In today’s fast-paced digital landscape, staying connected with customers in real time is more important than ever—especially for local businesses. With open rates of up to 98%, SMS marketing has become one of the most powerful tools for engaging your leads, driving customer loyalty and boosting conversions.
This guide will walk you through everything you need to know about SMS marketing—how it works, why it’s effective for local businesses, and the best strategies to get started.
What is SMS Marketing?
SMS marketing, or Short Message Service marketing, is a powerful tool that enables businesses to send text messages directly to their customers’ phones.
Unlike other marketing channels that often get lost in inboxes or social media feeds, SMS marketing ensures your message is seen almost instantly, making it one of the most effective ways to reach your customers.
Why SMS Marketing Works for Local Businesses:
- Immediate Impact: With SMS marketing, your message is read quickly, with 90% of texts opened within three minutes. This immediacy is crucial for local businesses that need to reach their customers in real time, whether it’s a daily special or a time-sensitive promotion.
- Higher Engagement: Compared to other marketing channels like email, SMS sees a much higher response rate, often up to 45%. This makes it perfect for local businesses looking to build relationships and foster loyalty.
- Cost-Effective: Local businesses often operate on tight marketing budgets. SMS marketing offers a low-cost solution that still delivers a high return on investment (ROI), with businesses seeing an average of $71 return for every dollar spent.
- Higher Open and Response Rates: Email open rates hover around 20%, while SMS boasts an impressive 98% open rate. This makes SMS a more effective channel for grabbing attention quickly.
- Direct, Personal Communication: While social media reaches a wide audience, SMS allows for personal, one-on-one communication. This direct approach helps build trust and makes customers feel more connected to your business.
- No Internet Required: Unlike email or social media, SMS works without the need for Wi-Fi or mobile data, making it a more reliable option, especially for customers in areas with limited connectivity or who are always on the go.
How Local Businesses Can Use SMS Marketing
SMS marketing is a versatile tool that can be used by local businesses to engage with customers in various ways. Whether you’re looking to generate leads, improve customer engagement, or boost retention, SMS provides an easy and effective method to reach your audience.
Three Ways Local Businesses Can Incorporate SMS Marketing for Lead Generation
One of the most valuable aspects of an SMS marketing strategy for local businesses is the ability to capture leads through opt-in forms and SMS widgets.
- SMS Widgets on Websites: By embedding a web-to-text chat widget on your website, you can easily collect phone numbers from visitors who are interested in receiving information, updates or exclusive deals.
- In-Store Promotions: Local businesses can also capture phone numbers through in-store promotions. For example, offering customers a discount if they sign up for text alerts is a great way to build your SMS list.
- Loyalty Programs: Offering a loyalty program through SMS is another way to incentivize customers to provide their phone numbers. Customers can receive special rewards, discounts, or points via text, driving repeat business while growing your SMS list.
Once you’ve captured leads, SMS marketing becomes an invaluable tool for keeping customers engaged.
Key Features of SMS Marketing for Local Businesses
Local businesses benefit from several powerful SMS marketing features that help them stay connected with customers and optimize engagement.
- Real-Time 2-Way Messaging: One of the biggest advantages of SMS marketing is the ability to send instant messages directly to customers’ phones. This immediacy ensures that your communications reach customers when they’re most likely to take action.
- Automations: SMS automation is a game-changer for local businesses with limited time and resources. You can set up automated responses using pre-filled templates that are triggered by customer actions like sign-ups, purchases, or form submissions.
- Scheduling: SMS scheduling also helps you to send messages at the most optimal times, ensuring no message goes unanswered. This is perfect for promotional campaigns, appointment reminders, and follow-ups.
- Personalization: Customers today expect personalized experiences, and SMS marketing allows you to deliver just that. With SMS, you can send messages tailored to individual customer behaviors, preferences, needs and purchase histories.
- Rich Messaging: SMS is no longer limited to plain text. With rich messaging, you can now include links, images, and emojis, making your SMS campaigns more engaging and giving your brand some personality.
- Lead Management: Using SMS marketing software like TextNinja gives you more than just a messaging tool—it provides a comprehensive dashboard to manage leads efficiently.
