SMS remains one of the most popular messaging channels for consumers and businesses alike.
While businesses using SMS as a messaging channel for promotional purposes is not a new concept, it’s still highly relevant in 2023.
This is supported by the fact that we at Mobilesquared have found that ‘the number of businesses using SMS to communicate with customers (A2P) increased 9.78% by the end of 2022 compared to the previous year’, highlighting its popularity as a critical messaging channel.
In this guide, we’ll cover key information about promotional SMS, including some of the benefits associated with promotional SMS to illuminate why businesses are capitalising on it.
Let’s break it down.
What Is Promotional SMS?
A promotional SMS is a message sent by a business to both customers and prospects and is used to drive repeat and new business.
Promotional SMS messages provide businesses the opportunity to promote a product or service, generate interest and sales and increase brand awareness.
In short, any messages that offer discounts, coupons, and promotions, are considered promotional SMS messages.
Unlike other traditional marketing methods, SMS messages can be tailored specifically to target potential customers in any region and can be highly effective depending on other elements of your SMS strategy.
The Benefits Of Promotional SMS
There are a range of benefits associated with promotional SMS. These include, but are not limited to:
- It’s good for customer service
- It can be cost-efficient
- Promotional SMS can be tailored and personalised
- SMS has a wide reach
1. It’s Good For Customer Service
A benefit associated with promotional SMS is that it’s good for customer service.
Promotional SMS allows you to contact customers and prospects directly through their mobile phones and offer ‘exclusive’ SMS deals and promotions.
Considering that research has shown that ‘75% of customers want to receive special offers via SMS’, the potential promotional SMS holds is clear.
Contacting customers through promotional SMS can help brands build a connection with their target audience.
By offering personal offers, brands can continuously prioritise the customer experience, promoting excellent customer service whilst building brand loyalty.
2. It Can Be Cost-Efficient
SMS is generally considered a cost-efficient way to reach your target audience directly at a relatively low cost.
Our research at Mobilesquared has shown that SMS has a view rate of 100%, highlighting how customers can be reached with a single promotional SMS.
When you compare this to email marketing, for instance, promotional SMS can be a cost-efficient way of contacting customers in bulk and ensuring they actually view the message in question.
This largely comes down to the sheer number of emails the average person receives on a daily basis, increasing the likelihood of a brand’s promotional emails being ignored and their marketing efforts suffering.
That said, it’s important to note that changes are occurring in the SMS market that brands should be mindful of.
The SMS Market Is Shifting
Our research at Mobilesquared has revealed that brand spend on SMS business messaging (A2P SMS) will peak in 2024 unless mobile operators reform their existing pricing strategy.
The average cost for a brand to send an SMS internationally has nearly doubled from $0.033 to $0.0646 from 2021 to 2023, emphasising the shift in the market and how businesses will need to be prepared to adapt their SMS strategy accordingly.
However, in spite of this rate increase, SMS still remains a highly effective messaging channel for businesses to capitalise on.
3. Promotional SMS Can Be Tailored & Personalised
A benefit of promotional SMS is that it can be tailored and personalised.
Personalisation can contribute to your customers feeling more valued, and can also create a sense of exclusivity.
Crating personal and relevant messaging is essential to nurturing a connection with your audience and building trust, as customers are more likely to respond to messages that directly speak to them.
In fact, research has shown that ‘72% of consumers say they now only engage with marketing messages that are personalized and tailored to their interests’.
This emphasises the importance of personalising promotional SMS messages not only to drive engagement and conversions but also to keep customers coming back. It also highlights how failure to do so can result in missed opportunities.
By tailoring promotional SMS messages, brands can induce action from their customers and can continuously reap the rewards of sending personalised SMS messages.
4. SMS Has A Wide Reach
Last, but not least, a benefit of promotional SMS is the vast reach SMS has as a whole.
It’s no secret that SMS is one of the most accessible ways to contact customers. As the majority of people have a smartphone on their person at most times during the day, SMS allows brands to contact customers almost anytime, anywhere.
When you pair this with the fact that SMS messages are very quick and convenient to read, it’s not difficult to see why an increasing number of businesses are using SMS and capitalising on promotional SMS messages.
Provided that you are personalising and targeting your audience by sending messages to specific demographics based on age, location, and other important details, then, the overwhelming reach and power of promotional SMS messages are evident.
A2P SMS Dataset & Report 2017-2027
If you’re looking to invest in your SMS strategy, the Mobilesquared A2P SMS dataset and report provide you with essential intelligence.
Updated in July 2023, with a data update carried out annually, this 108-page market report includes detailed global and regional analysis, outlining the impact of all major developments affecting the marketplace and what it means for the short, medium, and long-term future of A2P SMS messaging.
Spanning 2017-2027 (including actual data for 2017-2022 and forecasts 2023-2027, you’re also able to access our online SMS dataset containing over 12 million individual data points across 200 markets and 640+ mobile operators.
Hopefully this article has given you a wider awareness of promotional SMS and its benefits.
We are Mobilesquared: mobile engagement specialists delivering the very best independent mobile market intelligence to our clients. We are the established #1 global authority on business messaging and CPaaS, with our data shaping business plans, strategy, and customer engagement modelling, for some of the world’s leading brands, mobile operators, and messaging providers.
To learn more about our services, including the Messageverse, be sure to get in touch via telephone (01182149 777) or email (email@example.com) to learn more about what we do and discover how we can help your business.
Written by Jemima, for Mobilesquared.