What is SMS Marketing? How to Run Successful SMS Marketing for Your Business? 

SMS marketing is Short Message Service marketing. It’s a fast, affordable, direct way to engage with customers. Through this, you can send your customers promotional messages, updates, or alerts via text messages.  

Top 10 Types of SMS Marketing For Your Business

Promotional SMS

Promotional messages are sent to customers to share deals, special offers, or new products and services. They help increase sales by pushing customers to act now.

Tips For Promotional Sms Marketing:

• Set up the offer with discounts, short-term sales, or special offers.
• Build Excitement by using words that show time pressure, like “Limited Time 
• Use exciting CTA and push customers to take instant action.
• Always use the customer’s name or items they’ve bought before to make it personal.

Loyalty Program SMS

These messages reward loyal customers so that they repeat purchases from you. This way, you can build a strong, long-lasting relationship with customers along with increasing their loyalty to the brand. 

Tips For Loyalty SMS Marketing:

• Start a Rewards System: 

Give points, price cuts, or unique benefits.

• Keep Customers in the Loop: 

Let them know their rewards balance often.

• Simplify Reward Use: 

Guide them on how to spend points or grab perks.

Transactional SMS

These automatic texts give customers important updates about their orders, payments, or service status. It helps to provide customers important updates about their orders, payments, or service status.

Tips For Transactional SMS Marketing

• Set up automatic updates for orders, payments, and deliveries.
• Focus on the must-know details.
• Include a helpline or chatbot link to answer questions.

Automated SMS Marketing

These messages are sent on a schedule or in response to customer actions. This helps reduce manual work while keeping customers in the loop and interested.

Tips For Automated SMS Marketing

• Set triggers by sending messages when customers do something (like sign up or buy).
• Make messages personal based on past chats.
• Monitor performance, like how many people respond every time. Make changes if needed

Welcome SMS

New customers receive warm messages when they join or buy for the first time. It helps to start on the right foot and boost future interaction

Tips For Welcome SMS 

• Make the message seem custom-made for each customer.
• Give a discount, a free item, or helpful tips for new subscribers. 

Conversational SMS

This SMS messaging lets businesses chat with customers in real-time. This helps to boost customer service, answer questions, and create stronger bonds.

Tips For Conversational SMS Marketing

• Pick a Chatbot or Human: 

Set up automatic replies or have staff respond.

• Be Quick & Useful: 

Answer questions in a friendly way.

• Get Customer feedback: 

Ask them questions or for their ideas.

Survey & Feedback SM

These messages gather customer thoughts about their experience with your business. This information helps to gain insights and improve products or services.

Tips For Survey & Feedback SMS Marketing:

• Ask short & simple questions with multiple-choice or rating options.
• Small discounts or rewards boost participation.
• Make It Easy: Give a direct survey link.

Order Confirmation & Cart Abandonment SMS

These messages confirm orders or remind customers about items left in their carts. They help to reassure buyers and win back lost sales.

Tips For Order Confirmation & Cart Abandonment SMS Marketing:

• Send Confirmation Right Away: 

Let buyers know you got their order.

• To Create Urgency for Abandoned Carts: 

Prompt them to finish buying.

• Give Incentives (If Needed): 

A price cut can help sales.

Product Launch or Alert SMS

These SMS texts are sent to let customers know about new items, restocked products, or important updates about products. They help build buzz and spark quick interest.

Tips For Product Launch SMS Marketing:

• Use catchy words like “Just Landed” or “Now Available.”
• Tell them to buy right away by including a CTA.
• Early access can spark interest.

Reminder SMS

These types of SMS remind customers about scheduled visits, reservations, or deals that are ending soon. It helps to cut down on no-shows and boost sales.

Tips For Reminder SMS Marketing:

• Send Ahead of Time: 24-48 hours before the event.
• Stay Clear & Friendly: Keep the message brief and informative.
• Make Rescheduling Easy (If Needed): Give a contact link if they need to change plans.

You can send the perfect SMS campaign, but if your business functions can’t handle the response, you miss the REAL GROWTH.
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Advantages & Disadvantages of SMS Marketing

Advantages of  SMS Marketing	Disadvantages of  SMS Marketing
High open rates (around 98%) and immediate engagement.	Limited to 160 characters (or 70 internationally), restricting message complexity.
Instant delivery for real-time communication.	Requires customer opt-in, which can be time-consuming.
Cost-effective for reaching large audiences.	Risk of being seen as spam if misused.
Broad reach due to widespread mobile phone use.	It can be intrusive if sent at inappropriate times.
Enables personalised messaging and customer segmentation.	Limited multimedia options for creativity.
Accessible without the internet, expanding audience reach.	Potential high costs for experienced telemarketers.
Analytics are available for tracking performance and ROI.	Deliverability issues may occur like being blocked by carriers.
Enhances direct and personal communication with customers.	Subject to legal regulations and compliance requirements.
Great for time-sensitive promotions.	Risk of customer fatigue from too many messages.
Less competitive than Email Marketing.	It is not suitable for all businesses or industries.

