SMS marketing 101: Examples, best practices and how to start

On the surface, SMS marketing is exactly what it sounds like: promotion done by SMS messages.

But there’s much more to it.

Done well, SMS marketing drives sales, keeps customers happy, gains positive reviews, and grows your business without barriers. It’s cost-effective, affordable, and surprisingly popular with audiences around the world.

Yet, there are a lot of misconceptions about SMS marketing. Many people think SMS messages have gone out of style or aren’t legal to use in light of laws like TCPA and CAN-SPAM.

But the truth is different. Omnisend merchants sent 36% more SMS campaigns in 2022 — and quietly increased conversions by 28% in the process.

Learn key stats and tips

SMS is easier to use and more cost-effective than ever. Discover the real impact behind SMS marketing and why you should incorporate this valuable channel.

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That’s why we created this quick guide: to explain what SMS marketing is, what its benefits are, why it’s still relevant, and how to use it successfully for your business.

Let’s begin:

• What is SMS marketing?
• Is SMS marketing legal?
• Benefits of SMS marketing
• How to use SMS marketing
• SMS marketing best practices
• SMS marketing examples
• Best SMS marketing software

What is SMS marketing?

SMS marketing is a form of direct marketing that involves sending promotional offers, updates, and news to customers via text messages. It’s an easy and convenient way to communicate with customers because of its relative speed and positive reception.

Businesses use SMS marketing to share:

• Promotions
• Reminders
• Time-sensitive updates
• Personalized discounts
• Order delivery updates

Using these SMS text campaigns allows for promoting products and building good customer relationships at the same time.

If you’d prefer a quick and simple explanation of SMS marketing for beginners, check out this two minute video:

Is SMS marketing legal?

Yes, SMS marketing is legal. However, there are important regulatory requirements that businesses must adhere to. 

In the United States, SMS marketing is governed by laws like the Telephone Consumer Protection Act (TCPA) and the CAN-SPAM Act. The TCPA, in particular, outlines rules for obtaining consent from customers before sending promotional messages via SMS.

To ensure SMS marketing compliance, businesses should:

• Obtain explicit opt-in consent 
• Avoid misleading or deceptive content
• Identify themselves and the purpose of the message
• Respect do-not-call lists and time restrictions for sending messages
• Provide clear and easy opt-out options

Opt-out options typically allow customers to reply with “STOP” to unsubscribe from further messages.

It’s crucial to understand and follow these regulations to avoid potential legal issues and reputational damage. Using a reliable and compliant SMS service provider can help.

Benefits of SMS marketing

Brands that deploy SMS marketing plans do it for three main reasons: to increase brand awareness, boost engagement, and generate more sales.

Email is so widely used that customers have come to expect it. SMS, on the other hand, is used less frequently—a great way to capture attention when and where you want it.

Let’s look at how SMS marketing can benefit your brand, supercharge your profits, and increase your competitive edge.

1. Cost-effective

Compared to other forms of marketing collateral, SMS messages are one of the cheapest forms of outreach. Sending a text message also happens to have one of the highest ROIs as well—a boon to your budget and your top-line profits.

Just take a look at this quick comparison chart:

With Omnisend, SMS to the US costs less than two cents per message.

2. Direct communication

A study found that Americans spent an average of 4 hours on their phone each day. As the average person is awake for 15 hours, we can assume that one-quarter of their daily attention is devoted to a phone screen.

SMS marketing allows you to hit your audience where they already spend a lot of their time.

3. Perfect for real-time updates

SMS campaigns are received instantly after you send them. Importantly, they’re read almost immediately as well.

It’s no surprise that a majority of SMS are read in the first three minutes. This makes SMS marketing campaigns great for hyper-time-sensitive offers.

Even if the phone isn’t nearby when your text arrives, chances are your message will be read within minutes. Most text notifications remain on screen until the message is read, which gives your business an elevated communications platform.

4. Ridiculously high open rates

People don’t just like SMS marketing—they love it.

Roughly 98% of all business SMS messages are read by customers. That’s more than nine in every ten members on your subscriber list.

Make your messages valuable and personal to customers, and they might receive even higher engagement rates.

