Why Your Small Business Needs SMS Marketing in 2024?

What do you think? Is sms marketing for small businesses? 

Many marketers think social media has taken the place of other marketing channels like SMS. If you’re one of those, you’re making a great mistake. 

Although new marketing methods are great, SMS is still one of the best channels for time-sensitive ads and intimate communications. Of course, not only does using SMS not prevent you from using other channels, but it also helps you enhance an omnichannel marketing strategy.

That’s what we’re going to talk about in this blog post. So read the following article to learn how you can use SMS marketing for your small business to boost your sales.

10 Benefits of SMS Marketing for Small Businesses

Let’s first review the advantages of using SMS marketing for small business growth. Here is why you have to use this opportunity to boost your sales:

1. High Open and Engagement Rates

SMS marketing outperforms many marketing channels including email when it comes to open rates.

It’s estimated that SMS has an open rate of around 98%. In other words, you can be sure that the majority of recipients open your messages. This is by far more than email which has a typical open rate of around 20-30%.

For a small business with limited resources, this can be a great benefit because you can’t try expensive methods with less open rates.

Also, more than 90% of people open their messages within 3 minutes of receiving them. In fact, people are near their smartphones and try to open their messages because they think their family and friends might have sent an important message to them.

This helps your messages to be read more if you write them so that the text doesn’t look spammy! So with a bit of creativity, you can increase your engagement rates and encourage the recipients to become your customers.

2. Cost-Effective Marketing Channel with High ROI

As said earlier, SMS is an affordable communication channel. For your small business with limited budgets, SMS marketing offers a cost-effective solution.

Sending a text message is inexpensive, and the ROI of SMS marketing is usually high. It’s estimated that SMS marketing has an average ROI of around $20 for each dollar spent on the campaigns. Of course, this is different for various industries and it might be less for small businesses.

However, it’s still high and that’s why we recommend you include SMS marketing in your advertising strategies. 

3. Instant Message Delivery for Real-Time Communication

SMS has a real-time nature and it makes it stand out among other channels like email. So it’s an ideal tool for time-sensitive promotions such as:

• Flash sales
• Limited-time offers
• Appointment reminders
• Order/shipping updates

The real-time delivery nature of SMS lets you be responsive. For example, if a product becomes available again after being out of stock, you can instantly let customers know.

Here is an example of such SMS:

Also, if there’s a sudden change in your shop’s operating hours, you can easily use SMS to send a text to your subscribers. Here is a sample SMS of this kind:

4. Direct and Personal Interaction with Customers

SMS marketing might be the most personal and intimate means of marketing. When a customer opts in to receive your small business messages, they’re actually inviting you to their personal space.

You can send personalized offers, reminders, or updates directly to your customer’s phone.

5. Increased Customer Loyalty and Retention

You need to use this direct communication efficiently to build customer loyalty and boost your sales. However, you have to avoid being too promotional because they might feel you’re taking advantage of this interaction.

If you offer something valuable in your text messages, you can easily build a community for your small business. For example, SMS is great for sending relevant updates, exclusive promotions, or loyalty rewards.

6. Easy Integration with Other Marketing Channels

SMS can be easily integrated with other marketing channels like your social media accounts, email, your website, and PPC campaigns.

For example, you can use tools like WP SMS to integrate your SMS campaigns with your website’s digital marketing strategies. This is a simple and free plugin that lets you use your website’s subscribers to send SMS blasts.

7. Boosts Sales with Time-Sensitive Offers and Promotions

SMS marketing is king when it comes to time-sensitive offers. You’d better use SMS in situations like:

• Last-minute sales reminder
• Short-period discounts
• First-come, first-served promotions

These kinds of promotions can create a sense of urgency and encourage many people to buy your products.

8. High Conversion Rates from Targeted Campaigns

SMS lets small businesses target specific audiences. You can use various sources to build a list of potential customers and segment them based on different factors. This is simple when you use SMS because SMS platforms allow you to run targeted campaigns and get high conversion rates.

9. Strengthens Brand Trust and Customer Relationships

SMS is a great tool for building trust, especially for small businesses. You can easily use this channel to gain the trust of your customers and increase your brand loyalty. In fact, SMS is the best channel for running a customer-centric campaign. This makes your customers feel they’re part of your story.

