this channel. With SMS, businesses can send personalized messages to their target audiences in different languages allowing them to create a global presence and reach more potential customers.

Cost-Effective Channel

SMS marketing is a cost-effective way of reaching out to potential customers. It allows you to send messages directly to their phones, which makes it easier and more convenient for them to receive your message.

Compared to other forms of marketing, SMS marketing campaigns are much cheaper and can be used for a variety of purposes such as promotional offers, updates on new products or services, customer service inquiries, and more.

With its low cost and high reach potential, SMS marketing is an ideal tool for businesses looking for an affordable yet effective way of connecting with their target audience.

A Reliable Tool

SMS is considered one of the most reliable channels for ensuring that your customers will receive and read your messages. If you are using SMS through a well-connected platform, you can expect a high delivery rate. Since the majority of text messages are opened within three minutes of receiving them, you can be sure your customers get any important information you want to share.    

A Reliable Tool

This channel doesn’t require an internet connection. It allows customers to receive and send messages from their favorite brands, even if they live in rural areas with poor Wi-Fi.

Highly Targeted SMS Marketing Communication 

Traditional marketing methods are at a disadvantage in terms of who will see and read them. For savvy business leaders, every marketing message sent out must be as targeted as possible, which also keeps communication costs down. 

Since SMS marketing relies on permission, it's more likely that you will be reaching people who have already agreed to receive your marketing messages. You'll understand the advantages of SMS marketing when you realize that existing customers are at least five times easier to sell to than new ones.

Your returns will be higher because you're marketing in a field that has already been plowed, seeded, and prepared.

Helps Build Customer Loyalty

For any company that wants to achieve long-term success, building customer loyalty is crucial and SMS marketing is a great way to achieve this. You can use SMS to send exclusive offers, discounts, and early access to new products. These benefits create a feeling of exclusivity, which encourages customers to come back for more. It also shows your customers how much you value their relationship.

Use SMS to remind customers about their orders and provide product recommendations. You can even offer customer service by text. All of these factors add up to an enjoyable customer experience, which keeps your subscribers loyal to your brand.

Easy to Track the Impact

Tracking the effectiveness of any marketing campaign is essential so you can determine what works and what requires improvement. Once you’ve created an SMS marketing campaign, you can track, manage, and optimize performance. Owned channels can be tracked more easily compared to paid ones because you have access to all subscriber data. 

You can easily see how many people clicked on the link provided in your message, what they did next on your website, and whether they browsed, added, or bought any products. This can help you understand the impact of your SMS marketing strategies, so you can make the necessary adjustments. 

Texts are Intimate

Texts offer an intimate connection between the sender and the receiver, which makes them much more effective than other forms of communication. This is why SMS marketing has become so successful in recent years.

Texts are Intimate

SMS messages are direct and personal, allowing marketers to reach their customers in a way that feels natural and familiar. With SMS, you can send targeted messages to your customers that are tailored to their interests and needs.

Helps You To Learn More About Your Customers

By using SMS marketing, you are given the opportunity to learn more about your customers. You can use the data you collect from each interaction to improve your marketing campaigns.

Text message flow automation can be used to remind customers of products or sales that they have browsed and are about to end. You can learn over time what types and products subscribers like so that you can send them content more relevant to their interests.

Let's say, for example, that you are a retailer of pet products. Some subscribers may be interested in your cat toys but not cat food. Don't spam their inbox and avoid unsubscribes by sending them texts about food products.

Concentrate on the feedback from your customers. They are essentially telling you what they need and want. Listening to your subscribers is essential for building a list of engaged customers.

Increases Customer Retention

Since a few years back, retention has become a hot topic. It is more important than ever for businesses to invest in customer retention. This is because it costs less to keep an existing customer than to convince someone new to purchase from you. If you're committed to increasing customer retention, SMS marketing can be of great help.

Increases Customer Retention

By providing relevant and captivating content and keeping your subscribers engaged and interested, you can increase the chances for them to stick around for a long time. Ultimately, this will bring more sales for your brand.

Send personalized marketing messages, and automate flows that utilize the data you have collected about your customers to increase SMS retention. Consider incorporating SMS into your browse and abandonment flows, refill reminders, or win-back flows to increase your retention efforts.

Low Competition

Even though the majority of customers have smartphones, SMS marketing remains an underutilized channel. You can be among the first brands to use SMS marketing in your field and enjoy the benefits.

However, do not wait too long to get started because SMS marketing is getting more and more popular, which creates increased competition for your customer's attention.

Excellent for Conversions

Text marketing, when done correctly and when following the best practices, can be a great source for conversions. Now that you know that many of your subscribers will open your text messages, your only job is to make sure to send the right message at the right moment to encourage customers to purchase.

You can, for example, use SMS as part of your abandoned cart strategy to help you bring customers across the finish line. SMS can be integrated with your loyalty program so that VIP customers receive exclusive discounts. You can also run flash sales to encourage subscribers to buy.

Final Thoughts

SMS marketing has become increasingly popular in recent years due to its ability to reach a large audience quickly and efficiently. With the rise of mobile devices, businesses are realizing the potential of SMS marketing to reach their customers quickly and cost-effectively. SMS marketing can be used for campaigns, notifications, offers, promotions, reminders, and more.

In today’s competitive business world, SMS marketing can be an important marketing weapon for businesses that want to reach more customers and boost their sales. Now that you know how SMS marketing can benefit your business, you should define your text message marketing strategy, and start optimizing your campaigns.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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