The Content Alchemist

THE FUTURE OF SMS MARKETING

IN A WORLD OF INSTANT MESSAGING

Updated 07 March 2024

Omneya Nabil B&W photo

Written by Omneya Nabil

Content Alchemist & Brand Storyteller

The future of SMS marketing is a hot topic among B2C marketers. With customers now living on the Internet, there’s growing concern about how text messaging — a platform from the early digital era — is going to survive. But SMS marketing is far from dead; it’s just having a moment in the sun due to technological advancements and changes in consumer behaviour.

A culture of technological threats

Living in a culture of technological threats has become a defining characteristic of our modern society. Rapid advancements in technology have brought about incredible conveniences and opportunities, but they have also introduced a wide range of concerns.

Video [hypothetically] killed the radio star on the first of August 1981, with the birth of music videos and launch of the world’s first all-day music channel: MTV. Ironically, that was also the name of the first song to air on TV. Besides its popular tune that brought The Buggles into international spotlight, the song’s lyrics expressed concerns about the technological advancements of the 20th Century.

Today, similar speculations are being raised about instant messaging (IM) overtaking traditional Short Message Service (SMS). It may seem strange to talk about the future of SMS marketing when it feels like every communication method has been replaced by a more efficient one. In our ever-evolving world, we’ve ditched landlines for cell phones, snail mail for email, and books for tablets. So, are consumers really going to ditch SMS in favour of instant messaging (IM)?

SMS and IM trends

As technology reshapes the way we connect, the landscape of communication is witnessing intriguing shifts. While SMS faces a decline, messaging apps are experiencing an unprecedented surge in popularity, transforming the very nature of how we interact and engage. Let’s look at the two most prevailing trends today:

SMS usage is in decline

The growing number of smartphone users and mobile internet subscribers has resulted in the decline of SMS usage in favour of instant messaging (IM) but comparing the two in a general sense would be unreasonable.

Statistic: Number of smartphone users worldwide from 2016 to 2021 (in billions) | Statista
Find more statistics at Statista

In fact, it would only be fair to say that IM is acquiring market share from Person-to-Person (P2P) SMS. Application-to-Person (A2P) continues to retain its niche audience of enterprises looking for a fast, reliable, and secure platform of communication that provides high engagement rates with their target audiences.

Messaging Apps are growing in popularity

With messaging apps growing in popularity, Application-to-Person (A2P) messaging continues to retain its niche audience of enterprises looking for a fast, reliable, and secure platform of communication that provides high engagement rates with their target audiences.

Statistic: Most popular global mobile messenger apps as of October 2020, based on number of monthly active users (in millions) | Statista
Find more statistics at Statista

A2P vs P2P messaging

Application-to-Person (A2P) messaging, also known as “enterprise SMS”, “business SMS”, or “application-to-user” messaging, refers to the process of sending text messages from an application or software to an individual recipient’s mobile phone. In this communication model, an application (which could be a business, organisation, or service provider) initiates the message, and it is delivered to a person’s mobile device.

On the other hand, Person-to-Person (P2P) messaging, also known as “peer-to-peer” messaging, refers to personal conversations initiated by individuals for interpersonal communication. Think of messaging apps like Facebook Messenger, WhatsApp, WeChat, and Snapchat, which allow you to send text, pictures, videos, and voice messages directly to individuals or groups.

The most common A2P SMS use cases

One often overlooked aspect of Application-to-Person (A2P) messaging’s appeal to companies is its versatility in use cases. While it’s commonly associated with sending transactional alerts, confirmations, and verification codes, A2P messaging also extends its utility to marketing campaigns, customer support, and even interactive experiences. This versatility allows marketers to leverage a single platform for a wide range of communication needs. Let’s look at some of the most common use cases.

  • Marketing campaigns: A2P SMS can be a powerful tool for marketing initiatives. Organisations can use A2P to send promotional offers, discounts, product launches, and event invitations directly to customers’ phones. The high open and engagement rates of SMS make them effective for delivering time-sensitive promotions.
  • Customer surveys and feedback: A2P messaging can be utilised to collect customer feedback through surveys and polls. This enables companies to gather valuable insights, measure customer satisfaction, and make informed decisions based on real-time feedback.
  • Appointment reminders: Many businesses, such as healthcare providers and service-based companies, benefit from A2P messaging to send appointment reminders to clients. These reminders reduce no-show rates, optimise scheduling, and improve overall customer experience.
  • Two-factor authentication (2FA): A2P messaging serves as a secure and convenient way to implement 2FA. Companies can send verification codes via SMS to enhance security for online transactions and account access, safeguarding both customers and the business.
  • Interactive customer support: A2P messaging enables interactive communication between customers and businesses. Customers can initiate queries via SMS, and companies can respond with automated or personalised messages. This enhances customer support accessibility and responsiveness.
  • Order status updates: E-commerce companies can leverage A2P messaging to keep customers informed about their order status, shipping updates, and delivery notifications. This real-time communication enhances transparency and builds customer trust.
  • Time-sensitive information: In emergency situations, A2P messaging becomes a critical tool. Alerts, warnings, and emergency notifications can be sent quickly to ensure public safety and keep stakeholders informed.
  • Event registrations and confirmations: A2P messaging facilitates event registration and confirmation processes. Attendees can receive event details, updates, and confirmation messages, simplifying event management for organisers.
  • Mobile engagement and contests: Companies can use A2P messaging to drive mobile engagement through contests, quizzes, and interactive campaigns. This fosters audience participation and brand interaction.

