The benefits of business SMS (and how to do it right)

Mass texting service delivering messages to group of people.

If you want to get in touch with someone, what’s the first way you think to do it? For many people, it’s by text. 

As a population, the UK sends more text messages each day than emails and prefers receiving an SMS over a phone call. It makes sense, SMS is fast, reliable and familiar. And, perhaps more importantly, it’s less awkward than having to chat. 

If we all love texting so much, using it for business seems like a no brainer, right? 

Right. Business SMS lets you do exactly that. Turning text messaging into one of the most effective marketing and communication tools around. Here’s why it’s great and how you can use it to reach your audience.

Graphic of a man completing a purchase on his mobile phone, with an icon showing a text bubble and a speaker to represent SMS marketing

Benefits of business SMS

The SMS marketing (that’s another term for Business SMS) market is expected to reach $84.9 million (around £67 million) by 2027, from $64 million in 2021. This tells you one thing: Business SMS works. More importantly, it works in a way that suits any business. Let’s take a closer look at some of the benefits.

Customers want business SMS

Good marketing reaches customers on their preferred channels. For most people, SMS is one of those channels: 

There’s a fine line to tread—71% of customers say receiving too many messages is the reason they no longer want to hear from brands. But research makes it clear: your audience wants to hear from you via text.

There’s no bigger reason to use business SMS than that, but there are a few more… 

High open rates

The average open rate for text messages is 98%.

That’s a statistic we wear like a badge of honour (you’ll see it mentioned more than once on this website). Why? Because no other marketing channel comes close.

If you send 100 customers a text, 98 of them will open it. We’re yet to figure out what the other two are up to. 

For context, the open rate for email marketing is around 21%. And the open rate for direct mail is 60%.

Okay, open rates aren’t everything. But if more people are seeing your message, more are likely to engage with it. 

And so it proves.

Again, for context, email has a 6% response rate, a 6-7% click-through rate and a conversion rate of somewhere around 15-22%.

This isn’t to say you should ditch email and go all-in business SMS instead. The two work well together as part of an omnichannel approach—interacting with customers on whichever channels they prefer. 

Something that’s important in today’s marketing. As McKinsey points out:

“Customers increasingly expect consistent information to be at their fingertips, regardless of the channel they choose to engage with. Our research shows that more than half of customers engage with three to five channels during each journey they take toward making a purchase or resolving a request. We also found that the average customer attempting to book a single reservation for accommodations online switched nearly six times between websites and mobile channels.”

What better way to make information available at a customer’s fingertips than business SMS? 

Direct-to-inbox communication

SMS is direct as a marketing channel gets, short of showing up at your customer’s house with a suitcase full of goods.

Hit send and a business SMS is delivered in less time than it takes to read this sentence. Usually in 1-2 seconds. 

When a text lands on a phone, it pings the recipient to let them know (we all know how impossible those beeps, chimes and vibrations are to ignore) and sits where they can easily read it—in the notification bar, on a home screen and at the top of a message inbox. 

This visibility is a big reason for the high open, read and response rates. There are no  “Promotions,” “Social” or “Other” tabs that can cause an SMS to go unread like email. And because a text inbox is less noisy in general, messages are less likely to be buried under a mountain of updates à la social media. 

Plus, SMS doesn’t require a recipient to log into an app or website to view a message. Heck, it doesn’t even need an internet connection. If a phone (smartphone or otherwise) has a working SIM card and signal, it can receive a text.

This makes it the perfect channel for urgency. 

If you need to alert customers to something quickly (a service update, for example), or want them to act fast (a flash sale, maybe), text is the best way to do it.

Marketing personalisation

Business SMS is opt-in marketing. This means customers have to sign up and agree to receiving texts (more on this soon). 

Collecting subscribers gives you access to data like name, age, interests and location that you can use to personalise messages.

Once you start sending and tracking texts, you can gather more data like purchase history and preferences to customise SMS updates and promotions.

Why is this important?

Because customers expect personalisation. And if you deliver it, they’ll spend more on your business and recommend you more to friends and family.

