SMS lead generation: Strategies, best practices, and tools

Reading Time: 12 minutes

When your phone buzzes, you instinctively check the message within seconds — proof of the immediacy and engagement SMS marketing delivers. With high open rates, instant communication, and personalized outreach, SMS lead generation has become a game-changer for businesses.

SMS is a powerhouse for capturing and nurturing leads. With most people having their phones on them at all times, SMS messages are a very effective way to promote sales and stay in touch with your customers.

This guide discusses proven strategies for converting prospects into leads. We’ll explore automation techniques that help you engage leads and explain the legal and effective compliance guidelines for SMS campaigns.

You’ll also learn about the tools and platforms that can streamline your lead generation efforts.

SMS lead generation: Key takeaways

• Smart incentives transform casual browsers into eager subscribers. Offering exclusive deals and early access through SMS encourages people to sign up, as they immediately recognize the value in your messages.
• Automation creates lasting connections with your audience automatically. Sending welcome messages and perfectly timed follow-up messages helps nurture relationships on autopilot.
• Strategic timing and customer grouping dramatically increase your success rates. Analyze when your audience engages most and organize them by shopping habits for maximum engagement.
• The right tools transform complex marketing into smooth sailing for your business. Omnisend combines powerful SMS features with smart automation, enabling you to capture and nurture leads without drowning in manual tasks.

What is SMS lead generation?

SMS lead generation collects phone numbers and other useful information from potential customers interested in your business offerings. Permission-based marketing lets you connect directly through text messages, converting interested prospects into buyers.

Think of lead generation SMS as a direct line to your future customers’ pockets. When someone gives you their phone number, they’re not just sharing contact information — they’re opening a private channel for conversation.

SMS lead generation involves text messaging to find, attract, and nurture potential customers interested in your products or services. SMS grabs attention instantly, unlike email or social media, where messages often remain unread. It pops up right on your prospect’s phone’s lock screen.

Here’s how the process typically flows:

• First contact: A potential customer engages with your business through various touchpoints:
  • Website popups offering exclusive deals
  • Social media promotions promising SMS-only discounts
  • In-store signage with shortcodes to text
  • QR codes at events or on packaging
• Permission and trust: You must obtain explicit consent before sending messages. The legal requirements for SMS marketing include clear opt-in processes and the ability to unsubscribe at any time.
• Engagement flow: Once someone opts in, here’s how you can keep them hooked:
  • Send welcome messages introducing your brand
  • Offer targeted discounts or recommendations based on their interests
  • Provide order updates and shipping notifications
  • Follow-up to keep the conversation going

Lovepop’s welcome message is warm and inviting. It clearly says what the user can expect and also gives them an option to unsubscribe:

Benefits of using SMS for lead generation

Let’s explore the three key advantages that make SMS lead generation effective for businesses of all sizes: 

1. High open rates

Text messages have a clear advantage in getting your message read, as emails often remain unopened in crowded inboxes. People habitually check their phones throughout the day, making it easy to quickly notice and open text messages. 

According to Omnisend’s research, SMS messages convert at 2.3 times the rate of email campaigns.

Why is there such a significant difference? Text messages are perceived as personal and urgent, making them highly effective.

The beauty of such urgency lies in their compound effect. More messages are read, and actions are taken, leading to better open rates, more conversions, and improved revenue generation.

Some real-world scenarios where high open rates matter include:

• Flash sale announcements
• Limited-time offers 
• Event registration deadlines 
• Exclusive product launches 
• Cart abandonment reminders

2. Immediate communication

SMS slashes the response time to seconds, creating a direct line to prospects exactly when their interest peaks.

Think about a customer browsing your website at lunch. They show interest but don’t purchase. You can reconnect with automated SMS messages before they’ve finished their sandwich. This immediate engagement keeps your brand top-of-mind.

However, immediate communication extends beyond speed. It creates a sense of dialogue and responsiveness. Retail stores, service providers, event organizers, and restaurants confirming reservations rely on fast communication daily.

3. Automation and personalization

SMS automation works like a tireless sales team that never sleeps. It remembers every customer interaction and follows up at just the right moment. 

In addition, including customer names and referencing their past purchases gives your messages a personalized touch.