5. Proven ability to sell

We found that about one-third of SMS recipients engage with the message’s CTA. Of that engaged group, 47% of them will make a purchase.

SMS marketing shines during the holiday season. On Black Friday 2022, there was a 68% increase in promotional SMS sent over 2021, which led to a 57% increase in orders compared to 2021. That may not seem like a big deal, but it represents tens of thousands of orders.

How to use SMS marketing

If you want to drive more sales through a channel where your customers are—and who doesn’t?—then it’s time to seriously consider an SMS marketing plan.

Here’s how to integrate SMS with your marketing workflows:

1. Build a list of SMS subscribers
2. Get an SMS marketing app
3. Create your SMS campaigns
4. Define timing and send
5. Automate as necessary

Build a list of SMS subscribers

Your subscriber list is the most valuable piece of the SMS marketing puzzle. Here are some tips to help you grow your SMS list:

• Opt-in consent: Always secure explicit opt-in consent from your contacts. This step ensures legal compliance and fosters trust.
• Compliance knowledge: Stay well-informed about SMS marketing regulations and compliance requirements. Keep up with any legal changes.
• Quality over quantity: Prioritize obtaining quality SMS subscribers with a genuine interest in your business. They’re more likely to engage with your messages and convert.
• Gamified popups: Implement gamified popups on your website, featuring contests, quizzes, or interactive games like Wheel of Fortune. These incentivize users to provide their phone numbers.
• Text to join: Provide a "Text to Join" option, allowing customers to subscribe by texting a keyword to your designated number. This method, especially when combined with exclusive deals or coupons, is highly effective.

The following example shows the concept of fear of missing out (FOMO) being used effectively to incentivize users to join an SMS list.   

Get an SMS marketing app

SMS marketing software refines text marketing plans into cohesive strategies. Apps allow you to manage messages at scale by tracking compliance data and TCPA requirements. You can also automate your messages to send them at specific moments, putting more time back into your day.

If you’re looking to build an omnichannel strategy, SMS marketing apps are doubly effective. Platforms like Omnisend let you add text messages to your email automation workflows—saving you time and money.

Plus, most SMS marketing tools offer a slew of reporting data that provides deeper insights about your customers. Working in tandem with native dashboards, you can easily adjust your text campaigns over time and net the highest possible ROI.

Omnisend is a leader when it comes to email and SMS marketing. With an impressive 4.8 out of 5-star rating and more than 5200 reviews on the Shopify App Store, it's one of the most preferred platforms for businesses. 

Users highly appreciate this feature-rich platform for its user-friendliness, high-quality templates, targeted campaign creation, competitive pricing, and award-winning customer support. 

Create your SMS campaigns

Now for the most significant step: building the actual message.

This is much trickier than it looks. SMS messages are limited to 160 characters, so there’s little room for rambling. 

Here are a few tips to shape your message:

• Think about value. Ask yourself one question before sending any SMS campaign: How will this SMS text message add value to my customer’s life?
• Use proper grammar. Stay away from text slang and not common text abbreviations, since they’re not understood by everyone. Unnecessary abbreviations, text speak, and improper capitalization make your brand look unprofessional.
• Make your message different from the subject line. “Create a text message that you would actually send to someone,” advises ecommerce marketing veteran Lucas Walker of the Rolled Up Podcast Network. “That will have a huge impact on whatever quality metrics you’re looking for.”

It may seem daunting at first, but like many things in marketing, drafting SMS campaigns just takes practice. 

With Omnisend, you can send your first SMS campaign in four easy steps: 

• Gather phone numbers: Use your online signup forms to collect phone numbers for your SMS campaigns. Alternatively, ask existing customers to provide their phone numbers and validate them with OTPs. 
• Send the first SMS campaign: Launch your SMS campaign and run it either as a solo campaign or as part of a multi-channel strategy. 
• Track your results: Analyze the results of your SMS campaign to see your open rate and sales generated. This can help you identify the ROI of your campaigns.
• Use automation workflows: Don’t restrict automation to just emails. Instead, add SMS to your multi-channel automation workflows to deliver a consistent experience to your audience.

Define timing and send

Choose the time (or frequency) at which customers receive SMS messages. The right timing ensures customers are more receptive to what you have to say, letting them evaluate your offer from a place of happiness.

