Key takeaways
- SMS marketing sends discounts, product announcements, and event invitations to subscribers’ phones to encourage purchases.
- Customer purchases do not replace SMS consent, so document permission before sending promotions.
- Match product alerts to subscriber interests, and prevent automated messages from duplicating scheduled promotions.
- SMS profitability depends on additional sales covering product, fulfillment, software, delivery, and registration costs.
Adding SMS marketing to your business means deciding who to contact, what to send, and how much to spend. Without a process for your first campaign, you risk paying for texts customers may ignore.
Start with how subscriptions and delivery work, then connect your messages to a specific sales goal. Comparing campaign costs with customer purchases helps you decide where to invest next.
What is SMS marketing?
SMS marketing uses short message service to send promotional texts to customers who agree to receive them. Offers arrive in the phone’s messaging inbox, so subscribers do not need a separate app.
Businesses use these messages to promote discounts, product launches, and events. For images or other media, multimedia messaging service (MMS) provides a separate messaging format.
How does SMS marketing work?
Messaging software connects customer enrollment, campaign delivery, and response tracking in a repeatable process:
- Subscription: Customers join through a signup form, checkout option, QR code, or text keyword.
- Delivery: After recording permission, the platform sends scheduled promotions or automatically responds to actions such as signup.
- Response tracking: Delivery reports and engagement data help businesses assess performance, while staff handle replies and software processes opt-outs.
Is SMS marketing effective?
Yes, SMS marketing can support product interest and sales, but profitability depends on campaign costs and customer response.
EZ Texting’s consumer survey suggests businesses can reach receptive audiences and encourage purchase consideration:
- 89% had subscribed to business texts, indicating substantial acceptance of company messages.
- 67% of respondents said they were more likely to buy from businesses whose texts they subscribed to, suggesting sales opportunities.
- After receiving a text, 54% reported greater interest in the product, supporting the use of relevant offers to attract shoppers’ attention.
SimpleTexting’s separate survey also supports SMS as an established communication and revenue channel:
- Business text enrollment reached 85.6% among consumers, showing an existing audience for permission-based messaging.
- For 76% of surveyed businesses, texting offered an effective way to generate revenue, suggesting value beyond engagement.
- Businesses that texted customers were 16% more likely to report digital marketing success than nonusers. SimpleTexting also reported 4.99 times the odds, a different statistical measure from probability.
These self-reported associations suggest SMS could complement other channels, but they do not prove texting caused better results. Additional sales must generate enough profit to cover campaign expenses for the investment to pay off.
Which SMS marketing campaigns should you send?
Choose a campaign that gives subscribers a reason to act and supports the outcome your business needs.
| SMS Marketing Campaign | Why Consider It? |
|---|---|
| Welcome offers | Deliver the promised signup incentive to reward enrollment and encourage a first purchase. |
| Product and restock alerts | Notify interested shoppers about relevant launches or restocked items so they can buy what they already want. |
| Loyalty rewards and event invitations | Offer early access, reward reminders, or exclusive invitations to give subscribers reasons to return and participate. |
| Customer conversations | Invite product questions and post-purchase feedback to resolve concerns and strengthen customer relationships. |
How much does SMS marketing cost, and what should you measure?
SMS marketing costs vary by software plan, destination, message format, and monthly sending volume. To estimate your bill, request a quote that includes the subscription, delivery charges, and registration fees.
What costs should you budget for?
Compare quotes using the same expected sending volume, including these expenses:
- Software: Check how many messages the subscription includes and what the provider charges for additional usage. A lower monthly price may cost more overall if your campaigns exceed the allowance.
- Message delivery: Longer texts can span several billable segments, increasing the charge for each recipient. Ask the provider to include carrier surcharges and separate MMS rates in the estimate.
- Registration: Depending on the sender type, setup or recurring fees may apply. Include both in your budget, even if the provider lists them outside its messaging rates.
Which results show value?
Track how messages reach customers, encourage purchases, and affect subscriber retention.
| Metric or Assessment | How to Evaluate |
|---|---|
| Delivery rate | Calculate successful deliveries ÷ attempted sends × 100 to monitor delivery and investigate invalid numbers or carrier filtering. |
| Unique click rate | Measure unique clicking recipients ÷ delivered messages × 100 to assess link engagement. |
| Purchases and revenue | Track completed orders and revenue per recipient to compare sales performance across campaigns of different sizes. |
| Opt-out rate | Divide opt-outs by delivered messages and multiply by 100 to flag possible frequency or relevance problems. |
| Campaign profit | Subtract product, fulfillment, and campaign costs from revenue after discounts to assess profitability. |
| Additional sales | Compare purchase rates between randomly assigned texting and no-text groups to estimate sales SMS added. |
| Platform attribution | Interpret platform-attributed sales according to tracking rules without assuming the text caused every reported purchase. |
How do you build a permission-based SMS marketing list?
