10 Benefits of SMS Marketing

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SMS marketing
SMS marketing

If you haven’t already considered integrating SMS into your marketing strategy, this is the post for you! SMS Marketing continues to validate its place as an effective channel. SMS marketing statistics and facts demonstrate that mobile marketing is an effective channel to engage and deliver a measurable, positive return on investment. Here is a collection of 10 SMS marketing statistics that reinforce the fact that SMS marketing is a key channel marketer need to consider in their mix.

Click Here: Importance of SMS Marketing

Interesting Facts on SMS Marketing

  • Approximately 50% of consumers in the U.S. make direct purchases after receiving an SMS branded text/QR code/discount coupon.
  • SMS campaigns have over 7 times greater performance than email campaigns.
  • 79% of smartphone users rely on an SMS opt-in or another mobile device service to assist them in making purchasing decisions while shopping.
  • 90% of mobile device users who were enrolled in SMS loyalty clubs felt they had benefited from being involved in the program.
  • Applying SMS marketing techniques is predicted to contribute a 40% growth rate of revenues by 2017.
  • Over 50% of mobile search users decided to make a purchase based on the results of their search.
  • Coupons delivered via SMS have redemption rates 10 times higher than those of printed coupons.
  • 75% of mobile phones worldwide are enabled to receive SMS.
  • Only about 10% of SMS marketing messages received are considered spam

Reasons Brands Should Use SMS Marketing

SMS marketing
SMS marketing

SMS can be an essential part of an organization’s multi-channel marketing strategy. Implementing effective SMS messaging between brands and mobile device users is a great way to engage customers throughout the buying process. SMS marketing is also great for lead generation.

Click Here: 5 Tips For Successful SMS Marketing Campaign
  1. Direct and Immediate Message Delivery

SMS is the most immediate marketing channel available to marketers. Ninety-seven percent of text messages are opened and read and most are read within three minutes of delivery.

Direct communication with consumers can help stimulate an immediate purchase. The faster the communication, the sooner consumers can make a purchase. The use of this direct communication can also cultivate lasting relationships between brands and their consumers.

  1. Quick Feedback from Customers

Research shows that 31 percent of consumers will respond to a survey via smartphone. Brands can initiate surveys via SMS and receive results in the relatively short amount of time. The average response time is less than six minutes.

Customer feedback is valuable information for businesses. This data helps the company improve its products. Customer feedback also helps the company learn more about market trends and gain a better understanding of what customers like and don’t like.

  1. Instant Deliverability

Text messages are usually delivered within seconds. Average SMS delivery time for most mobile carriers is less than 10 seconds. Brands can deliver time-sensitive messages instantly.

IDC data indicates 62 percent of smartphone users check their phones immediately after waking up, while 79 percent check theirs within 15 minutes of waking up. With brands struggling to increase email deliverability, the astonishing SMS deliverability leaves no question that SMS marketing is a worthwhile investment.

  1. High Open Rate

Higher open rates make a marketing campaign more effective. With a 90 percent open rate, the SMS open rate is almost triple that of the average email open rate. Brands don’t have to worry about crafting great subject lines that will encourage the recipient to open and read a text message. The buzz going off in a mobile user’s pocket is all the motivation they need to open a text message.

  1. High Conversion Rate

SMS has a very high conversion rate. Mobile users respond to call-to-actions in text messages more than any other marketing channel.

The reason conversion rates are higher in SMS is the simplicity of the marketing message. Text messages are short, they don’t include a lot of links, and they are not bogged down with a lot of images. The call-to-action is clear and concise.

  1. No Spam Filters to Deal With

Marketers don’t have to worry about their promotional text messages ending up in the spam folder. The filters that email marketers have to battle with do not exist in SMS land. When someone opts-in to receive SMS marketing messages, marketers don’t have to remind them to whitelist their shortcode so their messages don’t accidentally land in a spam folder.

What is really great about SMS marketing is even people who don’t own a smartphone can send and receive text messages. This makes SMS marketing one of the most accessible and effective tool marketers can use to deliver promotional messages to consumers.

Top 10 Benefits of SMS Marketing

SMS marketing
SMS marketing

Besides the obvious cost-effectiveness of SMS marketing, there are 10 other remarkable advantages of SMS marketing to consider.

1) SMS Marketing Has a Sensational Open Rate

SMS marketing is way ahead of the competition when it comes to open rate. The average open rate for text messages is 98%, compared to only 24.79% for emails.

The statistics for social media look completely hopeless since you can expect your message to reach only about 2-3% of your audience.

Besides, even if someone hasn’t opened your SMS, that doesn’t mean they haven’t read it. Normally, all phones provide a preview in form of a snippet. This means that your messages can still reach your audience even if they don’t open them.

In contrast, 47% of email recipients open an email based on the subject line alone. So, if your subject line is not enticing enough, chances are your email is not going to be read.

2) SMS Marketing Still Has Little Competition

Did you know that in an entire day the average consumer is exposed to around 3500 marketing messages? Marketing clutter is becoming a major problem for marketers and advertisers.

Consumers are overwhelmed with marketing content, making it difficult for brands to get noticed. So, what’s one of the best ways to break through the clutter and reach your target audience? Don’t forget to make sure that your target audience is also there and likes to consume information that way.

SMS marketing, despite its effectiveness, remains largely underused. Research showed that only 21% of brands leverage SMS to communicate with customers.

