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SMS Marketing: a mistake to underestimate it

24 October 2024
SMS marketing

Why integrate SMS Marketing as part of communication and sales strategies?

In today's landscape, where consumers spend more and more time on mobile devices, SMS Marketing has regained center stage in communication strategies. Despite being underestimated by businesses, this channel is a crucial resource for effective multichannel marketing.

Why SMS Marketing is often underestimated

Many companies mistakenly believe that SMS Marketing requires a high budget or does not offer the same level of customization and targeting as other channels. They also think it does not provide satisfactory data analysis to support ROI. In reality, the ROI of these campaigns is surprising, and the numbers back this up:

  • 7 billion is the global number of people owning a smartphone in 2024.

  • 75% of consumers enjoy receiving promotions via SMS

  • SMS boasts a 98% open rate.

  • 60% of users read SMS messages within 1-5 minutes of receiving them.

Despite being a strategy with enormous potential, few agencies offer SMS Marketing as a solid service for businesses. With the dominance of digital media, not many manage to effectively integrate SMS into the sales funnel that involves communication with the customer via SMS.

Accessible and simple

Implementing an SMS Marketing campaign is simple and accessible, even for small businesses. Access to targeted lists and personalized messages allows businesses to reach customers or prospects directly at low costs. The resources needed to launch an SMS campaign between a business and its mobile customers are essential. They not only help increase sales through new strategies but also strengthen the brand's position in the market. According to experts, by 2025, the SMS Marketing market will surpass $90 billion.

Main advantages

SMS is still one of the fastest communication methods. It has a high open rate and excellent click-through rate. SMS Marketing achieves an impressive 97% visibility within the first 15 minutes of sending, ensuring immediate reading of promotional messages. About 45% of SMS Marketing campaigns yield a significant return on investment, which can exceed 50% when combined with other communication tools like Direct Email Marketing (DEM) and Social Media Marketing.

Lead journey through the funnel

SMS Marketing allows the use of short codes or shortened URLs to facilitate interaction with the target audience. For example, customers can be invited to enter a promo code or a specific word on a webpage to receive an exclusive offer. Alternatively, they can participate in exclusive campaigns, download useful materials like guides or additional resources, or join private social media groups. Through SMS Marketing, customers become familiar with the touchpoints in the company's conversion funnel. Using codes and short links makes it easier to engage them and encourage responses to promotional initiatives.

Support for a multichannel strategy

SMS messages can be a great communication tool on their own, but when integrated into a multichannel strategy, they can amplify results. A simple follow-up SMS, for example, can remind customers to read a previously sent email, increasing open rates for Direct Email Marketing by up to 30%.

Improving target audience knowledge

SMS surveys and questionnaires provide quick feedback or responses on products and services, with an average response rate of 31% within 5 minutes. This data is essential for gaining deeper insights into the target audience, offering a unique opportunity to collect valuable information and improve sales strategies.

Increasing customer engagement

There is a belief that SMS is an invasive channel, but in reality, consumers are increasingly accustomed to short text messages. Targeted SMS Marketing campaigns can improve engagement with customers, updating them on new products or special offers, yielding tangible results. A well-structured and mobile-optimized SMS can guide customers to a landing page for more details, enhancing nurturing and maintaining attention. It’s important to diversify the content to keep interest in the company alive—along with sending offers and promotions, customers also appreciate receiving holiday and birthday greetings.

Tracking and optimizing ROI

Contrary to what many believe, SMS Marketing is highly trackable. Measuring the return on investment (ROI) of an SMS campaign helps identify the most engaged customers. Interacting with users through text messages and tracking delivery rates are data analysis practices that offer a clear view of the situation. Analyzing results allows businesses to refine their sales strategies, optimize their marketing budget, and develop more effective campaigns thanks to a deeper understanding of the target audience.

Studying the ROI of these campaigns not only helps reduce costs but also enables better profiling and segmentation of the target, dividing it into groups that respond to different types of communication and specific sales stimuli. With proper setup, SMS Marketing campaigns achieve the same results as Direct Email Marketing and Social Media Marketing campaigns.

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