The Rise of SMS Marketing: Trends and Stats for 2024

SMS marketing stats show that it’s still one of the best channels for reaching out and generating leads.

Despite the popularity of other channels like social media, SMS has several advantages that make it special. The average person sends approximately 3 SMS per hour and this shows its popularity.

SMS is specifically useful for some marketing activities. For example, you can’t use other channels for time-sensitive events, order updates, and quick reminders.

So every business needs to leverage the power of SMS marketing along with other marketing methods.

In this blog post, we’re going to review the key SMS marketing stats and trends in 2024. By reading this article, you’ll understand how your business can take advantage of SMS campaigns to boost your sales.

Also, if you need more info about SMS marketing, you can count on WP SMS and contact our team for help.

Why Is SMS Marketing Crucial for Businesses in 2024?

Here are the benefits of using SMS marketing that make it a crucial part of every marketing strategy in 2024:

1. Direct & Immediate Communication

SMS is the fastest way of communication. The majority of people try to open their messages soon after receiving them. This makes SMS a great channel for time-sensitive events.

2. High Open & Engagement Rates

People like to engage with text messages more than emails. Many people don’t have email or don’t check their emails each day. However, many of them try to respond to every SMS. That’s why the open rate of SMS is higher than that of email.

3. Personalization and Customization

Customers will highly likely buy from brands that know them and personalize their communications.

So customized communication is an essential part of your marketing efforts, which will be easy using SMS platforms. You can integrate CRM and SMS platforms to customize your messages and send text messages specifically for each customer.

4. Compliance and Customer Control

With the rise of social media, privacy concerns have become a trend in recent years.  SMS marketing platforms offer opt-in and opt-out options to ensure compliance with data protection regulations like GDPR and TCPA. On other platforms, customers’ data might be manipulated more easily.

Key SMS Marketing Stats in 2024

Almost 23 to 27 billion messages are sent each day, which shows the popularity of this communication method. 

Now, let’s review the most important SMS marketing stats in 2024 to see how this industry is performing:

SMS Open Rates: highest among other channels

SMS open rates stand at an astounding 98%, compared to just 27% for email. This is crucial for marketers aiming to cut through the clutter and grab immediate attention.

Response Rates: higher than emails 

The response rate is much higher than that of emails. You can expect a response rate of around 45% in SMS marketing while emails will give you response rates of lower than 10%.

Customer Preference: still popular, especially among the elderly

Although social media platforms like Instagram have changed the way we communicate, SMS is still the preference of nearly 70% of consumers.

This is especially for appointment reminders, order updates, and promotional offers. SMS is particularly more popular than channels like email or phone calls.

Text message marketing can benefit all age groups from adults, parents, or children, although older people are more likely to prefer SMS over other channels.

Here is a breakdown of SMS marketing stats based on age:

• People under 45 years old receive more than 80 text messages each day.
• More than 95% of teens use SMS regularly.
• 83% of millennials choose SMS for communication with businesses.
• 65% of Gen Z prefer SMS for receiving SMS ads rather than emails and social notifications.

Global SMS Market Size

The global enterprise SMS market size in 2023 was around $56.1 billion. Now, it’s estimated that the SMS market size will reach $111.6 Billion by 2032.

This shows that SMS marketing will continue to grow for the next decade so businesses of all sizes should have a plan for it.

Opt-in Rates

SMS marketing requires opt-in procedures but don’t worry because over 60% of people are willing to subscribe. So SMS is perfect for sending personalized ads and updates.

Industry-Specific Stats in SMS Marketing

Apart from general SMS marketing stats, you need to take a look at specific stats in your industry. Here is a breakdown of SMS marketing statistics in several important niches:

Retail & Ecommerce

Retailers and e-commerce platforms might be the biggest beneficiaries of SMS marketing. In 2023, over 60% of retail marketers consider SMS marketing an important part of their strategy.

People in the world are spending more money buying from online shops. Ecommerce sales are estimated to have a market size of 4 trillion USD.

You can’t manage promotions, cart abandonment reminders, order updates, and many other tasks without the help of automated SMS marketing.

