SMS Marketing: The Ultimate Guide for Higher ROI in 2025

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This guide will explore SMS marketing and discuss its benefits, best practices, and real-world examples. You’ll also learn how to build a solid SMS marketing plan in 2025 that will set your business up for success.

What is SMS marketing?

With personalization and automation, businesses can tailor messages to each customer’s preferences. This results in increased engagement and conversion rates. 

Companies use text message marketing to send various types of messages. It helps companies cater to different business needs and customer expectations. Some of the most common types of SMS marketing messages are:

• Promotional offers: Announce discounts, flash sales, or exclusive deals to drive purchases
• Reminders: Send appointment confirmations, payment-due notices, or event reminders
• Updates: Share order tracking details, shipping notifications, or important news
• Customer service: Provide support, answer queries, or resolve issues through SMS communication

How does text message marketing work?

Now that you know what is SMS marketing, it’s also important to know how it works. All it takes is a series of small steps to put an SMS marketing plan into action. Your goal should be to send messages that encourage recipients to take action. 

Targeting both new and returning customers, text marketing offers the flexibility to adapt campaigns quickly for seasonal promotions, exclusive discounts, or other relevant updates. 

The workflow begins when consumers opt-in to receive messages. They can do this by texting a keyword (like “JOIN”) or a short code (like a five or six-digit number) or filling out an online form. 

Once subscribed, SMS marketing software can craft and send messages. Here are some key components of SMS marketing to keep in mind for maximum clarity and impact:

• Opt-ins: Consumers provide consent to receive texts, ensuring compliance with regulations
• Short codes: Unique numbers used for SMS campaigns, either dedicated or shared across multiple businesses
• Message structure: Compact, engaging content tailored to fit within the SMS 160-character limit
• SMS platforms: Tools that automate message scheduling, personalization, and tracking for campaign success

How to get started with SMS marketing?

Setting up a successful SMS marketing campaign requires a well-thought-out plan and seamless execution. You can either develop your strategy from the ground up or use existing tools and guides to streamline the process.

Begin with these key text marketing steps to help you launch successful text message marketing campaigns:

1. Set goals and plan your strategy
2. Build and grow your subscriber list
3. Choose an SMS marketing platform
4. Craft engaging, concise messages
5. Ensure compliance and provide opt-out options
6. Send and schedule messages based on analysis data
7. Track performance and optimize campaigns

1. Set goals and plan your strategy

Setting goals is the foundation of any marketing campaign, including SMS marketing. Make these objectives measurable by setting benchmarks, such as achieving a specific click-through rate or conversion goal. Well-defined goals help you craft focused messages and prioritize platform features tailored to your needs.

Define objectives that align with your business needs:

• Increase sales: Promote products, services, or exclusive offers
• Boost customer engagement: Share updates, event invites, or personalized offers
• Drive traffic: Encourage visits to your website, app, or physical store

2. Build and grow your subscriber list

Text message marketing is permission-based, so recipients must opt-in before receiving messages. Just like building an email list, it’s important to build a clean SMS list with potential clients who are already interested in your services or products.

This will help you analyze campaign performance accurately based on open rates, engagement rates, and more. You can use these tactics to create your SMS list: 

• Offer incentives: Provide discounts, exclusive content, or loyalty points in exchange for signing up
• Promote opt-ins across channels: Invite subscriptions through your website, social media, email campaigns, and in-store signage

3. Choose an SMS marketing platform

Selecting the right SMS marketing platform ensures smooth campaign management and lead management. Popular platforms like Omnisend, Twilio, and EZTexting offer advanced features to help manage subscriber lists and measure performance. 

Such features include: 

• Automation: Schedule messages or send triggers based on customer actions
• Segmentation: Group subscribers based on preferences or behavior
• Analytics: Monitor campaign performance to refine your approach

4. Craft engaging, concise messages

SMS messages are limited to 160 characters, making clarity and conciseness crucial. To craft a message that’s engaging, promotional, and boosts response rates, keep these tips in mind:

• Be direct: Use concise, engaging language with a strong call to action, such as “Claim Your Discount”
• Personalize: Include customer names or refer to previous orders to increase the relevance of your messages and nurture a connection with them
• Create urgency: Use phrases like “Limited Time Offer” to drive immediate action

Beachwaver combines the elements of personalization, urgency, and exclusivity in its text message marketing. Saying “Your cart” makes the customer feel special while suggesting they can pick up where they left off, creating a more personalized experience: 

5. Ensure compliance and provide opt-out options

Legal compliance is a non-negotiable in SMS marketing. Businesses must adhere to regulations like TCPA in the US when sending messages. They can do this by obtaining clear consent from the recipients and providing you need to give your subscribers instructions. 