If you decide to pick times manually, research suggests sending messages during active hours (8 AM to 5 PM). Additionally, you could use automation platforms like Omnisend to automatically choose the best time for each SMS.

As a side note, remember that SMS messages are more immediate than emails and other marketing messages. Reserve this channel for your most exciting or compelling messages so customers are always happy to hear from you — and not incessantly annoyed. 

Automate as necessary

How does an average of $15,000 in sales per month from SMS marketing campaigns sound?

That’s the case for wig retailer Divatress, and why owner and founder Rob Lin says he can’t imagine operating the business without SMS marketing.

Their automated abandoned cart series averages a 29% conversion rate. It accounts for 28% of all revenue generated through their Omnisend marketing, yet totals just 5% of all sends.

The workflow operates like so:

• An email is sent about an hour after the cart is abandoned
• A second email is sent 10 hours later if there’s no activity
• A third message is sent 24 hours later—either an SMS or web push notification, depending on customer subscription—accompanied by one final email

Here’s more on how Divatress uses SMS marketing and different types of SMS messages to increase customer loyalty and boost business.

SMS marketing best practices

Because people are so connected to their phones, it’s important to get your SMS messages right the first time.

Here’s what you need to know about SMS dos and don’ts, key best practices, and what you need to know before embarking on an SMS marketing plan.

TL;DR? Check out the video here.

1. Get permission (and keep it)

The opt-in rules for email marketing apply to SMS marketing, too. Marketers are bound by law to gain explicit consent from customers or subscribers before sending marketing communications. This is why getting consent is one of the most important SMS best practices.

The easiest way to get consent is with a phone number field in your newsletter subscription signup. Popup forms also work great.

Here is an apt example. This crisp signup form by B-Wear gathers the phone numbers of users along with their email addresses when they subscribe to the newsletter. And as a gesture of gratitude, the brand offers an attractive discount too. 

But getting permission isn’t the problem—maintaining permission is. 

Start off with full disclosure: tell customers what types of messages they can expect from your brand. And don’t abuse the permission granted. We advise using SMS marketing campaigns for time-sensitive and critical information. Overusing it can quickly send customers away.

Another convenient option for collecting and maintaining permissions is Omnisend’s Text to Join feature. Customers simply text a keyword to your number, which means all you have to do is promote that number to encourage texts and signups.

Since it isn’t dependent on people visiting your online store, Text to Join is a particularly convenient SMS marketing opt-in method: your customers can find this option anywhere you share it, including emails and social media.

If you’re an Omnisend user, you can get your own Text to Join number completely free.

Finally, each text message needs a way to opt-out. Allow customers to respond with “STOP” to instantly unsubscribe. If you’re sending messages to recipients outside the US or Canada, just insert an unsubscribe link like so:

Read more about how apparel store B-Wear uses SMS and data to drive sales. 

2. Mention your company

Your SMS recipients should immediately know who you are. Otherwise, they won’t understand the context of your message and will be more likely to unsubscribe as a result.

Identify yourself to customers in every message, adding your business name, customer rep name, or a short snippet about what you do. 

Baking Steel does this expertly:

This is fundamental stuff for trust in brand marketing. But it bears reminding nonetheless.

3. Add a call to action

Always include a clear call to action (CTA) in your SMS to encourage recipients to take next steps. It’s a good idea to include a link that adds more context and traceability.

Some examples:

• Subscribe through <link> to receive weekly email marketing news.
• Use <code> at checkout before 6PM today for free shipping.
• Answer our survey <link> for a chance to win prizes!
• Visit <link> by midnight to snag clearance items before they’re gone.

Many CTAs for email marketing messages work well for SMS. Remember: they must be adapted to fit the medium. Make your customer’s next steps as frictionless as possible.

4. Send at the right time

Pick the best time to broadcast your message to customers. You could do this manually by surfacing your open data, or use automations like Omnisend to select the best time for each customer.

Remember that communicating via text is more intimate than other outreaching methods. It’s best not to abuse that trust — especially with personal phone numbers. Unless you’ve verified that your fan base wants constant messages, go about your SMS marketing frequency more conservatively than email campaigns.

