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The Ultimate Guide To SMS marketing


WHAT IS SMS MARKETING?



Text has taken over. And used correctly, it can be your most effective marketing
tool by increasing convenience, strengthening relationships, and getting your
promotions seen. Read on to learn:

 

 * What terms you need to know
 * What makes SMS marketing different from email marketing
 * Why SMS marketing is so effective




LEARN ALL YOU NEED TO KNOW ABOUT SMS MARKETING. BROWSE OUR FULL ULTIMATE GUIDE
SERIES:




WHAT IS SMS MARKETING?

With 3.8 billion smartphone users across the planet and 95% of texts being
opened within 3 min, it’s easy to see that text has taken over. And local
businesses have picked up on it.

SMS marketing is the practice of using text messages to convert leads and keep
customers engaged. As a rule of thumb, text messages are usually 160 characters
or less and require prior permission from your customers to send.

These text messages may include a number of multimedia elements such as
pictures, videos, GIFs, and links, and senders must abide by their country’s
rules and regulations, as well as those of the recipient.

Local businesses sometimes worry that SMS marketing software is too complicated
to implement or that promotions can frustrate customers and damage their
relationships with them. However, with the right practices and information, SMS
marketing can be a huge asset and revenue driver.

Done correctly, SMS marketing can actually strengthen relationships by inviting
responses. With well-timed messages and relevant content, it feels more intimate
than other marketing messages and encourages continued engagement in a way only
text can. The key is knowing how to message the right way.

 


BULK MESSAGING VS SMS MARKETING

Bulk messaging is the distribution of large numbers of text messages for
delivery to mobile phones. It often takes the form of one-way blasts and has
traditionally been a less personal form of communication. And if it’s intended
as marketing, it may not be compliant by local regulations if individuals
haven’t opted in to receive the messages. SMS marketing, on the other hand,
involves sending personalized promotional or transactional messages for
marketing purposes via text message. It centers around taking an individual
approach to each customer.

In this guide, we will be focusing on SMS marketing. This will include how to
make mass text messages into valuable, personalized communications, encouraging
responses and continued conversation.


TRANSACTIONAL TEXT MESSAGES VS. PROMOTIONAL TEXT MESSAGES

Transactional messages are operational in nature and sent in response to a
customer’s interaction with your business or service. They can include payment
invoices, shipping notifications, and response to support texts initiated by the
customer. For example, you might receive delivery notifications from your driver
through SMS if you order dinner through an app. These messages pertain
specifically to your order’s status and are part of the transaction.

Promotional messages communicate promotions. The most obvious example of these
are texts that include coupon codes, specials, or discounts. But promotional
messages might also include business updates that aren’t directly related to a
customer’s interaction with your business—for example, an announcement about a
new location, extended hours, or an upcoming customer event.

You can create SMS marketing campaigns for all of these types of promotional
messages. And adhering to promotional best practices is a good decision when in
doubt about the nature of your message.


GLOSSARY

SMS marketing has its own set of terms and phrases that are commonly used and
easy to understand. In case you are new to this type of marketing, here is a
list of some general terms and definitions to help you get started.

SHORT MESSAGE SERVICE (SMS)  |  Short message service: text without media.

MULTIMEDIA MESSAGING SERVICE (MMS)  | Text messages that include pictures,
videos, GIFs, links, etc.

SMS KEYWORD  |  Words or phrases customers text your business to opt-in to text
marketing messages from your brand.

CALL TO ACTION (CTA)  | The desired action you want your target audience to do
after receiving a marketing message; should clearly articulate the next step:
reply back, shop our inventory, stop by, give us a call, etc.

CLICK-THROUGH RATE (CTR)  | Percentage of SMS marketing recipients who respond
to the CTA.

CONVERSION RATE  |  Percentage of SMS receivers who respond to the CTA.

OPT-IN  |  (vb) Giving express consent for a business or entity to text you (n) 
A customer who has opted in.

OPT-OUT RATE/UNSUBSCRIBER RATE  |  Percentage of subscribers who opt out of
receiving texts from your business.

TELEPHONE CONSUMER PROTECTION ACT (TCPA)  | A US federal law regulating certain
types of phone calls and text messages; other countries often have similar
regulations.

