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SMS Marketing Strategy: The Comprehensive Guide

Updated: Jun 11, 2023

Beginners' guide to SMS marketing

There are a number of marketing channels available to businesses looking to connect with their audience in the digital age. SMS marketing is one such channel that has been around for decades.

In this comprehensive guide, we'll look at what SMS marketing is, the benefits of SMS marketing, SMS marketing best practices, text marketing template examples, and the future of SMS marketing.

Let’s dive in!

What is SMS Marketing?

SMS marketing, also known as text marketing or SMS advertising, is a marketing channel that involves sending promotional messages via text message to a specific list of mobile phone numbers.

In simple words, SMS marketing is the promotion of a product or service through SMS messaging.

This is also known as a form of opt-in marketing that requires your contacts to subscribe.

Special promotions and discounts, as well as reminders about upcoming events or product releases, can all be included in these messages.

To create a cohesive and effective marketing campaign, SMS marketing is often used in conjunction with other marketing channels such as email, social media, and paid advertising.

In today's digital landscape, SMS marketing offers various advantages.

SMS marketing outperforms other marketing channels in terms of open rates and response rates, immediate and direct communication with customers, and high engagement rates and click-through rates.

Also, SMS marketing is a cost-effective way for businesses to reach their customers with a higher return on investment (ROI).

Why SMS Marketing Is So Effective?

Some may wonder if SMS marketing is still an effective way to reach customers, considering the rise of other digital marketing channels such as social media and email.

However, SMS marketing is far from extinct. SMS marketing statistics show that it is still a highly effective way to communicate with customers.

According to recent survey results, the average open rate for SMS messages is 98%, while email only has a 20% open rate.

Furthermore, SMS messages are typically read within three minutes of receipt, making them an effective tool for time-sensitive promotions or reminders.

So, you can see that SMS marketing is still alive and it can be used to increase your business revenue.

SMS statistics that prove SMS marketing is still important

Advantages of SMS Marketing for Businesses

SMS marketing offers several benefits that make it an effective tool for businesses to reach out to their customers. Let's look at how SMS marketing can help businesses. Here are some of the significant benefits of SMS marketing.

1. High open and response rates

SMS messages have a 98% open rate, and most people read them within a few minutes of receiving them. This means that SMS marketing messages are more likely to be seen and acted upon than emails or any other form of digital marketing.

2. Direct and immediate communication with customers

SMS marketing enables businesses to communicate directly and in real time with their customers. As a result, it is an effective tool for sending time-sensitive messages such as last-minute deals, event reminders, or time-sensitive offers.

3. High engagement rates and click-through rates

SMS messages have a high engagement rate, with more than 90% being read within three minutes of delivery. Furthermore, SMS messages have a high click-through rate, with more than 36% of recipients clicking on a link contained within the message.

4. Cost-effective and high ROI

SMS marketing is a low-cost way for businesses to reach out to their customers. SMS marketing is relatively inexpensive when compared to other forms of digital marketing, such as paid advertising or email marketing. Furthermore, SMS marketing has a high ROI, with some studies indicating a return of $45 for every dollar spent.

The above advantages make text marketing a valuable tool for businesses to reach their customers and drive sales.

Benefits of SMS marketing

How to Build an SMS Subscriber List

Creating an SMS subscriber list is an essential step in developing a successful SMS marketing campaign. To ensure that subscribers have explicitly given their consent to receive SMS messages from the business, the list should be built using permission-based marketing methods.

Importance of getting consent for text marketing

Building an SMS subscriber list is a crucial part of SMS marketing. It makes sure that businesses only communicate with customers who have specifically agreed to do so.

Customers are more likely to respond favorably to messages when they have opted-in to receive them, which increases engagement and sales. This also ensures legal compliance.

Methods to collect SMS subscribers’ information

There are several methods that businesses can use to collect SMS subscriber information:

  • Opt-in forms: Opt-in forms can be placed on a business's website or social media platforms. These forms typically include fields for customers to enter their phone numbers and consent to receive SMS messages.

  • In-store signage: Businesses can also use in-store signage to encourage customers to subscribe to their SMS list. For example, a sign at checkout could encourage customers to text a keyword to a specific number to subscribe.

  • Text-to-Join campaigns: Text-to-Join campaigns can be used to collect SMS subscriber information from customers who are not physically present in-store. These campaigns typically involve customers texting a specific keyword to a number to opt-in to receive SMS messages.