5. Personalize your campaigns

A great SMS marketing tool allows you to incorporate segmentation well, and therefore target your contacts the same ways that many marketers do with email.

Use your subscribers’ first name if possible. Send pertinent messages based on such aspects as the subscriber’s location or previous purchases to build and maintain relationships with your subscribers.

Personalization also involves sending an SMS at the right time. Many people have their text message notifications enabled. Deliver your messages during hours that people are typically awake — not too early or too late — to avoid aggravating anyone.

Sending irrelevant or impersonal messages can affect your campaign goals and lead to higher opt-out rates, not to mention a tarnished reputation.

In other words, don’t do it.

6. Align SMS to your overall marketing strategy

A platform designed solely for SMS is a great first start. However, your marketing efforts will be so much easier — and better — when you can work multiple channels from a single command post, and all without worrying about misaligned data.

SMS marketing should be part of your overall omnichannel marketing strategy. Operating a separate SMS marketing software can lead to lots of headaches later, not to mention weaker growth and lackluster response rates.

SMS marketing examples

Let’s jump into some SMS marketing examples that demonstrate how ecommerce marketers can build better relationships with customers and subscribers.

1. Welcome offers

Everyone expects a welcome email, but adding SMS into the mix can make for a nice surprise.

If you offer an incentive for signing up, send the discount code or link via SMS like in the example above. Next, follow up on that SMS with another email in case the SMS wasn’t enough to make the sale. 

It’s always wise to send an email that provides further details and images, neither of which SMS can’t accommodate.

2. Special time-sensitive offers

SMS is great if you have an extra-special promotion and want to make sure your customer has every opportunity to participate. For your very best sales and promotions, incorporate a bit of urgency in the language.

Looking for a different kind of offer? Skip the discount and play on the fear of missing out (FOMO). FiGPiN has a customer base that is eager to get ahold of its limited edition collector pins. As FiGPiN Senior Marketing Manager Allison Caufield puts it, FOMO is “really, really high.” 

Combined with the immediacy of SMS marketing, FOMO is a natural fit for success.

“The SMS has been extraordinarily successful because people want to see those drops right away, so that they don’t miss out on any sort of limited edition character or variant that they need to have for the collection,” Allison explains.

Learn more about FiGPiN’s SMS marketing strategy:

3. Order confirmation and shipping updates

SMS marketing really shines with order confirmation and shipping updates.

Your customer shouldn’t have to check their email to ensure their order was placed. And if the email is somehow slow in arriving, your text also eliminates second-guessing.

It’s a great idea to follow up with SMS messages that include tracking details as well.

4. Customer service

SMS messages aren’t just about sales. They can also be used to proactively address issues before they become problems. 

For instance, consignment shop Once Upon a Child warned its SMS subscribers of their limited availability because of staffing shortages.

SMS marketing can also be used to reassure customers experiencing hiccups with your business. As it’s a more intimate channel for subscribers, it’s a great way to keep customers in the loop and show off the human side of your brand.

5. Time-limited sales and promos

When it makes sense, why not jump on a current event and send relevant texts that reflect your brand? This SMS marketing example from Mom Life Must Haves is a perfect case in point.

Instead of allowing a six-hour shutdown of Facebook and its family of apps to impede their marketing efforts for the day, Mom Life Must Haves capitalized on the moment in the best possible way.

Of course, be mindful of the current events you choose to launch from. It might be best to stay quiet on potentially controversial issues — and save yourself from backlash or criticism.

6. Personalized offers

Show customers they’re more than just a number. Call out noteworthy occasions like their birthday, or highlight their one-year anniversary as a special rewards member. 

An offer that lasts for a few days around this special time frame is even better. Personalized SMS messages are a great way to roll this out, especially with internal links.

Start by posting multi-day offers directly in your SMS messages, or use the SMS as a teaser to prompt recipients to check their inbox. Either way, the emotional impact will be priceless.

7. Thank you offers

Sometimes the best way to engage your customers is just to say ‘thank you.’

Basic Piece does a great job of engaging customers with the magic words, as seen below:

For best results, enable two-way conversations for your SMS marketing campaigns. This will engage customers and foster meaningful connections at the same time — a boon for brand awareness and your bottom line.

8. MMS messages

Once you’ve got the basics of SMS, it will be time to graduate to the next level: MMS.