10. Simple Management 

Managing SMS marketing campaigns is easier than other channels. This is great for small businesses because they usually have a limited budget. 

Also, thanks to new SMS marketing platforms like WP SMS, you can easily integrate your campaign with other channels like your website. This is possible without having to learn how to code. So non-expert users can easily run text message marketing for their small businesses.

SMS Marketing Best Practices for Your Small Business

Now that you know the benefits of SMS marketing for your small business, it’s good to learn some tips for running an efficient campaign.

Get Customer Consent and Build an Opt-in List

Despite other marketing channels, SMS marketing requires strict compliance with some regulations.

There are two important reasons for this:

1. If you don’t comply with national and international communication rules, you might face fines.
2. If you don’t get consent from your recipient, they might get annoyed and block your messages.

So if you want to prevent damaging your reputation, you have to learn these regulations, especially getting consent from your subscribers.

Building an opt-in list can help you increase your brand loyalty and make your future SMS marketing much easier.

Keep Messages Short, Clear, and Actionable

You have a character limit of 160 so you need to convey your messages quickly and clearly. Don’t mention extra information. Just try to explain what your offer is and then put your call to action.

Remember that people don’t like impolite requests so you have to be polite while being concise. Here are some examples of short and actionable messages in different industries:

1. Retail

2. Restaurant

3. Health and Wellness

4. E-commerce

5. Beauty and Salon

6. Real Estate

7. Automotive

Appear Like a Friend, not a Seller

You have to build friendships with your customers. Remember that many businesses are sending promotional texts and people are tired of such promotions.

So try to be different from other businesses. The question is how?

Start by making conversational messages that are less transactional. Try to use casual, friendly language so that people believe you’re different.

Also, try to engage customers with valuable offers beyond just sales. For example, helpful tips, personalized recommendations, or reminders can help your audience. This way, they will gradually trust your business and may become your customers.

In sum, you have to show them that you want to answer their needs.

Segment Your Audience for Relevant Messaging

Another important matter is that customers have different interests so you have to talk to them differently.

You have to try to segment your audience based on various factors like:

• Behavior 
• Preferences 
• Age
• Location
• Gender
• Past interactions with your brand

This way, you can send targeted messages that are more likely to resonate with each group’s needs and interests.

For example, if you’re a retailer, you can send one SMS campaign to parents for kids’ clothing and another campaign to younger customers for tech gadgets. Here are the sample messages:

1. For Parents (Children’s Clothing Promotion):

2. For Younger Customers (Tech Gadgets Promotion):

Schedule Messages for Optimal Timing

You have to consider timing when you want to start your SMS marketing for small businesses. 

If you send an SMS untimely, your opt-out rate will increase because many of the recipients get annoyed. 

The best time for sending SMS is dependent on many factors, including your industry. For example, if you have a restaurant, you need to send urgent text messages at lunch and dinner times.

Cross-promote your SMS Marketing on other Channels

The most efficient approach for small businesses is to combine their marketing efforts in various channels like social media email, and SMS.

For example, you can create an Instagram post about a new product and then send time-sensitive text messages with discounts. This way, you can encourage your customers to purchase the product.

Monitor Results and Continuously Optimize Campaigns

Last but not least, you have to track your SMS marketing performance to detect your weaknesses and strengths. This way, you can optimize your future campaign and increase the ROI.

You can also use A/B testing to find the best approach for marketing your products using SMS. For example, you can test different CTAs or send text messages at various hours to find the best SMS marketing approach.

Here is an example of an A/B testing for a coffee shop:

• Version A:

• Version B:

This is testing the opening line to see the best approach that attracts more people.

Final Thoughts on SMS Marketing for Small Businesses

As a small business owner, you can make the most out of SMS marketing if you build a strong strategy. Remember that it’s not about throwing some text messages. You have to define SMART goals and laser-target your audience. Try to use affordable tools like WP SMS to save time and money in your small business SMS marketing campaigns. You also need to constantly analyze your performance and remove your weaknesses. If you need help in this regard, you can always contact us.

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