
What Is SMS Marketing: From Basics to Advanced Strategies
RETENTION MARKETING




Written & peer reviewed by
4 Darkroom team members
SMS marketing is one of the most direct ways brands reach people today. As mobile phones became more common, businesses began using text messages to communicate with customers. These messages include everything from sale alerts to order updates.
In 2025, SMS continues to grow as more companies explore ways to reach people quickly and clearly. With short messages delivered straight to a person's phone, it remains a popular communication tool. This article covers the basics of SMS marketing and explores how it works, how it's used, and what strategies are evolving today.
Whether starting from zero or updating an existing strategy, understanding the different parts of SMS marketing helps clarify how this channel fits into a broader digital plan.
What Is SMS Marketing And Why It Matters
SMS marketing is the use of text messages to send promotional content directly to customers' mobile phones. SMS stands for Short Message Service, and it lets businesses send updates, offers, and information to people who have agreed to receive these messages.
Text message marketing began in the 1990s and has grown alongside mobile phone use. Today, it's a key way for businesses to reach customers quickly. When someone opts in to receive SMS marketing, they're giving permission to receive texts about products, services, or updates.
What makes SMS marketing special is its effectiveness. About 98% of text messages are opened, and 90% are read within three minutes. Compare this to email, which has much lower open rates, and you can see why businesses value SMS.
SMS marketing works for many types of businesses:
Retail stores sending sale announcements
Restaurants offering daily specials
Medical offices confirming appointments
Service companies providing delivery updates
Key Benefits For Modern Businesses
SMS marketing gives businesses a direct line to customers. Unlike social media or email, texts don't get lost in crowded inboxes or filtered out by algorithms.
Immediate reach: Most people read texts within minutes, making SMS perfect for time-sensitive offers.
High engagement: With open rates near 98%, almost everyone sees your message.
Personal connection: Texts feel more personal than other marketing channels, helping build customer relationships.
Cost-effective: Sending texts costs less than many other marketing methods, especially considering the high engagement rates.
Simple to use: Basic SMS campaigns don't require complex design skills or technical knowledge.
Channel | Open Rate | Response Time | Cost |
---|---|---|---|
SMS | 98% | Minutes | $ |
20-30% | Hours/Days | $ | |
Social Media | Under 10% | Variable | $$$ |
SMS marketing also works well for specific goals like driving foot traffic to stores, reminding customers about appointments, or alerting people to limited-time offers.
Legal Considerations And Compliance Essentials
Before sending any marketing texts, you need to understand the rules. SMS marketing has strict regulations to protect consumers from unwanted messages.
In the United States, the Telephone Consumer Protection Act (TCPA) requires businesses to get written consent before sending marketing texts. This means someone must actively opt in to receive your messages.
A proper opt-in might look like this: "Text YES to 12345 to receive updates and offers from [Business Name]. Message and data rates may apply. Reply STOP to cancel anytime."
Every text message you send must include:
Your business name
The purpose of the message
A way to opt out (usually by replying "STOP")
You also need to follow timing rules. In the US, marketing texts can only be sent between 8 a.m. and 9 p.m. in the recipient's time zone.
Breaking these rules can lead to serious consequences, including fines of $500-$1,500 per violation. This means sending one unauthorized text to 1,000 people could potentially cost millions in penalties.
The best way to stay compliant is to:
Always get clear permission before sending texts
Keep records of how and when people opted in
Make it easy for people to stop receiving messages
Only send messages during allowed hours
Types Of SMS Campaigns You Can Launch
SMS marketing comes in several forms, each serving a different purpose in your communication strategy.
Promotional campaigns share deals and offers with customers. These might announce a sale, offer a discount code, or promote a new product. For example: "Weekend Flash Sale! Get 25% off all shoes with code SHOES25. Shop now: [link]"
Transactional messages provide important updates about purchases or accounts. These include order confirmations, shipping updates, and appointment reminders. For example: "Your order #12345 has shipped and will arrive on Tuesday. Track here: [link]"
Loyalty program messages reward repeat customers with special offers or points updates. For example: "You've earned 500 points! You're just 100 points away from a free item. Shop now: [link]"
Event reminders help boost attendance by sending timely notifications. For example: "Don't forget! Our workshop starts tomorrow at 2 PM. We're looking forward to seeing you!"
