SMS Marketing: engage with your customers and optimise conversions

What are the specific features of SMS Marketing? Which solution should you use to optimise targeting and boost sales via this channel? Here's how to optimise your SMS campaigns and automations.

Why adopt an SMS marketing strategy in 2024?

What is SMS Marketing?

SMS marketing is a direct communication strategy that enables businesses to send promotional, informational or messages via text message (SMS) to their customers' mobile phones.

This approach is particularly powerful within an omnichannel CRM strategy as it provides a powerful additional channel to engage, inform and retain customers.

In addition to SMS, MMS (Multimedia Messaging Service) and RCS (Rich Communication Services) extend the capabilities of an SMS marketing strategy.

MMS (Multimedia Messaging Service)

MMS extends the SMS format by allowing the sending of multimedia messages such as images, videos and audio files. It adds a visual and interactive dimension to campaigns, making messages more engaging and informative. Use cases for MMS include promotions, but also invitations to events or sharing information or product updates in a more immersive way.

RCS (Rich Communication Services) 

RCS is the evolution of SMS/MMS, offering advanced features such as group messaging, real-time video, sharing of large files and suggested responses. It enables richer, more interactive communications comparable to today's instant messaging applications. 

For CRM professionals, RCS provides the ability to create richer, more personalised and engaging user experiences with features such as image carousels, polls and live appointment confirmations.

By enriching customer interactions with more engaging and interactive formats, MMS and RCS can significantly improve customer retention and loyalty.

What are the benefits of SMS marketing?

The SMS channel has several strengths:

• Highest open rates: this is one of the key benefits of the SMS channel. With an open rate of around 98%, SMS ensures that your message reaches your target audience almost immediately.

• Real-time interaction: SMS enables almost instant interaction with the customer (on average, the message is opened within 15 minutes of receipt), making it ideal for urgent notifications, order confirmations and limited-time offers.

• The depth of the market: 5 billion people now have mobile phones that can receive SMS messages. Although it still needs to adapt to different markets and their respective legislation, its ability to reach a large audience directly and instantly is undeniable.

The numbers speak for themselves:

• In terms of engagement and adoption, SMS marketing response rates are impressive, with an average SMS open rate of 98%. (Source: Tech Report) Up to 45% of recipients of SMS marketing messages respond, allowing businesses to engage in real-time dialogue with their customers. (Source: Crazy Egg)

• In terms of consumer preferences, a significant majority of consumers (71%) have opted to receive SMS messages from at least one company in the last year. In addition, 53% of consumers would like to be able to text companies for customer service issues, indicating a strong desire for two-way interaction via SMS (source: SimpleTexting by Sinch).

• In terms of ROI, in 2023, 90% of companies that send SMS to their customers will consider their marketing strategy to be successful, and 67% of marketing managers have increased their budget for SMS, recognising its potential to increase opt-in rates. In addition, 91% of professionals report higher conversion rates for campaigns that include SMS (source: SimpleTexting by Sinch).

• On technical integration: the majority of brands (93%) integrate SMS with other marketing channels, highlighting the unifying role SMS can play in a holistic marketing strategy. This includes joint integrations with e-commerce solutions to strengthen e-commerce activities.

What are the different types of SMS communications?

As part of your omnichannel CRM strategy, mastering the different ways you can use SMS in your communications is critical to optimising customer engagement and sales performance.

Here are the main use cases for SMS communications and their associated CRM objectives.

1. Promotional SMS

A classic use case, promotional SMS messages are designed to increase sales and brand awareness by informing customers of special offers, discounts, product launches, etc.

They are particularly effective when there is an immediate call to action, such as a purchase or visit to the company's website.

2. Transactional SMS

This type of SMS includes order confirmations, shipping notifications, delivery status updates and other communications that directly follow a transaction.

The ultimate goal is to build customer trust by improving the customer lifecycle with relevant and timely information throughout the buying journey.

3. SMS alerts

Schedule changes, payment reminders, security alerts, etc. SMS alerts are used to quickly inform customers of important changes or urgent events.

While the context of the event is different, the goal of SMS alerts is similar to that of transactional alerts: to ensure that customers are well-informed to maintain their trust in your brand.

4. Loyalty SMS

Strengthen relationships with existing customers by offering exclusive benefits such as loyalty points, birthday gifts or personalised offers.