QUICK RESPONSE CODE (QR CODE)  | An image that users can scan with their mobile
cameras that can direct them to your SMS marketing sign-up page. Quick response
codes can be printed or displayed digitally, making them ideal for gathering
opt-ins in-store, online, or face-to-face.

TEXTING SERVICE SOFTWARE  |  A messaging platform that allows you to effectively
manage campaigns, conversations, and opt-ins.

SHORT CODE  | A standard 5-6 digit number used to send MMS or SMS messages.
Short codes are typically more expensive than long codes ($500+ per month), take
longer to procure, and are typically used for one-way bulk texting.

LONG CODE  | A standard 10 digit number used to send SMS and MMS messages, or
place calls. Long codes are advantageous in SMS marketing because messages look
like they are coming from a person and not from an automated system.

PERSONALIZATION VARIABLE  | Dynamic fields that pull specific information into
SMS marketing messages to tailor them to each contact. Some examples include the
contact’s first name or the location name where the offer is made available.

With the right tools, SMS marketing can be hugely rewarding for businesses of
any type and size. Read on to learn best practices, how to message compliantly,
and how to craft the type of copy that gets a response.


WHY SMS MARKETING?

As a consumer yourself, you’re aware of just how much consumers are inundated
with marketing materials every day. This has consequences, which include
desensitization. Research has shown that consumers aren’t as receptive to
traditional marketing methods as they used to be.

Local businesses need new ways to contact customers in a way that’s personal and
provides real value to them. And with our catalyzed digital transformation,
consumers expect a modern customer experience with communication that meets them
where they are. They expect convenience, personalization, and real connection.
That’s where text messaging comes in.

> Text messages have an open rate of up to 98%. On average, 95% of messages are
> opened within 3 min.

 


TEXT CAN BE YOUR MOST EFFECTIVE MARKETING OPTION

You may notice that the majority of consumers still interact with businesses
through channels such as phone call or email. That’s true. But it’s only because
they think that’s how local businesses are set up to interact. Nearly 67%
actually think being able to text businesses would increase convenience.

Think about it: if you’re still playing phone tag or emailing, but 98% of your
customers check every text the same day you send it, there’s a huge opportunity
to get ahead by text messaging that far surpasses the potential of any other
medium.

The fact of the matter is that local businesses are uniquely positioned to win
with SMS marketing. According to the 2021 Local Business Messaging Trends
report, local businesses are situated to reach their consumers’ text messages
inboxes more often than major chains and ecommerce players.

Consumers are 21% more likely to opt-in to local businesses’ text promotions
over major chain or big-box retailers. And they’re 45% more likely to opt-in
over online or ecommerce businesses.

Local businesses have an implied trust with consumers that they can use to
collect opt-ins and then strengthen with well-timed, personalized promotions.
This leads to higher loyalty, more business, and more revenue.

SMS marketing is also one of the most cost-effective campaigns you can run as a
local business. Compared to other digital campaigns, SMS campaigns are extremely
low-cost to run, allowing you to engage new leads and increase customer lifetime
value at very little cost. Recent data also shows that providing options such as
text directly increases a local business’s revenue.

 


SMS MARKETING VS EMAIL MARKETING

Like email campaigning, SMS marketing uses a list of contacts you have created
and is trackable and provides valuable insights into customer behavior. But
unlike email campaigning, it reaches customers where they want to be reached
instantly.

While the average open rate for emails is 18%, engagement is extremely low. On
average, email only sees a click-through rate of 2.6% and a click-to-open rate
of 14.1%. With up to a 98% open rate, text continuously blows email out of the
water.

 

The final reason SMS marketing should be your top marketing choice? It’s the
future. And it’s make or break.

40.5% of customers report being “likely” or “very likely” to switch to a
different business because they offer text messaging to communicate. In terms of
communication evolution, people have always gravitated toward two key
components—convenience and speed. With these factors in mind, messaging has
become the inevitable next step when it comes to connecting with your customers.

 

IMPORTANT DISCLAIMER: This guide is for informational purposes only. It is not
intended as legal advice or a comprehensive summary of the law. You are
encouraged to retain your own legal counsel to review this guide and assess your
unique text messaging business scenario. In addition, a business can do many
things, including use of the Podium system outside its intended use, which can
give rise to liabilities beyond those addressed in this guide.


DOWNLOAD THE FULL ULTIMATE GUIDE TO SMS MARKETING

Ultimate Guide to SMS Marketing – Chapter 2


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