Tips to build SMS subscriber list

Tips for growing an SMS subscriber list

  • Provide an incentive: Offering an incentive, such as a discount or a free gift, can be an effective way to encourage customers to opt-in to receive SMS messages.

  • Keep it simple: Opt-in forms and text-to-join campaigns should be easy to understand and complete. Customers should be able to opt-in with just a few clicks or by sending a simple text message.

  • Segment the list: Segmenting the list based on customer preferences and behavior can help businesses send more targeted and relevant messages. For example, customers who have made a recent purchase could be sent messages promoting related products or services.

  • Provide an opt-out option: Customers should always have a way to opt-out of receiving SMS messages. Opt-out instructions should be clearly provided in every message and on the business's website.

SMS Marketing Regulations and Compliance

SMS marketing is a powerful tool that gives businesses a direct, efficient way to connect with their target market.

To safeguard customers' privacy and avoid spam, it's important to remember that SMS marketing is subject to many rules and regulations.

So, in order to avoid fines and keep their reputation, businesses must understand these regulations and adhere to them.

TCPA and GDPR are two such important laws that protect consumers' privacy and prevent spam.

TCPA (Telephone Consumer Protection Act)

The TCPA is a federal law that regulates text marketing and telemarketing practices in the United States. But unfortunately, many businesses are not aware of this act.

Before sending customers SMS marketing messages, companies must first get their express written consent.

Companies must make explicit and clear disclosures about the types of messages customers are signing up for, along with information on how to opt-out if needed.

Also, companies must respect the "do not call" list to make sure that customers who have opted out don't continue to receive promotional calls or messages.

The TCPA has stiff penalties and fines that can range from $500 to $1,500 for each violation. Because of this, companies must take the proper precautions to guarantee that they are fully compliant with the TCPA.

Many businesses are not aware of SMS laws

GDPR (General Data Protection Regulation)

The GDPR is a rule set created by the European Union that governs data security and privacy. No matter where the company is located, it applies to all businesses that handle the personal data of EU people.

Before collecting and using customers' personal information for marketing purposes, businesses must get their express consent.

Customers have the right to know how their data is being used and to access, change, and delete their data.

Significant fines and penalties, up to €20 million or 4% of the company's global annual revenue, can result from a failure to comply with the GDPR.

Therefore, businesses should ensure they have the required policies and procedures in place to comply with the GDPR.

Best practices to comply with regulations and avoid penalties

To comply with these regulations and avoid penalties, businesses should follow these best practices:

  • Get explicit consent: Before sending SMS marketing messages to customers, businesses should obtain explicit written consent. The consent should specify the kinds of messages the customer will get and should be explicit, informed, and clear.

  • Provide opt-out options: Businesses are required to include instructions for opting out in every business text message. It should be simple for customers to stop receiving marketing texts.

  • Keep records: Businesses must keep track of consent and opt-out requests to show compliance during audits and in court.

  • Maintain a "do not call" list: Businesses must keep track of customers who have chosen not to receive calls from them and make sure that they are removed from the SMS subscriber list.

  • Follow data protection regulations: Businesses should comply with data protection regulations such as GDPR when collecting, processing, and storing consumer data.

By following these tips, businesses can make sure they comply with SMS marketing laws, avoid fines, and maximize the advantages of SMS marketing.

Steps Of An Effective SMS Marketing Strategy

SMS marketing campaigns can be effective in engaging your audience and increasing revenue. But it's crucial to create campaigns that are engaging, informative, and relevant. Here are some tips for building SMS marketing strategies that work:

1. Keep it brief and sweet

You have only 160 characters available, Therefore, your message must be concise and straightforward. To ensure that your message is understood quickly, keep your language simple and stay away from filler words.

2. Be clear and specific

Make sure your message is clear and to the point, stating clearly what you want the recipient to do. This may include anything from purchasing something to subscribing to a new service.

3. Include a clear call-to-action

An SMS call-to-action (CTA) is necessary to motivate the consumer to take action. Encourage them to click a link, respond to the message, or go to your website by using language that is action-oriented.

These are just a few tips to optimize your text marketing strategy. Read the sections below to get more ideas on how to take your SMS marketing efforts to the next level.

4. Send SMS marketing campaigns at the right time

Your SMS marketing strategy's effectiveness is based on several factors.

