SMS Marketing Campaigns 101 & 201: Types, Steps & Tips

SMS Marketing Campaigns 101 & 201: Types, Steps & Tips

A smartphone surrounded by chat bubbles on an orange background.
A smartphone surrounded by chat bubbles on an orange background.

To understand SMS marketing, ask yourself: Have you ever ignored a text? Nothing beats SMS marketing when it comes to sending the right content at the right time, but it’s not as simple as texting a friend. Learn how to create, monitor, and perfect your next SMS campaign.

What is an SMS marketing campaign?

An SMS marketing campaign uses text messaging to send scheduled texts about offers or other time-sensitive messages to people who opt-in to receive them. SMS campaigns are a proven way to raise brand awareness, increase retention, and positively affect a customer’s bottom line.

Many types of organizations use SMS marketing to send promotions, deals, and alerts to targeted audiences. SMS stands for “short message service”, but don’t be fooled. You can think of SMS as a synonym for a text message. However, text message marketing differs from SMS marketing. Whereas text message marketing involves sending an occasional promo offer to a list of client phone numbers, SMS marketing requires more strategy, planning, and higher message volume. Think of SMS marketing campaigns as the more advanced, organized cousin of text message marketing. 

The best SMS campaigns leverage large consumer databases that give hints about what customers want to see and when. They can notify customers of product launches, offers, events, sales, appointment reminders, or personalized messages. Many businesses question how to run an SMS campaign. Luckily, the process can be quite simple compared with other types of marketing. 

First, choose a text messaging platform and use it to contact current and new customers and ask them to opt-in to text messaging. Then, either internally or with some external consulting help, craft messages that align with your business goals and send them out at the best time for each audience segment.

For Barbara Casey, CEO of SMS marketing agency Mobile High 5, starting an SMS marketing campaign is a no-brainer for businesses of all sizes. Casey says, “SMS is one of the most flexible and trusted communication channels we have. It’s also one of the best marketing tactics that a small business can use—it’s cheap, relevant, and reaches interested customers where and when they want to be reached.”

A headshot of a smiling woman with glasses.

Barbara Casey, CEO of SMS marketing agency Mobile High 5.

Are SMS campaigns effective?

Business leaders know that SMS campaigns effectively engage customers and increase revenue. They have an unbeatable consumer reach and amazing click-through rates. Plus, marketers trust that their recipients will immediately see and read their messages.

For Casey of Mobile High 5, the data says it all. Casey points out that “Eighty-five percent of customers want businesses to contact them on their phone rather than email. Ninety-eight percent of text messages are read within five minutes, 90% of which are in the first 90 seconds. So, when done well, mobile marketing provides a customer with exactly the information they are seeking, at the time they are seeking it, on their device of choice.”

Plus, SMS marketing services both businesses and consumers. “As a business, you have more control over when a customer will see your message. If you send something by email, a customer might never open it, or may open it at the wrong time, like someone looking at a sales notice days after the sale is over,” adds Casey. “With SMS marketing, you have much more control over the timing because texts are almost always opened right away. These factors allow for a relevancy of content that is very hard to achieve in other channels. Plus, the customer is in charge: If the customer hits reply STOP, you are toast. Meaning, whatever you are sending is going to be of value to the customer. That translates to smart marketing and, from a customer perspective, more palatable, relevant information.”

For Raleigh Harbour, President of Bitly, SMS marketing’s popularity with hard-to-reach millennials and digital natives is one of its biggest selling points. “No one uses their smartphones more than digital natives, who are about to come of age in the marketplace. This huge pool of consumers is receptive to content and offers on their phones. SMS marketing allows marketers to send tailored messages right where these digital natives will see them and provides the opportunity to understand what promotions and campaigns this emerging consumer segment likes and dislikes. It may sound counterintuitive to engage the most technologically savvy generation with such a simple tool, but, as it turns out, simple can often be the most effective.”