Who should use SMS marketing services?

All kinds of businesses can use SMS marketing. It’s majorly used for businesses focusing on time-sensitive messaging, personalization, and customer engagement.

• Retail companies can alert customers to sales and new products.  
• Restaurants and hotels can share promotions and order confirmations with their customers.  
• Travel and tourism companies can inform customers about booking and travel changes.  
• Healthcare companies can confirm appointment reminders and send test results.  
• Financial services companies can send transaction reminders and account updates.  
• E-commerce businesses can alert customers about order confirmations and shipping.  
• Small companies may contribute customer loyalty and enhance service.

Strategies For SMS Marketing

Create a Subscriber List

First, you must get permission before sending messages. Otherwise, it becomes spam.

• Provide an incentive by offering discounts, free resources, or exclusive deals in exchange for sign-ups.
• Promote your SMS list on your website, social media, and at the point of sale using various channels.
• Make it easy for customers to sign up with a basic “Text JOIN to 12345 for 20% off” 

Keep Messages Brief & Clear

People check texts before sending them. Keep the text simple and clear.

• The standard limit of text messages is 160 characters.
• Avoid using complex words in the text, and keep it relatable
• Add a clear next step. For example: “Flash Sale! Save 20% today. Enter code SMS20. Buy now: www.yourstore.com”

Personalise Your Messages

A personal touch in messages you send boosts engagement.

• Always include the customer’s name – “Hi Rahul, we’ve restocked your go-to product!”
• Don’t blast everyone with the same message. Shape deals around what people bought before.
• Remember special days – A discount for birthdays or anniversaries shows customers you care.

Pick the Right Time to Send

Timing matters a lot in SMS marketing.

• Always skip odd hours. Understand that nobody wants a text at 2 AM. Stick to 9 AM to 8 PM.
• Try different times – Messages in the afternoon might work better than in the morning.
• Urgent messages get results like “Sale ends in 3 hours. Get your deal now!”

Don’t Spam People 

If you send too many texts, people will unsubscribe, and if you send fewer texts, they will forget about you.

• 1-2 texts a week work well for most companies.
• Change frequency based on customer reactions – If people engage less, send fewer messages.
• Nobody wants pointless updates, so ensure each text matters. 

Add an easy opt-out option for customers.

Customers should feel they’re in control.

• Add a simple option to stop messages  like “Text STOP to unsubscribe.”
• Keep it simple. If they want to opt out, let them.
• Watch how many people leave. If too many go, change your strategy.

Use SMS with Other Marketing Tools

SMS works best with email and social media.

• Send reminders about emails – “Look in your inbox for our special deal!”
• Send social media deals – “Follow our Instagram for a hidden discount.”
• Send SMS for urgent updates – Such as new stock, time-limited offers, or quick sales.

Monitor Results & Keep Improving Strategies

Check and observe what’s working and adjust your strategy.

• Look at open & response rates.
• Try various CTAs, deals, or sending times.
• Getting feedback like a simple “Did this SMS help? Reply YES or NO” gives useful insights.

How Does SMS Marketing Work?

SMS marketing has an open rate of around 98% and 52% of marketers plan to increase their spending on SMS marketing in 2025. 

Here are the steps to use SMS marketing for your MSME business:

1. Collect the customer’s phone numbers with their permission. 
2. Choose an SMS platform that would allow bulk messaging & automation.
3. Third, write an engaging message that is short and clear and creates urgency.
4. Fourth, add a call-to-action (CTA) to guide customers on the next steps.
5. Fifth, plan whether you will send messages instantly or schedule ahead. 
6. Sixth, Track open rates and customer responses and optimise based on what works most. 

How to Build an SMS Subscriber List?

An SMS subscriber list consists of customers who have agreed to get your business’s text messages. 

Here’s how you can expand your SMS list, and well:

1. Get People to Sign Up on Social Media

Share info about your SMS list on Instagram reels, Facebook groups, and LinkedIn.

2. Ask Customers to Join When They Buy

Train your team to say, “Do you want to get special deals through text?

3. Cross-Promote with Your Email List

Email your subscribers and ask them to sign up for SMS to get regular updates about offers.

4. Add a Sign-Up Form on Your Website

Create a simple form for your home page, footer, or blog pages.

5. Collect Phone Numbers Offline

To collect phone numbers, take advantage of event booths, store visits, QR codes in your shop, or networking gatherings.

6. Give an Incentive to Opt In

Provide a discount, a free item, or special content for those who join.

