A beginner's guide to SMS marketing

Do you ever receive SMS messages and not immediately check them? Probably not often. You can go a whole day without glancing at your email inbox (hello, weekends and holidays!), but those little text notifications? They'll always find a way to grab your attention no matter what you're doing. 

In fact, Gartner reports an astonishing 98% open rate for SMS messages, which means nearly every text message sent gets opened and read.

So it makes a lot of sense to utilize this goldmine of a medium for marketing, right? As marketers, we crave instant reach, immediate responses, and impressive metrics to showcase our efforts and success. SMS marketing delivers on all fronts,and, when used wisely, promises a handsome ROI, too.

First things first: What exactly is SMS marketing or text marketing? Is it worth the hype, especially with WhatsApp marketing being all the rage now? (Spoiler: Yes, it is!) What are the key requirements you need to know?

We'll cover all this and more in our beginner's guide to SMS marketing. By the end, you'll be able to recognize the potential of this impactful marketing channel and take advantage of it. 

What is SMS Marketing?

SMS marketing, or text message marketing, is a way to send quick, timely messages directly to your customers' phones. One of the biggest benefits of SMS marketing is its timeliness; you can reach your customers exactly when it matters most. Need to send a special offer, a quick reminder, or an order update? Boom, it's done, and within minutes, people are reading it. Seriously, 90% of SMS messages are read within three minutes of being received. That's almost instant feedback. Whether it's letting people know about a flash sale or reminding them of their appointment, your message is seen practically immediately.

Will SMS continue to be relevant in the age of WhatsApp marketing?

You might be wondering, with the rise of WhatsApp and social media platforms, is SMS marketing still relevant? While these platforms are popular, SMS remains unparalleled in terms of open rates and immediacy. People might mute or ignore notifications from apps, but an SMS message demands attention.

Moreover, not everyone uses WhatsApp or social media, but nearly everyone has a mobile phone capable of receiving text messages. Also, SMS doesn't rely on an internet connection, making it accessible to a broader audience, including those in areas with poor connectivity. 

Why SMS marketing matters  

Instant reach and engagement

Imagine sending a message that almost immediately reaches your audience, regardless of where they are or what they're doing. People are glued to their phones, and texts cut through the noise, delivering your message straight into their hands. Unlike emails, which can get buried under a pile of spam or promotional offers, text messages stand out.

Impressive open rates

Let's face it: Our inboxes are cluttered. But our SMS inbox? Not so much. With a 98% open rate, SMS marketing guarantees your message is seen. Compare that to the average email open rate, which hovers around 20%, and it's clear why SMS will remain a prominent mode of communication.

Immediate response times

The average response time for SMS is just 90 seconds. Whether you're announcing a flash sale, sending appointment reminders, or sharing exclusive deals, you can expect swift engagement from your audience.

Why should you integrate SMS marketing with your email campaigns?

Because it flat-out works. The combined power of email and SMS marketing can increase your sales, boost customer loyalty, and ensure your customers are always in the loop. While SMS boasts impressive open rates, email marketing is still a powerful tool for delivering detailed content. By integrating SMS with your email campaigns, you can create a multichannel strategy that maximizes reach and engagement. Use SMS to send brief, urgent messages, and send emails for more comprehensive information.

More and more ecommerce brands are actively using SMS campaigns along with emails to gain more orders. SMS campaigns resulted in a 23.8% growth in orders for ecommerce brands.

Here's why an integrated approach works wonders:

They have complementary strengths

SMS for urgency; email for detail: Use SMS for time-sensitive promotions and urgent updates and emails to provide more detailed information and visual content.

Double the touchpoints: Engaging customers through both SMS and email increases the likelihood of your message being seen and acted upon.

They help provide a seamless customer journey

Consistent messaging: Reinforce your brand message by ensuring that SMS and email campaigns are aligned. A customer receiving a text about a sale can later find a detailed email with product highlights.

Cross-channel promotions: Use SMS to remind customers to check their email for exclusive offers or further information and thereby create a cohesive experience.

How to use SMS marketing: A step-by-step guide

1. Choose a reliable platform

Select an SMS marketing platform that suits your needs. Zoho Campaigns is an excellent choice with its easy-to-use interface and robust analytics. Plus, you can manage both your email and SMS campaigns from one place, making it easier to create coordinated, multichannel marketing efforts.

2. Build your subscriber list

Start by collecting phone numbers ethically. Use opt-in forms on your website, during checkout, or through social media campaigns. Make sure to clearly state what subscribers are signing up for and how often they can expect to receive messages.

3. Segment your audience

Not all of your customers are the same. Segment your audience based on their behavior, preferences, and past interactions. This enables you to send targeted messages that are more likely to resonate and convert.

4. Craft crisp messages 

Keep it short: Stick to the 160-character limit. Be clear and concise. If your message contains more than 160 characters, it will be split into multiple messages of 70 characters each.

Personalize: Use customers' names and tailor messages to their preferences and past behaviors.

Include a strong CTA: Direct recipients to take action, whether it's visiting your website, using a discount code, or replying to the message.