Cost-effective marketing

It costs as little as 2.5p per text to reach your customers with SMS on Text Marketer (3.6p on average).

And you can send as few or as many texts as you like, so a campaign always matches your budget.

The more you send, the cheaper the per-text price becomes. Plus, you only pay to send. Everything else—tools to create and send texts, delivery reports and analytics—are free. Or, at least they are with Text Marketer. 

Combine low bulk prices with the impressive average conversion rate (29%) and you have yourself a marketing channel that has the potential for great return on investment (ROI). 

Scalability

Unlike traditional marketing (TV, radio, print, etc.) channels that demand a large budget to get started, business SMS works whatever your finances, resources, goals or status. 

Because there are no lower or upper limits on how many texts you can send, you can just as easily run a campaign to reach 10 customers as you can to reach 100,000.

It’s also possible to add and remove accounts and team members as required to handle demand in busy times, or scale down if you need to restructure.

Plus, you don’t need extensive training, marketing experience or an expensive agency to manage campaigns. 

If you’re comfortable with sending texts, you can set up and use SMS successfully for your business.

3 ways to use business SMS for your business 

So business SMS makes a lot of sense, but what exactly can you do with it?

In short, a lot. The humble text message is a versatile tool (add that benefit to add to the list). It works as well for comms as it does for marketing. 

Here are some of the ways you might use it:

1. Sending marketing SMS messages

Not surprisingly given the open and engagement rates, business SMS is mostly used as a marketing tool.

If you have something to promote, you can do it with a text message. Our users regularly use SMS to reach audiences with:

For example, Mainline Menswear used Text Marketer to send a bulk message to customers promoting its winter sale. 

Reaching a large percentage of its audience quickly, meant it was able to boost sales quickly.

The text helped the company to one of the busiest days in its history, resulting in a:

And for those who clicked the text, but didn’t convert, cart abandonment texts helped entice them back at a later date.

Those kinds of results aren’t unique. 

Want to get started with marketing text messages? Check out the ready-made options in our SMS Template Library.

2. Sending transactional SMS messages

Transactional messages are automated messages you send at different points in the customer journey. 

Where marketing messages incentivise buying, transactional texts provide helpful information and to improve a customer’s experience.

Here are some common examples:

You can also use them for internal communication. For example, if you want to update employees on shift changes, introduce a new colleague or thank staff for their hard work.

Transactional SMS messages are often called non-marketing messages. And it’s true, these messages aren’t meant for promotion. But they do help to market your business indirectly.

How? It’s all in the experience.

Research shows keeping customers in the loop makes them more likely to trust and recommend you. Keep it up and they’re also more willing to make another purchase and pay more for products.

In other words, it pays to be helpful.  

3. Collecting customer feedback with surveys

Asking customers for feedback shows you value their opinions and business—and care about improving their experience.

Given that SMS users respond faster and more often than other marketing channels, it’s a great way to quickly gather, analyse and implement feedback. 

SMS surveys let you ask questions and get answers in the same way you’d have a text conversation with a friend. And customers are up for taking part. 95.3% say they’d respond to an SMS survey request.

The type of SMS survey to send depends on what you want to find out. Here are some common examples: 

When you sign up to an SMS service, you get a dedicated reply number (it’s free with Text Marketer—just saying). 

It’s much like a regular mobile number but for business SMS. When a customer replies to your survey, all responses are stored in one place. So, it’s easy to view and sort data—and spot common themes you can focus on to improve your business.

SMS marketing tips

How to choose a business SMS service

Business SMS is done using a SMS marketing service that lets you create, send and manage texts. 

Choosing the right provider and platform is huge, because SMS marketing is only as good as the platform you’re using. In other words, a great SMS strategy won’t save a poor platform.   

The good news is, there are plenty of providers to choose from (including this one). The bad news is, it’s not always easy to spot a low-quality provider at first glance. So, don’t rush into making a decision. 

Instead, check out reviews, get recommendations and ask business owners about their experiences. 

As you weigh up the runners and riders, here are some questions to ask:

If the answer to these questions is yes, you’ve found yourself a provider worth its weight in texts. 