Launching effective SMS marketing campaigns

Ken Rhie, CEO of Trumpia says “SMS marketing is a proven channel that allows marketers to effectively reach consumers. Email and direct mail are just too slow, and social media is too inundated with spam. With a 90 percent open rate, SMS gets your messages read faster than any other channel.”

SMS marketing has proven to be an invaluable tool for businesses looking to engage with their audience in a direct and impactful way. If you asked me what factors are most important for successful and effective SMS marketing campaigns, I’d say: a well-targeted audience, a personalised message, relevancy, good luck and — of course — your skilful usage of words.

 

But you also need a process to follow. Here are the 10 essential steps to create and launch an effective SMS marketing campaign:

  1. Define your goals and audience: Before you start crafting SMS messages, it’s crucial to outline your campaign goals. Are you aiming to increase sales, drive website traffic, promote a new product, or simply provide valuable information? Each goal requires a tailored approach. Additionally, identify your target audience. Understand their preferences, behaviours, and demographics. This knowledge will help you create messages that resonate and drive engagement.
  1. Obtain permission: Permission-based marketing is the cornerstone of successful SMS campaigns. Ensure that you have explicit consent from recipients before sending them SMS messages. This not only complies with regulations but also fosters a positive relationship with your audience.
  1. Craft compelling messages: SMS messages have a limited character count. This constraint necessitates concise and impactful content. Your message should be clear, engaging, and include a strong call-to-action (CTA). Whether it’s a discount code, a link to your website, or an invitation to an event, the CTA should prompt immediate action.
  1. Personalisation is key: Address recipients by their names whenever possible. Personalised messages have a higher chance of grabbing attention and generating responses. Use the data you have about your subscribers to tailor your messages. Once again, make sure you have permission to use their data.
  1. Timing matters: Timing plays a significant role in SMS marketing. Send messages when your audience is most likely to be attentive, which is typically during business hours. Avoid sending messages too early in the morning or too late at night.
  1. Segment your audience: Segmentation allows you to send targeted messages to specific groups within your audience. You can segment based on demographics, purchase history, and engagement level. By sending relevant content to each segment, you’ll increase the effectiveness of your campaigns.
  1. Test and optimise: Continuously test different elements of your SMS campaigns, such as message content, CTAs, and timing. Analyse the results to determine what’s working and what’s not. A/B testing can provide valuable insights into optimising your campaigns for better results.
  1. Monitor and analyse: Use analytics to track the performance of your SMS campaigns. Look at metrics like open rates, click-through rates, conversion rates, and unsubscribe rates. Monitoring these metrics helps you understand campaign effectiveness so you can make informed decisions for future campaigns.
  1. Maintain consistency: Consistency is key to building brand recognition and trust. Maintain a consistent tone, style, and frequency in your SMS messages. If your recipients know what to expect from your messages, they’ll be more likely to engage with them.
  1. Stay compliant: Lastly, ensure your SMS campaigns comply with local regulations, such as obtaining proper consent and providing opt-out mechanisms. Non-compliance can lead to legal issues and damage your brand reputation.

Did I mention customer consent?

Customer consent is no joke. If you follow me on LinkedIn or X (formerly Twitter), you’ll notice how I occasionally name and shame companies that skip consent and jump straight to spamming customers.

As a marketer, you’re required to get permission from your customers before you contact them. Internationally, consumer data and privacy are protected by the EU’s General Data Protection Regulation (GDPR), Japan’s Act on the Protection of Personal Information (APPI)and the California Consumer Privacy Act (CCPA).

Things are different in the Middle East, with no real law protecting customer privacy. I see a lot of companies that don’t respect their customers’ privacy. Some insist on sending marketing and promotional messages without requesting opt-in or asking for consent. Others continue to communicate with their audience long after they unsubscribe or opt out. Don’t get me started about Mobile Network Operators (MNOs) abusing customer data to make more money. 

What an SMS marketing campaign shouldn't look like

Here’s an example of what an SMS marketing campaign shouldn’t look like by Style2Door (on behalf of Ted Baker in Egypt). 

Conclusion: The future looks bright for SMS marketing

It’s been 40 years since the release of the first music video, which failed to kill the radio star after all. The music video didn’t eliminate the radio star—it simply ushered in a new era of multimedia entertainment. It’s a reminder that technological advancements don’t oust existing mediums; they augment them.

Similarly, SMS (and SMS marketing) are evolving to adapt to the demands of today’s dynamic business environment. Their sustainability depends on the ability to offer comprehensive messaging solutions that overcome current SMS limitations such as rich formats, more word count, and a wider customer base across continents.

 

So, as we move forward, let’s recognise that SMS marketing isn’t waving goodbye; it’s stepping confidently into the future. As innovative technologies and enhanced strategies continue to shape the marketing landscape, SMS marketing remains a potent tool—evolving, redefining, and steadfastly meeting the needs of growing enterprises and small businesses alike.

If you’re planning an SMS marketing campaign in the near future, grab a coffee and let’s talk about how we can weave it into your content strategy.

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