The Complete Guide to SMS Marketing: Strategy, Tactics, and Best Practices

As the world progresses, people are finding new ways to communicate. Unsurprisingly, messaging is becoming the leading way to connect with clientele. More than 5 billion of the 7.9 billion people in the world use text messaging. In the United States, 81% of the population is quite versed in sending and receiving text messages.

If you're not already using messaging to reach your customers, you're missing out! In recent years, SMS and messaging apps like WhatsApp, Facebook Messenger, and WeChat have gained traction as excellent ways to connect with customers personally.

The Power of Messaging: Key Advantages

Messaging is Fast and Convenient

In our fast-paced world, customers appreciate being able to quickly and easily get in touch with a company without making a call or searching for an email address. Messaging matches the speed and convenience that customers want.

Messaging is Personal

Messaging apps allow businesses to have one-on-one conversations with their customers, which builds trust and creates a more intimate relationship. Customers are more likely to do business with companies that they feel they know and can trust.

Messaging is Cost-effective

With most messaging apps, businesses can reach out to as many customers as possible without incurring extra costs. Compare that to other marketing channels like TV or radio, which can be very expensive, and it's easy to see why messaging is such an attractive option for businesses.

It's a Great Way to Build Relationships with Your Customers

By frequently messaging your customers, you can stay top of mind and build a loyal following. Customers who feel like they are being kept in the loop and communicated with regularly are more likely to do business with a company again in the future.

The Statistics That Prove Messaging Works

With an open rate of 98%, it's pretty apparent why SMS marketing is today's go-to marketing tactic. Yet, the space is still not crowded and, therefore, less competitive than email marketing; only 44% of marketers use SMS marketing as part of their sales funnel.

Every year, messaging is becoming more popular as companies seek better means of reaching out to and developing their customer base. Here are the statistics that back this up:

1. More than 90% of the population owns a mobile phone - The number of people worldwide with a mobile phone stands at 7.26 billion, which is 91.54% of the world's population.
   
   
2. Global smartphone penetration stands at 82.73% - Today, the number of people using smartphones globally stands at 6.64 billion. By 2024, this number is predicted to rise to 7.13 billion.
   
   
3. The average person sends 72 text messages per day - SMS is still going strong. By 2025, 6 billion people will be regular senders and receivers of text messages.
   
   
4. The average American adult spends nearly three hours on their smartphone every day - According to a study conducted by Reviews.org, the average American adult spends 2 hours and 54 minutes on their smartphone daily.
   
   
5. Billions of active users - WhatsApp has 2 billion monthly active users, Facebook Messenger has 1.3 billion monthly active users, and WeChat has 1.2 billion monthly active users.
   
   
6. Customers value SMS booking and appointment reminders the most - 83% of consumers would rather get appointments and bookings via SMS than by email or social media.
   
   
7. SMS has a 98% open rate, while email is at 20% - The open rate for SMS is nearly five times that of email, making it a much more effective way to get your message across.
   
   
8. 93% of consumers would like to have the option to text with businesses - Companies that don't offer SMS as a way to communicate are missing out on a huge opportunity.
   
   
9. SMS marketing has a 97% read rate within 15 minutes of delivery and 45% ROI - SMS marketing has an incredibly high return on investment, making it one of the most effective marketing strategies.
   
   

Marketers that have been quick to incorporate SMS marketing into their sales funnel are reaping bountifully. Research indicates that 75% of customers want to receive SMS from their favorite stores. With SMS marketing campaigns getting response rates of up to 45%, marketers have the motivation they need to make SMS a central part of their marketing strategies. Sixty percent of marketers say SMS marketing revenue generation has been phenomenal.

Understanding the SMS Sales Funnel

What is an SMS Sales Funnel?

An SMS sales funnel is a marketing technique that uses text messages to nurture leads and customers through the purchase journey. Like email marketing and other digital marketing channels, an SMS sales funnel aims to take prospects from awareness to purchase.

An SMS sales funnel gives your customers an easy way to contact you for queries, get more information, and even make purchases. What's more, the SMS sales funnel can work in tandem with other sales funnels. A customer could begin the process by email, ask specific questions via SMS, and complete their purchase at your store in person. So, your SMS sales funnel can function as both a booster for other sales media and a standalone sales asset.