Build your list with a signup process that explains the program, records permission, and lets subscribers withdraw.
- Request SMS-specific permission: Ask customers to authorize promotional texts separately from email subscriptions or service updates. Since a purchase alone does not establish consent, check permissions before importing existing customer numbers.
- Explain the program: Identify your business, describe the messages, and state the expected frequency at signup. Alongside possible messaging charges, include links to your privacy policy and mobile terms.
- Document voluntary enrollment: Unchecked subscription boxes let customers actively choose to join. Record how and when each person authorized your messages so your business retains evidence of permission.
- Honor unsubscribe requests: Include an easy exit, such as replying STOP, in every campaign. After a recipient opts out, configure your software to suppress further marketing texts.
- Verify applicable requirements: Qualified legal counsel can assess the Telephone Consumer Protection Act (TCPA), state laws, and carrier policies for your program. Ask your provider about sender registration and content restrictions, but remember registration does not replace consent.
How to build an SMS marketing strategy
Develop your message, check its length, choose a sending schedule, and set boundaries for AI assistance.
1. Write each message around one action
Identify your business and explain one offer, including its deadline and purchase requirements. Then add a recognizable link that takes readers to the next step, followed by unsubscribe instructions.
For a weekend promotion, the link should open eligible products instead of your homepage. Sending shoppers to the relevant selection saves them from searching for the advertised deal.
2. Check character limits before sending
A standard GSM-7 SMS segment holds up to 160 characters, including spaces. Some characters and emojis change the encoding and reduce a single segment’s capacity to 70 characters.
Even if a phone displays one message, longer texts can span multiple billable segments. Check your platform’s counter after adding links and opt-out wording to confirm how many segments each recipient will receive.
3. Schedule campaigns around customer preferences
Recipients’ local time and applicable sending restrictions determine your available delivery windows. Within permitted hours, test different times against customer response instead of assuming one schedule works for everyone.
Start with the frequency promised at signup, then adjust using feedback and unsubscribe patterns. If automated flows overlap with scheduled promotions, suppress duplicate contact so customers do not receive unnecessary reminders.
4. Give AI specific tasks and limits
AI tools can shorten drafts, categorize replies, and assist with routine product questions. To complete tasks accurately, assistants need approved access to relevant inventory, scheduling systems, or customer records.
Define what the assistant may handle and which requests it must pass to staff:
- Restrict access to personal information and permissions for discounts or refunds.
- For sensitive actions, require human approval and provide an accessible route to staff.
- Disclose automated assistance, and review conversations so staff can identify incorrect answers.
Product capabilities vary, so verify integrations before granting an assistant permission to change orders or bookings.
Frequently asked questions on SMS marketing
Remember these common questions when choosing message formats, handling complaints, and offering subscription preferences.
Can B2B companies use SMS marketing?
Yes, B2B companies can text opted-in prospects to answer product questions, qualify inquiries, or arrange demonstrations with sales staff. For example, send a requested demo booking link, then assign a salesperson to answer questions about pricing or implementation.
Should SMS marketing replace email?
No, SMS complements email because brief texts suit urgent notices, while email accommodates newsletters, product comparisons, and detailed instructions. Send the full promotion by email, then text eligible subscribers a deadline reminder without repeating every detail.
Does every SMS promotion need an image?
No, include an image only if showing the product or explaining the offer helps customers decide what to do. Send comparable subscriber groups text-only and image versions of the same offer, then compare purchases against each version’s delivery costs.
How should SMS marketing change after a customer complains?
Pause promotions connected to the complaint and assign a staff member to resolve the issue through the existing conversation. If someone reports a missing order, update their customer record so promotional follow-ups don’t overlook the unresolved delivery issue.
Can SMS subscribers change preferences without unsubscribing?
Yes, subscribers can change topics or frequency without leaving your list if your platform supports and applies preference controls. For example, let customers select restock alerts without sale announcements, then exclude them from promotional campaigns they declined.
Conclusion
Text message marketing should give customers a reason to remember your business beyond a discount. Read your next promotion alongside your website’s product copy, then align the wording, prices, and promised benefits.
A phone preview lets you check that the text and linked page describe the same offer. By matching the promotion to the purchase experience, your business can build recognition that lasts beyond a single message.
For Teams Managing Inbound Inquiries
Customers asking about product availability or service pricing need an answer that reflects what they already shared. Record the request and next step so another employee can respond without asking customers to repeat details.
As inquiries increase, sales automation workflows can assign CRM owners and schedule consent-based SMS follow-ups. Separate new inquiries from prospects awaiting a decision, then stop nurture reminders once someone books or declines.
First published November 15, 2021; Updated October 26, 2026
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