To summarize, SMS campaigns are effective for the following reasons:

  • Reach consumers with their preferred method of communication
    The statistics all paint the same picture: We love our phones. Some reports cite that Americans check their phones an average of 160 times per day, making it the most popular form of communication.

  • Huge reach
    According to the Pew Research Center, 97% of Americans own some type of cell phone, virtually all of which are SMS enabled. You don’t need to have a smartphone, download an application, have a data plan, or be a tech whiz to subscribe to a company’s SMS marketing. So, SMS marketing can reach all population segments—from older generations to today’s growing digital natives. No other type of marketing campaign can boast such an unrivaled reach.

  • High read rate
    We use our phones to connect with friends and family and immediately pay attention to the “ping” of a text notification. If you send a text message, you can be sure your recipient will read it almost immediately. Most sources cite SMS open rates as near 98%, compared with 20% for email.

  • Timely delivery
    We all know that sense of urgency that wells up when we get a text—for whatever reason, we are compelled to read texts immediately but are more willing to let emails sit. In fact, according to Casey, we read 90% of text messages within three minutes. Businesses can bet that a customer will read a text immediately, making the medium ideal for more tailored, time-sensitive campaigns.

  • Easy enrollment for a core audience
    To comply with federal regulations, businesses can only send texts to individuals who opt-in to the service. Putting the power in the customers’ hands builds trust and means your text marketing list will contain your core group of loyal consumers.

  • Cost-effective campaign
    You might think SMS marketing will add up in cost for all its benefits. The opposite is true: Providers charge per message, a fee that does not spike or drop based on demand.

  • Higher conversion rates
    Most marketing texts include links, converting mobile users to web users and potential customers. According to the SimpleTexting 2021 SMS Marketing Report, 43% of SMS marketers reported click-through-rates from 20 to 35 percent.

How do you create an SMS campaign?

To start an SMS campaign, educate yourself on the benefits of SMS marketing and create tangible goals. Next, find an SMS provider, comply with relevant regulations, and solicit customers to opt-in. Finally, create text-ready content and hit “send.”

SMS campaigns involve more than sending a text now and then to customers. Successful bulk SMS campaigns are well-thought-out, strategic, and designed to meet business goals.

6 steps to create an SMS campaign

  1. Set goals
    Decide which types of texts you want to send and how these texts will align with more significant business initiatives. This process will help you define your relevant audience. A medical provider using SMS marketing to send appointment reminders will employ a much different strategy than a retailer hoping to send SMS coupons.

  2. Select an SMS platform and a phone number
    You need SMS software to send bulk SMS to hundreds or even thousands of users. SMS software also allows users to opt-in or opt-out with keywords or phrases. Of course, you’ll need a phone number. You can choose between a toll-free number, a long code, or a dedicated short code, which is a five-to-six-digit long number that only your business can use. As with any software, make sure you do your research before purchasing. Consider getting a solution that offers a flexible subscription, quick customer service, and the option to communicate one-on-one with customers.

  3. Comply with regulations
    In the United States, the Telephone Consumer Protection Act (TCPA) requires companies to obtain explicit consent before adding customers to their SMS text lists. Businesses must indicate that a customer is enrolling in ongoing text communication and that consent is not required for purchase. The law also mandates that companies provide easy ways for customers to opt-out. Each message must include opt-out instructions, along with “Message & Data Rates May Apply.” Also, companies should comply with carrier guidelines regarding spam filters.

    In addition, U.S. companies need to register for a 10DLC, or a 10-digit long code, to help control spam. They can then use the 10DLC, a standard phone number with an area code, as the sender of texts.

    Barbara Casey, CEO of Mobile High 5, explains, “Brands must register with the campaign registry to obtain a 10DLC. For toll-free numbers, verification gets done through Zipwhip and then through the carriers. For 10DLCs, The carrier will charge a premium for accounts that send a higher volume of messages. For those who fail to register, they face their number being blocked or message volumes throttled and possible financial penalties. That is why it is so critical for businesses to partner with a company that really has expertise in this channel.”