Two-way conversations allow customers to respond and engage with your business. This might include customer service, feedback collection, or simple surveys.
For example: "How would you rate your recent purchase? Reply with a number from 1-5."
The best SMS marketing strategy often includes a mix of these message types, creating a balanced approach that provides value without overwhelming subscribers.
How To Start SMS Marketing Step By Step
Starting SMS marketing doesn't have to be complicated. Here's a straightforward process to get your first campaign up and running:
1. Get Permission From Your Audience
The first rule of SMS marketing is always get permission. Create sign-up opportunities on your:
Website (using pop-ups or forms)
In-store at checkout
On receipts with a keyword and number
During phone conversations (with verbal consent)
When asking for permission, clearly explain what types of messages you'll send and how often. For example: "Get weekly deals and updates from our store. Text JOIN to 12345."
2. Choose An SMS Platform
You'll need a platform to send and manage your text messages. Look for one that offers:
Easy message scheduling
Contact list management
Tracking and analytics
Automation features
Compliance tools
Popular options include Twilio, Klaviyo, EZ Texting, and SimpleTexting. The right choice depends on your business size, budget, and how you plan to use SMS.
3. Create Targeted Message Groups
Don't send every message to everyone. Divide your contacts into groups based on:
Purchase history
Location
Sign-up source
Engagement level
Customer preferences
This targeting helps ensure your messages are relevant to each recipient, which improves results and reduces opt-outs.
4. Write Clear, Action-Oriented Messages
SMS messages should be short and direct. Include:
Your business name
A clear message
A specific action for the reader to take
A link (if needed)
Opt-out information
For example: "Main Street Bakery: Fresh sourdough just out of the oven! Stop by before 2pm today for a free sample. Reply STOP to opt out."
5. Schedule And Monitor Your Campaign
Choose the right timing for your messages. Generally, business hours work best, avoiding early mornings, late evenings, and major holidays.
After sending, track key metrics like:
Delivery rate (messages successfully sent)
Click rate (people who tapped your link)
Conversion rate (people who completed your desired action)
Opt-out rate (people who unsubscribed)
Use these insights to improve future campaigns by adjusting your timing, messaging, or targeting.
Best Practices For Effective SMS Marketing Messages
Creating effective SMS marketing messages requires a balance of clarity, value, and respect for the recipient's time and attention.
Keep Messages Brief And Clear
Text messages work best when they're short and focused. Aim to keep your message under 160 characters when possible to avoid splitting into multiple texts. This limit forces you to focus on what matters most.
Be direct: Get to the point quickly without unnecessary words.
Focus on one thing: Each message should have a single purpose or offer.
Use simple language: Avoid jargon, complicated terms, or overly formal language.
Good example: "City Books: Your order is ready for pickup! We're open until 7pm today. Show this text at the counter."
Poor example: "Greetings from City Books! We wanted to let you know that the items you previously ordered from our establishment are now ready to be picked up at your convenience during our business hours which conclude at 7pm this evening."
Find The Right Frequency
Sending too many texts can annoy subscribers and lead to opt-outs. Sending too few might make people forget they signed up.
For most businesses, 2-4 messages per month is a good starting point. Retail businesses might send more during busy seasons, while service businesses might send less.
Pay attention to how people respond. If you notice increasing opt-out rates, you might be sending too often. If engagement is high, you might be able to increase frequency.
Personalize When Possible
Using customer data to personalize messages can significantly improve results. Simple personalization includes:
Using the customer's name
Referencing past purchases
Mentioning their location
Acknowledging their customer status
For example: "Hi Maria! Since you enjoyed your last haircut with us, we wanted to let you know John has an opening this Friday. Reply YES to book your spot."
Time Your Messages Thoughtfully
The timing of your message can be as important as its content. Consider:
Business hours (typically 8am-9pm)
The recipient's time zone
Day of the week (weekdays often perform better for business messages)
Relevant timing (like sending lunch specials at mid-morning)
For urgent offers, send when people can act immediately. For informational messages, send when people have time to read and process the information.
Advanced Strategies For 2025 And Beyond
As SMS marketing evolves, new approaches are emerging that make text messages even more effective for businesses.