By making them feel valued, the aim is to maximise customer satisfaction and retention.

5. OTP (One-Time Password)

OTPs, or one-time passwords, are temporary security codes sent to a user via SMS. These codes are typically used to authenticate a user when connecting to an online service or to confirm a transaction.

The main advantage of OTPs is the added level of security they provide, as they are short-lived and can only be used once. This greatly reduces the risk of unauthorised access or fraud.

6. Purchase SMS

Purchase SMS allows transactions to be made directly via SMS, providing a fast payment method without the need for the Internet. This process simplifies the purchase of services or products, such as paying for transport tickets, by sending an SMS to a specific number.

The main advantages are simplicity (via an easily accessible mobile phone), speed (instant transaction) and security (via the use of PIN codes).

7. Conversational SMS

Conversational SMS messages are interactive exchanges between a business and its customers. Unlike traditional SMS messages, which are mainly one-way, conversational SMS messages enable two-way, real-time communication.

This type of SMS is used for customer service, surveys, appointment scheduling or any personalised interaction that requires a conversation. By providing a more personal experience and facilitating direct exchange, conversational SMS improves customer engagement.

8. Event SMS

These messages are used to promote specific events such as webinars, product launches or in-store events. They are essential for increasing attendance and engagement around your key initiatives.

9. SMS Surveys & Feedback

To gather constructive feedback on your product, service or customer experience, these SMS messages are an effective way of inviting customers to share their opinions. These valuable insights will enable you to better respond to customer expectations.

Customer Cycle: SMS Marketing Use Cases

Using the SMS channel opens up numerous CRM use cases to achieve your go-to-market objectives (sales, customer loyalty, retention, product improvement, etc.). Here is a selection, by category of your customer lifecycle:

Onboarding

1. Welcome SMS: create a positive first impression, demonstrate your brand's responsiveness and strengthen initial customer engagement.

2. Two-way SMS: establish a direct communication channel, improve customer satisfaction by ensuring effective customer service from the outset.

3. SMS Tutorials: send product/service user guides. Aim: maximise adoption by guiding customers through these use cases.

Loyalty & Engagement

4. Competitions and giveaways: stimulate customer interest and interaction with your brand to increase engagement and loyalty.

5. Nurturing campaigns: keep customers interested, educate them about your products/services and build a long-term relationship with them.

6. Birthday and special event SMS: send personalised greetings or special offers. Create an emotional bond with personalised attention.

7. Product/service updates: Inform your customers about new products or improvements to keep them interested and reassure them that you're always innovating to add value and improve their experience.

Retention & Service

8. SMS alerts: provide relevant information quickly to maintain transparent and reliable communication.

9. Post-purchase follow-up SMS: ask for feedback after a purchase to show you care about customer satisfaction.

10. Renewal alerts: if your business model is subscription-based, remind customers of their renewal dates to minimise churn.

Conversion Rate Optimisation & Sales

11. Special promotions: to increase conversion rates and customer loyalty, encourage immediate purchases by offering special promotions.

12. Local retail promotions: send an SMS announcing sales or special offers available exclusively at the customer's favourite store at a specific address. The idea is to encourage the customer to visit the store in person before a specified date.

13. Shopping basket abandonment: maximise your conversion rates by encouraging your customers to complete their purchases.

14. Targeted reminders: increase your conversions, repeat sales and CLV by reminding customers with personalised messages based on their shopping behaviour.

15. Back in stock alerts: let your customers know when the products they want are available. This will improve the customer experience and reduce your shopping basket abandonment rate.

16. E-commerce integration: offer personalised product recommendations that increase your up-sell and cross-sell opportunities.

Feedback & Improvement

17. Polls and surveys: gather feedback to improve products/services. Goal: understand and respond to customer needs.

Checklist for successful SMS marketing campaigns

SMS is a direct, high-impact channel, but its costs can quickly escalate if it's not used carefully.

Before executing your SMS strategy, check the following points, which are essential for maximising ROI:

1. Understand and segment your audience

Improve your relevance and impact by segmenting your customer database to personalise messages based on preferences, purchasing behaviour and customer interaction history.

