The Benefits of SMS Marketing

White Paper

More than 50% of the UK owns a smartphone, and over 90% of adults own a mobile phone. Marketers now realise the importance of adopting "mobile-first" strategies, but there is one area of mobile marketing that is often overlooked - SMS marketing.

Its reputation for positive results and benefits in comparison to other more ‘traditional’ marketing methods has led to widespread adoption throughout many industries. Read this paper to discover how SMS can boost your results, no matter what your industry.

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Why mobile?

More than half of the UK’s population now own a smartphone, a further 92% of adults owning a mobile phone – we really can’t get enough of them. Did you know that 91% of adults have their mobile phone within arm's reach 24 hours a day AND we check our phones at least 150 times a day?

Companies have been adopting ‘mobile-first’ strategies a!er understanding the importance of getting in front of the customer via mobile – the most current and viewed channel. ‘Mobile’ has become the most convenient channel for interaction between brands and customers. Devices can be used to gather communications from all channels; messaging apps, SMS, email and phone calls are all delivered and received in the same place. Due to global penetration (handsets and networks) mobile allows the majority of people to be reached regardless of where they are in the world.

The mobile opportunity

Thanks to mobile, marketers have been presented with a direct communication line to consumers no matter where they are. Additionally, with the advancement of wearable tech and smart watches, mobile marketing is becoming increasingly necessary and competitive. But how can businesses of all sizes take advantage of this opportunity?

There are three main areas for businesses to focus their efforts if they are to deliver an effective mobile strategy; mobile-optimised websites, mobile apps and SMS marketing.

Why SMS?

SMS is being used globally as a successful marketing channel throughout all industries. Its reputation for positive results and benefits in comparison to other more ‘traditional’ marketing methods has led to its widespread adoption.

Whether it be operational SMS – ‘your taxi has arrived’ or marketing SMS – ‘half price all week’, statistics show that more messages are seen and acted upon positively than with email. 95% of text messages are read within 5 minutes of being received! SMS also provides an almost 100 (98)% guarantee that your message will be seen, something other channels cannot offer.

SMS is quick and reliable. Consumers still receive less text messages than they do emails, resulting in marketing SMS messages being perceived less as ‘junk’ and still considered to be from a trusted source. Additionally, SMS messages are highly relevant to the recipient, since people tend not to give out their mobile numbers easily, unless they are genuinely interested in receiving offers/info.

In comparison to OTT messaging services, whilst their value to marketers is indisputable, SMS comes up trumps in certain areas:

  1. SMS guarantees delivery of a message, and can offer a delivery receipt.
  2. Smartphone ownership is increasing but mobile is still ahead globally.
  3. A phone is not required to be connected to the internet to receive SMS, as with OTT, only cellular signal is required - which is more readily available.
  4. The use of SMS is firmly established worldwide, OTT is increasing as smartphones are but internet availability continues to hold back in some areas.

10 benefits of using SMS

If you are still not convinced of how beneficial SMS can be for your business, here are our top 10 benefits which can be reaped no matter what industry you are in.

  1. Mobile is personal: People are unlikely to leave messages unread on their screen
  2. Inbound or Outbound: With use of a short code or a long number, you can allow customers to reply
  3. Global reach: There are now 6.8 billion phone subscriptions worldwide (compared to the world’s population of 7 billion)
  4. Real-time: Relevant communication is possible as SMS can reach destined phones almost anywhere in the world
  5. Instant: If a phone is swtiched off or out of range the message will still be delivered once available
  6. Reporting: An SMS portal can provide you with reporting to help you gain a picture of how successful your campaigns are, and how they can be improved
  7. Automation: SMS can be scheduled to send at a certain date or time, freeing up resources and ensuring they aren’t sent during unsociable hours
  8. Small in size: SMS messages are stored without taking up to much memory and easily found when required for reference or use
  9. Small in size (again!): The same applies for the company; inbound messages can be stored and organised in a CRM for future action/targeting
  10. Short (160 characters): Marketers have no choice but to stick to the point. Making the message convenient and easy to digest

Increase ROI with SMS

SMS can have a big impact on a company’s ROI when used correctly, especially in comparison to other marketing methods:

SMS to support email

SMS can increase email open rates by 20% by notifying the recipient that they have an unread email. Inboxes are a busy and competitive space, meaning marketers need to work harder than ever to stand out. SMS could be exactly what you need to grab the recipient’s attention.

SMS to support website or app

Including a URL link in your SMS will help to drive traffic to your website and increase app downloads, as well as allowing you to track the success of this technique. This is ideal for situations where there is a large amount of information to get across to customers or they are required to do something.

Save time and resources

In comparison to other marketing and communication methods SMS is incredibly cost effective, making it the perfect channel for SMEs especially. Alternatives such as direct mail requires someone to print letters, address envelopes, fill envelopes and take them to the post office, using up valuable employee time as well as the cost of stationery and postage.

Improve customer service

Expectations of customer service are becoming higher. SMS can help to improve a company’s service by including a number to call in certain messages, freeing up the main phone lines and helping the customer to avoid the frustration of automated answering machines.

Feedback

SMS has been proven as the most effective method for encouraging customer feedback; vital for providing the best service possible. A URL link can be used to direct the receiver to an online survey, giving a company insight into areas they could improve.

Smart SMS

A set of filters or 'rules' applied to an SMS campaign can help to further increase ROI by reducing the amount of numbers sent to that won't receive the message. For example a filter could be applied to remove all dead and inactive numbers from a campaign, or alternatively you could choose to send to customers with a higher positive response rate, as opposed to customers who have opted out or sent expletives in the past.

SMS industry examples

SMS can be successfully used in a wide range of industries. Check out our suggestions below for some inspiration:

  • Retail: Purchase confirmations, dispatch messages and delivery updates are all sent by SMS in the retail industry.
  • Travel and events: Ticket confirmations, date and time updates, parking and ‘creating a buzz’ are all ways SMS can be used to get a guest excited leading up to an event.
  • Finance: Changes to an account can be verified via SMS as well balance statements and security codes for online banking.
  • Taxi firms: Vehicle descriptions and registration plates are o!en sent as a driver arrives to make locating a car easier, as well as notifying the passenger of arrival.
  • Salons: Salons use SMS to reduce missed appointments by sending reminders and can include a number to call if an appointment needs amending.
  • Healthcare: Appointment reminders sent by GPs or dentists help to stop missed appointments, saving money for the NHS and doctors time. Pill reminders and test results can also be sent via SMS.
  • Logistics: SMS can be used to send live on-the-road updates to/from delivery drivers to help them and the customer manage their time and schedules.
  • Offers and promotions: Redeemable voucher codes or URL links to codes sent via SMS can drive in-store and website traffic to increase ROI.
  • Gaming: Live updates during a match a customer has bet on can be sent via SMS, as well as account updates and winning slips.
  • Subscription services: Reminders can be sent via SMS leading up to a subscribed delivery, they could also include a short code in case the customer needs to cancel or change an order.

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