SMS Marketing: complete guide to getting started

What is SMS Marketing

SMS marketing is a strategy that uses text messages to communicate with customers in a direct and immediate way. Unlike other forms of marketing, such as email or social campaigns, SMS has a surprisingly high open rate, exceeding 90 percent. This means that messages sent are almost always read, often within minutes of receipt.

But why is it so effective? The answer lies in its simple and personal nature.

In addition, SMS is extremely versatile. They can be used to send promotions, shipping notifications, or even to collect feedback via surveys. For businesses, they are an inexpensive and powerful tool for maintaining constant contact with customers, improving retention and conversions.

Advantages and disadvantages of SMS marketing

SMS marketing offers many advantages, but it also has some limitations that companies need to consider.

Advantages of SMS Marketing:

• High open rate: More than 90 percent of messages are read within minutes, ideal for urgent communications.
  • Practical example: A restaurant sends a last-minute offer to fill empty tables.
• Simplicity and immediacy: SMS messages are short and direct, easily understood.
• Personalization: Advanced platforms allow you to segment your audience and send targeted messages, increasing engagement.

Disadvantages of SMS Marketing:

• 160-character limit: The brevity of SMS can make it difficult to convey complex messages.
• Invasiveness: Sending too many messages can be annoying to recipients, damaging brand reputation.
  • Solution: Striking a balance and respecting customer preferences is essential.

The legality of SMS marketing: consent and GDPR regulations

One of the key aspects ofSMS marketing is legal compliance, particularly with regard to consent and GDPR regulation compliance . According to the General Data Protection Regulation, companies must obtain users’ explicit consent before sending promotional messages. This can be done through an online form or an automated confirmation message, in which the user agrees to receive communications.

Another useful approach is double opt-in, which allows for clear and verified consent from customers before sending communications. How double opt-in works:

1. Step one: The customer enters their phone number to subscribe to the SMS list.
2. Step Two: The customer receives a confirmation SMS and must reply or click on a link to finally confirm their subscription.

This process ensures that the customer has given informed and voluntary consent, ensuring compliance with privacy regulations, such as GDPR.

Failure to comply with regulations can lead to severe penalties and damage a brand’s reputation. Therefore, it is essential to choose platforms that offer consent management tools and maintain a record of user preferences.

Strategies for creating an effective contact list

Creating a list of qualified contacts is the crucial first step in a successful SMS marketing campaign. The quality of your contacts is undoubtedly more important than quantity, so it is essential to attract people who are genuinely interested in your products or services.

One of the most effective strategies is to offer incentives, such as exclusive discounts or useful content, in exchange for subscribing to your SMS list. For example, a clothing store might offer a 20 percent discount on their first purchase to people who sign up for their SMS newsletter.. In addition, you can promote the subscription through multiple channels: on your website, in social media, or directly in physical stores through signs or QR codes. The important thing is to simplify the process for the user so that they can easily sign up without frustration. Using CRM tools to manage and segment contacts helps keep the list clean and up-to-date.

How to set up your first SMS campaign step by step

Setting up an effective SMS campaign requires planning and precision.

• Choose an SMS marketing platform that meets your needs: there are several and all equally valid, choose the one that best suits your idea of spending, your specific needs and compatibility with the software you already use (an aspect that should not be underestimated).
• Define the type of message you want to send: if you are launching a promotion, make sure the message is clear, concise and contains aclear action, such as “Visit the link to take advantage of the promotion” or “Show this message at checkout.”
• Schedule sending for a strategic time, when your customers are most likely to read text messages such as in the morning or during meal times.
• Monitor the results of your campaign, looking at metrics such as open rate and engagement, to optimize your future strategies. For this purpose, create a link with UTM metrics so that you can monitor the statistics in Google Analytics

Personalize and segment SMS messages

Personalization and segmentation are two key factors that can determine the success of an SMS marketing campaign.

• Personalization: personalized messages, which include the customer’s name or tailored offers, tend to generate greater engagement. More advanced SMS platforms allow the use of dynamic fields to automatically insert the recipient’s name, enhancing the emotional connection with the audience.
• Segmentation: It is critical to send relevant messages to specific groups. You can segment your contact list based on various factors, such as geographic location, previous purchases, or interest in a specific product. For example, if you sell sporting goods, you can send offers on tennis products to customers who have purchased a racquet, while promoting soccer items to customers who have purchased soccer shoes. Segmentation helps you avoid sending messages that are too generic, increasing the relevance and effectiveness of your SMS campaigns while reducing their costs.

Best practices for increasing open and conversion rates

To increase the open rate and conversion of your SMS campaigns, it is essential to follow some best practices that optimize the effectiveness of your messages.

• Clarity is essential: Your message should be concise and direct, with a clear call to action (CTA). For example, if you are promoting a limited sale, the message might be, “20% off today only! Use code OFFER20 by clicking here [link].”
• Sending time plays a crucial role: Messages sent during daylight hours, preferably between 10 a.m. and 4 p.m., tend to have a higher open rate.
• Personalized message content : personalizing the content according to the recipient’s interests, as mentioned above, increases its relevance.
• Frequency of sending: is another important aspect! Don’t send messages too often, to avoid becoming intrusive.
• Use trackable links, which allow you to directly monitor users’ interest and actions

How to measure and analyze the performance of your SMS campaigns

Measuring and analyzing the performance of SMS campaigns is essential to optimize your strategy and maximize results. To evaluate the effectiveness of your messages, it is essential to monitor a few key metrics:

• Open rate: Measures the percentage of messages opened versus messages sent. A high rate indicates that your content is relevant and attention-grabbing.
• Click-through rate (CTR): Indicates the percentage of recipients who clicked on the link within the message. A low CTR may suggest a need to improve the call to action or relevance of the content.
• Conversion rate: Shows how many recipients performed the desired action, such as completing a purchase or signing up for an event. It is a crucial metric for understanding the return on investment (ROI) of the campaign.
• Opt-out rate: Measures how many users unsubscribe from your list after receiving a text message. A high value may indicate excessive frequency or irrelevant messages.

For example, if your opt-out rate is high, but your CTR is low, you might revise the text of the message or the value of the proposed offer. Using these metrics not only helps you identify weaknesses, but also allows you to implement targeted improvements to make your campaigns increasingly effective.

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