fbpx Skip to main content
Business woman sending text message marketing and email marketing

In recent years, text message marketing has emerged as a powerful marketing channel that small businesses can use to connect with customers and drive sales. Text message marketing involves sending promotional messages, alerts, or other communications to customers’ mobile phones via SMS (short message service).

There are several potential benefits of text message marketing for small businesses, including higher open and engagement rates, targeted marketing, cost-effectiveness, and ease of use. In this post, we’ll explore each of these benefits in more detail and provide examples of how small businesses can leverage text message marketing to reach and engage with their audience.

Specifically, we’ll discuss how text message marketing can offer high open rates and engagement, allow for targeted marketing campaigns, be a cost-effective alternative to other forms of advertising, and be easy to use, even for businesses with limited resources. We’ll also cover some best practices for implementing a successful text message marketing campaign and share examples of businesses that have seen positive results from their efforts.

Whether you’re just starting out or looking for new ways to grow your small business, text message marketing can be a game changer. Let’s explore why.

High open rates and engagement

One of the key benefits of text message marketing is the high open rates and engagement it can offer. Compared to other marketing channels like email or social media, text messages are much more likely to be seen and responded to by customers.

In fact, studies have shown that text messages have an open rate of around 98%, while email open rates tend to hover around 20-30%. This means that almost all of the customers who receive a text message will read it, compared to only a fraction of those who receive an email.

Additionally, text messages tend to have higher response rates than other channels. According to one study, the average response rate for text message marketing campaigns is around 60%, compared to just 6% for email campaigns.

There are several reasons why text messages tend to perform so well:

  • First, people tend to have their phones with them at all times, and are more likely to see and respond to messages in real-time. This makes text messages a great way to deliver time-sensitive information, such as limited-time offers or urgent updates.
  • Second, text messages are typically short and to the point, making them easy for customers to read and understand quickly. Unlike emails, which can be long and contain multiple calls-to-action, text messages typically focus on a single message or offer.
  • Finally, because text messages are delivered directly to customers’ phones, they can feel more personal and engaging than other channels. Customers are more likely to feel a sense of urgency or excitement when they receive a text message, and may be more likely to take action as a result.

Overall, the high open rates and engagement of text message marketing make it a powerful tool for small businesses looking to connect with their audience and drive sales. By crafting targeted, engaging messages and delivering them directly to customers’ phones, small businesses can build stronger relationships and grow their customer base.

Targeted Marketing

Another benefit of text message marketing is the ability to deliver highly targeted and personalized campaigns. By leveraging customer data and segmentation, small businesses can send messages that are relevant and valuable to specific groups of customers.

For example, a small restaurant might use text message marketing to send special offers to customers who haven’t visited in a while, in an effort to entice them to come back. By identifying and targeting this specific segment of their audience, the restaurant can increase the likelihood of generating repeat business and building customer loyalty.

To achieve this level of targeting, small businesses can collect and use customer data in a variety of ways. One common approach is to build an opt-in list of customers who have agreed to receive text message communications. This list can then be segmented based on factors like purchase history, location, or demographics, allowing businesses to send targeted messages to specific groups of customers.

For example, a small retailer might send a text message to customers in a specific geographic area to promote an upcoming sale at their nearby store. Or, they might send personalized product recommendations to customers who have previously made purchases in a certain category.

In addition to segmenting based on customer data, small businesses can also use text message marketing to create personalized experiences for individual customers. For example, a small salon might send a personalized text message to a customer on their birthday, offering a special discount or free service.

By delivering targeted and personalized messages, small businesses can increase the relevance and effectiveness of their marketing efforts. Customers are more likely to respond positively to messages that feel tailored to their interests and needs, and may be more likely to take action as a result.

Overall, text message marketing offers small businesses a powerful way to connect with their audience and deliver targeted, personalized messages that drive results. By leveraging customer data and segmentation, businesses can create campaigns that are more relevant, engaging, and effective, helping them to grow their customer base and drive sales.

Cost-effective marketing

One of the biggest advantages of text message marketing for small businesses is that it can be a highly cost-effective alternative to other forms of advertising. Compared to channels like TV, radio, or print advertising, text message marketing is often much more affordable and can provide a higher return on investment.

For example, a small business might spend thousands of dollars on a TV ad that only reaches a limited audience, while a text message campaign can be sent to thousands of customers for a fraction of the cost.

Additionally, because text message marketing is delivered directly to customers’ phones, there are no additional costs associated with printing or postage, making it a great way for small businesses to save money on marketing expenses.

Text message marketing tactics

To get the most out of their text message marketing efforts, small businesses can use a variety of tactics to drive sales without breaking the bank:

  • Sale promotions: For example, they might use text message marketing to promote flash sales or limited-time offers, encouraging customers to act quickly to take advantage of the deal.
  • Upsell/cross-sell: Another effective strategy is to use text message marketing to upsell or cross-sell products or services to existing customers. By identifying customers who have previously made purchases in a certain category, small businesses can send targeted messages promoting related products or services, increasing the likelihood of generating additional sales.
  • Build customer loyalty: Finally, small businesses can use text message marketing to build customer loyalty and engagement over time, helping to drive repeat business and long-term growth. By sending personalized messages, offering exclusive discounts, or providing valuable content, small businesses can create a strong bond with their audience and encourage them to become loyal, repeat customers.