One of the most important aspects to consider when running text marketing campaigns is timing.

While sending messages at the right time might increase open and response rates, sending messages at the wrong time may annoy the recipients and result in opt-outs.

To get the most out of your SMS marketing efforts, be sure to adhere to the timing advice given below:

  1. Know your audience: To time your SMS messages successfully, it is crucial to comprehend the behavior and preferences of your target group of people. When choosing the ideal time to send your message, consider things like their time zone, work schedule, and daily routine.

  2. Avoid sending messages at busy times: Don't send messages when your audience is busy, such as during rush hours or the during the workday. This could end up with people will miss or ignore your message.

  3. Experiment with timing: To find out when your audience is most responsive, try out various times of day and days of the week. To enhance your timing, use analytics to monitor open rates and response rates.

5. Personalize messages

Personalization is essential to creating engaging and effective SMS messages. Personalized messages are more likely to be opened and responded to, as they feel more relevant and tailored to the recipient's interests and needs.

Here are some tips for personalizing your SMS messages:

  1. Use the recipient's name: Using the recipient's name is a simple yet effective way to personalize your message. It shows that you value and recognize the recipient as an individual, rather than just a number.

  2. Use data from previous interactions: To create a relevant and personalized message, use data from the recipient's previous interactions with your company. This could include information such as their purchase history, browsing habits, or location.

  3. Provide personalized content: Provide content tailored to the recipient's interests and needs. This may include personalized offers, product recommendations, event invitations, etc.

6. Segment your audience and send targeted SMS campaigns

Segmentation and targeting are critical for ensuring that your text messages reach the right set of people. You can improve the relevance and effectiveness of your SMS marketing campaign by segmenting your audience and sending targeted messages.

Here are some tips for segmenting and targeting your text marketing campaigns:

  1. Segment your audience based on demographics, behavior, or other criteria. This could include factors such as age, gender, location, interests, or purchase history.

  2. Send messages that are tailored to the interests and needs of each segment.

7. Consider the character count

It's important to remember that you only have a limited number of characters to work with when creating SMS marketing messages. As a result, keep your message clear and concise. Avoid using unnecessary words or phrases and use simple language.

Focus on the most important details. Make sure your message contains a clear call to action as well as any necessary details, such as the date, time, and location of an event.

When appropriate, use abbreviations and symbols. For example, "ASAP" instead of "as soon as possible" and "&" instead of "and" are acceptable substitutions. Remember to use a URL shortener to save space. If you need to include a link in your text message, use a URL shortener like to make the link shorter.

You can create effective SMS marketing messages that fit within the 160-character limit by following these tips.

8. Use the right SMS marketing software

SMS marketing is a highly effective way to connect with your audience and drive conversions. But with so many SMS marketing software options on the market, it can be challenging to find the right one for your business. This is where Falkon SMS comes into action.

Falkon SMS is a powerful SMS marketing platform that offers a wide range of SMS features to help businesses connect with their audience. With Falkon SMS, you can send personalized messages to your subscribers, set up automated campaigns, send keyword replies, schedule messages, and many more.

To know more about Falkon SMS and what it offers, don't hesitate to reach out to the customer support team.

SMS Marketing Templates Examples

SMS promotions templates

  • Don't miss out on our exclusive offer! Use code [CODE] for [DISCOUNT]% off your purchase. Shop now at [WEBSITE].

  • Happy [HOLIDAY]! Celebrate with [DISCOUNT]% off all items in-store and online. Use code [CODE] at checkout.

  • Last chance to save! Our [SEASON] sale ends tonight. Get [DISCOUNT]% off everything with code [CODE]. Shop now at [WEBSITE].

Product launch announcement SMS templates

  • Introducing our newest product! Check out [PRODUCT] and get [DISCOUNT]% off your first purchase. Use code [CODE] at checkout.

  • Exciting news! Our latest [PRODUCT] is now available for purchase. Get it now at [WEBSITE] and receive [FREEBIE] with your order.

  • Get ready to experience our newest [PRODUCT]. Available now at [WEBSITE]. Order today and receive [FREEBIE].

Abandoned cart reminder SMS templates

  • Don't forget about the items in your cart! Complete your purchase now at [WEBSITE] and receive [DISCOUNT]% off your order with code [CODE].

