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Text Marketing

What is SMS marketing & how your local business can use it to grow

Exploring SMS Marketing: Strategies for Local Business Growth

If your local business is trying to expand to new channels in order to attract new clients, consider looking into SMS marketing. But what is SMS marketing and how can your local business benefit from it?

SMS stands for “Short Message Service” and pretty much everyone is familiar with it though we more commonly call them just “text messages”. Receiving an SMS used to be more common in the 1990s and early 2000s when mobile phones were still in the process of mass adoption. With the internet era in full swing, text messages were almost entirely replaced by various messaging apps that did the same job.

What is SMS marketing?

SMS still has its uses, from two-factor authentication in various apps to receiving urgent news from your government and most importantly, marketing. Simply put, SMS marketing is best categorised as the sending of promotional texts to clients who have opted in to receive communication.

With SMS marketing, businesses of all sizes can create an entirely new marketing channel and reach future clients. The best part is that open rates for SMS marketing are much higher than email or phone calls with a staggering 98%!

By utilising the service, you can reach a very wide demographic as people of all ages are using mobile phones. SMS marketing can be successfully used to increase conversion rates and response rates as well as boost the overall client engagement of your business.

Why does it work?

There is a whole generation of people (millennials) that have grown up with texting and prefer it over talking on the phone. In just a few years, millennials will be the majority of the workforce. This means that in order to reach this audience, businesses have to adapt their marketing strategies. With SMS marketing, business owners can simultaneously reach different types of clients in a simple, easy, and efficient way.

It adds a personal touch

Sending an SMS is much more personal than an email and allows businesses to reach a much wider audience. Why? Because people use their phones on a daily basis and check them all the time for new information or notifications. You can even go a step beyond by sending users customised personal messages.

Clients can opt in and out

Customers really appreciate the freedom that SMS marketing gives them. Unlike emails, where you can get your inbox flooded, SMS marketing presents users with a choice to opt in or out, usually after the first message.

It’s cost-effective

Through SMS marketing, businesses send text messages between phones making it a low-cost choice fit for any marketing budget. In terms of costs, SMS is much more affordable when compared to other marketing methods. 

Provides analytics

Since SMS presents a type of digital information, it can also be analysed, measured, tracked, and stored. This allows businesses to learn from their campaign and improve their strategies in future ones.

Immediate results

When you use SMS to reach a client, you can be certain that your message was opened in just a few minutes. These days, people carry their phones all the time and they’ll be more than willing to read your SMS if it’s offering a discount, new product information, or a special offer.

How can your business benefit from it?

SMS marketing can be used by almost any type of business to reach clients and get a better understanding of their interests. There are two types of SMS marketing messages – campaigns and transactional messages.

  • Transactional messages are usually automated and used by businesses to send reminders and provide information about orders and delivery. They can be personalised to fit the type of client you want to address.
  • Campaigns are messages sent to a huge number of clients. These can be contests, surveys, discounts, and much more. They serve to inform clients of ongoing events that they can take part in.

Frequently Asked Questions about SMS marketing

How to grow SMS marketing?

The most straightforward approach to constructing your SMS marketing list involves gathering information through your website. You can achieve this by requesting customers to provide their phone numbers during purchases or form submissions. Make sure you entice customers to join by offering incentives such as discounts and exclusive updates.

How can SMS be used in a business?

SMS marketing can be used in a variety of ways such as:

  1. Running marketing campaigns.
  2. Sending alerts, notifications and reminders to your clients.
  3. Giving customers special offers and coupons.
  4. Providing quick and efficient customer support service.
  5. Increasing security with Two-Factor Authentication.
  6. Posting group messages.

What businesses use SMS marketing?

SMS marketing is popular in companies of all sizes. Some of the biggest chains in the world are already using it. Examples include: IKEA, Papa John’s, Starbucks, Domino’s, and many others.

Is SMS marketing growing?

What started as a niche is now rapidly growing. Projected at a Compound Annual Growth Rate (CAGR) of 20.3% over a span of six years, the SMS marketing sector is anticipated to reach $12.6 billion by 2025. This growth can be attributed to the integration of innovative AI tools, amplifying the efficiency of SMS marketing strategies, as well as its expansion into novel industries.

How SMS marketing can benefit businesses?

Some of the clear benefits that businesses can enjoy by using SMS marketing include:

  1. Swift Delivery: 98% open rate, fostering instant interactions.
  2. Instant Reach: Universally accessible, with messages in seconds.
  3. High Open Rate: 98% versus email’s 17%, no subject line needed.
  4. Elevated Conversion: 45% response rate, concise calls to action.
  5. Personalisation: Casual language, rapport-building, and customisation.
  6. Brand Visibility: Consistent engagement sustains loyalty.
  7. Swift Feedback: Instant surveys for quick insights.
  8. Cost-Effective: High ROI potential.
  9. Easy Implementation: Permission-based, trackable campaigns.
  10. Spam-Free: Direct communication, no spam filters.

Key Takeaway

It’s a well-known fact that customers prefer to text and you shouldn’t miss out on this opportunity. A great SMS marketing campaign can do wonders for your business and improve overall growth and customer engagement. Business owners can use SMS marketing to boost their brand, gain the trust of their clients, promote their products, and generate sales. It’s a highly efficient way to communicate with your customers, giving your business enormous reach on a global scale throughout different demographics for a fraction of the price in traditional marketing channels.

About Magic

Magic helps local businesses grow. Thousands of local businesses use Magic to get more online reviews, win new customers, easily manage customer conversations and grow sales. Magic offers these features:

  • Reviews: Get more reviews with easy review requests for popular review sites like Google, Facebook, Yelp, TrustPilot, and more. Rank high on local search and enhance your visibility on Google. 
  • Inbox: Keep track of customer conversations across channels in one inbox, including SMS, Facebook, Instagram, and Gmail. Manage conversations better as a team and do more with industry specific templates. 
  • Text Marketing: Drive more sales with instant text campaigns and reach your customers at the right moment with automation. Use prebuilt templates to send out text campaigns in minutes. 
  • Webchat: Turn website visitors into customers with SMS powered Webchat. Chat to website visitors directly through SMS so you won’t miss a lead, even when they leave your website. 

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