Text message marketing: strategy, examples and best practices

Marketing is the process of constantly looking for new and innovative ways to attract more customers or communicate with them. Text messages were first sent out in 1992. It may seem a bit old school but you’ll be surprised by how this technology is making a comeback, especially for small businesses. 

With an open rate of 98% and a read rate of 42%, which is higher than email marketing, choosing text message marketing would be a better option for small businesses to use for their marketing campaign. By implementing text message marketing, small businesses would be able to deliver immediate, direct and personalized communication to their targeted audience. 

What is text message marketing?

Text message marketing, also known as SMS marketing, is a way that businesses use text messages to send special offers, updates, or information to their customers' mobile phones. For example, during your birthday month, you receive a message from a store about a birthday promotion or a special promo code that you can use for online purchases. Mass texting is a quick and direct way for businesses to communicate with their customers and share important and personalised information.

Text message marketing is part of inbound marketing and is mainly used for brand building and increasing customer retention. The reason is that you can only send out business texts to customers who have given their consent for you to collect their phone numbers. Unlike other forms of marketing tools such as WhatsApp Ads, text message marketing for small businesses does not allow you to reach an unknown audience. However, it does help you with securing customer relationships and promoting your products to existing customers.

Learn more about SMS marketing vs. WhatsApp marketing and decide which method is more beneficial for your business.

Why use text message marketing for your small business

Rolling out your texting campaign by itself is not enough. It’s important for you to have a sms marketing strategy that grabs attention and stands out from the crowd, especially for small businesses with limited resources. Text message marketing for small businesses can be a powerful tool, but without a clear and effective strategy, your messages might get lost in the noise.

A well-thought-out strategy helps you identify your target audience, create text marketing ideas based on their preferences, and determine the right timing for sending messages. You can also set goals and measure success to continuously improve your approach. With a solid strategy, your text message marketing can cut through the clutter and make a lasting impact.

Key benefits of text message marketing

Using text message marketing can offer several advantages over other marketing channels, especially for small businesses:

1. High open rates: Compared to emails at 21.5%, text messages have remarkably high open rates at 98%. This means more people are likely to read your messages.

2. Immediate delivery: Text messages are delivered almost instantly. This is crucial for time-sensitive offers or announcements.

3. Direct and personal: Text messages feel more personal and direct, making customers feel valued and engaged.

4. High engagement: Because texts are short and to the point, they encourage quick responses and actions from recipients.

5. Mobile-friendly: With the majority of people using smartphones, text messages are a convenient way to reach customers on their preferred devices.

6. Opt-in audience: People who receive your texts have usually opted in, showing interest in your business. This means your messages are reaching a more receptive audience.

7. Cost-effective: Text message marketing can be cost-effective, especially compared to traditional advertising methods.

8. Segmentation and personalization: You can send targeted messages to specific groups, increasing the relevance of your messages and improving engagement.

9. Customer loyalty: Regular communication through text messages can help build a strong customer relationship and encourage loyalty.

10. Easy opt-out: Unlike some other channels, people can easily opt out of receiving texts, which helps you maintain a quality subscriber list. For example, you can send this template to customers, “Type STOP to stop receiving text messages.”

How to choose a text message marketing software

When you're looking to use a text message marketing service, there are several important things to think about. These factors can help you decide which text messaging platform is the best fit for your needs:

• Ease of use: The text message marketing platform should be user-friendly, making it easy for you to create and send messages without a steep learning curve.

• Integration: Check if the service can integrate with your existing tools, like your customer relationship management (CRM) software or e-commerce platform.

• Scalability: Make sure the platform can grow with your business. You don't want to outgrow the service too quickly.

• Mobile optimization: Since you're dealing with text messages, the service should be optimized for mobile devices so your messages look good on all screens.

• Automation: Look for features that allow you to automate tasks, like sending welcome messages to new subscribers or scheduling messages in advance.

• Personalization: The ability to customize messages with names or other details can make your messages feel more engaging.

