7 Benefits of Text Message Marketing

What are the benefits of text message marketing?

Text message marketing has become a core part of many companies’ mobile strategies. Retailers and brands use it to reach customers directly, strengthen relationships and drive measurable results. Here are some of the key benefits it can offer your business.

1. Text messages have high open and response rates.

One of the biggest advantages of text message marketing is its visibility. According to EZ Texting’s 2025 Consumer Texting Report, marketing-related texts have an average open rate of 98 percent. By comparison, emails average just 42.35 percent, according to MailerLite, and often perform much lower depending on the industry.

Texts also generate faster responses because consumers value convenience. “Consider that more than 90 percent of text messages are opened within three minutes of receipt,” said Sidharth Ramsinghaney, director of corporate strategy and operations at Twilio. That immediacy makes SMS a uniquely effective channel for time-sensitive promotions and customer engagement.

2. You can take advantage of mobile coupons.

Text message marketing makes it easy to deliver coupons and loyalty rewards directly to customers’ phones. Consumers increasingly prefer this format to paper coupons because it’s faster, more convenient and always accessible.

According to Statista, nearly 60 percent of U.S. consumers prefer digital coupons to paper. That preference is even stronger among younger shoppers: 70 percent of millennials prefer digital coupons, and 62 percent of Gen Z actively use them.

3. Texting boosts loyalty program engagement.

Customer loyalty programs work best when they’re easy for consumers to access on the go. According to Statista, 28 percent of U.S. consumers ages 18 to 35 prefer accessing rewards using a link sent via text message. That means nearly one in three young customers actively engages with loyalty programs directly through SMS — and this group is likely to grow as texting remains one of the most convenient mobile channels.

For businesses, offering loyalty program access by text can complement or even outperform branded apps, ensuring more customers actually use rewards, promotions and exclusive offers.

4. Text message marketing is cost-effective.

Text message marketing is one of the most affordable ways to reach customers — and it delivers impressive returns. Unlike other channels that require heavy design or ad spend, the main cost is the messaging service itself, which many companies already use.

According to Decision Telecom’s State of SMS Marketing 2025 report, SMS campaigns generate an average ROI of $16.70 for every $1 spent, along with strong engagement metrics like a 27.7 percent click-through rate.

“It’s a personalized and simple strategy for communicating with audiences and has been proven effective and affordable,” explained Jamal Miller, VP of brand and product marketing at Calendly. “SMS marketing is also versatile across different industries and can be automated with triggered messaging for better results.”

5. Consumers can opt in and out easily.

Another benefit of text message marketing is how simple it is for consumers to manage their participation. Businesses can invite customers to subscribe while they’re browsing a website, shopping in-store or completing a purchase, and many consumers are happy to say yes. In fact, the EZ Texting report cited earlier found that 51 percent of people opt into SMS marketing because it’s the easiest way to communicate with brands.

Just as important, opting out is equally simple: Customers can click a link or reply with a short keyword to stop receiving messages. Still, most don’t choose to leave; according to the Decision Telecom report, SMS campaigns see an average opt-out rate of only 3.09 percent.

6. Delivery is direct and immediate.

One of the standout benefits of SMS marketing is how quickly messages are read. Unlike email, which can sit unopened for hours or even days, text messages land directly in a customer’s inbox and are usually opened right away. According to Twilio, 90 percent of SMS messages are opened within three minutes of delivery, making the channel uniquely effective for time-sensitive promotions, flash sales and urgent alerts.

This immediacy doesn’t just ensure visibility — it drives action. Pairing fast delivery with high click-through rates shows why SMS consistently outperforms other channels in both speed and engagement.

7. Text marketing can integrate with other channels.

Text message marketing works well on its own, but its real power shows when it’s combined with other channels. Businesses can use SMS to remind customers about emails, highlight social media marketing promotions, or send quick follow-ups that drive people back to a website.

Many platforms also make it easy to connect SMS with email or marketing automation tools, ensuring consistent messaging across every touchpoint. Some even bundle SMS and email together in one solution.

“SMS marketing is a powerful tool that can drive higher sales and build customer loyalty when used ethically — especially in combination with email marketing,” Miller noted.

How different industries use text message marketing

One of the strengths of text message marketing is its flexibility. Different industries can adapt SMS to fit their unique needs, whether that means improving customer service, streamlining communication or increasing sales with business text messages.

Retail and e-commerce

SMS is a natural fit for retailers. It can drive traffic to brick-and-mortar and e-commerce stores, alert customers when items are back in stock or promote limited-time sales. 

Case studies from Material Retail show how effective this approach can be: One boutique used text alerts to inform shoppers when their favorite products were restocked, resulting in customers being three times more likely to visit the store and an 82 percent increase in average order value. Another retailer saw a 33 percent jump in event attendance after sending out promotions via SMS. And as a bonus, text recipients spent about 10 percent more during the event.

Hospitality

Hotels and restaurants rely on SMS to improve the guest experience, from confirming bookings to sending check-in details or offering upgrades. A timely text can encourage guests to try a new restaurant special, book a spa treatment, or share feedback after their stay — all while keeping communication easy and convenient.

Healthcare

Healthcare providers are using SMS for straightforward reminders, such as for upcoming appointments, prescription refills or pre-visit instructions. These simple prompts help patients stay on schedule and reduce no-shows. In fact, a 2024 study in the Journal of Medical Internet Research found that one UK general practice saw a 42.8 percent decrease in missed appointments after introducing text reminders — a change that improved efficiency and reduced costs for the clinic.

