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Although text messaging may seem like an outdated communication tool, data indicates that this marketing method is not only effective but also one of the most powerful and cost-effective ways to communicate with customers. In this article, you will learn about both the positive and negative aspects of SMS marketing, the latest trends, and tips from NOTRE if you plan to implement this tool in your marketing activities!

Positive aspects

A bit of statistics:

  • After receiving a text message, approximately 98% of sent SMS are opened. Try creating an email campaign with results that could approach these!
  • On average, 90% of texts are read within three minutes of receiving them. SMS operates similarly to app push notifications – users will almost immediately view what’s been sent.
  • The average click-through rate on links sent via SMS is around 19%. For comparison, the average rate in email marketing is approximately 3%.
  • Compared to other forms of marketing, SMS campaigns often yield a higher return on investment (ROI), with studies showing it can reach up to 98%.

Considering the swift reading of texts after receiving them, SMS marketing enables somewhat of a real-time communication with customers. This communication channel is excellent for urgent notifications, promotions, and other needs.

It’s a direct and personal form of communication because it reaches people’s private space—their phones, which are almost always in their hands throughout the day.

Sounds promising, doesn’t it?

Negative aspects

However, like any other marketing tool, SMS marketing has its downsides.

Let’s delve into the other side of the coin:

  • If the content sent is uninteresting, intrusive, or if the volume of messages is too high, there’s a significant risk that the customer will opt-out of further messaging and block the sender.
  • This can create a negative perception of the brand, which the customer may share with those around them.
  • Just like with email newsletters, in the case of SMS, permission from the number holder is required to send marketing-related information.

Since this isn’t quite the holy grail of marketing, this tool should be handled with care, used relatively infrequently, and only in appropriate situations.

Latest trends in SMS marketing

Many companies are looking for opportunities to transition from one-way announcements in SMS format to conversational dialogues. This means that after receiving a text message, the customer has the opportunity to respond and receive a reply. 

The problems with SMS character limits can be overcome with the help of AI, but it’s worth noting that each text written by AI needs to be reviewed to ensure that communication doesn’t seem overly robotic.

Overall, incorporating SMS marketing into a company’s communication plans could provide many benefits and help achieve marketing goals. However, it’s important not to rely solely on this channel and view it as just a small part of a broader marketing strategy.

NOTRE recommendation

If you’ve chosen to use this marketing tool, segment your audience based on their individual interests. This way, the recipient will feel that special thought has been put into them and receive engaging content. And one more essential note – always test your texts because SMS messages can appear differently and the included links will function differently on various phones and operating systems!

 

If you’re looking for an opportunity to incorporate this tool into your company’s communication activities and are looking for experts to help bring it to life, we can help!