Straight to Their Palms: Why SMS Marketing is Perfect for Small Business Owners

Business.com / Marketing Solutions / Last Modified: February 22, 2017

If you're a small business owner looking for an affordable but effective marketing solution, here's why you should consider SMS marketing.

First things first, some of you might be asking: what exactly is SMS marketing?

Also known as text message marketing, it's perhaps one of the most affordable and immediate mobile communication methods. When it comes to small business marketing, this solution proves to be quite effective.

Simply put, customers subscribe to a list, and in return, receive exclusive offers via text. Although this mobile marketing method may not be suitable for all small businesses, it's worth the investigation.

Either way, you can't ignore the effectiveness, power, and popularity of mobile marketing. Did you know that 80 percent of smartphone owners use their phone to surf the Internet? Smartphones are quickly becoming the go to for all digital consumption. 

Looking for an example of SMS marketing? Head out to one of your favorite restaurants for dinner. More often than not, you'll sit down and be faced with a table tent.

It might read something like "Text WINGS to 31996 to claim your FREE order of wings, and join our weekly mobile rewards club."

This is one of the most common examples of text message marketing. So, now that you're pretty familiar with the actual concept, here's seven reasons why small business owners should use text marketing.

Related Article: M-Day is Almost Here: Is Your Website Mobile-Friendly Yet?

1. Personalization

While tons of other marketing methods push direct selling and unqualified offers, text message marketing doesn't. Small business owners can personalize SMS campaigns, even send subscriber's an offer on their actual birthday. When it comes to mobile marketing in general, personalization is key.

Firing out generic, sales oriented mobile campaigns proves to be ineffective, and long term, can decrease user engagement. 

2. The ROI is Undeniable

When testing out new marketing methods, you want to make sure you're getting a good return on your investment. For example, don't invest $300 only to make $50. In this particular situation, it's obvious to see that you're losing money.

How to Measure ROI:

Gross Sales - Initial Investment - Additional Costs or Expenses = Your Return on Investment

Now, keep in mind ROI should only be calculated under specific circumstances. For example, don't measure the effectiveness of your social and mobile campaigns in the same equation. Also, keep it limited to a certain period of time. The more specific you are with this equation, the better. 

3. 99 Percent of All Text Messages are Opened

Compared to less than 30 percent of emails, you can't argue with the engagement or reach of text messaging in general. Think about the last time you had one new text message and didn't open it. Probably never, right? I personally know I open every single text message that's sent to my phone, even the most unwelcomed ones. 

Related Article: 5 Quick Tips to Personalize Your Email Marketing Campaigns

4. Affordability

Text message marketing costs little to nothing, especially when compared to the monetary reward. Some providers charge as little as $29 a month, and these plans allow you to reach hundreds, even thousands, of subscribers.

When you choose SMS marketing, you partner with a tactic that grows with you. It's affordable, but at the same time, is never something you can outgrow. Need to send one million messages? Now you can.

5. New Concept

What does this mean for you, the small business owner? You can get ahead of the curve. Rise above the competition, and be an early adopter.

Show your customers that staying on top of the latest marketing trends is important. What's one of the worst things that can happen to a small business owner? Becoming a laggard.

This can be avoided by keeping up with the latest marketing trends. In general, every single small business owner should be taking advantage of mobile marketing, and the return it offers. 

6.Strengthens Customer Relationships

Text marketing enhances brand loyalty by strengthening customer relationships. When you're consistently making personal connections with your customers via mobile device, they become more reliant on your communication.

Never reliant in a bad way, but they look forward to your promotions and announcements. They love being treated like VIPs, and rewarded with consistent offers.

7. SMS Marketing is Here to Stay

Can you picture going one day without your cellphone? How about one week? Based on your answers to those questions, do you really think mobile marketing and mobile communication are going anywhere anytime soon? Probably not. With that said, you should prioritize marketing methods that take advantage of these communication habits. 

With text marketing, it's all about education. Any small business owner can master this technique, as long as the proper time and care is spent combing through educational resources. Want to learn more? Check out this beginner's guide to SMS marketing.  

As with any marketing method, there will be a phase of learning, then development, and finally, growth. Don't charge into any initiative with hopes of instant gratification. You need to embrace the learning process, and take in as much education as you can. When it comes to marketing and business, those who take time to surround themselves with knowledge are those who experience lasting success.

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