Examples of SMS Marketing

SMS Marketing Type	Examples
Promotional SMS	Surprise Sale only for today!  Buy 1 headphone, get 1 free. The deal ends at 2 PM!
Loyalty Program SMS	You’ve saved up 500 points!  Redeem these saved points on your next purchase
Transactional SMS	We’ve shipped your order #1234. Track it here
Automated SMS Marketing	Thanks for joining!  Here’s a 10% discount on your first buy. Click here to shop now.
Welcome SMS	ABC Store welcomes you! Get 10% OFF your first purchase with code WELCOME10
Conversational SMS	Customer:  Do you have this in size M? Business:  Yes! Here’s the link to order: [link]
Survey and Feedback SMS	Help us serve you better! Take this 1-minute survey and get 10% OFF: [link]
Order Confirmation and Cart Abandonment SMS	Thanks for your order, [Name]! Your confirmation number is #5678. Track it here: [link] Forget something? Your cart is waiting! Complete your purchase now and get 5% OFF: [link]
Product Launch or Alert SMS	JUST IN!  Check out our newest smartwatch, order now, and get a free band
Reminder SMS	Hey [Name], this is a quick reminder about your appointment tomorrow at 3 PM. Looking forward to seeing you!” Final call! Your 20% discount ends tonight. Check out our deals: [link]

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6 Best SMS Tools in the Market

How do you choose the right SMS tool with many choices? To help, we’ve compiled a list of 9 top SMS apps describing their functions and benefits for your business.

1. EZ Texting – Top Choice for Mass Texts & Deals

• Bulk messaging – Send tons of messages in one go
• Automated replies – Create auto-responses to frequent questions
• Detailed reports – Monitor message delivery and customer interaction

Best for: Companies wanting to blast promotions, news, or reminders to many people at once

2. TextMagic – Best to Market via SMS & Alert Customers

You can use it to connect with customers, inform staff, and send out crucial alerts.

• Two-way messaging – Customers can answer your texts
• Alert & reminder sending – Perfect for appointment-focused companies
• Global functionality – Connect with customers outside India

Best for: Companies needing marketing and operational SMS (reminders, notifications, and alerts).

3. SimpleTexting – Top Choice for Personal Customer Interaction

You can send out group texts, but you also have the option to engage in one-to-one conversations with customers.

• Personal messages – Customers feel like they’re chatting with a real person
•  Unique shortcodes – Get a 6-digit SMS number that stands for your brand
• Teamwork – Your staff can answer SMS questions together

Best for: Companies that value customer interaction and connection through SMS.

4. SlickText – Top Choice to Automate SMS Campaigns

SlickText allows you to set up SMS sequences that seem personal.

• SMS workflows on autopilot 
• Find out who’s reading and writing back
• Run all your SMS campaigns from one spot.

Best for: Companies looking to reduce time by automating SMS while maintaining a personal touch.

5.  Twilio – Top choice for Customer Support via SMS

 It lets customers text your business and connect with a real person or chatbot to get help.

• Two-way messaging – Customers can send texts and get answers from agents
•  Integrated with support systems – Links to CRM and helpdesk software
•  Automated & manual replies – Mix chatbots with real human responses

 Best for: Companies that want to provide customer service through SMS.

6. Omnisend – Best to Automate SMS Based on Customer Actions

You don’t need to send birthday wishes, order confirmations, or cart abandonment reminders yourself, and it handles this for you.

• Smart automation – Text messages go out based on what customers do on your website.
• Works with email & push notifications – A marketing approach that brings everything together
• Pre-built templates – Cut down on time using messages that are ready to go

Best for: Companies that sell online and want clever, automatic text message marketing.

How to Measure the Performance of SMS Marketing?

Keeping track of the right metrics allows you to determine whether or not your campaigns are actually effective. 

The following metrics can be tracked by businesses to measure SMS marketing performance:

Metric	How to Measure
Interaction Rate	(Total clicks or replies/Total delivered messages)x100
Reply Rate	(Number of replies ÷ Total delivered messages)  × 100
Delivery Rate	(Number of delivered texts ÷ Total number of texts sent)  × 100
Conversion Rate	(Number of conversions ÷ Number of text messages sent) × 100
Customer Acquisition Cost	(Total expense of the SMS campaign ÷ Total number of new customers)
Unsubscribe Rate	(Total number of opt-outs ÷ Total number of subscribers at the beginning) × 100
Campaign ROI	(Total sales – Total investment) ÷ Total investment
List Growth Rate	(New subscribers – Unsubscribers) ÷ Total subscribers during a pre-defined period
List Size	Total number of subscribers
Click-Through Rate	(Total number of subscribers that clicked the CTA link ÷ Total delivered text messages) × 100

Today, you should have a good idea of SMS marketing and how it can work for your business. Doing it the right way can increase customer engagement, push up sales, and keep your business in customers’ minds. 

So, if you haven’t jumped on board yet, now’s your chance!

FAQ 

1. How much does SMS marketing cost?

SMS marketing cost depends upon the platform you choose and the features you need in that platform. Usually, SMS providers charge per message pack. 

2. How can I ensure all SMS campaign rules and regulations are followed correctly?

First, you must be aware of all rules and regulations set by GDPR, TCPA, or other relevant laws. Make sure all data is handled under these laws, you have given opt-out instructions for your customers, and no explicit content is used in your campaigns. 

3. Is SMS marketing Illegal? 

No, it’s not. You have to make sure that the subscriber list you have is obtained with their opt-in permission and that you are following all the local and global laws.