    Everyone must disclose and follow these carrier guidelines to customers before they opt-in:

    • What they are opting into (i.e., “Jim’s Pizza Mobile Club”)

    • The frequency of the alerts (i.e., “Up to 4 messages per month” or “Message frequency may vary”)

    • STOP/HELP instructions (i.e., “Reply STOP to cancel. Reply HELP for help”)

    • Potential carrier costs (i.e., “message & data rates may apply”)

    • Link to a privacy policy and terms of service page

“Brands must maintain verifiable proof of consent should they be audited,” Casey says. “This could be written consent, or it could be kiosk, web form, or text-in to be considered consent. Brands texting about alcohol, firearms, or tobacco have another layer of verification they must provide—age verification to ensure they are only texting people age-eligible to consume those products.”

The General Data Protection Regulation (GDPR) sets regulations for the European Union (EU), and the Privacy and Electronic Communications Regulations (PECR) serve that role in the UK. Learn and comply with relevant local legislation before proceeding with your SMS campaign.

  1. Attract customers
    Naturally, customers might be wary of sharing their phone numbers with a company. You will need to educate current and existing customers on the benefits of your SMS campaign. For example, you can set up informational landing pages on your website that ensures data privacy, alleviates concerns, and offers customers tangible benefits for signing up.

  2. Create the right content
    Text messages require a special type of writing: Technically, a single SMS message has a character limit of 160 words. So, use snappy, short writing that contains a clear call to value.

    Craft content that plays to your business goals and brand messaging. Make sure you have a strong content pipeline in place before you start sending.

  3. Build a consumer database
    Once you start your campaign, you’ll begin to gather more information about your audience. Since customers have to opt-in to your messages, your SMS marketing database will be your core consumers who love and engage with your brand the most. Expand this database with personal information (like birthdays) that you can use for personalized texts.

    A consumer database gives you the information you need to send hyper-relevant messages to your most receptive customers, deepening their existing loyalty. You can also segment your database based on similar buying preferences to send bulk SMS texts and effectively schedule relevant drip campaigns (sending messages automatically). 
A cheat sheet outlining six steps for starting your first SMS campaign
These steps can help jumpstart your SMS campaign.

Types of SMS marketing campaigns

You can use SMS marketing campaigns to send promotional deals, offers, and alerts. Restaurants and travel providers will use it to confirm reservations. Other businesses may send SMS messages to promote content and alert subscribers to new loyalty programs.

Here are common types of SMS marketing campaigns, with examples.

Sale promotions

One of the most common types of SMS marketing revolves around sending customers exclusive deals or discounts. In many cases, promotional SMS messages expire quickly, instilling a sense of urgency.

An SMS on a smartphone asking the receiver to sign up for a sale.
A retailer sends an SMS sale offer.

Call to action (CTA)

Smaller businesses and nonprofit organizations can leverage the same time-sensitive promotion to ask for donations.

An SMS on a smartphone asking for donations to a nonprofit.
An SMS donation request from a nonprofit group.

Types of SMS alerts

Usually, service businesses send SMS alerts. For example, companies can solicit reviews, send appointment reminders, update shipping information, and send receipts.

The COVID-19 pandemic boosted SMS marketing: With more people placing curbside orders or trying to avoid in-person service, SMS marketing alerts serve as a helpful, virtual intermediary.

Even banks and other similar entities use SMS bulk messaging to send alerts notifying you of suspicious activity on your account.

Here are a few examples:

Appointment reminder

An SMS on a smartphone from a dctor reminding a patient of their appointment.
A doctor’s office reminds a patient of an appointment with an SMS.

Solicit a review

An SMS on a smartphone asking a patient to review their experience at a dental clinic.
A doctor’s office requests a review of their clinic.

