A practical guide on how SMS marketing impacts business growth

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When inboxes overflow and social feeds scroll endlessly, getting your message seen feels like a losing game. That’s your cue to try SMS marketing.

What is SMS marketing? It’s a direct, permission-based way to communicate with your audience through text messages and deliver promotions, updates, and reminders straight to their phones.

Emails can go unread for days, and ads get ignored, but SMS messages usually get opened within minutes. That’s why we’ve put together this guide, in which you’ll find:

• What SMS marketing is and what it’s used for
• Why it’s so effective (real statistics included)
• Examples of businesses successfully using SMS marketing
• How to do SMS marketing right
• SMS missteps you’ll want to skip
• Recommended SMS marketing tools and tips for using them

So, keep reading if you’re ready to make your marketing simpler, faster, and more personal.

What is SMS marketing?

As previously mentioned, SMS marketing is a form of direct communication in which you send text messages to customers who have agreed to hear from you. This aspect is important because in most countries, you’re required to get clear consent from customers before sending marketing texts.

You might use SMS marketing to announce an upcoming sale, send reminders, or follow up after a purchase. SMS is flexible enough for both marketing messages and service updates, like receipts or support alerts.

Let’s delve deeper into the use cases of SMS marketing.

What is SMS marketing used for?

SMS marketing has a wide range of applications besides promoting your products. Here are its main use cases and how you can make the most of them.

1. Discounts and promotions

SMS marketing can help keep subscribers engaged with your business. This is achieved by setting up SMS-exclusive offers and giveaway contests. Other types of promotional campaigns include the following.

• Seasonal sales: Texting is also a great way to boost holiday sales, enhancing engagement and product visibility.
• BOGOF offers: With Buy One, Get One Free, each item is effectively 50% off, and customers perceive it as getting something for free. From your side, the cost remains the same as offering a standard discount, but for the buyer, it feels like an unbeatable offer, often encouraging them to purchase more than they originally planned.
• New subscriber discounts: When clients first subscribe to your SMS campaigns, they’d appreciate a prompt discount. Make sure to include a time-limited offer to push them further along the sales funnel.
• Product bundling: Instead of selling items individually, create ready-made combinations that make sense together, like pairing accessories with a main product or offering a set that enhances its use. This encourages customers to spend more than they planned while giving them better value through a lower price per item.
• Customer loyalty rewards: Your active customers deserve a treat every now and then. Surprise them with exclusive deals, extended discounts, or VIP privileges. Engage them with loyalty programs by offering point balance updates, early access to new drops, or personalized reward reminders that land directly in their inbox when it matters most.

2. Back in stock notifications/alerts

New product or campaign alerts let customers know when you’ve launched something new, especially if it includes items they’ve shown interest in. These notifications are a great way to drive early traffic and create buzz around your latest releases.

Back-in-stock alerts don’t let interested buyers slip away. When you notify customers that an item they wanted is available again, you re-engage them at the perfect moment. It saves them the hassle of checking back manually and often results in faster, higher-converting sales.

3. Referral campaigns

SMS referral schemes help grow your brand awareness and reputation through word-of-mouth marketing. When you create a referral campaign via SMS, the details matter the most: emojis, your company’s link, images, and even memes.

Clients enjoy non-formal texts, but do not overdo them; keep it professional and don’t make it look like an advertisement. Offer a value proposition, include your link, and provide an incentive. Here’s an example of how a referral text should look:

4. Shopping cart abandonment

Most retailers pinpoint abandoned cart rates as one of their biggest challenges. SMS marketing presents an affordable and effective way to recover abandoned carts using single or sequential auto-reminders. Free shipping bonuses also help reduce cart abandonment rates, and they work best if your clients have been inactive shoppers for a while.

5. Gathering feedback

SMS surveys are a great way to collect large amounts of feedback quickly. As a result, they are highly effective at getting customer ratings for specific features and processes, as this approach elicits a higher response rate.

SMS polls make it easy to get straight answers fast. Whether you’re testing campaign concepts, choosing a subject line, or prioritizing feature ideas, this one-tap format keeps things simple and actionable. With no app downloads or survey fatigue, response rates stay high, and insights come in instantly.

6. Lead follow-up

Text message marketing is an instrumental communication channel for following up fresh leads. The sales journey is only sometimes seamless; occasionally, it takes an extra push for customers to engage and make the purchase decision.

Following up with leads is a great and simple way to increase your sales with personalized communications.

7. Birthday text messages

Birthday texts are an easy way to show customers you care, while also sparking a conversion. A simple “Happy Birthday!” with a discount or freebie feels personal, timely, and far more visible than an email.