• Analytics: Good platforms provide detailed data on how your messages are performing, helping you understand what's working and what's not.

It's essential to compare different text message marketing platforms based on their features, pricing, and customer support options. Each text message marketing company has pros and cons.

Here's what to look for:

• Features: Compare what each platform offers. Some might provide advanced features like segmentation, automated workflows, multimedia messaging, or even integrations with social media platforms.

• Pricing: Check the pricing plans and make sure they fit your budget. Some services charge based on the number of messages sent, subscribers, or features you use. Be wary of hidden fees.

• Customer support: Good customer support is crucial. Look for platforms that offer various support options such as email, phone, live chat, or a knowledge base. Fast and helpful support can save you a lot of frustration.

• Trial periods and User Reviews: Many text message marketing services offer trial periods that allow you to test their platform before committing. This is a great way to see if the platform aligns with your needs and is easy to use.

Reading user reviews and testimonials can provide insights into other users' experiences with the platform. This can help you get a sense of the platform's strengths and weaknesses from real users.

The 8 best text message marketing services and providers for small businesses

1. TextMagic

• Intuitive web app for sending SMS messages.

• Contact list management, scheduled messages, templates, and integrations.

• Pay-as-you-go pricing starting at $0.04 per text sent.

2. EZ Texting

• Comprehensive onboarding and user-friendly interface.

• Suitable for non-technical users with customer support.

• Pricing starts from $24/month.

3. ProTexting

• Color-coded, clutter-free dashboard for an intuitive experience.

• User-friendly tools including messaging suite, video, images, and gifs.

• Enhances customer engagement despite lacking guided training and customization.

4. SimpleTexting

• Geared towards marketing campaigns with keyword-based subscriptions.

• Simple user interface, text surveys, polls, and detailed analytics.

• Integrates with CRM platforms, plans start at $29/month.

5. Twilio

• Highly customizable with excellent marketing analytics tools.

• Messaging Insights interface for in-depth metrics analysis.

• Partnered with Google for generative AI integration, and invested in Syniverse.

• Pricing based on API usage, starting at $0.0079 per message.

6. Textedly

• Flexible and scalable with various pricing plans from 1,200 to 240,000 monthly messages.

• User-friendly dashboard, custom keywords, free incoming texts.

• AI-powered copywriting tool, 14-day free trial, plans from $24/month.

7. SlickText

• Easy phone number collection, powerful marketing tools.

• Offers opt-in forms, pop-ups, surveys, coupons, and loyalty programs.

• Pricing starts from $29/month for texts, $139/month for automated workflows.

8. Podium

• Customer engagement and CRM platform.

• Simplifies communication, real-time reviews, lead, and customer management.

• Marketing automation and personalized engagement tools available.

• Varied pricing, contact for a quote.

Here’s the comparison at a glance:

Remember that the best text message marketing platform depends on your specific business needs. For example, if you have a small business with a limited budget, you might prioritize affordability and ease of use. On the other hand, if you run a larger company with more complex marketing needs, you might need a platform with advanced features and integrations.

Crafting a successful text message marketing campaign

Curious to learn some text message marketing best practices for successful campaigns? Below some tips.

Identifying essential elements and setting goals

A successful text message marketing campaign requires careful planning and consideration of its key elements. These elements include a clear and compelling message, a well-defined target audience, a specific call to action, and a strategy for measuring success. 

Before launching a text message marketing campaign, it's crucial to set specific goals and objectives. These goals could include increasing sales, driving website traffic, boosting brand awareness, or growing your subscriber list.

Target audience and segmentation

Understanding your target audience is fundamental to the success of your campaign. Segmentation involves dividing your audience into smaller groups based on demographics, behaviors, preferences, or other relevant factors. This allows you to send more personalized and relevant messages, which results in improved engagement and conversion rates.

For instance, if you're promoting a sale on women's shoes, you wouldn't want to send that offer to your male subscribers. By segmenting your audience, you can create text marketing ideas that relate to each group's interests and needs.