  • You left something behind! Come back and complete your purchase at [WEBSITE]. Use code [CODE] for [DISCOUNT]% off.

  • Your cart misses you! Return to [WEBSITE] and complete your purchase. Use code [CODE] for [DISCOUNT]% off your order.

Event reminder text message templates

  • Reminder: [EVENT] is happening tomorrow at [TIME]. Don't forget to RSVP and get ready for a night of fun!

  • Join us for [EVENT] next week at [LOCATION]. RSVP now and receive [BENEFIT] with your attendance.

  • We're looking forward to seeing you at [EVENT] this weekend. Don't forget to bring your ticket and get ready for an unforgettable experience.

Loyalty program update SMS templates

  • We've made updates to our loyalty program! Get more rewards and benefits when you shop with us. Check out [WEBSITE] for more information.

  • Your loyalty pays off! We've added [BENEFIT] to our program. Log in to your account at [WEBSITE] to start earning.

  • Say hello to our new loyalty rewards! Get [REWARD] for every [AMOUNT] spent at [WEBSITE]. Log in to your account now to start earning.

The Future of SMS Marketing

SMS marketing has been a popular and effective marketing channel for many years, and it is still evolving and adapting to changing consumer preferences and technological advancements.

SMS marketing is expected to change and grow as technology continues to advance at a rapid pace.

In this section, we'll look at some of the current trends and future predictions for SMS marketing, as well as how emerging technologies will affect text marketing.

Future Predictions for SMS Marketing

As technology continues to advance, there are several future predictions for SMS marketing:

  1. More businesses will use SMS marketing: SMS marketing is a low-cost and effective way for businesses to reach out to their customers. We can expect to see a significant increase in the number of businesses using SMS marketing as more businesses recognize the benefits of SMS marketing.

  2. Increased use of chatbots: Chatbots are AI-powered programs that communicate with customers via SMS. They can answer common customer questions, recommend products, and even process orders. We can expect to see more businesses using chatbots to communicate with their customers as chatbot technology improves.

  3. Integration with other marketing channels: SMS marketing is frequently used in conjunction with other marketing channels such as email marketing and social media marketing. More integration between SMS marketing and other channels is expected in the future, allowing businesses to provide a seamless and consistent customer experience across all channels.

Emerging technologies and their impact on SMS marketing

Several emerging technologies are expected to impact SMS marketing in the coming years:

  1. MMS Marketing (Rich media messaging): MMS marketing enables businesses to send multimedia messages via SMS, such as images, videos, and GIFs. This not only makes messages more engaging but also allows business to showcase their products and services in new ways.

  2. Voice assistants: Voice assistants such as Siri and Alexa are gaining more popularity. More businesses will use SMS messaging in conjunction with voice assistants in the future to provide a more convenient and personalized customer experience.

  3. 5G: The introduction of 5G technology will have a significant impact on text message marketing. Businesses will be able to send more interactive messages to their customers, thanks to faster speeds and lower latency networks.


After exploring the various aspects of SMS marketing, we can conclude that it is a highly effective and engaging method of communicating with customers.

With its high open and response rates, SMS marketing can help businesses of all sizes increase their customer base, boost sales, and enhance brand loyalty.

The following are some key takeaways from this guide:

  • SMS marketing is a permission-based marketing channel that requires users to opt-in to receive text messages.

  • Building an SMS subscriber list is crucial to the success of SMS marketing campaigns. Businesses should use various methods such as website opt-ins, in-store signups, and social media promotions to grow their list.

  • Complying with SMS marketing regulations such as TCPA and GDPR is essential to avoid penalties and maintain customer trust.

  • Effective SMS marketing campaigns should be personalized, targeted, and timed appropriately. Businesses can use various tools and techniques to segment their audience and send relevant messages.

  • Measuring the success of SMS marketing campaigns is vital to improving future campaigns. Businesses can use various tools such as analytics and A/B testing to track key performance indicators.

  • The future of SMS marketing looks promising with the emergence of new technologies such as AI, chatbots, and RCS messaging.

To summarize, SMS marketing is a powerful tool that businesses can use to effectively communicate with their customers.

Businesses can create engaging SMS marketing campaigns that drive revenue and increase customer loyalty by following text marketing best practices and utilizing innovative techniques.

Want to start texting for your business? Then, don’t hesitate to have a chat with us and set up SMS marketing for your business. It’s time to grow your business and maximize the ROI.

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