7 Benefits of Text Message Marketing

What are benefits of text message marketing?

Text message marketing software is now used widely as a strategic component by retailers and brands for a wide range of mobile marketing use cases. Here are some of the key benefits text message marketing offers businesses.

Text messages have high open and response rates.

Consumers are constantly on their mobile devices, making it an easy platform to reach them on. Marketing-related text messages have an incredibly high open rate of about 99 percent, compared to the average email open rate, which is slightly over 30 percent, according to the Data & Marketing Association. Also, as mobile consumers place a considerable premium on convenience and simplicity, text messages are likely to command much higher ― and faster ― response rates than other approaches, such as email or app notifications.

“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.

You can take advantage of mobile coupons.

The mobile channel has become the first point of interaction between consumers and brands. No wonder marketers saw a tremendous opportunity in leveraging this trend to send tailored promotions and loyalty rewards, such as mobile coupons. Interestingly, with the mobile customer’s journey becoming mature, more consumers have come to prefer receiving mobile coupons over paper coupons.

According to Statista, almost 60 percent of United States consumers preferred digital coupons in 2023. Millennials chose this version the most, with 7 in 10 opting for them over paper ones. Gen Z also liked such digital savings, with 62 percent using them. Capital One Shopping found that the mobile coupon market is expected to hit $1.6 trillion by 2030.

It increases loyalty program engagement.

Making loyalty programs accessible via mobile devices is the most effective way to drive member engagement. Adding strong evidence to this is recent research from Insider Intelligence that shows 75 percent of consumers prefer loyalty programs accessible on their mobile as they shop online. Such data provides key insights about appealing to consumers who want to engage with loyalty programs from their smartphones via text messages.

A growing number of consumers prefer accessing rewards information from a link in a text message rather than through an app. Evidence consistently suggests that many companies use apps for mobile loyalty but more members prefer text engagement over apps.

It is a cost-effective form of marketing.

Text message marketing can be a highly cost-effective marketing method. This is because the only costs associated with this method of marketing involve using a text message service, which you most likely already have for your company anyhow. When compared to other types of marketing, this makes text message marketing an inexpensive alternative that yields great results.

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

Consumers can opt in and out easily.

Another benefit of text message marketing is that it is easy to opt in as well as opt out. Many businesses get the word out when customers visit websites as well as physical locations. By asking if the customer would like to receive special offers, coupons and more via text message, you can convince many customers to subscribe to your text message marketing service. Alternatively, if they no longer wish to be sent text messages from your company, opting out is as easy as either clicking a link or texting a few words to the sending

Delivery is direct and immediate.

One of the greatest benefits is that text message marketing is direct and immediate. In particular, short message service comparison found that text message marketing offers a read rate of 95 percent within three minutes of delivery, making it one of the best methods of marketing with minimal costs. Not only will most customers read your messages almost immediately but mobile marketing campaigns generate a return on investment as high as 45 percent.

It can integrate with other channels. 

Text message marketing can be integrated easily with other channels. Although it can work as a stand-alone marketing method, it can also serve to enhance and support other marketing methods. For instance, you can use text message marketing to alert your customers to sales that may be advertised on social media platforms, to remind them to check and respond to emails and more.

In addition, many popular text message marketing and email services can connect with each other. Some vendors even offer both solutions in one platform, like Mailchimp does.

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

Are you ready to start text marketing?

As businesses, brands and consumers move further toward a mobile-first world, there is a growing preference among consumers to connect with businesses in the same way they do with their social contacts, including family and friends. Text messaging is not only growing more powerful but is also more relevant for marketers and retailers.

With brands vying to deliver greater digital experiences with mobile devices, texting certainly emerges as an easier, faster and far more productive engagement vehicle than other methods. Marketers can use text messaging and pack them with surprises, delights and rewards and serve them to the mobile consumer, ensuring elements of choice and convenience are given due respect to earn customer equity and loyalty, thereby resulting in continued engagement and revenue.

Texting began as a simple tactic, largely applied for nonstrategic and small-scale communication activities. Fast forward to today, text messaging has become the most preferred method for brand communications and a must-have ingredient in the marketing toolkit for retailers.

Jennifer Dublino contributed to this article.