Note: Include only one link in the message. Link clicks (except the unsubscribe link clicks) can be tracked and assigned with a response action. Only unique clicks will be tracked. 

4. Timing is crucial

Send messages at times when they're most likely to be read and acted upon. You want to promote a pay day sale and the offer is valid only for just one day? BAM, shoot that SMS with an attractive offer code and see your sales soaring. It can be morning, evening, or even midnight (for the night owls!). Analyze past behavior and shoot your shot.

5. Monitor analytics and adjust

Keep an eye on your campaign analytics to see what's working and what's not. Make adjustments as needed to improve your future messages. Look at metrics such as open rates, click-through rates, and conversion rates to gauge your success. With Zoho Campaigns, analytics are available in real time. 

Compliance and legal considerations in SMS marketing

Obtain consent

Always get explicit consent before sending SMS messages. Use double opt-in methods to ensure that your subscribers genuinely want to receive your texts. This not only complies with legal requirements but also builds trust with your audience.

Provide opt-out options

Every message should include a clear and easy way for recipients to opt out. A simple "Reply STOP to unsubscribe" suffices. This is not only a legal requirement but also helps maintain a clean and engaged subscriber list.

Adhere to regulations

Familiarize yourself with regulations like the Telephone Consumer Protection Act (TCPA) in the United States, which sets guidelines for SMS marketing. Non-compliance can result in hefty fines.

Data privacy

Ensure that you comply with data privacy laws such as the General Data Protection Regulation (GDPR) in Europe. Protect your subscribers' data and only use it for the purposes they've agreed to.

Technical requirements for SMS marketing

Long code vs. short code

Long code: These are standard 10-digit phone numbers used for person-to-person communications, as well as for SMS marketing. They're cost-effective but are subject to carrier restrictions.

Short code: These are five- to six-digit numbers used exclusively for messaging, and are ideal for high-volume messaging campaigns, as they offer higher throughput rates and greater carrier acceptance. However, they're more expensive to lease.

10DLC (10-digit long code)

10DLC is a recent development in SMS marketing that provides a middle ground between long codes and short codes. It enables businesses to send application-to-person messages using standard 10-digit phone numbers with higher throughput rates and better compliance with carrier requirements.

Note: Zoho Campaigns supports 10DLC. It's mandatory for customers who intend to run SMS campaigns in the US to register their brand with 10DLC and create a 10DLC campaign. You can learn more about 10DLC registration here.

Toll-free numbers

Toll-free numbers can also be used for SMS marketing. They offer the advantage of being easily recognizable and trusted by consumers. However, their throughput rates are typically lower than short codes.

Other key SMS terms to know

API (application programming interface): A set of protocols and tools that enable different software applications to communicate, often to integrate SMS functionality into other systems.

A2P (application-to-person): Refers to SMS messages sent from an application to a person's mobile device, commonly used in marketing and customer service.

P2P (person-to-person): Refers to SMS messages sent between individuals, usually through standard long codes.

SMS gateway: A service that enables businesses to send SMS messages to mobile networks, and which often providesAPIs for integrations with other applications.

Note: With its own SMS gateway, Zoho Campaigns offers a simplified user experience that will help align your SMS campaign creation process with that of our current email campaign creation process.

General SMS marketing ideas

1. Flash sales and exclusive offers

Announce time-sensitive sales or exclusive discounts via SMS. Create urgency by highlighting limited-time offers. Your customers won't want to miss out, and because texts are read almost instantly, they can act on your offers right away. Imagine sending out a text for a flash sale that ends in a few hours; it creates a sense of urgency that gets people clicking.

2. Event reminders and updates

Announcing a webinar or organizing a concert? Use SMS to send timely reminders to your audience. A quick text message can serve as a prompt that ensures higher attendance and participation rates. Plus, it adds a personal touch that email reminders might lack.

3. Personalized recommendations

Send personalized product recommendations based on past purchases or browsing behavior. This makes customers feel valued and increases their chances of conversion.

4. Appointment reminders

Reduce no-shows by sending appointment reminders. Include the date, time, and location, and provide an option to reschedule if necessary.

5. Customer surveys and feedback

Engage your audience by asking for their feedback. Use short surveys to gather insights and improve your products or services.

Final word

SMS marketing is a no-brainer. It's quick, direct, and incredibly effective. With sky-high open rates and immediate response times, your messages get seen and acted upon almost instantly. Plus, there's something uniquely personal about receiving a text—it feels more like a conversation than just another marketing pitch. So the next time you're planning a marketing campaign, don't forget the power of a short text message.

From flash sales to event reminders, and personalized recommendations to appointment reminders, SMS marketing covers all bases. It's a fantastic way to keep your audience engaged, gather valuable feedback, and ensure your business runs smoothly. 

So why not give it a shot? Zoho Campaigns makes it super easy to integrate SMS with your existing email marketing efforts. With its user-friendly interface and powerful analytics, you can manage everything from one place and see what's working in real time. Sign up for Zoho Campaigns today.