Follow these guidelines to stay within regulations and build trust:

• Obtain clear consent: Customers must explicitly agree to receive texts, such as by signing up or replying with certain keywords 
• Provide opt-out options: Include verbiage like “Reply STOP to unsubscribe” in every message to make it easier for customers to opt-out of your messages

This message by Claire’s is an excellent example. It provides a clear and simple way for subscribers to opt-out: 

6. Send and schedule messages strategically

Timing is crucial for SMS marketing success. Sending messages at the right moment ensures they’re read and acted upon. 

Follow these quick tips to perfect your timing:

• Optimal timing: Avoid sending texts early in the morning or late at night as it may seem intrusive, so send them around lunchtime instead
• Real-time vs. scheduled: Send flash sale alerts immediately and schedule reminders or follow-ups in advance
• Test and adjust: Analyze engagement data to find the ideal times for your audience

7. Track performance and optimize campaigns

Just knowing what is SMS marketing and how to do it isn’t enough. To make the most of your SMS marketing, it’s important to optimize campaigns based on how customers react to your messages.

Regularly measure success and refine your approach by analyzing metrics like:

• Open rates: Check how many recipients viewed your message
• Click-through rates (CTR): Measure how effectively your call to action drives engagement
• Opt-out rates: Monitor unsubscribes to ensure message relevance

Want a quick walkthrough on setting up SMS marketing campaigns? This video can help you:

Is SMS marketing legal?

Yes, SMS marketing is legal. However, it’s strictly permission-based and must comply with specific regulations to protect consumer rights and privacy.

Laws like the TCPA in the US and similar regulations in other regions govern SMS marketing practices to ensure ethical communication. Compliance requirements include:

1. Opt-in consent: Businesses must obtain explicit consent from recipients before sending marketing messages. This often involves a signup form, keyword text, or checkbox agreeing to receive SMS promotions.
2. Opt-out options: Every SMS must include a straightforward way for recipients to unsubscribe, such as replying “STOP.” This ensures users have full control over whether they want to receive messages or not.
3. Transparency: When customers opt-in, they should be informed of what they can expect. Clearly state how many times you’ll be sending messages and what kind of content your recipients can expect.
4. Privacy protection: Handle customer data responsibly and securely to avoid breaches. Failing to protect privacy can lead to penalties or loss of trust.

In addition to the TCPA, be aware of laws on SMS marketing in the UK, such as the General Data Protection Regulation (GDPR), which also emphasizes the importance of consent and privacy.

Key benefits of SMS marketing

SMS marketing is an effective way for businesses to connect with potential or existing customers. Here are the key benefits of this strategy:

1. High open and engagement rates

One of the standout benefits of text message marketing is its exceptional open rate, which averages around 98% — compared to 20%-30% for emails based on the Omnisend 2024 report. 

Our phones are easily accessed, so most SMS messages can be read within three minutes of receipt. This ensures that time-sensitive offers, promotions, or updates are seen almost immediately. For example, a retail store can notify customers about a flash sale and drive foot traffic within hours.

2. Cost-effective marketing channel

SMS marketing is one of the most budget-friendly marketing channels, making it ideal for both small and large businesses. Compared to traditional methods like direct mail or paid ads, SMS delivers a higher return on investment (ROI) with minimal cost per message.

Small businesses with limited budgets can leverage SMS to engage their audience without incurring high marketing expenses.

The SMS length and pricing calculator by Omnisend gives you an idea of how your cost would add up as the message size increases. This also gives you an estimated campaign budget:

3. Direct and personalized communication

SMS provides maximum room for personalized messaging, making the customer feel valued. You can send these messages based on their preferences, behaviors, or purchase history. This personalized approach boosts engagement, fosters loyalty, and improves customer experience.

For instance, a restaurant might offer birthday discounts to patrons to enhance customer satisfaction and retention. 

4. Easy opt-in and opt-out

Text message marketing operates on a permission-based model. This means customers have to actively opt-in to receive messages. This ensures that you build an SMS list of recipients who are already interested in your offerings, leading to higher engagement rates. 

