What Is the Future of SMS Marketing for Businesses?

by Josh Biggs in Marketing on 31st March 2022

The use of short messaging services or text message marketing has increased as more businesses use this medium to connect with their clients in real-time. SMS marketing has a high response rate, allowing businesses to enhance engagements in the current era where personal communications are crucial.

Research studies have shown that over 60% of millennials and Gen Z like two-way communications for their speed, convenience, and ease of use. Additionally, the study found that marketing text messages have a 98% open rate, way higher than 20% achieved by email campaigns.

Text messages also instill an immediate sense of urgency, with the survey showing that millennials open messages within 90 seconds of receiving. Businesses should work with a reliable RCS platform to enjoy these benefits. As SMS marketing grows, you should expect to see the following changes:

  1. SMS marketing will become more personalized

Since text messages were introduced more than two decades ago, messages have remained the most used mobile phone feature. More than 92% of the world’s population currently own mobile devices that can receive text messages. Interestingly, more people own a mobile phone than those who own a toothbrush.

Text messages provide great opportunities for businesses to connect with their audience personally. Businesses can broadcast their messages, and customers will have read them within minutes. However, like any other marketing strategy, SMS marketing is better when personalized.

While easy personalizations, such as including a business name in the message, are possible, advanced technologies have made it possible to personalize SMS marketing in many ways. For instance, modern technologies can trigger text messages based on specific events, such as when customers complete online or in-store purchases, redeem their coupons, and more.

SMS marketing technology can also trigger messages when the customer is most receptive. In the future, more personalization options, such as using AI to review past interactions with customers to create personalized marketing campaigns, will be possible. Integrating SMS marketing with other platforms will also provide sufficient data for personalizing SMS campaigns.

  1. More businesses will adopt SMS marketing

The cost of digital marketing has risen steadily because the industry has become saturated and doesn’t produce powerful results like before. Therefore, marketers are looking for affordable options with tangible and repeatable ROI, such as SMS marketing. As such, more businesses will likely adopt SMS marketing into their digital marketing strategies in the future. Fortunately, SMS marketing can be used in various marketing campaigns.

  • Sales promotions – Text messages are read a few minutes after receipt. This makes text messaging a good option for time-sensitive promotions.
  • Product launches – You can use text messages to inform your customers of new products and services.
  • Taking orders – Established businesses, such as Dominos, allow customers to place orders through text messages. You can place your order by sending a message to the nearest restaurant.
  • Alerts – Businesses that rely on notifying groups can take advantage of SMS messages. For instance, schools that update parents of students’ proceedings.
  • Providing coupons – Instead of customers filling out a form online or in-store to receive coupons, they can send a quick text message that awards them coupon codes instantly.
  • Appointment reminders – Many businesses currently use SMS messages to remind customers of their appointments.
  • Surveys – Text messages are also an effective way of conducting surveys. The platform can send questions to customers randomly and collect their answers.
  • Tracking goods – Shipment companies, such as UPS and FedEx, update their customers through text messages.  

Businesses can also use text messaging to provide customer support during recruitment, client arrivals and check-ins, product verification, and password confirmation. More businesses are expected to jump onto the texting bandwagon as they realize the benefits of SMS marketing.

  1. SMS support channels will become more intuitive

Any marketing strategy should always revolve around their customers. Customers are the lifeblood of successful businesses, and marketers should use technologies to build reliable support channels. Seamless customer support translates to:

  • Increased customer loyalty
  • High customer retention rates
  • More referrals
  • More positive reviews

Currently, live chat bots have been adopted by several marketing agencies and websites. They help customers and prospects navigate online stores, suggest products, and answer common questions. Moving forward, SMS may take a similar role. As artificial intelligence becomes more sophisticated, integrations between SMS and business systems will make this scenario a reality.

For example, let’s say you are shopping for a shoe in a physical store but can’t find a perfect fit. Normally, you would look for a store attendant to help you find your desired size, which can take a lot of time. However, you can avoid this with SMS messaging. Instead of tracking down the shop attendant, a sign on the shelf saying, “Can’t find your size? Text the word “Size” to 11111 to see if your size is available. The bot checks the inventory and replies immediately.  SMS bots will help customers complete a wide range of tasks, such as answering questions and booking appointments. 

  1. SMS platforms and marketers will also adapt

Any shift in industry trends will force service providers and those attached to conform to the changes. As the adoption of SMS marketing increases, businesses will demand more and better integration with existing business processes and software. Software vendors will be forced to expand their services to meet business demands.

 Vendors such as Syniverse will work on providing better and deeper integrations to remain ahead of other operators. Therefore, you should expect to see:

  • Integrations with marketing automation and CMS platforms
  • Advanced ability to create personalized SMS campaigns using data collected from other marketing channels
  • Smart response bots that automate customer interactions through text messages

Similarly, digital marketing agencies will also find ways of incorporating SMS marketing into their services. They will find ways of integrating text messaging into their cohesive digital marketing strategies, such as social media and email marketing.

Endnote

SMS marketing has emerged to be a cost-efficient and effective way for businesses to boost engagements and generate quality leads. Text messaging provides an opportunity for businesses to develop personal connections. They are also highly targeted, provide measurable results, and assure long-term engagement. If you don’t use text messaging in your business, it is best to reconsider now.

Categories: Marketing

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