8. SMS as a complementary channel to email marketing

SMS and email work best when used together. Email handles the longer story like newsletters and promos, while SMS is your call-to-action (CTA) starter: quick, direct, and action-focused.

Think of it this way: Send a promo via email, then follow up with a text right before it ends. It keeps your brand top of mind and boosts conversions without overwhelming your audience.

How SMS marketing works

As mentioned before, you need permission to send SMS marketing messages via opt-in. Then, you can send promotional messages as text messages to your clients’ mobile phones.

Why use SMS marketing?

SMS marketing works because it cuts through the noise. Text messages reach your customers instantly; unlike other digital contact channels, text message marketing can still reach offline customers. 

When your message is relevant, well-timed, and fully permission-based, it feels personal, so people are far more likely to engage.

Here are some other reasons that make digital marketers all over the globe turn to SMS as their go-to communication tool.

Quick and easy to set up

SMS promotional messages and templates can be created and sent in seconds. As a result, there is no need for lengthy marketing copy and media content.

Instant delivery

Texts reach clients instantly. When you text customers, they receive prompt notifications on their phones. This means that an SMS gives clients access to content in seconds.

Highest open rates

Around 60% of customers open text messages within just a few minutes of receiving them, which is a better open rate than any other channel. Your marketing tactics will be even more successful, especially if they include a sense of urgency (e.g., “flash sales”).

Above-average reply rates

Text messages are almost six times more effective than emails in terms of response rates, making SMS the most engaging communication tool on the market.

Cost-effective

The low cost per message and high response rates give SMS promotional messages a high return on investment. Conversely, contacting thousands of customers quickly using other communication methods can become expensive.

Easy to manage

Certain business texting platforms let you manage multiple SMS campaigns from a single dashboard. For example, Textmagic allows you to send mass texts and both automate and personalize campaigns. You can also integrate your favorite apps into the platform, which helps boost client engagement rates.

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Why is SMS marketing so popular?

Image source: grandviewresearch.com

There are a number of factors at work behind SMS marketing’s growth in popularity:

• 90% of the world’s population owns a smartphone. This means your text messages can reach almost anyone.
• SMS marketing has a response rate of 45%, while only 5% – 10% of email recipients respond to a marketing email.
• 19% of SMS marketing recipients will click a link in the text. This is almost six times as many clicks as clicks made through links sent in email marketing messages.
• 84% of consumers have opted in to SMS offers.
• You can contact customers wherever they are and also send marketing messages to customers who don’t check their email or have access to the internet. By 2027, it is predicted that there will be 7.69 billion smartphone subscriptions. This makes SMS marketing the easiest and least expensive way to reach customers.

Which businesses need SMS marketing?

Any business can benefit from including text message marketing in its strategy. However, for some industries, this technology is vital for growing the business and providing a top-tier service.

• E-commerce: Text message marketing can significantly improve customer experience for e-commerce businesses. Order updates and confirmations help users track their purchases and avoid missing deliveries, and the speed and ease of use make the online buying experience run smoothly.
• Service, hospitality, and healthcare: Missed appointments mean lost revenue. Text reminders help reduce no-shows and keep schedules on track.
• Travel and event planning: SMS marketing helps travel and event planning businesses keep clients and staff updated on event schedules, travel times, and last-minute changes. It can also be used to send tickets and programs, cutting printing costs and paper usage.

Three real-life SMS marketing examples

Here are three real-life examples of SMS marketing in action, showcasing how targeted messages can drive engagement and boost sales.

1. Homage’s NFL starter jacket drop

Image source: homage.com

When launching its 80s/90s-style NFL Starter jackets, Homage sent one SMS and received 100 orders in 60 minutes.

Why it worked

• Hyper-targeted: Fans who love retro NFL gear got a timely text and jumped fast.
• Pressure & precision: The direct copy sealed the deal.
• Channel synergy: SMS amplifies email and social, so they hit customers multiple times, without overloading.

2. Tatti Lashes’ VIP welcome text

Image source: tattilashes.com

Tatti Lashes built a 40K-strong list in three months by giving people a reason to actually care.

That first welcome text? 30% click-through and 9% conversion rates straight out of the gate, driving six-figure revenue.

Why it worked

• High-intent list: Tatti Lashes gave subscribers a solid reason to opt in, but didn’t blast generic fluff in return.
• One smart text: It can prove a payout that most brands chase for months.
• Multi-channel follow-through: Instead of guessing where the revenue came from, they tracked every tap, so every subscriber got the right mix in the right order.

3. Domino’s Pizza: SMS boosts ad ROI

Image source: dominos-pizza.ro

Domino’s blended in SMS into its existing TV and Facebook video campaigns. A $25 SMS push drove 125 incremental orders, proving that ROI doesn’t always need a six-figure spend.