You can improve your lead generation by:

• Customizing offers based on browsing history
• Creating behavior-triggered messages that respond to specific actions
• Adapting message frequency to individual preferences
• Mentioning specific products browsed
• Acknowledging customer milestones

Effective SMS lead generation strategies

Successful SMS lead generation relies on several key strategies that enable you to create engaging messages. Let’s explore four proven approaches that help businesses get better results from their SMS marketing:

1. Offer incentives
2. Automate follow-up messages
3. Leverage SMS for event signups
4. Clear calls to action

1. Offer incentives

The difference between a phone number freely given and one reluctantly shared lies in the value you offer upfront. Offering personalized incentives that speak directly to customer needs transforms hesitant browsers into engaged subscribers.

Understanding why incentives work helps you create better offers. When your deals include a sense of scarcity (“only 50 spots left”) or exclusivity (“VIP members only”), customers feel a stronger urge to act quickly. 

Time limits naturally create urgency, while offering extra value (like a free gift with purchase) often works better than simple discounts. You can also use tiered rewards, where benefits grow as customers engage with your brand.

Some examples of smart incentives that drive opt-ins include:

• First-purchase discount codes
• Early access to upcoming sales (24-hour head start minimum)
• Free shipping offers with minimum purchase
• Exclusive product bundles
• VIP event invitations
• Free product samples
• Birthday rewards programs
• Referral bonuses for sharing with friends

Here’s an example of what a lead generation SMS with an exclusive offer or discount for lead capture might look like:

2. Automate follow-up messages

When someone browses your products, abandons their cart, or makes a purchase, automated sequences send perfectly timed messages without you having to hit “send” manually. 

This behavior-based approach ensures your texts arrive precisely when customers are most likely to engage. Once someone shows interest in your business, smart timing keeps them engaged. Here’s how to set up automated message sequences that work:

• Start with a warm welcome immediately after they subscribe 
• Wait 48 hours, then share your best-selling products or popular content 
• On day four, offer a special discount to encourage their first purchase 
• After a week, check in with customer testimonials or shopping guides

Compelling welcome messages attract, engaging content nurtures, and a well-timed offer converts. 

For a successful result:

• Watch response rates to see which messages get the most replies
• Track how quickly people make purchases after each message
• Monitoring SMS metrics allows you to adjust your timing
• Check which links get clicked most often
• Calculate how much revenue each subscriber generates
• Note when people tend to read and respond to your texts
• Pay attention to the tone of customer replies

Setting up automated workflows requires careful planning of the messages and getting them delivered at the right time. Here’s the signup workflow offered by Omnisend:

3. Leverage SMS for event signups

Event marketing is particularly effective through SMS because it simplifies registration and saves time by giving the clients just what they need — an easy signup. 

While email and text messages effectively promote events, SMS offers unique advantages. Attendees can register with a single reply, check event details from their messages, and get instant confirmation. SMS is ideal for busy people who might otherwise postpone registration.

Whether you’re hosting a webinar or an in-store event, SMS helps fill seats by removing friction. People appreciate being able to RSVP with a quick “YES” rather than filling out lengthy forms, and you can easily send them reminders as the event approaches.

Proven event promotion ideas include:

• Early bird pricing alerts
• Last-minute seat availability
• Countdown reminders
• Speaker announcements
• Location updates
• Post-registration engagement
• Event reminder sequences

Here’s an example of an SMS event signup message with a clear and direct call to action:

4. Clear calls to action

Your text message needs one clear purpose — a single action you want customers to take. Getting people to “sign up, browse, and share” all at once only leads to confusion. Instead, focus each message on one compelling call to action that feels natural and easy to complete.

The best CTAs combine several key elements like the action words “Get,” “Shop,” and “Join.” They also mention a specific benefit like “Save 20% today” or create a sense of urgency by saying, “Only 2 hours left.”

Test different approaches to find what works best:

• Try various button texts and time limits
• Experiment with emoji placement
• Adjust your message length and link position
• Test different ways to present offers

Remember, effective CTAs guide rather than push. They motivate customers to take action instead of feeling pressured to act.

Here’s an example of a message with a focused CTA. Notice how it includes just one action, “Shop now,” along with a discount of up to 50%, making the customer fully aware of what they’ll receive by taking action: 

SMS lead generation best practices 

Getting results in SMS lead generation requires more than just sending texts. It demands a careful balance of legal compliance, compelling content, perfect timing, and audience targeting. 