You can track conversations, review past interactions, and assign responses to team members, ensuring no lead is missed. The dashboard also helps you categorize and prioritize leads, set reminders for follow-ups, and analyze performance, all in one place.
Bonus: With software like TextNinja, you can automatically generate SMS contact cards for new leads, making it easy for them to store and reference your business information directly on their mobile phones.
Best Practices for Local Businesses Using SMS Marketing
To get the most out of your SMS marketing efforts, it’s important to follow best practices that ensure you’re engaging your customers in the most effective and compliant way.
- Get Permission: Always collect explicit consent before sending messages. This builds trust and keeps you compliant. Tools like TextNinja’s web-to-text chat widget make it easy—when customers initiate a conversation, they automatically opt in for future texts.
- Timing Matters: Send messages at optimal times to avoid frustration and high opt-out rates. Test different send times to find what works best for your audience. Timing is also crucial for responses. Reply quickly to improve conversion rates—delays of over five minutes reduce lead conversion by 85%.
- Keep It Short and Sweet: With SMS limited to 160 characters, be clear and direct. Avoid overloading customers with information.
Example:
- Too long: "Our spring sale is now live! Get 25% off on all items in-store and online for the next 48 hours. Visit our website at [link] or come by our location."
- Short and sweet: "Spring sale! 25% off everything for 48 hours! Shop here: [link]"
4. Segmentation and Targeting: Segment your audience to send personalized, relevant messages. TextNinja’s dashboard allows you to track customer behavior, making segmentation easy. For example:
- New customers: Welcome message with a discount.
- Returning customers: Updates on loyalty rewards or exclusive offers.
- Interested but not converted: Follow-up with an incentive.
How to Build an Effective SMS Marketing Campaign
Creating a successful SMS marketing campaign involves a few simple but essential steps. Here are five quick steps to help you get started:
- Collect Phone Numbers Through Opt-In Forms: Start by gathering phone numbers from customers who have consented to receive your messages. Use opt-in forms on your website, in-store promotions, or even text-to-join campaigns to build your subscriber list.
- Use Tools Like TextNinja’s Lead Capture Widget: Simplify the process by using a tool like TextNinja’s web-to-text widget, which allows customers to seamlessly opt-in directly from your website, ensuring compliance and ease of use.
- Create a Welcome Message: First impressions matter! Set up an engaging welcome message for new subscribers. This could include a special offer or a simple thank-you note, helping to build rapport from the start.
- Build and Send Regular Campaigns: Consistency is key. Whether it’s weekly promotions, event reminders, or exclusive deals, create a schedule for sending out regular campaigns that keep your audience engaged.
- Monitor Performance and Adjust Based on Customer Behavior: Use analytics to track key metrics like open rates, response times, and conversions. Adjust your strategy based on what’s working best to continuously optimize your campaigns.
Measuring Success: SMS Marketing Metrics to Track
To ensure your SMS marketing campaigns are effective, it’s important to track key metrics. Here are the most crucial ones:
- Open Rate: Track how many recipients open your messages. A high open rate means your messages are getting through and grabbing attention. To improve, focus on timing and compelling subject lines.
- Click-Through Rate (CTR): Measure how many recipients click on links within your messages. CTR helps you gauge how engaging your content is and whether your calls-to-action (CTAs) are effective.
- Conversion Rate: Track how many recipients take action after receiving your SMS, such as making a purchase or booking an appointment. This is a direct measure of your campaign’s impact.
- Unsubscribe Rate: Monitor how many people opt out of your SMS list. A rising unsubscribe rate could indicate that your messages are too frequent or not relevant, signalling the need for adjustments.
Why SMS Marketing is a Game-Changer for Local Businesses
SMS marketing can transform how local businesses connect with customers, driving engagement and growth. With open rates as high as 98% and customers choosing SMS over email by a 2:1 margin, texting has become the preferred communication method for many consumers.
A web-to-text chat widget gives customers control, letting them engage on their terms, while SMS ensures instant responses, which is crucial for making a strong first impression.
Ready to Transform Your Business with SMS?
Now that you’ve seen the power of SMS marketing, it’s time to take the next step.
Don’t miss out on the opportunity to connect with your customers on the channel they prefer. Start your journey with TextNinja today!