The Three Phases of an SMS Sales Funnel

1. Awareness and Interest Stage

The awareness and interest stage is where you introduce your product or service to the customer. The goal at this stage is to get the customer's attention so that they can start considering your offering. You also seek to arouse the customer's curiosity so that they want to know more about your product or service. You can achieve this by offering a free trial, a discount, or a piece of valuable content such as an eBook.

2. Consideration and Decision Stage

In this stage, you provide more information about your product or service to sway the customer towards making a purchase. You can send case studies, customer testimonials, product demonstrations, or even free shipping. With a little extra push from your marketing department, the lead is seriously considering buying from your brand.

To make their decision, they'll typically ask more questions. They're likely going to compare your products and services to those of your competitors and may want to know from you what makes your product or service better than your rivals' offerings. These queries should serve as an excellent opportunity to use your SMS marketing skills. Consider encouraging them to message you those complex queries and, in the process, get more information about them.

3. Action and Purchase Stage

The action and purchase stage is when the prospect becomes a paying customer. This is where you ask for the sale and provide information so they can use it to make a purchase. At this stage, you want to make it as easy as possible for the customer. You can do this by providing a link to a landing page with a purchase form or by giving a shortcode that they can use to buy your product or service.

You can also provide an incentive for them to take action, such as free shipping, a discount, or a bonus gift. A limited time offer encourages them to take action fast. Once the customer makes a purchase, you can thank them and include a link to leave a review or survey.

How to Create the Perfect SMS Sales Funnel

The perfect SMS sales funnel is built on a foundation of trust. Your customers need to trust you before they can hand over their hard-earned money. The best way to build trust is by providing value. This could be in the form of helpful content, discounts, or bonuses. You also need to have a solid call to action so that your customers know what you want them to do next.

Essential Steps to Build Your SMS Sales Funnel

To create the perfect SMS sales funnel, you need to:

• Establish trust with your audience
• Provide value at every stage of the funnel
• Have a strong call to action
• Make it easy for customers to take action
• Thank your customers and ask for feedback

Getting Started: Practical Implementation

Start with a list of contacts - You can do this by importing your existing customer list. You can also add contacts manually or use a lead capture form on your website.

Import your list of customers - Import your list of customers into your SMS marketing software. This will allow you to segment your list and send targeted messages to each group.

Create segments - Segments allow you to send targeted messages to specific groups of people. For example, you could segment your list by location, age, or interests.

Send targeted messages - Start sending targeted messages. Targeted messages are more likely to be opened and read than generic messages.

Monitor your results - Monitor your results to see how your SMS marketing campaign performs. Look at metrics such as open rate, click-through rate, and conversion rate.

Make improvements - Based on your results, make changes to your SMS marketing campaign. Try different messages, offers, or calls to action.

Thanks to the widespread use of mobile phones, you can reach potential customers anywhere, anytime. From initial contact until conversion into an actual sale or engagement opportunity, the foundation of the perfect SMS sales funnel lies in building trust so that you can provide value at each stage.

SMS sales funnels offer a high degree of customization so that you can design a tailored campaign for your specific products or services. With SMS sales funnels, businesses of all sizes can increase leads, conversions, and ROI.

23 Ways to Effectively Use SMS with Customers

While many companies and marketers recognize the need to incorporate SMS in their campaigns, many of them are unsure of how exactly to leverage it once they've launched it. Here are 23 proven strategies to use SMS to reach out to your customers effectively:

Communication Best Practices

1. Make it Easy to Reply

One of the main advantages of SMS marketing is that it has a high open-rate. Providing a two-way SMS solution makes it easy for customers to get in touch with you and feel supported through their journey.

2. Send Timely Messages

One of the benefits of SMS marketing is that it allows you to send time-sensitive messages to your customers. For example, if you're running a sale, you can send a message reminding customers about the sale and provide them with the relevant details.

3. Make it Easy to Subscribe and Unsubscribe

One of the main advantages of SMS marketing for customers is the straightforwardness of subscribing and unsubscribing from your lists. Giving them an easy way to sign up for SMS notifications from your website and emails is important. So is letting them know they can unsubscribe by typing "STOP" in response to a message.