Best practices for getting the most out of SMS marketing

The real power of text message marketing comes from using it thoughtfully. Here are a few tried-and-true text message marketing best practices to help your campaigns feel personal, timely and effective.

Segment your audience.

Not every customer should get the same text. Personalization is key, and the data backs it up: according to the Attentive report cited earlier, 81 percent of consumers ignore irrelevant messages, 71 percent get frustrated by them, and one in four are less likely to purchase after receiving a generic text. 

Smart segmentation helps ensure your messages are relevant and welcome. Here are a few ways to categorize customers and send them the information they want:

• By behavior: Follow up with customers who clicked a link or browsed a product but didn’t buy.
• By purchase history: Offer upselling and cross-selling suggestions or loyalty rewards to repeat buyers.
• By location: Send local event invites or weather-appropriate offers.
• By engagement level: Create a reengagement strategy by sending inactive subscribers special incentives, while rewarding your most active ones with exclusive content.

Time your messages wisely.

When you send a text is almost as important as what you say. To find the right timing, test different send times to see when your audience is most responsive, and pay attention to how much they engage. 

Message volume matters, too. A steady flow can help create trust, but too many messages in too short a time can lead to fatigue and frustration. Try to find the sweet spot where your communications feel helpful but don’t annoy your recipients.

Measure what matters.

To truly understand how well your messages are performing, you need to look beyond open rates and understand more advanced metrics like the following:

• Conversion rate: Track how many recipients take the desired action, such as completing a purchase. The EZ Texting report found that nearly half of consumers have made a purchase in response to a marketing text, showing just how powerful SMS can be for driving sales.
• Click-through rate (CTR): According to the Decision Telecom report, SMS campaigns see an average CTR of 27.7 percent — far higher than what most email campaigns achieve.
• Customer lifetime value (CLV): Customer lifetime value measures how SMS affects repeat purchases and long-term retention. A single text can be the start of a relationship that keeps customers coming back.
• Cost per acquisition (CPA): Calculate your campaign spend against the number of new customers acquired through SMS.
• Return on investment (ROI): The same Decision Telecom report shows SMS marketing delivers an average ROI of $16.70 for every $1 spent. This is an excellent digital marketing ROI.

Together, these metrics help you see whether SMS is just generating quick clicks or truly strengthening your bottom line.

Use integrations and automation wisely.

Effective SMS campaigns don’t happen in isolation. Most modern text marketing platforms connect easily with many of the best CRM software platforms, as well as e-commerce tools and other marketing software. That means you can set up triggered texts — like a follow-up after someone abandons their shopping cart — or automatically update customer segments as people make purchases. 

Automating these tasks saves time and ensures your messages are timely and relevant, while still leaving room for the personal touches that make customers feel valued.

Compliance, legal and security considerations

Like any marketing channel, SMS comes with its own set of rules and responsibilities. In the U.S., text message laws such as the Telephone Consumer Protection Act (TCPA) set strict standards for businesses using SMS marketing. Staying compliant not only keeps your business out of legal trouble — it also builds trust with customers who share their phone numbers with you. Here’s what you need to know:

TCPA requirements

To comply with federal regulations, businesses must:

• Get explicit opt-in consent: Customers must clearly agree to receive marketing texts before you send them.
• Provide easy opt-outs: Every message must include a clear unsubscribe option (like “Reply STOP”), and requests should be honored immediately.
• Respect timing rules: Marketing messages should generally be sent between 8 a.m. and 9 p.m. in the recipient’s local time.

Data protection and privacy best practices

SMS marketing also involves handling personal information. That means safeguarding customer data through secure storage, access controls and regular audits of your practices. Customers are far more likely to engage when they know their data is handled responsibly.

Healthcare note: If your business operates in healthcare, remember that text messaging must be HIPAA-compliant, meaning messages should be encrypted and systems designed to protect sensitive patient information.

Limitations and challenges of SMS marketing

While text message marketing offers ample benefits, it isn’t the right solution for every business, and even those that embrace it will likely face some hurdles.

Consider the following scenarios where SMS may not be effective:

• Companies with complex products that require detailed explanations may find the 160-character limit restrictive.
• Brands targeting demographics that prefer email, social media or other channels might see lower engagement.
• Highly regulated industries, such as financial services or healthcare, may face compliance burdens that make SMS more challenging or expensive to use.

Every business should be prepared and plan for the following potential challenges of an SMS marketing strategy:

• Message deliverability: Carrier filtering can affect delivery rates, especially for new senders.
• Content limitations: Short messages need to be concise yet compelling, which can be tricky.
• Opt-out management: Businesses must track and honor unsubscribe requests promptly.
• Spam concerns: Over-messaging or irrelevant content can damage your reputation and engagement.
• System integration: Connecting SMS tools with CRMs, e-commerce platforms or marketing automation software may require technical expertise and ongoing maintenance.

Are you ready to start text marketing?

In today’s mobile-first world, customers want to connect with businesses as easily as they do with friends and family. Text messaging has grown from a simple communication tool into one of the most effective ways for brands to engage.

With its speed, convenience, and strong ROI, SMS is now a must-have in the marketing toolkit. With thought and planning, business texting can help companies build loyalty, deliver timely offers, and keep customers coming back.