How to Use SMS Messaging for Your Business

What is SMS business messaging?

SMS business messaging is the use of Short Message Service (SMS) technology to connect with customers through short, text-only messages. Companies use it to share promotions, send reminders, confirm orders, provide updates and even handle support conversations.

At its core, SMS is limited to 160 characters and doesn’t support images or videos (those fall under Multimedia Messaging Service, or MMS). Developed in the 1980s, it remains one of the most widely used messaging technologies despite the rise of newer tools. 

Its staying power is clear. According to 2025 SimpleTexting research, 67 percent of marketers plan to boost their SMS budgets — more than any other paid channel — and many now rank it among their top revenue drivers. On the consumer side, 84 percent have opted in to receive business texts, showing just how valuable texting has become for both engagement and the customer experience.

How does SMS compare to other messaging formats?

Here’s an overview of various communication modes compared to SMS to help you better understand the technology. 

• SMS vs. text messages: SMS and business texting are often used interchangeably, both capped at 160 characters. However, “texting” can also include MMS and app-based messages.
• SMS vs. MMS: SMS is short and text-only, while MMS lets you send longer messages, images, videos, audio and links. Many businesses use both SMS and MMS in marketing.
• SMS vs. RCS: Rich Communication Services (RCS), available on Android’s Google Messages, adds features like read receipts and high-quality media. Adoption is growing but still limited.
• SMS vs. Verified SMS: This Android feature validates business senders, showing logos and reducing spam, which helps build trust with recipients and boost brand awareness.
• SMS vs. OTT apps: Over-the-top (OTT) apps like WhatsApp, iMessage and Facebook Messenger use the internet instead of cellular networks. They support multimedia and group chats but require both sender and recipient to have the same app.

What are the different types of SMS business messaging?

Businesses can send several types of SMS messages, each with its own purpose and requirements:

• Person-to-person (P2P): Direct human-to-human texting with a balanced ratio of sent and received messages. For best practices, P2P traffic shouldn’t exceed one message per second.
• Application-to-person (A2P): Messages sent from an app to individuals, often for marketing or notifications. A2P supports high volumes and usually requires short codes, toll-free numbers or 10DLC registration (see below).
• Short codes: Five- or six-digit numbers designed for sending large volumes of A2P messages. They don’t support calls or conversational texting, but recipients can reply with keywords like “YES” or “STOP.”
• Toll-free SMS: Uses numbers like 800 or 888 for higher-volume texting. Unlike short codes, toll-free numbers allow two-way communication and can also support voice calls.
• 10DLC: Ten-digit long codes that look like local phone numbers but are approved for A2P traffic. They support both two-way messaging and calls, though carriers charge fees for registration and use.

How do you use SMS business messaging?

SMS has become one of the simplest ways for businesses to market products and stay connected with customers, but using it thoughtfully is key.

Jamal Miller, VP of brand and product marketing at Calendly, noted that the most successful businesses send short, relevant texts that keep customers engaged without spamming them.

“SMS marketing should primarily be used to alert customers to promotional and transactional information in a quick, simple, time-sensitive and personal way,” Miller advised, pointing to flash sales, special offers, appointment reminders, order confirmations and shipping updates as effective examples.

Here are the main ways companies use SMS today — and the best text message marketing services can support them all.

1. SMS business marketing

Organizations can increase sales with business texting by sending promotions, sales alerts, coupons and other offers straight to customers’ phones. Many platforms also support various text message marketing content, such as contests, and help you gather survey data, giving companies more ways to engage their audience.

Because texts are opened so quickly and consistently, SMS marketing tends to deliver higher visibility and stronger engagement than most other channels, which can translate directly into more revenue.

2. Alerts, notifications and reminders 

SMS is a reliable way to keep customers updated with alerts and reminders. For example, an order confirmation can be followed by a delivery notice, or an appointment booking can trigger a reminder.

Because texts are opened almost instantly, businesses can be confident customers will see important updates on time. Customers appreciate the convenience, and companies benefit from fewer missed appointments, lower cancellation rates and less time spent answering calls.

3. Special offers and coupons 

SMS is a simple way to deliver digital coupons, discounts and exclusive deals. Customers appreciate the convenience of getting offers directly on their phones without needing a paper coupon.

Promotional texts also encourage signups, since discounts are one of the biggest reasons consumers opt in to business texting. In fact, according to a Klaviyo study, 63 percent of U.S. consumers subscribe to a brand’s texts specifically to receive discounts and special offers. 

4. Customer support 

More businesses are turning to text messaging for customer service because it’s fast and efficient. SMS lets representatives handle multiple queries at once, which improves response times without adding staff. And if an issue gets more complex, customers can always switch to a voice call.

In fact, according to the SimpleTexting survey cited earlier, 51 percent of businesses say customer service is the top reason for sending texts. On the consumer side, most people now prefer texting over email or phone calls for support, with 71 percent wanting the ability to text a business back. Together, these numbers show just how valuable two-way communication has become.

5. Group messaging 

Many SMS platforms also support group messaging, allowing businesses to text multiple customers at once or set up small group chats. This can be especially useful for coordinating time-sensitive updates, such as real estate showings, event logistics or service teams in the field.

What compliance and security issues apply to SMS business messaging?