Overall, text message marketing offers small businesses a cost-effective way to reach their audience, drive sales, and build customer loyalty. By using targeted, personalized messages and focusing on high-impact campaigns, small businesses can achieve big results without breaking the bank.

Easy to use

Another key benefit of text message marketing for small businesses is how easy it is to set up and use. Many text message marketing services offer user-friendly interfaces and templates for creating messages, making it simple for even small businesses with limited resources to get started.

These services typically allow small businesses to upload their customer data and segment their audience based on various criteria, such as past purchases or location. This makes it easy for small businesses to send targeted messages to specific groups of customers, increasing the effectiveness of their marketing efforts.

When it comes to creating effective text messages, there are a few key tips to keep in mind. First, it’s important to keep messages short and to the point, as customers are more likely to read and respond to messages that are easy to digest. Second, including a clear call-to-action is essential, as it gives customers a specific action to take and helps to drive conversions.

Other best practices for creating effective text messages include using personalization where possible (such as addressing customers by name), avoiding industry jargon or technical language, and testing messages to see what resonates best with customers.

Overall, text message marketing is a powerful tool for small businesses looking to reach their audience, drive sales, and build customer loyalty. With its high open and engagement rates, targeted capabilities, cost-effective pricing, and ease of use, text message marketing is a game-changer for small businesses looking to compete in today’s digital landscape.

Best practices for text message marketing

While text message marketing can be a powerful tool for small businesses, it’s important to follow some best practices to ensure that messages are well-received by customers and that they help to achieve marketing goals.

  • Obtain opt-ins: One of the most important best practices for text message marketing is obtaining opt-ins from customers. It’s essential to get explicit permission from customers before sending them marketing messages, as unsolicited texts can lead to customer complaints and even legal issues. Many small businesses use opt-in forms on their website or in-store to collect phone numbers and gain permission to send text messages.
  • Message frequency: Another important best practice is to avoid sending messages too frequently. Customers can quickly become annoyed if they receive too many text messages from a business, so it’s important to strike a balance between staying top-of-mind and respecting customers’ time. Most businesses find that sending a few messages per week or month is sufficient, depending on the nature of the campaign.
  • Value-added content: It’s also important to be respectful of customers’ time and to provide value with each message. This might mean sending exclusive discounts or promotions, providing useful information, or sharing engaging content. When customers see that messages are relevant and valuable, they’re more likely to engage with the business and become loyal customers over time.

Some businesses that have successfully implemented these best practices include:

  • Domino’s Pizza: The popular pizza chain allows customers to opt-in to receive text messages with exclusive discounts and promotions. They also send personalized messages based on customers’ past orders, helping to create a sense of relevance and value.
  • Sephora: The beauty retailer sends personalized text messages to customers with information about new products, promotions, and in-store events. They also use text messages to gather feedback and insights from customers, helping to improve the overall customer experience.
  • H&M: The fashion retailer uses text message marketing to send exclusive discounts and promotions to customers, as well as to promote new collections and product lines. They also offer the option to opt-out of messages at any time, helping to ensure that customers feel in control of their experience.

By following best practices for text message marketing and providing value with each message, small businesses can create highly effective campaigns that help to drive sales, build customer loyalty, and achieve marketing goals.

Conclusion

In conclusion, text message marketing is a powerful tool that small businesses can use to reach customers in a targeted, cost-effective, and engaging way. Compared to other marketing channels, text message marketing has higher open rates and engagement rates, allowing businesses to get their message in front of customers when they are most likely to take action.

Furthermore, text message marketing allows for highly targeted and personalized campaigns, which can help businesses to connect with customers on a deeper level and build long-lasting relationships. By using customer data to send relevant messages to specific segments of their audience, businesses can create campaigns that feel tailored to each individual customer.

Text message marketing is also easy to set up and use, even for businesses with limited resources. Many text message marketing services offer user-friendly interfaces and templates for creating messages, making it simple for businesses to get started.

Finally, by following best practices for text message marketing and being respectful of customers’ time, small businesses can create effective campaigns that help to achieve marketing goals and drive sales.

Overall, text message marketing can be a game changer for small businesses looking to connect with customers in a more meaningful way. If you’re a small business owner, we encourage you to consider adding text message marketing to your marketing mix and taking advantage of this powerful tool. With the right approach, text message marketing can help you to achieve your marketing goals and grow your business in exciting new ways.

At Three Peaks Digital Agency, we can help design, build and manage a text message marketing campaign for your business. Reach out today and schedule a free consultation to learn more!

Phoebe Egoroff

Phoebe is a British-Australian freelance writer and copywriter who splits her time between Stockholm and London. Aside from writing for Three Peaks, she's also a cultural critic with a hunger for exploring a diverse range of topics through her writing on her own website The Culture Paper.