After this move, Domino’s also managed to grow its SMS subscriber base by 850 contacts, acquiring each at just $0.15 per opt‑in.

Why it worked

• Cost‑effective amplification: Minimal investment yielded significant incremental sales as SMS multiplied the ad ROI.
• Convert +: Domino’s used each SMS to add new orders and new subscribers using the same message.
• Measurable impact: Clear opt‑in cost and order count made ROI tracking straightforward.

SMS marketing best practices

While specific regulations differ from country to country, there are best practices you should always follow. These are vital when you want to respect your customers’ privacy and will ensure you get the desired response from your marketing campaigns.

• Personalize text messages: Messages focused on your customers’ interests elicit more responses. Use your clients’ buying histories and other details to send them the most appropriate content.
• Keep messages short and simple: Customers expect texts to be brief, so get straight to the point. Focus on getting across the vital information, including your company name, the product or service offered, and the value of the discount or deal.
• Include a CTA: Clear CTAs in your SMS promotional messages make it easy to respond. The call to action should stand out, so recipients can easily decide what to do next.
• Use text message automation: Personal phones and scattered inboxes create chaos. A business texting app keeps everything in one place, letting you schedule messages, automate replies, and reach customers at the right moment, without the mess.
• Include complete company names set in bold in your text, or use the SMS sender ID feature to make a good impression using top business communications.
• Get the timing right: Send texts at the most convenient time for your customers. Respect their time zone and try to reach your recipients between 10 am and 6 pm. If you find replies are more frequent during a specific interval, adjust the timing of your campaigns accordingly.

SMS marketing mistakes to avoid

The wrong approach to SMS marketing can limit the number of responses you get to your messages. Here are three common mistakes that could lead to a negative response from customers or to a lack of response.

Low-value messages

Texting is a personal contact method. Customers want to keep their inboxes free from spam, so make sure you only send marketing messages that have value to each customer. Segment your audience to avoid sending generic messages to everyone on your mailing list.

Inadequate texting frequency

Similarly, even if you only send high-value offers, ensure your texting schedule won’t exhaust or overwhelm your audience. Reduced texting frequency is also a problem because clients will lose touch with your brand and even find your texts intrusive after long periods of inactivity.

Jargon and textspeak

Customers won’t engage with your text if they can’t understand it. Textspeak doesn’t sound convincing and can appear lazy. Stick to using well-known and accepted text abbreviations.

Best SMS marketing services on the market

Looking for the right tool to launch your SMS campaigns? Here are three standout platforms to help you get started.

1. Textmagic

👍 Best for: Small to mid-sized businesses that want fast, reliable SMS communication without a steep learning curve

Textmagic is known for its simplicity, reliability, and strong focus on two-way SMS. Campaigns, customer replies, and contact lists are handled in one dashboard that doesn’t require a manual or a learning curve.

Advanced scheduling, delivery tracking, and contact segmentation come standard, along with a web app, mobile app, and email-to-SMS capabilities. It connects seamlessly with your workflows: Zapier, API, or custom setups, so you’re not rebuilding your stack just to add SMS.

Make SMS work
for your business

Start connecting
with customers today.

Try SMS marketing

2. Mailchimp

👍 Best for: Businesses already using Mailchimp for email marketing and want to add SMS into the mix

With SMS now part of the mix, Mailchimp gives you one home for all your messaging, ideal for keeping campaigns consistent and connected. You can trigger SMS based on email behavior, automate follow-ups, and use built-in analytics to track conversions.

Its biggest strength is coordination. Use email for the full story, and SMS to drive the action when it matters most. Just note that Mailchimp’s SMS marketing features are currently available in select countries and may come with additional pricing.

3. Postscript

Image source: postscript.io

👍 Best for: E-commerce brands, especially those using Shopify

Postscript was made with e-commerce in mind, and it shows. Its tight Shopify and BigCommerce integrations let you launch smarter campaigns fast.

Its strengths are automation and personalization. That is, cart abandonment flows, restock alerts, and product review requests via SMS.

You can target customers by what they bought, when they bought it, or how often they shop, then send them visuals via MMS that get noticed. In other words, Postscript is ideal if you want your SMS channel to do more than just send one-off blasts.

Text your way into better customer relationships

We’ve covered what SMS marketing is, why it works, and how to do it right. Real-world results speak for themselves. Now it’s your turn to turn strategy into impact, since you’ve got the right tool at your disposal.

Go from sending messages to building real-time connections with Textmagic. With automation, live chat, and built-in contact management, every message will become an untapped growth opportunity. 

So, why not aim for fewer missed appointments, faster conversations, and more eyes on your offers?

Make SMS work
for your business

Start connecting
with customers today.

Try SMS marketing