At the same time, you need to allow your subscribers the option to easily opt-out. This makes SMS marketing compliant with privacy laws and builds trust by respecting customer preferences.

5. Versatility and flexibility

SMS marketing is incredibly versatile. This makes it suitable for various purposes like:

• Promotions and discounts
• Event or appointment reminders
• Order updates and confirmations
• Customer surveys and feedback

Its real-time adaptability allows businesses to respond to market changes or customer feedback promptly. An ecommerce brand can send SMS notifications about product restocks or flash discounts, driving immediate action.

For small businesses, SMS marketing is a budget-friendly way to engage customers and compete with larger players. For big companies, it serves as a highly scalable channel for mass communication. This flexibility and accessibility make SMS marketing a valuable addition to any marketing strategy.

Top SMS marketing campaigns for maximum ROI

Certain SMS campaigns generate higher returns due to their urgency, relevance, and clear calls to action (CTA). The combination of timely delivery, personalized content, and actionable offers makes SMS an ideal channel for driving sales and engagement. 

Here are some of the most profitable SMS campaign types:

1. Flash sales and limited-time offers

These campaigns leverage urgency to drive immediate action. Limited-time discounts encourage customers to act quickly, resulting in a surge of purchases within a short window.

• Example: “FLASH SALE: 20% off for the next four hours! Shop now: (Link)”
• Why it works: The time-bound nature creates FOMO (fear of missing out), prompting instant responses, which is especially effective for retail and ecommerce businesses looking to increase sales 

2. Cart abandonment reminders

Cart abandonment reminders are highly effective at recovering lost sales. By reaching customers directly through SMS, you can nudge them to complete their purchase.

• Example: “Hi (Name), you left (Product) in your cart! Complete your order now and get 10% off: (Link)”
• Why it works: SMS reminders have high open rates, and personalized incentives increase conversion rates by reminding customers of their interests

3. Personalized birthday or anniversary offers

Sending tailored offers for birthdays or anniversaries shows customers that they’re valued, building loyalty and improving customer engagement.

• Example: “Happy Birthday, (Name)! Celebrate with 20% off your next order: (Link)”
• Why it works: Personalization makes the customer feel connected to your brand, increasing the likelihood of them acting on the exclusive offer

4. Loyalty program notifications and rewards

Engage your most loyal customers by sending SMS updates about points balances, exclusive rewards, or VIP offers.

• Example: “You have 500 points! Redeem them for a $10 discount on your next purchase: (Link)”
• Why it works: Rewarding loyalty keeps customers engaged and incentivizes repeat purchases

5. Event reminders and RSVP confirmations

For businesses hosting events, SMS reminders ensure maximum attendance by providing timely updates and confirmations.

• Example: “Reminder: Your RSVP for (Event) is confirmed. See you at (Time) on (Date)! (Link)”
• Why it works: SMS keeps attendees informed and minimizes no-shows through clear, actionable reminders

Key SMS marketing strategies

The efforts you put into creating SMS marketing strategies define the outcomes of your campaign. Designing effective and customer-friendly SMS campaigns requires a mix of strategic planning combined with SMS marketing best practices. 

Here’s how you can get it right:

1. Segment your audience

Segmentation allows you to tailor messages to specific groups based on demographics, location, behavior, and purchase history. This ensures the content is relevant and engaging, minimizing opt-outs.

• Example: Send location-based offers like “Exclusive deal for New York customers: 15% off in-store this weekend!”
• Pro tip: Use past purchase data to target customers with complementary product offers

2. Personalize messages

Personalization goes beyond including the customer’s name. Tailor offers recommendations to individual preferences, searches, or previous interactions.

• Example: “Hi (Name), your favorite sneakers are back in stock! Grab them before they sell out: (Link)”
• Why it works: Personalized messages build trust and encourage engagement, showing customers you understand their needs

3. Incorporate time-sensitive offers

SMS is ideal for promoting flash sales, event reminders, or limited-time discounts. Urgency encourages immediate action.

• Example: “Flash Sale: 25% off ends in three hours! Don’t miss out: (Link)”
• Set timing: Send time-sensitive offers during high engagement periods, such as mid-morning or early evening

4. Use clear calls to action (CTA)

Every SMS should have a clear, actionable CTA to guide customers.