Rich Messaging Features
Traditional SMS is limited to plain text, but newer options expand what's possible:
MMS (Multimedia Messaging Service) allows you to include images, GIFs, or short videos in your messages. This helps showcase products or create more engaging content. MMS messages typically cost more to send but can generate higher engagement.
RCS (Rich Communication Services) is the next generation of messaging, offering features like:
Branded business profiles
High-resolution images
Suggested reply buttons
Interactive carousels
Typing indicators
While RCS isn't available on all devices yet, its adoption is growing in 2025, especially on Android phones.
Two-Way Conversations
Moving beyond one-way announcements, many businesses now use SMS for conversations with customers:
Customer service: Letting customers text questions and get quick responses.
Feedback collection: Sending simple surveys or rating requests after purchases.
Appointment scheduling: Allowing customers to book or change appointments via text.
These interactive approaches create more valuable connections with customers and provide useful data for improving your business.
Integration With Other Channels
SMS works best when combined with other marketing channels:
Email + SMS: Use email for detailed information and SMS for urgent updates or reminders.
Social media + SMS: Promote your text program on social platforms to grow your subscriber list.
In-store + SMS: Use in-store signage to encourage sign-ups, then send follow-up texts after visits.
This connected approach creates a seamless experience as customers move between different ways of interacting with your business.
Measuring Success And Optimizing Performance
To improve your SMS marketing, you need to track how well your messages perform and make adjustments based on what you learn.
Key Metrics To Watch
Delivery rate: The percentage of messages successfully delivered to phones. A healthy delivery rate is 95% or higher.
Click-through rate (CTR): The percentage of recipients who tap on links in your messages. Average CTRs for SMS range from 5-10%.
Conversion rate: The percentage of recipients who complete your desired action, like making a purchase. This varies widely by industry and offer type.
Opt-out rate: The percentage of recipients who unsubscribe after receiving a message. A healthy opt-out rate is under 1% per message.
Track these metrics for each campaign to identify patterns and improvement opportunities.
Testing For Improvement
Simple A/B testing can significantly improve your results. Try testing:
Different message wording
Various offers or discounts
Different times of day
Including or excluding images (MMS)
Different call-to-action phrases
Send each version to a small portion of your list, see which performs better, then send the winning version to the rest of your subscribers.
Refining Your Approach
Use what you learn to continuously improve your SMS strategy:
Segment more precisely: Create more specific customer groups based on behavior and preferences.
Adjust timing: Find the days and times when your audience is most responsive.
Refine your voice: Develop a consistent tone that resonates with your audience.
Update content mix: Balance promotional messages with helpful information and updates.
The most successful SMS marketing programs evolve based on customer response and changing business needs.
Looking Ahead And Taking Action
SMS marketing continues to be one of the most direct and effective ways to reach customers. Its high open rates and immediate delivery make it valuable for businesses of all types.
As mobile usage grows, SMS remains a constant in a changing digital landscape. While apps and social platforms come and go, text messaging remains universal and accessible to nearly everyone.
The keys to SMS marketing success are straightforward: get proper permission, provide real value, respect boundaries, and measure results. When done right, it creates a direct line to customers that builds relationships and drives business results.
Whether you're just starting with SMS or looking to improve existing campaigns, the principles in this guide provide a foundation for effective text message marketing. By focusing on customer needs and preferences, you can create campaigns that people actually want to receive.
Ready to explore how SMS could work for your business? Schedule an introductory call with Darkroom to discuss how data-driven SMS campaigns can help your business grow: https://darkroomagency.com/book-a-call.
FAQs About SMS Marketing
What is the average cost per message for SMS marketing?
SMS messages typically cost between $0.01 and $0.05 per message, depending on volume and provider. MMS messages with images cost slightly more, usually $0.02 to $0.10 per message.
How quickly do businesses typically see results from SMS marketing?
Most businesses see results from SMS marketing within the first few campaigns. Because of high open rates, the impact is often noticeable within hours or days of sending messages.
Can SMS marketing work for B2B companies?
Yes, SMS marketing works for B2B companies, particularly for time-sensitive announcements, event reminders, and service updates. The key is ensuring messages are relevant to business needs and properly targeted.
What is the best way to grow an SMS subscriber list?
The most effective ways to grow an SMS list include offering exclusive discounts for subscribers, adding sign-up options at checkout, using website pop-ups, and promoting your text program across other marketing channels like email and social media.
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