If you’re unsure about whether receiving SMS promotions is something your customers would be interested in, the best thing to do is simply ask the question. You might be surprised by the results.

3) SMS Helps Increase Customer Engagement Levels

There’s a misconception that SMS messages can only be used for reminders or to send vouchers and discount codes when you can do so much more.

A timely SMS message can do a great job in engaging customers in ways which email or social can’t achieve.

Providing customers with rich media content such as games, scratch cards, and personalized selections will naturally make an impact. Rich SMS can help you increase not only engagement levels but also brand awareness and word of mouth referrals. No wonder Rich SMS has a pretty impressive click-through rate (CTR) of 36%. That’s pretty amazing, especially compared to email marketing, which has an average CTR of 4.19%.

 4) SMS is More Reliable

Don’t you just hate it when you’ve spent hours crafting the perfect email and then it goes straight to spam? Even if you’ve followed all the best practices to dodge the spam folder you can never ensure 100% deliverability.

While mobile providers also process text messages for spam, if your text doesn’t look spammy it is much more likely to make it to the inbox. This makes SMS a more reliable channel to communicate with customers.

Here are a few tips to ensure that your SMS will reach the intended destination:

  • Don’t use alphanumeric sender IDs as many mobile network operators around the world filter them out.
  • Many operators scan the traffic coming in and search for keywords which might indicate spam so it’s best to avoid sensitive words
  • Don’t overuse capital letters and exclamation marks
  • Operators also attempt to block repeated messages so try to randomize your content

5) SMS Provides Greater Reach

On a global scale, more people own a mobile device than they are connected to the Internet. Currently, 64% of world’s population owns a phone, whereas only 48% are connected to the Internet. Of course, this information is not location-specific and numbers tend to fluctuate in different parts of the world.

Regardless, SMS can help you reach customers who don’t have an Internet connection and with whom you wouldn’t be able to interact otherwise.

However, many of them also use the Internet so you shouldn’t exclude other digital channels. Most importantly, you need to do your own research whether it’d be best to only focus on one channel or on multiple channels.

6) SMS Provides A More Personalised Experience

Why go to such lengths as to personalize your campaigns? Well quite simply, because it works, it provides a better user experience and customers expect it from you. Bulk messages just don’t cut it anymore for a number of reasons.

To begin with, every customer is on their own unique journey. Every individual has different motivations to try, buy or stay loyal. So they expect you to meet them where they’re at on their journey!

Rich SMS helps deliver personalized experiences based on your users’ interests and preferences. It enables you to segment your audiences based on past behavior and send them tailored offers. Or even better, you can engage them in the selection process and, based on their choice, deliver a personalized content. Here’s an example:

7) SMS Offers Immediacy

SMS is one of the most immediate channels out there. With a whopping open rate of 98% and with 90% of messages being read within 3 minutes, brands can be sure that their most critical messages will be read right away.

This enables brands to send time-sensitive messages such as last-minute deals, flash sales, event-related promotions, holiday greetings and so on.

The potential of SMS is limitless. Few other marketing mediums can boast such immediacy, making SMS an extremely valuable tool when it comes to instant communication.

8) SMS Integrates With Other Channels

It’s important that your campaigns are integrated and that the different promotions methods are well coordinated and reinforce each other. One of the best things about SMS marketing is that it is great as a standalone channel but also plays well with other channels.

Social and traditional media are not always the most effective channels to reach customers on time. You can integrate these channels with SMS to ensure that your message will reach customers who haven’t read your email and let them know about your offers.

Reportedly, a follow-up SMS message encouraging customers to check the latest email offer you sent can help increase email open rates by 20%–30%.

9) SMS Marketing Is Easy To Track and Analyze

If you don’t know what’s working and what’s not, how can you adjust campaigns accordingly, let alone improve them? You can’t. That’s why it’s essential to track and analyze how your marketing efforts are performing.

This also goes for SMS Marketing. Thankfully, SMS Marketing makes it easy to track and analyze your campaigns. It allows you to track deliverability rates, open rates, CTRs, among others.

SMS marketing
SMS marketing

Here are the most important metrics to measure to determine effectiveness:

  • Redemption and click-through rates – it allows you to measure how many customers took advantage of your offer
  • Opt-out/churn rate – there will always be people leaving your list. However, carefully tracking your opt-out rate can help you see if there’s an increase and determine the reason
  • Response rates – if the message requires a response, you can measure its effectiveness by looking at how many people took the time to respond
  • ROI – it’s always important to measure the return on investment on any marketing initiative. This will give you insights into which channels bring you the best results and you should invest more in

10) SMS Has A Great Return On Investment

As I’ve just mentioned, return on investment is one of the most important metrics to measure to determine the effectiveness of your marketing efforts. At the end of the day, it all comes down to the bottom line.

When done right, SMS marketing has a generous ROI.  The success is due to two very important factors. Firstly, that the message was very timely and also that the offer inside the message was highly relevant to Silverstone’s audience.

As you can see, SMS marketing has a very strong potential when executed with careful planning and strategy in place. So to make the most of SMS marketing, it’s essential to ensure that your SMS marketing efforts are aligned with your overall marketing strategy and initiatives.

Conclusion!

Looking for more tips and news about SMS marketing? Check out our articles page that features various topics related to SMS Marketing, Facebook Ads and WhatsApp Marketing! Stay Tuned with BulkQ!
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