Curbside pickup

An SMS on a smartphone from a burger restaurant alerting a customer of their order pickup time.
A burger restaurant providing detailed pickup information to a customer.

Reservations

An SMS on a smartphone confirming a reservation at a restaurant.
A restaurant sends out an SMS reservation reminder.

Shipping alerts

An SMS on a smartphone informing a customer when their package can be picked up.
A company sends an SMS informing the customer when their item will be ready for pickup.

Service update

An SMS on a smartphone confirming a service request.
An SMS detailing that a service request has been received.

Receipts

An SMS on a smartphone informing a customer that their payment has been received.
A mechanic sends an SMS to inform a customer that payment has been received.

Security alert

An SMS on a smartphone providing a security alert to the owner of a credit card.
A bank sends out a security alert about suspicious activity on a credit card.

Loyalty programs

Retailers and other businesses offer loyalty programs as an incentive to attract and retain customers. Companies reward customers that sign up for loyalty programs with discounts or other special incentives. Loyalty programs can make a customer feel special and help build long-term relationships.

Casey concurs, “These programs are very attractive. The texting program draws in customers, but the loyalty programs seal the deal. Loyalty programs work extremely well for encouraging repeat visits as customers work toward that reward.”

Many businesses send SMS messages to incentivize users to join their loyalty program, and the strategy works. Seventy-five percent of consumers would actively engage with loyalty programs if they were accessible on mobile devices.

An SMS on a smartphone providing the recipient 25% off their purchase if they sign up.
A clothing store SMS incentivizes users to sign up for loyalty rewards.
An SMS on a smartphone informing a member of a climbing club of new membership tiers.
A climbing club uses SMS marketing to solicit membership.

Many more examples of successful SMS marketing exist; if you want to find more, try sifting through your own text history!

Who regulates SMS text messaging marketing?

In the United States, several agencies regulate text messaging. Before starting an SMS campaign, familiarize yourself with the key players that regulate text messaging. Be sure to observe any other laws applied in your state or region.

In the United States, the following stakeholders regulate media communications, including text messaging: 

  • The Federal Communications Commission (FCC) is an independent government agency that regulates electronic and media communications via cable TV, phone, satellite, and radio. The FCC enforces the Telephone Consumer Protection Act (TCPA), which states that businesses cannot send messages to consumers without their consent.

    The TCPA stipulates that businesses must receive written consent before adding subscribers to their list. A company must also offer consumers an easy way to opt-in and opt-out. Texting a keyword and filling out an online form are two legal ways an individual can join a subscriber list.

  • The Federal Trade Commission (FTC) is a government agency tasked with protecting consumers from media communication violations.

  • The Cellular Telecommunications Industry Association (CTIA) represents the wireless communications agency and establishes best market practices for mass SMS texting.

What types of businesses benefit from SMS marketing campaigns?

All kinds of businesses find value in SMS marketing. Retail and service companies are among the most popular industries to use them. Healthcare providers, auto mechanics, restaurants, and even nonprofits use SMS marketing. 

Here’s a list of some common industries that use and benefit from SMS marketing:

  • Retail
    Retailers send texts about upcoming promotions, sales, and time-sensitive discount codes. These businesses also try to entice their loyal customers to sign up for loyalty programs. Retailers can use consumer databases to re-market products based on a customer’s buying behavior and preferences. These companies also use SMS alerts to send shipping information and updates.

  • Restaurants and travel
    Restaurants use the same types of promotions that retailers use, but they also leverage the power of SMS texting to make curbside pickup easier and confirm upcoming reservations. Travel industries like airlines or rideshares can send travel alerts, delays, and ETAs to customers.

  • Service industry
    From auto mechanics to healthcare providers, service industries revolve around appointments. In some cases, quick and seamless communication is essential. Medical clinics, for example, use bulk SMS to send appointment reminders, prescription alerts, and even test results. Car mechanics can predict when you might need another oil change and send an SMS reminder (along with a coupon).

