How Effective Is SMS Marketing For Small Businesses?

Digital marketing has fast become the fastest, simplest and most effective marketing strategy for businesses of every size. However, there are such a variety of digital marketing techniques available that it can be difficult for a small business owner to decide which is best suited to their specific industry.

The choice should always come down to return on investment (ROI) – the marketing technique that is most likely to bring the greatest value for money. When it comes to traditional marketing, it can be difficult to relate return directly to the investment in a specific campaign or strategy. Not so with digital marketing. Results are measurable and can be directly related to a specific technique that has been used.

One of the oldest and most effective digital campaigns for small businesses is SMS marketing. But why is this type of marketing still so effective and how can it be of benefit?

It is estimated that about 95% of Americans own and use a mobile phone and that 89% use the technology to shop, find places of interest or other information. An effective SMS marketing campaign therefore has the necessary reach to provide an effective ROI.

This type of marketing has also been found to increase conversion rates. According to the latest statistics, adding a short link to a SMS marketing campaign can result in conversions of up to 39%. That is huge. A conversion rate is calculated by the amount of clicks on the link that actually convert to achieving a goal. This can be completing a form, liking a page on Facebook or even making a sale. The higher the conversion rate, the more successful the marketing campaign and therefore the greater the ROI.

When it comes to statistics, perhaps the most important one is the open rate – this is how likely the target audience are to open the SMS rather than delete it. The open rate for SMS marketing campaigns is currently an impressive 98%. Email marketing campaigns range around 20%. This is due to the fact that SMS’s are easy to open and even easier to respond to than emails.

It also has much to do with the length of the message. SMS messages are short and to the point with a very specific call to action. On average, it should take a mobile user only a minute and a half to read and respond to the message. Anything longer is likely to lower the conversion rate and therefore the ROI.

However, ROI is just a little more complicated when it comes to choosing the right marketing campaign for small business. At the end of the day, the campaign needs to be effective in order to provide the greatest return on investment. This means employing tactics that will ensure that a campaign is successful.

Using a professional marketing agency and an experienced SMS marketing platform is therefore essential to reaping the rewards of SMS marketing campaigns. Integrating this type of mobile marketing strategy into an overall digital marketing campaign can deliver even better results.

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