2. Clear, concise messages

As with other mobile channels (push notifications, in-app messages), formulate messages that are short and to the point. Clear content with a strong CTA improves the effectiveness of SMS messages and encourages customer action.

3. Optimise timing

Continuously analyse customer habits to send SMS messages at the most opportune times. To maximise your KPIs (opens, response, sales), avoid sending at inappropriate times to respect customer privacy and maintain your brand integrity and customer experience.

4. Comply with local regulations

Ensure compliance with local regulations, including explicit consent for SMS communications. This builds customer trust and protects you from avoidable legal penalties.

This is especially true in Europe, where companies must comply with the European standards of the GDPR. In particular, this means obtaining explicit consent from recipients before sending commercial SMS messages. In addition to the reputational stakes for your brand, failure to comply with these rules can result in significant fines.

5. Unified Customer Experience: integrating SMS with Other CRM Channels

To create a consistent and harmonious 360° customer experience, it's important to align your SMS messages with the tone and content of your email, push, and website communications.

For example, an SMS can complement an email campaign by reminding customers of a limited-time offer. This integrated approach ensures that the customer receives consistent and connected messages, reinforcing the brand image and impact of the overall message.

6. Dashboard KPIs

You can't achieve your specific goals (sales, customer retention, customer base expansion) without real-time evaluation of the effectiveness of your SMS marketing strategy.

This requires constant monitoring of your CRM KPI dashboard: sales generated, ROI, delivery rates, etc.

Analysing customer responses and behaviours helps fine-tune the segmentation, timing, and content strategies of your campaigns mentioned above.

7. Personalisation and A/B Testing

Regularly tailor your messages to the demographic and behavioural characteristics of your customers. Personalised SMS messages increase engagement and drive conversions. So experiment with different wording, offers, and schedules to find the most effective combination. A/B testing helps refine strategy and optimise campaign results.

Omnichannel CRM: how to enrich your scenarios with SMS?

SMS is a powerful CRM channel in terms of reach and customer engagement, but it can quickly become very costly if poorly leveraged.

Here are some of the best use cases where SMS can add value to your various multichannel customer journeys.

1. Welcome campaigns

Email + SMS: when a customer signs up or registers for your service, start with a welcome email that introduces your brand and suggests useful resources. Follow up with an SMS thanking the customer for signing up and offering a discount code for their first purchase. This approach ensures that the message is received across multiple channels, increasing initial engagement.

• Day 0: personalised welcome email sent immediately after registration.

• Day +1: automated, personalised SMS thank you and discount offer.

CRM Goal: warmly welcome the customer, increase initial engagement and encourage first purchase.

Business Impact: increased conversion rate for new registrants.

2. Delivery Notifications

Push Notification + SMS: for e-commerce businesses, keeping customers informed about the status of their delivery is critical. Send a push notification as soon as the order is shipped, and follow up with an SMS on the day of delivery to give the customer a more precise time window. This strategy keeps the customer informed throughout the delivery process.

• Immediately after shipping: Push notification that the order has been shipped.

• Delivery day (H-3): SMS informing the customer of the exact delivery window.

CRM Goal: keep customers informed and engaged throughout the delivery process.

Business Impact: Improved customer satisfaction and reduced customer service calls regarding delivery status.

3. Back in Stock alerts

Email + SMS: for products that require re-purchases or subscriptions, start with an email reminding the customer that it's time to renew or replenish. If no action is taken, an SMS can be sent a few days later as a more immediate reminder. This blended approach increases the likelihood of a response.

• As soon as the product is available: a replenishment alert email is sent.

• D+3 (if no action is taken): SMS reminder with direct link to facilitate purchase.

CRM Goal: to encourage regular re-purchases and maintain engagement with the product.

Business Impact: increased recurring revenue and customer retention.

4. Product Launches

Push Notification + SMS: when launching a new product, a push notification can capture the immediate attention of app users, while an SMS can reach those who haven't installed your app or haven't opened it recently. Combining the two ensures maximum reach and generates interest in the new product.

• First announcement: Push notification for immediate attention.

• D+1: SMS to extend reach to users not active in the app.

CRM Goal: maximise visibility and excitement around new products.

Business impact: increase initial sales and interest in the product line.