The conversion rate of abandoned cart recovery is around 30% when you use SMS and it’s less than 5% when it comes to email reminders. This shows the power of SMS marketing in the realm of ecommerce.

Healthcare

The healthcare sector is also working with lots of people and they have many tasks that require immediate communication. 

Therefore, SMS marketing in the Healthcare field is a great help. Healthcare businesses like clinics can offer patients a quick and reliable way to manage their appointments and prescriptions.

Recent reports show that over 78% of patients prefer SMS reminders over phone calls or emails for appointment reminders.

The reason is clear because many people, especially the elderly don’t check their emails. Phone calls also might be annoying but SMS can be read and dealt with when the patient is ready. Stats say that almost 40% of no-shows in clinics decrease when you use SMS reminders.

Financial Services

Financial institutions need to send lots of messages to their customers and SMS is the best tool for them. Here are some of the most important services they can offer using SMS:

• Transactional alerts like account balance updates, deposit/withdrawal alerts, loan payment reminders, and card transaction alerts.

• Security and authentication messages such as 2FA, OTP, and password reset notifications.

• Promotional and marketing messages include credit card offers, savings and investment products, and loan offers. 

• Reminders and due notifications such as payment due reminders, subscription renewal alerts, and minimum balance reminders.

Just like many other industries, customers of financial services like to receive updates via SMS. The majority of consumers prefer SMS reminders and updates over other channels. Moreover, many customers feel receiving transactions via SMS is more secure.

Travel & Hospitality

The hospitality industry can also use SMS for:

1. Booking confirmations
2. Check-in reminders
3. Exclusive travel offers

SMS marketing can boost the booking rate of travel agencies and also increase their engagement rate.

Top SMS Marketing Trends to Watch in 2024 & Future

Apart from the current stats, SMS marketing will experience some drastic changes due to advances in new techs and other factors.

Here are the most important trends of SMS marketing in 2024 and shortly that you need to consider in your campaigns.

1. Integration of AI and Automation

AI is revolutionizing all aspects of our lives, and SMS marketing is no exception. Thanks to AI-powered automation features that SMS platforms offer, you can now send text messages more easily than ever.

You can even use sentiment analysis tools to analyze the response of your customers and check their feedback in terms of being negative, positive, etc. Then, an automated SMS will be sent to them without your interference.

Order updates, reminders, and many other tasks can also be handled using automated SMS tools.

2. Omnichannel Marketing with SMS

No marketing channel can be solely effective. Using SMS as part of an omnichannel marketing strategy is now a trend and businesses of all sizes are using it.

You have to integrate your SMS marketing campaign into your digital marketing strategy, social media content, and email marketing efforts.

Without this omnichannel, you’ll waste your time and money and you won’t reach success. Using SMS in an omnichannel marketing strategy will provide your audience with a seamless and consistent experience across all platforms. This will result in an improved brand identity and 90% higher customer retention rates.

Here are some examples of integrating your SMS strategy with other channels:

• You can send an abandoned cart email to your customer followed by an SMS reminder. It’s good to offer a discount code to complete the purchase.

• As a healthcare business, you can send an SMS reminder the day before the appointment while the patient has booked an appointment online. Also, you can send a confirmation email.

• You can use plugins like WP SMS to integrate your website’s activities into your SMS marketing strategy. For example, you can use the customer data on your site and segment them for personalized, scheduled, and automated SMS campaigns.

3. Rich Communication Services (RCS)

As it comes from the name, RCS offers a rich SMS with extra items like multimedia messages, call-to-action buttons, and customer interactions. RCS is much more interactive and engaging than simple text messages.

The global market size of RCS was around $2.68 billion in 2023 and is expected to reach a 25% increase by 2030.

4. More Concerns about Data Privacy & Compliance

We’re hearing more and more reports about people’s personal data leakage and misusing them by companies to make money.

86% of consumers say transparency from companies is more important than ever. That’s why regulations like GDPR in Europe and the TCPA in the U.S. are getting more strict year by year.

This is a trend SMS marketing companies should pay special attention to because they might face heavy fines if they don’t comply with the regulations.

As a result, almost all SMS marketing platforms like WP SMS include GDPR-compliant features in their updates.