• Example: “Shop Now,” “Reserve Your Seat,” or “Claim Your Offer”
• Best practice: Place the CTA early in the message for increased visibility and make it compelling

Check these urgent CTA examples that offer straightforward instructions:

5. Automate drip campaigns

Set up automated SMS sequences for welcome messages, birthday offers, or cart reminders. 

• Example: A cart reminder drip campaign: “Still thinking about (Product)? Complete your order now for free shipping!”
• The benefit: Keeps subscribers engaged over time without manual intervention

6. Respect frequency and timing

Avoid overwhelming subscribers. Stick to one to two messages per week unless there’s a special promotion. Send messages during reasonable hours to avoid frustrating customers.

Do

• Deliver value with each message — promotions, updates, or helpful information
• Respect opt-out requests promptly and ensure compliance with privacy laws

Don’t

• Spam subscribers or send vague messages

SMS marketing best practices

SMS marketing works best when approached the right way. Here are SMS best practices on how to create campaigns that resonate with your audience:

• Keep messages short and clear: Stick to the essentials and focus on delivering value without adding fluff. Avoid unnecessary jargon or long-winded explanations.
  
  This message by Each Night grabs attention of the subscribers who are on the hunt for a deal. The first line of the SMS says, “$450 in savings”, keeping the message short and to the point:

• Send messages at the right time: Timing is everything. Test different times to see what works best. Mid-morning or early evenings are often the best times.
• Limit message frequency: Sending too many messages can overwhelm your audience. Limiting message sends and staying consistent without being intrusive is the key here.
• Always provide an opt-out option: Make it easy for customers to unsubscribe by including instructions like “Reply STOP to opt-out.” This isn’t just polite but is often legally required.
  
  Here is an SMS by The Range that showcases this:

• Monitor and optimize performance: Track metrics like open rates, click-through rates, and opt-outs. Use this data to refine your approach, ensuring each campaign delivers better results.
• Stay compliant with regulations: Always obtain consent before sending messages, and honor opt-out requests. Following laws like the TCPA protects your business and builds customer trust.
  
  Along with these tips, you can use these SMS marketing growth hacks to create SMS that work:

Text message marketing examples

Here are five successful SMS marketing examples to help you come up with some SMS marketing ideas. Each example here demonstrates how concise, well-crafted messages can effectively engage customers.

1. Pottery Barn

Pottery Barn, a renowned home furnishings retailer, uses a friendly tone and warm welcome to establish a positive first impression. It also asks for consent by letting the customer confirm their opt-in through the keyword “Y.”

The opt-out option complies with regulations and shows respect for customer preferences, setting the tone for future interactions:

2. Marin Skincare

The Black Friday SMS by Marin Skincare combines visuals with compelling text. The message, “Grab them before everyone else does,” creates a sense of exclusivity and pushes the customer to take action.

Offering up to 25% off further creates excitement, which helps drive sales:

3. Poppi

SMS marketing can also maximize product visibility by promoting an influencer campaign, just like Poppi did. It features Hailey Bieber with the product and offers 20% off to subscribers.

This marketing move works well to increase sales as fans would love to use the product that their favorite influencer is using:

4. Jenni Kayne

Fashion brand Jenni Kayne offers exclusive discounts to SMS subscribers. This message, in particular, expresses gratitude to the audience while offering a tangible benefit. This creates a sense of exclusivity and appreciation.

The 20% off discount code and clear calls to action with a link to its store drive immediate engagement, making it an effective promotional strategy:

5. Umbra

Umbra uses personalized discount codes to make the offer feel exclusive, encouraging immediate action.

Additionally, suggesting to customers that they save the contact for exclusive updates helps build a long-term relationship, ensuring future messages are seen and valued:

Conclusion: Is SMS marketing right for your business?

SMS marketing offers an unparalleled way to connect with customers directly and instantly. With high open rates, strong engagement, and the potential for impressive ROI, it’s a valuable tool for businesses of all sizes. 

However, success requires more than just sending messages. Strategic planning, concise messaging, and continuous testing are essential to craft campaigns that resonate with your audience. It’s equally important to respect customer preferences, adhere to compliance regulations, and analyze performance data to refine your approach. 

By thoughtfully leveraging SMS marketing, businesses can drive conversions, build loyalty, and stay ahead in competitive markets.

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