5. Abandoned cart Winback

Push Notification + SMS: for users who have abandoned their shopping cart, start with a push notification reminding them of the forgotten items. If the user doesn't respond within 24 hours, follow up with an SMS offering a small discount to encourage them to complete the purchase. This strategy creates urgency and increases conversions.

• H+2 after abandonment: Push notification to recall the abandoned cart.

• D+1 after abandonment: SMS with a discount offer to encourage purchase.

CRM Goal: recover potential lost sales by reminding customers of their interests.

Business Impact: increased conversion rate.

6. Surveys and customer feedback

Email + SMS: first, send an email asking for feedback and explaining why customer feedback is valuable. If the customer doesn't respond, an SMS with a direct link to the survey can serve as a convenient reminder. This method encourages wider participation in the survey.

• D+1 after purchase/service: Email requesting feedback.

• D+3 (if no response): SMS reminder to increase response rate.

CRM Goal: collect valuable customer experience data to improve offerings.

Business Impact: improve service and product quality, increase customer loyalty.

7. SMS follow-up to a push campaign

Push Notification + SMS: combine push notifications and SMS to effectively increase customer reach while controlling costs.

• Send a Push Notification: initiate contact via a push notification, more economical and efficient for active users of the application.

• Relaunch by SMS (D+1): if the push doesn't engage after 24 hours, send an SMS to ensure better reach, even to those who didn't open the push.

CRM Goal: maximise reach and engagement.

Business Impact: optimise campaign ROI.

Checklist: how to choose the right SMS marketing solution?

Start by identifying your business needs and asking yourself the right questions:

• Who is your target audience?

• What are the goals of your next communication campaign?

• What are the use cases for your SMS marketing solution?

• Do you want to improve your conversion rate?

• Set up lead nurturing?

Once you've asked and answered these questions, apply the following analysis grid to each of the solutions you're evaluating:

Coverage of your specific use cases

Make sure the solution you choose offers the flexibility and functionality you need to maximise the impact of your SMS marketing campaigns. Some things to consider:

• Personalization: the platform should allow you to send personalised messages based on customer data to increase relevance and engagement.

• Automation: ability to automate campaigns based on specific customer events or behaviours for timely communication.

• Segmentation: advanced segmentation tools to precisely target customer groups based on their characteristics or interaction history.

Scalability

Your SMS marketing solution needs to grow with your business. Whether you send a few hundred or several million SMS per month, make sure the platform can handle your growth without compromising performance or requiring exponential costs.

Platform UX: ease of campaign management

The UX of the platform is essential to enable your marketing teams to create, launch, and manage campaigns in the most efficient way possible, without requiring in-depth technical training. Look for solutions with an intuitive interface, customizable templates, and clear user guides.

Regulatory compliance

Compliance with local and international regulations (such as RGPD in Europe) is non-negotiable. A good SMS marketing solution should have built-in functionality to manage user consent, unsubscribe, and privacy, helping you avoid hefty fines and protect your brand's reputation.

Integration with other solutions

The ability of an SMS marketing platform to seamlessly integrate with your existing MarTech stack is critical. Seamless integration allows you to centralise the management of your customer data and campaigns to deliver a consistent, personalised customer experience across all channels.

Analytics

Detailed analysis of your campaigns is essential to measure their performance and optimise your future strategies. Make sure the solution offers advanced analytics tools that let you track open rates, click-through rates, conversion rates, and more to accurately assess the ROI of each campaign.

Customer Support

Responsive, competent customer support is critical, especially when it comes to a platform as important as your SMS marketing solution. Whether through online resources, chat or phone support, make sure you have access to the help you need, when you need it.

Omnichannel Integration

Seamless integration of SMS into an omnichannel CRM architecture is fundamental to a harmonious, unified communications strategy. Complementing other digital and physical channels, SMS marketing helps enrich the overall customer experience by ensuring a consistent and continuous presence at every stage of the customer journey.

Data Security

Data security is a fundamental consideration when choosing an SMS marketing solution. What to check:

• Compliance: the platform must comply with applicable data protection regulations, such as the RGPD for Europe.

• Access management: the solution must provide a robust access rights management system to control who can view or modify sensitive data.

• Security audits: verify that the platform undergoes regular security audits and follows industry best practices for data security.

Data security not only protects your customers but also your brand's reputation. Make sure your SMS marketing solution provides a high level of security for all customer information it manages.