Creative text marketing ideas

Creativity plays a significant role in capturing your audience's attention. Some creative ideas for text message marketing include:

• Exclusive offers: Provide subscribers with unique discounts or offers that are only available through text messages.

• Limited-time promotions: Craft an impression of urgency by introducing deals with time constraints.

• Interactive campaigns: Incorporate polls, quizzes, or contests to engage subscribers and encourage participation.

• Tailored recommendations: Send product recommendations based on past purchases or browsing history.

• Event invitations: Invite subscribers to special events, product launches, or webinars via text messages.

Compliance and obtaining permission

Complying with text message marketing regulations is crucial to avoid legal issues and maintaining customer trust. Obtaining permission from customers before sending text messages is not only a legal requirement in many regions but also an ethical practice. 

This permission can be obtained through opt-in mechanisms, where customers actively subscribe to receive messages. Additionally, including clear instructions for opting out of messages and providing a way for customers to easily unsubscribe is essential for compliance and maintaining a positive brand image.

How to measure the success of your text message marketing campaign

When you implement text messages marketing campaign, you need to figure out if they're working well or not. To do this, you look at some important numbers that are known as metrics. These metrics help you understand how people are reacting to your messages.

Here are some key metrics to track:

1. Open rate: This is how many people actually open the text message you send. It's like seeing how many people read your message.

2. Click-through rate (CTR): This tells you how many people click on the links or take action after reading your message. It helps you know if your message is getting them interested.

3. Conversion rate: This metric shows you how many people who clicked on your links actually did what you wanted them to do, like buying something or signing up.

4. Unsubscribe rate: This tells you how many people decide they don't want to receive your messages anymore. It's important to keep an eye on this to see if people are getting annoyed with your messages.

5. Delivery rate: This is the percentage of messages that actually get delivered to people's phones. Sometimes messages don't reach everyone, so this metric helps you know how many people are actually seeing your messages.

After collecting these metrics, you need to look at them to understand what's going well and what's not. If your open rate is low, it might mean your messages aren't interesting enough. If your click-through rate is high but your conversion rate is low, it might mean people like your message but aren't buying what you're offering.

By looking at these numbers, you can figure out what parts of your campaign are working and what needs improvement. For example, if people are clicking on your links but not buying, you might need to change the way you're presenting your products or services.

Once you have this data and insights, the important part is to keep making things better, or in other words, optimizing. You use what you've learned from the data to improve your messages and strategy. Optimizing is not a one-time thing, you need to constantly do it to get better results over time.

For instance, if you notice that people are more likely to open your messages in the evening, you might start sending messages at that time. Or if you see that people like special offers more than news updates, you can focus on sending more offers.

Alternatives for text message marketing solutions

Adding a broadcast campaign to your text message marketing plan can make it work even better. Text message marketing is effective but it's not the only way to reach your audience. Integrating text message marketing with other marketing channels, such as social messaging apps, can create a more comprehensive and effective strategy. 

Social messaging apps like WhatsApp, Facebook Messenger, and WeChat have billions of users worldwide. Integrating your marketing efforts with these apps can extend your reach and engage customers on platforms they use daily. These apps offer features beyond traditional text messaging, such as multimedia content, interactive elements, and chatbots for automated conversations.

Additionally, with integration, you can create a successful omnichannel marketing strategy that includes both text message marketing and social messaging apps.

Here are some tips that you can consider for your multichannel marketing strategy:

• Know your audience: Understand where your target audience spends their time. This will help you prioritize the channels to focus on.

• Consistent branding: Maintain consistent branding and messaging across all channels. Your customers should recognize your brand no matter where they interact with it.

• Content strategy: Develop a content strategy that takes advantage of each platform's strengths. For example, use text messages for time-sensitive offers and use social messaging apps for more interactive content that includes images or videos.