Here are some ways that can turn a simple message blast into a powerful lead conversion tool:

1. Regulatory compliance

One mistake in SMS compliance can cost thousands in fines and destroy customer trust. The Telephone Consumer Protection Act (TCPA) and other regulations aren’t just legal checkboxes, they’re guardrails that protect both businesses and customers.

Improving SMS deliverability depends heavily on following these rules. Ignore them, and messages might never reach their targets. 

To ensure SMS marketing compliance, start by obtaining written consent before sending messages and maintaining a clear opt-in process with outlined terms and conditions. Additionally, conduct regular staff training to reinforce compliance and mitigate risks effectively.

2. Craft engaging messages

The perfect SMS reads like a note from a trusted friend — brief, relevant, and impossible to ignore. Sending effective text messages requires copywriting skills and marketing tactics.

Here’s a checklist to get you well on your way to crafting truly engaging SMS messages:

• Keep the total length under 160 characters
• Front-load the most critical information
• Use power words that drive action
• Include personalization elements
• Add emojis strategically (1-2 maximum)
• Create a sense of exclusivity
• Make links short and trackable
• Test different message variations
• Include social proof when relevant

3. Optimize timing

The success of an SMS hinges on identifying the optimal moments when the recipients are most open and inclined to interact. What works during summer might flop in winter. Regular analysis of engagement patterns helps maintain peak performance year-round.

Test different time slots with small audience segments to find your optimal sending times. You can also track metrics like message open rates, response times, click-through rates, conversion timing, and opt-out rates per time slot.

Focus on analyzing these key patterns:

• Customer behavior signals:
  • When customers typically browse your website
  • Peak purchasing hours from your sales data
  • Most common cart abandonment times
  • Customer service inquiry patterns
  • Mobile app usage spikes
  • Email open time trends
  • Social media engagement hours
  • Time zones across your customer base

4. Audience segmentation

Segmentation turns broadcasts into personal and targeted conversations. Customer grouping helps you send the right message to the right person at the right time. 

Instead of treating all customers the same, monitor their shopping behavior. Look at what they buy, when they browse, and how they respond to your messages. 

Test different segment combinations and regularly refine your groups based on performance data. With SMS lead generation best practices, you can find a group of your audience for targeted messaging.

Further understanding this group of people will allow you to tailor your texts to match each group’s preferences, resulting in higher engagement and better sales.

Here are a few ways you can build your segments gradually:

1. Start with demographic data: Begin with fundamental customer information like age, location, and gender to create your initial broad groupings
2. Add behavioral indicators: Look at how customers interact with your messages, website, and products to understand their interests and habits
3. Layer in engagement metrics: Analyze how often customers open messages, click links, and respond to determine their level of interest
4. Incorporate purchase patterns: Study what customers buy, when they buy, and how much they spend to identify valuable customer groups
5. Include cross-channel activity: Connect SMS behavior with email, social media, and website interactions to build a complete picture of customer preferences

Best SMS lead generation software

The right platform turns simple text messages into lead-generating powerhouses. Meanwhile, the wrong one leaves potential customers slipping through your fingers.

Let’s explore four leading SMS marketing platforms that consistently deliver results for businesses of all sizes:

Omnisend: Best all-in-one SMS automation platform

Omnisend, an email and SMS automation tool, brings your marketing efforts into synchronized campaigns that capture and nurture leads across multiple channels.

Omnisend reduces the effort required to execute SMS marketing with tools that work together smoothly. You can map out entire customer journeys using a visual drag-and-drop builder, test different message versions to see what works best, and create branded shortcodes that customers recognize instantly. 

The platform also smoothly connects with your online store, allows two-way conversations with customers, and shows how much revenue your campaigns generate. It’s easy to set up the campaign by filling out the fields and previewing the message as US/CA and Non-US/CA recipients:

Core features

• Omnichannel integration combining SMS, email, and push notifications with unified customer data
• Advanced segmentation based on shopping behavior, campaign engagement, and customer lifecycle stage
• Automated workflows triggered by cart abandonment, browse abandonment, and custom events
• Real-time analytics tracking click rates, conversion rates, and revenue per message
• Pre-built automation templates for welcome series, abandoned cart recovery, and post-purchase follow-up

Pricing

Omnisend offers three plans tailored to different business needs: 

• Free plan: 500 emails/month for up to 250 contacts and a $1 bonus in SMS to try
• Standard plan: $16/month, 6,000 emails for up to 500 contacts and a one-time gift of $1 worth of SMS credits
• Pro plan: $59/month, unlimited emails for up to 2,500 contacts and a monthly bonus of $59 worth of SMS credits

SimpleTexting: Best for SMS marketing beginners

SimpleTexting is another SMS lead generation software. Its sophisticated features behind an intuitive interface allow anyone to understand it in minutes, making it perfect for businesses starting their SMS marketing journey. 

