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SMS marketing (short message service marketing) is a technique that uses permission-based text messaging to spread promotional messages.

To receive text message specials, new product updates or more information, customers are usually required to opt in to an automated system by texting an initial shortcode. When the 5 digit code is texted, that user’s phone number is then stored by whatever SMS marketing software is issuing the texts. A confirmation response is usually sent as receipt for opting in, with an opt-out code included for potential future unsubscribing.

Generally speaking, the goal of SMS marketing is to build a database of subscribers to increase customer loyalty. When implementing close range marketing tactics, text messages are an ideal way of notifying people within your vicinity of any immediate offers, without having to use push-notification applications. More than informing your customers of upcoming deals, it can also be a great way to send reminders for upcoming events and engage your customers by polling their opinions.

In fact, for at least 60% of consumers, SMS marketing is preferred to other email marketing and push-notification services. Many delivery platforms allow for easy segmentation and management, so the most relevant text messages can be sent to those who are most likely to convert. It’s also preferable in that it tends to be less expensive when compared to other methods of distribution, making it a cost effective mobile solution.

Constraints

The most prominent constraint of SMS is also its powerful feature—the 160-character limit. The character set is also limited to the ASCII table, which is composed of all the numbers, upper and lowercase letters, and basic punctuation marks. If you want to send a message containing an image or more than 160 characters, then you need to use a short URL that points to a website with the additional information.

The character constraint of text messages may seem like a limitation, but it actually forces you to make your messages more to the point. Rarely do text messages contain extraneous information, because there is no room to fit it in. When your customers sign up for texts, they know they’ll only ever have to read one or two sentences.

Objectives

Every SMS marketing campaign should have a stated objective. Most commonly, businesses use SMS marketing to drive sales, but SMS marketing campaigns can serve many purposes, such as to improve brand awareness, educate subscribers, increase website traffic, generate leads, or even remind customers of events and appointments. The different types of SMS marketing campaigns will be discussed in detail in the next section.

Offer types

A majority of businesses use SMS marketing campaigns to drive sales in-store or online. One of the best ways to achieve this goal is by offering a short-term discount or a promotion to customers enticing them to buy. Additionally, discounts add to the value your customers get when they join your text marketing list, encouraging them to stay on the list and recommend it to their friends. Here are a few of the offers typically deployed:

PRICING-BASED OFFERS

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TIME-SENSITIVE OFFERS

Applies for a limited amount of time. All items in store are 25% off for the rest of the day.

PRODUCT-BASED OFFERS

Applies only to a specific product. Take 20% off our menswear with this coupon code.

LOCATION-BASED OFFERS

Applies only at a specific branch or location. Use this coupon code to take 15% off your purchase at our Springfield branch.

Types of SMS marketing campaigns

SMS campaigns can be classified by their purpose and their method of engagement. In the majority of campaigns, communication is one-way, but many campaign types can involve collecting subscriber responses, either in aggregate or at the individual level.

BROADCASTING

Broadcasting is the most common type of campaign. It entails sending your customers relevant information about the business or organization, such as announcements, discount offers, or limited time promotions. Alternatively, you can broadcast non-marketing information, such as regular tips, advice, or short pieces of content.

Keep in mind that when customers interact with broadcast campaigns, they expect to receive ongoing messages. Therefore, you should keep the text blasts at a consistent level, so your customers don’t forget about the campaign or fail to see the value in remaining subscribed.

APPOINTMENT REMINDERS

Instead of a broadcast to everyone, appointment reminders are targeted to specific people at specific times to remind them of their scheduled appointments. You can also prompt clients to confirm, cancel, or reschedule their appointments, in order to cut down on no-shows.

TEXT-TO-COLLECT-INFO

With a text-to-collect-information campaign, businesses ask customers to respond with certain information. These campaigns can serve to fill out missing customer information.

TEXT-FOR-INFO

In text-for-info campaigns, customers can text a keyword to a 5 or 6 digit number (SMS short code) to receive information about a business, such as open hours, a link to the website, or a phone number.

TEXT-TO-VOTE

In certain promotions, customers vote to determine a winner. In these campaigns, customers can send in their vote by texting an SMS short code.

Normally, a customer wouldn’t expect to receive ongoing updates after texting to submit their vote, so if you plan to add them to regular text blasts, you must offer that disclaimer up front.

USER POLL

In a user poll, you broadcast a question to your existing subscribers to gauge their opinion on your product. The key difference between a user poll and a text-to-vote campaign is that a user poll is sent to existing subscribers, whereas new users sign up to vote on text-to-vote campaigns.

TEXT-TO-WIN

In a text-to-win campaign, customers text an SMS short code to enter a sweepstakes or other contest. Again, customers wouldn’t normally expect to receive ongoing updates after enrolling in a contest, so be sure to include a disclaimer if you plan to contact them again.