MMS (multimedia messaging service) is an enhanced version of SMS that features imagery, including stagnant attachments or animated GIFs. Character count can expand up to 1,600, which means you have a lot more opportunity to wow and delight your customers. 

Crust Club does a great job with MMS marketing by showcasing a yummy-looking menu item, then taking advantage of the expanded real estate to list its ingredients.

MMS is a great tool to create compelling messages that play on emotion. The only limit is your imagination — and great images to pull from as well.

Drive more sales with SMS campaigns using Omnisend’s features for free! Explore SMS features

Best SMS marketing software

If you’re ready to experience the transformative power of SMS marketing ROI, your first step will be to find an automations tool to do heavy lifting on your behalf.

There are lots of software options to consider, including these five SMS marketing platforms. 

Omnisend

Omnisend is not just an SMS marketing platform. It's one of the world’s most popular automation platforms for email, SMS, and web push notifications. Users can create unique SMS campaigns that reach recipients in hundreds of countries—all for just pennies per message.

Omnisend’s price per SMS depends on the country in which you’re sending the text messages. You can use the pricing calculator to get a good idea of how much your SMS campaigns will cost for international locations.

Marketing platforms that are omnichannel in nature operate a bit differently. With Omnisend, text message marketing costs are baked into the pricing plans.

There are robust features on every tier:

• If you’re on the Free plan, you have up to 60 SMS credits
• If you’re on the Standard plan, you can send international SMS anytime you want
• If you’re on the Pro plan, you get free SMS/MMS equal to the price of your plan

Omnisend’s automated SMS messages let you do more work without clocking additional time. Create campaigns in advance, track data and analytics, and add a touch of delight for each of your subscribers.

SlickText

SlickText is an SMS marketing platform known for its robust automation workflows. Users can implement Text to Join and shortcodes to reach customers at their point of need, then integrate with third-party tools like Zapier and Salesforce to customize workflows and track their data. MMS tools are also a part of the stack, which can be beneficial as your company grows.

Keep in mind that SlickText was built for SMS only. Unlike Omnisend, it can only automate messages for texts and group messages. You can’t access email or web push notifications at all, which may not be ideal for omnichannel strategies.

Twilio

A robust customer engagement platform, Twilio was designed to simplify cross-channel communications with SMS, MMS, and WhatsApp messaging.

Twilio relies on SMS APIs to develop custom workflows, which includes unique personalization software and one-to-one text messaging capabilities. You can also integrate with a variety of messaging alternatives, including Facebook Messenger and GMB messages.

Because Twilio is focused on a myriad of communication solutions, coding is necessary to create your first few SMS campaigns. This isn’t the case for most SMS providers. Platforms like Omnisend allow you to build personalized messages directly on-site — no coding skills or prior experience required.

Simpletexting

As the name implies, Simpletexting is an intuitive messaging platform built for SMS, MMS, and two-way conversations. The software boasts hundreds of successful case studies for brands all over the globe, and supports interesting use cases for extended messaging, text to vote, and autoresponders.

The only restriction to Simpletexting is its price. 500 SMS starts at $29 per month, which may be costly for businesses looking to schedule lots of campaigns.

Klaviyo

Klaviyo is one of the biggest names in email and SMS automation. Instant integrations are a helpful feature for less experienced businesses, while toll-free and short code numbers establish a positive repertoire with growing subscriber lists.

However, Klaviyo also carries an expensive price point. After recent shifts in pricing, the plan now costs $45 per month to send 10 campaigns and 150 SMS to 1,500 contacts.

If your business doesn’t have enough budget to cover Klaviyo’s monthly spend, you may want to consider another partner.

Summary

SMS marketing is a powerful tool for businesses, offering cost-effective and direct communication with customers. 

It boasts high open rates, immediate delivery, and a proven ability to drive sales. 

To use SMS marketing effectively, start by legally building a quality subscriber list. Then utilize SMS marketing apps like Omnisend to streamline campaigns and create personalized, concise messages. Timing and frequency matter, so you want to be strategic in your approach. 

Align SMS with your overall marketing strategy, and consider using MMS for richer content. 

Start leveraging SMS marketing today to boost engagement and sales.