  • Nonprofit organizations 
    Nonprofits can leverage SMS texting to alert potential donors of campaigns. For example, many grassroots organizations create and send SMS alerts whenever they have a sponsor willing to double any donations made in a given period.

  • Education
    The pandemic spurred changes to school procedures worldwide. In-person classes switched to remote learning almost overnight. As a result, educators needed a way to distribute information quickly between teachers, students, parents, and school officials. SMS links were the ideal solution. Teachers even started managing the curriculum through SMS links. Learn more about how SMS links helped shape online learning.

What are consumers looking for from SMS campaigns?

Consumers expect relevant and personalized messages from SMS marketing. Your customers expect you to anticipate their needs and desires with timely alerts and promotions. They only want to receive a few texts a month from a given company.

Customers trust you to send the right content at the right time—otherwise, they wouldn’t opt-in to the service in the first place. However, many customers also engage with SMS campaigns because they know they can easily opt-out. Unlike phone telemarketing or email subscriptions that just pile up no matter how many times you click unsubscribe, customers have learned that the regulated texting space means they can easily opt-out just by replying to a text. The strength of your campaign will influence how many customers opt-out and how many stick with you.

SMS marketing campaign pro tips

You can use SMS marketing tips to create the perfect campaign for your target audience. For example, consider sending messages during peak texting hours using branded links and personalized messages.

First, an organization must understand that sending text messages can feel intrusive if done incorrectly. Customers use their phones to communicate with those close to them, so receiving an overwhelming number of texts from a company could feel like a personal invasion. That said, customers relish the convenience of SMS marketing. Businesses must tread a fine line between creating content that matters and being too pushy.

Along with common tips, stay updated on the SMS marketing best practices developed by businesses and regulators. Here are some suggestions for a successful SMS marketing campaign, straight from SMS expert Casey of Mobile High 5:

  • Use branded links
    Successful SMS marketing hinges on brevity, but many links can be lengthy. Use branded short links to get around this problem. Casey explains, “Anyone can get a generic short link that doesn’t identify where it might take them. When you use a branded link, it appears more trustworthy to the carrier and the customer. Plus, texting has a character limitation, so why use it up in a long link?”

    Another benefit of branded links is that they won’t be marked as spam, unlike some generic short links.

  • Send messages at the right time
    It may sound obvious, but don’t send your texts at random hours, especially late at night. No one likes when a text interrupts their dinner or sleep. Try sending your texts during regular business hours and monitor when customers engage with the messages.

  • Use the data strategically
    Casey reminds us of a common maxim, noting, “A tool is only as good as the person using it. A lot of businesses are attracted to DIY platforms that are very easy to get on. But these platforms don’t allow for strategic data management and don’t consider program design. Plus, they don’t make it easy to track which customers should still be receiving the text, meaning you might be losing money by sending out texts to customers who aren’t using your services anymore. This is where the data becomes really important, particularly for large businesses who might accumulate a database of thousands of customers, many of which will, for whatever reason, stop using your service. If you keep texting them, and they forget to opt-out, you are wasting money.”

    Casey emphasizes that customer data can help you create personalized campaigns, “These go beyond just capturing a customer’s first name. The more data you can use to inform your campaign, the higher the engagement. You can do all of this by paying attention to the data and incorporating a monitoring component into your campaign. That is why our programs work so well—we are watching for what works, what doesn’t, and adjust accordingly.”

  • Personalize your campaign
    Get creative and design novel ways to engage customers with texts; you can turn to some common SMS marketing ideas for inspiration. One common personalization technique is to send promotional messages near key life events, like birthdays and graduations.

  • Provide two-way chat
    Customers like it when they can communicate directly with a brand. Many platforms provide this service as a two-way chat. For example, some banks notify their clients of suspicious activity and specifically ask the recipient to confirm or deny a transaction.