• Cross-promotion: Promote your text message campaigns on your social messaging channels and vice versa. This cross-promotion helps your audience know about all the ways they can connect with your brand.

• Automation: Use automation tools to streamline your efforts. Chatbots can handle routine customer queries on social messaging apps, freeing up your time for more strategic tasks.

Thinking of implementing AI for customer support? Discover how you can use SleekFlow's AI-powered chatbot.

Examples: success stories in text message marketing

If you're looking for text message marketing examples, these case studies can be really helpful. They provide insights into different approaches that companies have taken and the positive outcomes they've experienced.

Longmont Climbing Gym 

Longmont Climbing Gym employs SMS updates to maintain member engagement and keep them informed about their rewards. The gym utilizes a point-based system for members who visit, refer friends, and share on social media. 

These points can be exchanged for perks like free guest passes and discounts. To prevent members from forgetting these incentives, the gym sends SMS notifications when they accumulate sufficient points for new rewards. 

Artist Couture

Artist Couture, a makeup brand, achieved remarkable success with SMS marketing. They were able to strengthen community engagement and customer involvement in shaping their brand’s direction and products through their text messaging marketing campaign.

Here are some of their key achievements with text messaging marketing:

• subscriber list grew by 670% in a month, surpassing email list growth rates

• generated $4,000 in immediate online sales through exclusive discount codes

Along with their text messaging marketing, Artist Couture also integrated a mobile sign-up widget on their website that aligns with their brand identity. They also incorporated an engaging call-to-action button to boost subscriber engagement. SMS marketing served as a bridge between their website and social media, enhancing customer experience.

Text message marketing ideas by industry

Text message marketing ideas do not stop to the ones above. Incorporating text message marketing into various industries can be an effective way to communicate with customers, enhance service delivery, and drive business growth. It offers a direct and immediate means of engaging with a target audience and can be a valuable addition to a comprehensive marketing strategy:

• Real estate text message marketing: text message marketing can be a powerful tool for agents and brokers to reach potential buyers and sellers. Agents can use SMS marketing to send property listings, open house announcements, and market updates directly to their clients' mobile phones. It's an effective way to keep clients informed about the latest listings and developments in the real estate market. Additionally, real estate professionals can use text messages to schedule property viewings, share virtual tours, and even gather feedback from clients, enhancing their overall customer service.

• Text message marketing for restaurants: restaurants can benefit significantly from text message marketing as it enables them to engage with their customers in real-time. With SMS marketing, restaurants can send out special promotions, daily menu updates, and reservation reminders to their loyal patrons. It's also a convenient way for customers to place orders for takeout or delivery through a simple text message. By building a subscriber list, restaurants can create a direct and personalized channel to keep customers informed about their offerings and drive traffic to their establishments.

• Insurance text message marketing: insurance companies can leverage text message marketing to connect with their policyholders and potential clients. They can send policy renewal reminders, claim filing instructions, and important updates regarding insurance coverage changes. SMS is an effective way to communicate critical information promptly, ensuring that clients stay informed about their policies and providing a convenient avenue for customer inquiries and support. Insurance text message marketing enhances customer satisfaction and streamlines communication in a highly regulated industry.

• Retail text message marketing: retailers can enhance their marketing efforts through text message marketing campaigns. They can alert customers to sales, promotions, and new product arrivals, driving traffic to both physical stores and e-commerce websites. Retailers can also segment their customer lists to send personalized offers based on purchase history, preferences, and location. By engaging customers through SMS, retailers can foster brand loyalty and create a direct line of communication for product launches, store events, and customer feedback collection.

• Salon text message marketing: salons and beauty spas can use text message marketing to stay connected with their clients and keep appointment schedules organized. Text reminders for upcoming appointments reduce no-shows and help salons maintain a steady flow of clients. Additionally, salons can send out special offers, last-minute availability notifications, and beauty tips to engage and retain customers. Text message marketing in the beauty industry not only improves customer relations but also contributes to increased bookings and revenue.