What Is SMS for Business?

What is SMS business messaging?

At its core, SMS, or short message service, is a text-only format capped at 160 characters. It does not include multimedia content, such as video or images. Developed in the 1980s, SMS is among the pioneering texting technologies, retaining its popularity despite the emergence of newer communication methods.

Comparing SMS with other communication modes:

• SMS business vs. text messages: Essentially, SMS business messaging and text messaging are synonymous, both restricted to 160 characters. However, the broader term “texting” might encompass multimedia messaging service (MMS) and other platform-specific messages.
• SMS business vs. MMS: SMS is concise, while MMS offers extended character limits (as set by the provider) and supports multimedia content. MMS lets you send videos, images, audio and hyperlinks with your message, as well as allows for subject lines.  For marketing, both SMS business and MMS are invaluable.
• SMS business vs. rich communications services (RCS): RCS, exclusive to Android’s Google Messages, is an advanced SMS protocol. Though it offers enhanced features like read receipts and high-resolution media sharing, it has yet to be widely adopted.
• SMS business vs. verified SMS: This Android-specific enhancement of SMS business messaging offers an added layer of validation for business texts, showcasing business logos to boost brand awareness and facilitating opt-ins to reduce spam.
• SMS Business vs. over the top (OTT): OTT apps like WhatsApp, iMessage, WeChat and Facebook Messenger operate over the internet, bypassing cellular networks. These require app installations and have unique messaging protocols for sending and receiving messages. It’s free to send and receive messages through OTT applications.

What are different types of SMS business messaging?

In the realm of SMS business communication, there are distinct types of SMS messages you can send:

• Person-to-person (P2P) SMS: This form of SMS business communication is centered on direct human-to-human exchanges. Typically, the ratio of sent to received messages is balanced at one-to-one. For optimal SMS business practices, P2P messages shouldn’t surpass one message per second (MPS).
• Application-to-person (A2P) SMS: A2P SMS is a cornerstone of SMS business communication, where messages originate from an application and are directed to an individual. This SMS business model facilitates automated messaging, potentially exceeding one MPS. For effective A2P SMS business communication, specific numbers like short codes, toll-free, and 10DLC (designated long code numbers approved by mobile carriers) are required.
• Short code in SMS Business: Within the SMS business framework, short codes are five- to six-digit numbers designed for transmitting high-volume A2P messages. These codes are not equipped for two-way interactions or voice calls. However, in the SMS business context, recipients can employ particular keywords, such as “YES” for affirmation or “STOP” for opting out.
• Toll-free SMS: This SMS business category utilizes toll-free numbers, like 800 or 888, to facilitate high-volume text exchanges. A majority of toll-free numbers are compatible with SMS business messages. Furthermore, toll-free SMS business messaging supports two-way communication, allowing recipients to reply as they would to conventional texts and even initiate voice calls if the number permits.
• 10DLC: 10DLC, or ten-digit-long codes, are authorized local phone numbers tailored for SMS business communication, supporting high-volume exchanges. These codes are versatile, accommodating both two-way messaging and voice interactions. However, accessing A2P SMS business communication via 10DLC requires an associated carrier fee to access A2P SMS.

How do you use SMS business messaging?

The integration of SMS messaging into business operations has revolutionized text message marketing and customer communication.

“We see businesses finding most success when they send a variety of text messages to keep customers engaged and avoid spamming — but those messages should always be short and straight to the point,” said Jamal Miller, senior director of product marketing at Mailchimp.

He continued, “SMS marketing should primarily be used to alert customers to promotional and transactional information in a quick, simple, time-sensitive and personal way. Our customers find that flash sales, special offers, appointment reminders, order confirmations or shipping updates are some of the most effective types of messages sent via text.”

Below are the primary ways businesses harness SMS business messaging when using the best text message marketing services:

1. SMS business marketing

Companies use SMS business messaging to increase sales by dispatching promotional content, sales alerts, coupons, and more straight to consumers’ mobile devices. Additionally, SMS business platforms facilitate data collection through surveys and enable the hosting of contests.

The potency of SMS business messaging ensures heightened visibility of messages, fostering enhanced customer engagement and revenue generation.

2. Alerts, notifications and reminders via SMS business

SMS business messaging is an excellent way to send customers alerts, notifications and reminders. For example, when customers place an order, they can receive an automated SMS business message when their order has been processed and another when it’s out for delivery. Similarly, appointment bookings can be complemented with reminders or updates via SMS.

Knowing the impressive open rates of SMS business messages, businesses know that customers will receive and read their SMS messages on time. Customers appreciate getting appointment reminders and delivery updates and businesses enjoy lower cancellation rates and less time spent on the phone handling customer queries.

3. Special offers and coupons through SMS business channels

SMS business messaging is an easy way to send digital coupon codes, discounts and exclusive deals. The convenience of accessing offers directly on their phones, without needing any physical coupons, enhances the customer experience.

Promotional SMS business messages simplify the purchasing journey, bolstering customer engagement and sales. Getting discounts is a big incentive for customers to sign up for SMS business messages in the first place. According to a Klaviyo study, 62 percent of consumers look forward to receiving text discounts, promotions and sales announcements.  

4. Customer support via SMS business platforms

A growing number of enterprises are weaving text messaging  into their customer support systems. SMS business support is characterized by its efficiency, enabling representatives to multitask and manage multiple queries concurrently. If needed, customers can switch to voice calls for in-depth resolutions. This SMS business model can increase contact center efficiency without hiring additional staff.

5. Two-Factor Authentication in SMS business protocols

In the SMS business landscape, safeguarding customer data is paramount. Implementing two-factor authentication (2FA) or multifactor authentication (MFA) via SMS business messages fortifies login processes, help complete order verifications, and minimizes password breach risks. This SMS business security procedure is more secure than using passwords alone and adds another layer of protection when verifying an individual’s identity.

6. Group messaging in SMS business communication

SMS business platforms allow companies to take advatnage of group messaging to three or more customers. Certain devices even support expansive group chats with up to 30 members. This enables your business to communicate with multiple parties simultaneously. This type of SMS business communication can be advantageous when time is a factor, such as when a family is purchasing a home.

What are the advantages of SMS for business?

The integration of SMS into business strategies offers a plethora of advantages, especially in the context of text message marketing campaigns:

• SMS for business is widely supported: SMS for business is compatible with all hardware and software platforms. Messages can be sent and received on any modern mobile device.
• SMS business messaging is fast: SMS business messages are small and transmitted via a cellular network, so they can be delivered and received quickly.
• High availability of SMS for business: Since SMS business messages use a lower bandwidth, they can be sent in areas where voice is unavailable and can even be sent and received by email when there’s no mobile service.
• SMS business messages are reliable: SMS business messages are delivered immediately or as soon as the recipient’s phone is turned on and connected to a network.
• SMS enhances communication versatility: SMS for business enhances the versatility of communication and marketing endeavors, given its widespread acceptance and utilization.
• Impressive engagement rates of SMS for business: According to the SimpleTexting study, SMS for business messages have 98 percent open rates and 36 percent click-through rates. They’re much more effective than other mass marketing methods.
• SMS for business messaging is affordable: From a financial perspective, SMS for business messages are more economical than their MMS counterparts. Additionally, they are also more cost-effective than having people make and monitor phone calls.

Jennifer Dublino contributed to this article.