  • Consider MMS
    According to Casey, “In some industries, MMS does a better job of engagement than SMS. If you can’t communicate value in 160 characters—the equivalent of a subject line in an email—try MMS, which lets you be more creative and pull in people who are naturally more image-oriented. But be aware that it can cost up to two to four times as [much as] an SMS message. There is also ample space to add an emoji on an MMS message (emojis use up a lot of characters).”

  • Don’t overwhelm customers
    Your customers didn’t sign up to receive non-stop messages from your business. Try sending two to four messages per month, and, as Casey noted above, track your data to decipher if customers want even less.

  • Make it easy to unsubscribe
    Customers that see an easy-out will be more likely to opt-in. Plus, offering an easy way to unsubscribe communicates that you respect your customer’s time. Most businesses let consumers text “STOP” to opt-out.

How to track the result of an SMS campaign

Tracking an SMS campaign will let you know which parts do and don’t work. You can monitor key metrics to understand performance. Specifically, pay attention to click-through rates, subscriber growth, and conversion rates. 

To measure the success of an SMS campaign, use marketing software with analytics. These tools will help you understand how to tailor your SMS program to make meaningful connections with more customers.

Here are three important metrics to keep a close eye on:

  • Click-through rate
    This measures how many people opened your message and followed any call to action. Unique clicks show how many individuals read your message and click on any links.

  • Opt-in and opt-out rate
    To understand the longevity of each subscriber on your list, check out the opt-in and opt-out rates. Every campaign will lose customers, but keeping track of average rates will alert you when more people than normal are opting out. For example, a big opt-out rate can warn you that your campaigns don’t offer enough value. You will also want to track the opt-in rate to make sure your list grows rather than shrinks over time.

  • Conversion rate
    Retailers should watch conversion rate, a measurement of how many people follow an SMS link to become paying customers. For example, if any landing page uniquely linked from an SMS is not receiving much attention, you know you’ll need to adjust the text.

How to increase SMS marketing engagement

SMS marketing already features high engagement because it targets customers that want to receive messages. Engagement refers to how customers interact with your campaign. For SMS marketing, the best customer engagement comes from meaningful, personalized messages that make individuals feel special. You can use some tried-and-true tricks like crafting personalized messages and promoting loyalty clubs.

SMS guru Casey recommends that brands ‘game-ify’ their SMS messages to make them more attractive. “Use your SMS for trivia contests or monthly giveaways,” she advises.

Additionally, she emphasizes that the more data you have, the more personalized you can make your message. “Try to gather more data from your customer,” she says. “For example, you can query a customer to ‘reply with your birth date’ to enter that month’s giveaway. Now, you can set up another offer to go out around that customer’s birthday. For example, restaurants can offer a free meal as a gift for a birthday. No one dines alone on their birthday, so they’ll likely see nine additional meals sold for that one giveaway.”

Finally, be proud of your brand, and make sure customers don’t doubt who is sending the message. Branded short links clearly convey brand identity, improve trust and make users feel much more comfortable leaving the safe SMS space for an online landing page. Would you prefer to click on bitly.is/m/connection or a random string of numbers and letters?

How to increase SMS campaign click-through rates

Why give customers any reason to doubt your links? With Bitly, it’s easy to inspire brand trust and as a result, improve click-through rates. Meet all your SMS marketing needs with Bitly’s powerful, customizable links.

SMS marketing and Bitly’s custom SMS short links go hand-in-hand. With thousands of unique SMS communications available for any business, Bitly is the go-to URL-shortening service for brands looking to level up their SMS marketing campaigns. Plus, Bitly doesn’t just provide links, but real-time, interactive campaign management and analytics. With Bitly, you’ll always know how your campaign performs.

Whether you want to send appointment reminders, promotions, order statuses, or whatever is suited to your business needs, Bitly will be by your side through your SMS campaign journey. With short, branded links, you’ll save money on character count, too. Don’t worry, Bitly’s software integrates seamlessly into your existing workflow, so you don’t have to change what you’re doing, you’ll just be doing it better.