SMS

With the right SMS services for small businesses, company owners can greatly improve their customer acquisition and retention processes.

By Hannah Whittenly

Not long ago, the mobile technology known as Short Message Service was set to change the way we communicate and conduct business. In Finland, home of the respected Nokia mobile brand, SMS banking was very common in the 1990s. These days, SMS retail payments and money transfers are part of daily life in Kenya. In the United States, small business owners are beginning to rediscover the power of SMS marketing, and the following statistics explain why:

Text Messaging Has a 45% Response Rate

When compared to email and social media communications, text messages have a very strong response rate. As of 2018, the response rate of email messages was only six percent while text messages enjoyed a 45 percent response rate. It is easier to understand this statistic within the context of spam, which currently takes up more than 80 percent of email communications.

98% of Sent Text Messages are Read

Virtually all mobile devices are capable of receiving and replying to text messages. SMS is an out-of-the-box feature that does not require internet connections or app installations. When a text message is sent to a mobile device, there is a 98 percent chance that it will be read. These prevalent aspects of SMS technology make it very attractive for small business marketing.

More Than 50% of Consumers Prefer Texting

More than 50 percent of consumers enjoy the idea of interacting with customer support via text messages. Some of the most common customer services queries that can be handled via SMS include: payment confirmations, availability of products, and status of order processing or shipping. In the past, these communications were largely handled by email, but the current glut of spam makes SMS a better option.

75% of Consumers Want Texts with Special Offers

According to Digital Marketing Magazine, three quarters of all consumers would like to see special offers, discounts and coupons delivered to their smartphones via SMS. A recommended strategy in this regard is to create call-to-action messages with a certain sense of urgency. Limited-time offers that must be redeemed at a specific location are great for increasing store traffic. Another strategy is to encourage recipients to forward coupons to their friends and loved ones.

In the end, even though the Short Message Service is now a legacy media outlet, small business owners should not ignore it. With the right SMS services for small businesses, company owners can greatly improve their customer acquisition and retention processes.

Hannah Whittenly is a freelance writer and mother of two from Sacramento, CA. She enjoys kayaking and reading books by the lake.

SMS stock photo by Romanets/Shutterstock