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Marketing / Online marketing

4 reasons SMS marketing is powerful

In Australia, 22 million people own 30 million mobile phones, and each one is SMS enabled. Find out why SMS marketing could be perfect for your business.

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We’re a nation of nomophobics. That is, we fear being out of mobile phone contact. According to a study by Nokia, the average person looks at their phone 150 times a day. We rarely leave the room, let alone the house, without our mobile phone.

So why aren’t more businesses taking advantage of SMS marketing (engaging through SMS) to get closer to their customers, improve conversions and create a better customer experience? Well, many business owners view SMS marketing as too intrusive, while others simply underestimate the sheer power of this channel.

Here are four reasons why SMS marketing is more powerful thank you think.

1. You have permission

The beauty of SMS marketing is that people have given you permission to contact them. As a consumer, you’ve probably experienced this yourself. Perhaps you’ve purchased a pair of shoes from a store, signed up to receive the store’s marketing communications, ensuring you receive useful updates.

The ACMA anti-spam regulations mandate brands to gain consent from consumers and provide an unsubscribe option in every message – so you can be sure that you are only communicating to consumers who want you to. And if they change their mind, they know what to do.

"Unlike email, there’s no risk of your SMS magically disappearing off the edge of the earth – otherwise known as the junk folder."

Of course, with this permission comes trust. Trust that you will communicate in a relevant, personal way, and play by the rules.

Betray their trust and they’ll quickly opt out; get it right, and you can build a lasting and rewarding relationship.

2. SMS has extremely high open rates

SMS is a powerful channel – but it’s when you compare it to other channels that you really see its potential. According to Frost & Sullivan, a massive 98 percent of text messages are read by recipients. Compare this to only 22 percent of emails, 29 percent of tweets and 12 percent of Facebook posts. Also, unlike email, there’s no risk of your SMS magically disappearing off the edge of the earth – otherwise known as the junk folder.

More compelling still, a study commissioned by SinglePoint found that 90 per cent of text messages are read within three minutes of delivery. This means you can communicate with customers at the most opportune times. For example, a food retailer might send a message containing a discount code just before lunchtime. It’s exactly this kind of relevant, timely messaging that drives higher conversions.

3. SMS gets to the point

On the surface, the limited word count of an SMS message might seem constricting. But on the contrary, it forces you to get to the point. By communicating your message clearly and concisely, the recipient doesn’t have to waste time schlepping through information that may or may not be relevant to them. You simply tell them what they need to do next. If you really need to provide more details, simply direct them to your website or store for more information.

4. Conversion is incredibly high

Done well, SMS marketing achieves significantly higher conversion rates than most marketing channels. This comes down to a combination of all of the above points: it’s about relevant marketing messages in the right place at the right time. Whether you want to drive people to your website or shop, SMS marketing gets the message to your customers and makes it simple for them to act fast.

Consider SMS marketing

Let’s face it, our nomophobia isn’t going away. As long as people continue to rely on their mobile connectivity every waking hour, SMS marketing will remain one of the most powerful tools in your digital marketing arsenal. Don’t be afraid to explore its potential. 

What are your thoughts on SMS Marketing? Got any recent experiences to share?

Wasif Kasim

assists small businesses by helping them better understand how to leverage marketing channels to drive revenue, customer engagement and loyalty.

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