Because SMS goes straight to consumers’ phones, it’s one of the most heavily regulated marketing channels. Businesses must understand the rules — and the risks — before launching a texting program.

Compliance requirements

It’s crucial to be aware of and abide by the following text message laws and regulatory requirements:

• TCPA (U.S.): The Telephone Consumer Protection Act requires businesses to obtain prior written consent before sending promotional texts. Messages must clearly identify your business, include an opt-out option (like replying “STOP”), and honor Do Not Call requests within 24 hours.
• FCC: The Federal Communications Commission requires mobile providers to block suspicious texts and maintain reporting channels for blocked messages.
• GDPR (Europe): If you operate in the EU or target EU customers, the General Data Protection Regulation mandates explicit consent, clear disclosures and easy opt-out options.
• CTIA guidelines: The Cellular Telecommunications Industry Association sets industry best practices for consent management, consumer protection and security.

To help your business ensure compliance, keep detailed consent records, use double opt-in when possible, regularly clean your contact lists, and invest in employee training to ensure you stay current on regulatory changes.

Security issues

Like email, SMS can be vulnerable to fraud and misuse. Businesses should watch for:

• SIM swapping: Fraudsters hijack numbers by tricking carriers into transferring them to a new SIM card.
• Phishing and spoofing: Fake texts that mimic your brand can erode customer trust.
• Message interception: SMS is not encrypted end-to-end, so in rare cases, determined attackers can intercept messages in transit.

Businesses can improve security by taking a proactive approach to cybersecurity and risk management in SMS:

• Educate your customers: Let people know what your official texts look like so they can spot scams.
• Use firewalls or fraud detection tools: These can block suspicious traffic before it reaches your customers.
• Reinforce login security with 2FA: SMS-based two-factor authentication adds protection compared to passwords alone. 

What are the top challenges businesses face with SMS?

Even though SMS is one of the most effective communication channels, it isn’t without its challenges. 

• Spam filtering: Carriers filter enormous volumes of spam — more than 642 million spam texts are sent in the U.S. every day — and in the process, legitimate business messages can get caught in the net. 
• Delivery failures: Messages may also fail to deliver due to invalid numbers, carrier restrictions or network issues. 
• Unsubscribing and poor engagement: High unsubscribe rates and low engagement are other common hurdles for businesses.

Fortunately, there are proven ways to improve deliverability and keep customers engaged:

• Build trust with carriers: Use verified sender IDs, short codes or 10DLC numbers so your texts aren’t mistaken for spam.
• Keep lists clean: Regularly scrub invalid or inactive numbers and monitor delivery reports to ensure you’re reaching real, engaged customers.
• Follow the rules: Stay within carrier content and frequency guidelines, avoid spammy language or multiple links, and always honor opt-outs quickly.
• Respect customer preferences: Segment your lists, personalize your messages, and be mindful of how often you text. According to the Validity research cited earlier, nearly half of consumers who opt out do so because of excessive frequency.
• Test and refine: Use A/B testing to experiment with timing, wording and calls to action, then track metrics like open rates, clicks and conversions to optimize future campaigns.

By treating SMS as an ongoing strategy rather than a one-and-done campaign, businesses can sidestep these pitfalls and build stronger, more reliable connections with their customers.

How do you set up and implement SMS business messaging?

Getting started with SMS doesn’t have to be overly technical, but there are a few setup steps every business should follow to ensure smooth delivery and compliance.

1. Choose the right provider: Look for an SMS platform with strong delivery rates, global reach if you need it, clear pricing and solid customer support. It’s also helpful if the provider integrates easily with your existing systems, like your CRM or marketing software.
2. Test before you launch: Most providers offer a trial or “sandbox” environment where you can test sending and receiving texts before going live. This is a good way to confirm that your messages display correctly and that you understand any sending limits or restrictions.
3. Integrate with your systems: Once you’re comfortable, connect the SMS platform to your business tools. Many providers offer plug-and-play integrations or APIs, so you can link texting with order confirmations, reminders or customer updates.
4. Monitor performance: After launch, keep an eye on delivery reports and error messages. Failed sends can occur due to invalid phone numbers or carrier filtering, and monitoring helps you identify and resolve these issues promptly.

What are the advantages of SMS for business?

SMS has become a staple in business communication because it combines reach, speed and impact in ways few other channels can match. Here are some top advantages to consider:

• Widely supported: SMS is supported on virtually every mobile device, so your message gets through whether your customer is using a smartphone, a flip phone or something in between. 
• Fast and reliable: Texts travel over cellular networks, which means they can be delivered even in areas with limited internet access.
• Highly effective: The numbers back up its effectiveness. As mentioned earlier, EZ Texting research shows that SMS messages enjoy a 98 percent open rate. Additionally, SimpleTexting’s survey (cited earlier) revealed SMS has a 36 percent click-through rate — far higher than most other marketing channels — and that 98 percent of businesses say their SMS efforts are successful and help drive a higher customer lifetime value.
• Cost-effective: Sending a text is far cheaper than running a call center or mailing coupons, yet the digital marketing ROI can be impressive. According to UpCity, more than half of marketers report earning $21 to $40 in revenue for every $1 spent on SMS campaigns.

All of this makes SMS a versatile, affordable and high-ROI tool that businesses can use to connect with customers quickly and meaningfully.