5. Interactive and Two-Way Messaging

One-way SMS blasts and monotone conversations are outdated. In 2024, customers want to talk about the details of products/services with businesses. 

So you are expected to implement two-way messaging to create a friendly conversation with their customers. You can expect a 20% improvement in customer satisfaction scores by using this trendy feature available on many SMS platforms like WP SMS.

This trend allows your customers to reply to messages, ask questions, and receive immediate assistance. This is also great for getting feedback and running surveys.

Best Practices for SMS Marketing in 2024

Considering the mentioned SMS marketing stats and trends, it’s good to follow certain tips to get the best results in your campaigns.

1. Obtain Clear Consent & Include Opt-Out

As said earlier, data protection regulations are on the rise and you need to think of more strict measures to avoid troubles in your campaigns.

Try to get consent before your campaigns and also include an opt-out option in your text messages.

2. Keep Messages Short & Focused

Despite email, SMS is not a place for extra explanations. You need to be concise and polite simultaneously and avoid superfluous descriptions. 

You need to include important matters in your message. Here is a breakdown of a standard SMS for your marketing campaigns:

• Salutation: A personalized greeting like “Hi [First Name].“

• Message Body: The main content should be brief and to the point and offer something valuable like promotion, info, and updates.

• Call to Action (CTA): Encourages the recipient to take action. For example, “Shop now,” “Claim offer,” or “Reply YES.”

• Link: A shortened link to a webpage, product, or offer.

• Expiration/Urgency: Creates urgency, such as “Offer ends tonight” or “Limited time only.”

• Opt-Out Instructions: Provides a way to unsubscribe (e.g., “Reply STOP to opt-out“).

3. Timing is Everything

It’s necessary to send your SMS at the right time. Too early in the morning or too late at night are the worst times to send ads using SMS.

Remember that this can lead to annoyance and higher unsubscription rates. There is no certain time for sending SMS but you have to find peak hours by trial and error and using the experience of other brands. Here are the best hours to send SMS based on customer satisfaction:

• Thursday at 2 pm
• Friday at noon
• Saturday at 7 pm

4. Segment Your Audience

Trends showed that customers like specific and personalized messages based on their own preferences.

So one-size-fits-all SMS campaigns will not yield good results for your business. Try to segment your audience based on:

• Demographics 
• Buying habits
• Past interactions
• Website’s searches

Then, you have different groups that have common interests so you can send customized messages to each one. This helps you get higher engagement rates and boost your sales.

5. Track and Analyze Performance

Even the most strong SMS marketing strategies might go wrong when you implement them. So you need to constantly track the results and optimize your performance accordingly. 

Running surveys, getting feedback, and conducting A/B tests can greatly help you in this regard. Also, if you need more help to remove your weaknesses in your campaigns, you can always count on WP SMS’s responsive team.

Common Mistakes in SMS Marketing in 2024

Last but not least, here are some common mistakes you have to avoid in your campaigns:

• Over-messaging: If you send text messages too frequently, your customers might get annoyed and decide to unsubscribe.

• Ignoring Opt-Out Requests: If your customers unsubscribe, you have to respect their choice and avoid sending SMS again. Bear in mind that if you continue sending messages, you might damage your brand reputation and also face legal fines.

• Not Having a Consistent Approach: You have to create a consistent approach and show a seamless style on all marketing channels to build a brand identity. This way, customers will recognize you after a while and this is great for your brand.

• Not Promoting SMS Campaigns on Other Channels: Cross-promotion is a great method for maximizing the results of SMS campaigns.

Final Thoughts

SMS marketing is one of the most effective means of advertising, business communication, and customer support. 

You can run a successful SMS campaign with a bit of investment and using brand-new platforms like WP SMS. 

You just need to follow a strong strategy and SMS marketing best practices to make the most of your SMS campaigns. 

We reviewed SMS marketing stats and trends to give you insights into what you can expect from SMS. 

Of course, to ensure success, you need to use other marketing channels like email and social media to maximize your reach and boost your sales. 

If you need any help in this regard, you can always contact us and get help from WP SMS.

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