SimpleTexting’s AI-powered internal copywriter, AI Assist, is a standout feature. It allows businesses to craft compelling copy for SMS marketing campaigns. Additionally, with A/B testing capabilities, it helps identify which messaging resonates best with audiences, optimizing future strategies.

It includes built-in compliance tools to help ensure adherence to TCPA regulations, reducing the risk of penalties. With custom fields, businesses can easily personalize messages to create a more engaging experience for their audience.

Its easy-to-fill fields are designed for beginners and hence are not very confusing, making the setup even easier:

Core features

• AI-powered SMS and MMS campaigns
• Text-to-join keyword campaigns with automatic list-building
• Web form integration for seamless lead capture
• Interactive contests and surveys with instant response tracking
• Two-way messaging with team inbox features

Pricing

SimpleTexting offers a free trial and the price of the tool goes up as the business scales.

• Monthly plan: $39/month and $4 one-time carrier registration for up to 500 texts 
• Custom plan: Custom pricing for over 50,000 texts

Textedly: Best for high-volume messaging

Textedly handles bulk SMS and MMS mobile text messages with precision, ensuring every message hits the right note with your audience, even at scale. It specializes in managing large contact lists while maintaining high deliverability rates.

It ensures your text messages are authentic, real, and genuine by uniquely identifying each message and sending it directly to mobile carriers, delivering your texts to recipients in just seconds.

To help you stay compliant, its SMS Compliance Guide provides detailed insights into CTIA and mobile carrier requirements. It also offers welcome disclaimers to manage opt-ins and opt-outs so you can focus on connecting with your audience instantly and effectively.

Textedly also allows you to add keywords that trigger an automated response:

Core features

• Bulk SMS scheduling with delivery time optimization
• Integrates with over 3,000 apps
• Detailed delivery reports and engagement metrics
• Multi-user access with role management
• Offers the feature “Text to Vote” to let you ask for the audience’s opinion

Pricing

• Free trial: 14-day free trial with 50 text messages
• Basic plan: $26/month for 500 messages
• Bronze plan: $38/month for 1,000 messages
• Plus plan: $69/month for 2,000 messages
• Enterprise plan: $99/month for 3,500 messages
• Price then increases with number of text messages

EZ Texting: Best for customizable campaigns

EZ Texting combines creative freedom with analytical precision, letting marketers craft unique campaigns while tracking every metric that matters. Its platform excels in providing flexible features like embeddable signup forms, QR codes, click-to-text generators, and much more for diverse marketing needs.

To take personalization to the next level, EZ Texting offers custom contact fields to include information such as birthdays, locations, or preferred languages, making your interactions more tailored and impactful.

Additionally, the Smart Contact Cleaner feature ensures your database remains clean and efficient by detecting and removing duplicate or incorrect entries, saving you time and enhancing productivity.

With features like AI compose, EZ Texting makes it quick to write messages that the customers will love and engage with. Just enter the details you wish to include in the message, and you’re good to go:

Core features

• Limitless contact addition without restrictions
• Customizable drip campaign templates
• Supports mass texting and two-way texting
• Multiple CRM integration options
• Picture messaging capabilities
• Landline texting support
• A2P security, opt-out management, and a dedicated compliance team

Pricing

• Launch plan: $25/month for 500 contacts
• Boost plan: $75/month for 500-2,000 contacts
• Sales plan: $125/month for 2,000-50,000 contacts
• Enterprise plan: $3,000/month for over 50,000 contacts

Conclusion

SMS lead generation opens doors to direct customer communication that often proves beneficial for businesses. It creates channels that email and social media find hard to match.

Success in SMS marketing relies on multiple factors, including respecting customer privacy, getting your timing and audience segmentation right, and using tools that make campaign management easy. 

The right SMS lead generation tools can help you stay compliant, ease the process of setting up SMS drip campaigns, and have the potential to yield maximum ROI. Integrating these tools with CRM and email marketing software can enhance your efforts while allowing you to stay ahead of the customer needs and your competitors, too!