4. Personalize Your Messages

To maximize the impact of your SMS messages, you should personalize them as much as possible. Consider including the customer's name and interests in the message.

5. Use Humor

A little humor can go a long way in helping to grab people's attention. If you can work humor into your SMS messages, you're likely to see better response rates from your customers.

Targeting and Engagement Strategies

6. Target Your Audience

One of the benefits of SMS marketing is that it allows you to target your audience more effectively than other forms of marketing. You can specify demographics, interests, and even a location.

7. Use SMS as a Hook to Your Social Media

Using the texts you send your consumers, you may promote contests or sweepstakes that you're running on your social media channels. You can keep them engaged by posting additional material on those channels, and use your SMS messages to lead them there.

8. Use Automated Messaging

Another way to maximize the effectiveness of your SMS marketing campaigns is by using automated messaging: automatically send out messages based on a customer's preferences or purchase history.

9. Use Images and Videos

SMS marketing, particularly MMS, allows you to include images and videos in your messages, which can help to increase the impact of your campaigns.

10. Use Interactive Features

Another way to make your SMS marketing campaigns more effective is using interactive features. For instance, you could use QR codes or other types of codes that customers can scan to get more information about your products or services.

Content and Design Principles

11. Test and Measure Your Results

The best way to maximize the effectiveness of your SMS marketing campaigns is by testing and measuring the results. This will help you identify what works and what doesn't, so you can make the necessary adjustments to improve your campaigns.

12. Keep Your Messages Short and Sweet

The key to success with SMS marketing is keeping your messages short and sweet. This will help to ensure that customers can read them quickly and easily.

13. Use a Mobile-Friendly Design

Another important consideration when creating SMS marketing campaigns is making sure that your messages are mobile-friendly, including using a design compatible with mobile devices.

Team and Process Management

14. Create an SMS Marketing Team

Creating an SMS marketing team is one of the best ways to use SMS in your marketing campaigns. This team could be made up of people from your existing marketing team. The team is responsible for coming up with and sending out SMS messages. The team should be made up of people with different skill sets, including copywriters, graphic designers, and marketers. The more robust your SMS team, the more significant the advantages you'll see from your marketing efforts.

15. Follow Up

After sending out an SMS message, follow up with the customer by email or phone to see how they liked the message and whether they have any comments, suggestions or questions. Getting their feedback will help you create better SMS campaigns in the future.

Customer Engagement Tactics

16. Offer Incentives

One way to increase the response rate from your SMS marketing campaigns is by offering incentives to customers. Provide them with discounts or other special offers.

17. Be Mindful of Your Customers' Time

Be mindful of your customers' time when sending out SMS messages. Avoid the temptation to send too many messages. Also, ensure that the messages are relevant and interesting.

18. Segment Your Lists

Another benefit of SMS marketing is that it allows you to segment your lists to target specific customers. Doing this will help you design messages better suited for the segments of the customers who buy your specific products or services.

19. Create a Sense of Urgency

One way to get customers to take action is by creating a sense of urgency. You can do this by including a deadline or special offer that expires soon.

Quality Control and Optimization

20. Be Wary of Spamming

Whatever you do, don't spam your customers with SMS messages. Only send them when you have something relevant and worthwhile to send them.

21. Keep Your Content Fresh

Another critical factor to consider when running an SMS marketing campaign is keeping your content fresh. Regularly update your message content and ensure it is relevant to your customers.

22. Keep Track of Your Results

The best way to improve your SMS marketing campaigns is by keeping track of the results. It will help you identify what works and what doesn't, so you can make the necessary adjustments to improve your campaigns.

23. Engage a Younger Audience

SMS marketing can be a great way to reach a younger audience. Young people are more likely to have mobile phones and use them for texting. Young people between the ages of 18 and 49 have grown up with various mobile devices and are more avid texters than other generations.

Conclusion: The Future of Customer Communication

SMS marketing can be an extremely effective way to communicate with customers and promote your products or services. By following these tips and strategies, you can maximize the effectiveness of your SMS marketing campaigns and see improved results.

As you can see, messaging is a powerful tool that should not be overlooked. The combination of high open rates, immediate delivery, personal connection, and cost-effectiveness makes SMS marketing one of the most valuable channels available to modern businesses.

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