Best practices for business SMS

With the right platform, sending business SMS should be as simple as, well, sending a text.

But there’s a difference between sending a text and sending a text customers want to engage with.  

To get customers reading, nodding, clicking and ordering, follow these tried, tested and, quite frankly, essential tips. 

Get permission before sending

If you only take one thing away from this guide, make it this: always get clear consent before sending a text.

Not doing so can land you with a hefty fine.

UK GDPR states that consent has to be freely given. This means someone must choose to sign up and know what they’re signing up for (including how you’ll use their data). 

For example, if you use a sign-up form, make sure it clearly states that the recipient is opting in to receive marketing texts. 

Consent should also be collected separately from other marketing channels. So, a person who signs up to your email list cannot be automatically added to your SMS list and vice-versa.

The other big rule to note is that you can’t force consent or make it appear that signing up to your SMS list is a must.

A good way to ensure full consent is with a double opt-in. After a customer signs up to your list, send a text asking them to confirm they opt-in by replying “Yes” or “No.” Their reply leaves no doubt about whether or not to contact them again. 

You can find the full regulations around consent in the Information Commissioner’s Office’s (ICO) lawful basis guide. They’re worth familiarising yourself with. Plus, there’s a handy checklist to keep you on the right side of the law.

Make it easy to opt-out

If a subscriber decides they no longer want to hear from you by text, you have to make it easy for them to unsubscribe.

UK GDPR rules around managing consent state you have to publicise how to opt out and “act on withdrawals of consent as soon as we can.”

There are a couple of ways to do this:

As soon as you receive an opt-out request, delete the number from your database so a person isn’t accidentally included in future campaigns. Plus, it’ll save wasting texts on someone who doesn’t want to hear from you.

If a person has opted out, you’ll need to get their express consent again before re-adding them to your list.

Stick to SMS regulations

As well as consent, there are other rules around what you can and can’t do with business SMS.

Here’s what you need to know:

Make every text worthwhile

Before sending any text, think about whether it offers value to your subscribers:

The best way to add value is with one of the benefits we mentioned earlier: personalisation—dividing subscribers into groups and sending them information they care about.  

For example, you can group subscribers based on things like:

Create texts that are relevant and familiar and you’ll make subscribers feel like you’re talking specifically to them. They’ll reward you for that with more engagement, loyalty and sales.  

Want to learn more? Download our free ebook: Getting started with SMS marketing personalisation.

Keep messages concise

If you’ve ever received a short story masquerading as a SMS, you’ll know that SMS isn’t the place for long blocks of text

The best-performing messages are concise, getting their point across under the 160-character limit. How do you make sure yours follow suit? Stick to this simple rule:

Figure out what you want to say and say it as simply as possible.

Put the important stuff (e.g. your offer) first and links at the end.

For example:

To stay within the character limit, use emojis sparingly and run links through a link shortener. And, while it might be tempting, avoid using text speak to cut down on characters unless you’re sure your audience understands it. Even then, it’s best not to overdo it as txts cn qckly bcm unrdbl.

Also, be mindful of dynamic content like name and product tags. Long names and words can push an SMS over the limit and send as two messages, meaning they cost double the credits.

Stay in touch (but don’t overdo it)

As we mentioned earlier, customers want to hear from you, but not too much. 

A good rule of thumb is to send 1-2 marketing messages a week and as many transactional messages as required. Just make sure to vary the types of messages you send. Receiving the same message every week gets annoying fast.

For example, if you’re sending four messages a month, you can keep things fresh with:

Track your results

Everything is trial and error when you’re starting something new. By monitoring performance, you’ll learn what works and what doesn’t to fine-tune your business SMS strategy.

The key to getting better is experimentation. Send different kinds of messages, or the same message worded differently. Add different calls to action and play around with send times.

As the data rolls in, you’ll build a clearer picture of what grabs attention and gets clicks.

Image of lady shopping on her phone with a message bubble and a clock to represent the concept of the best time to send SMS messages.

Ready to get started with business SMS?

Text Marketer is as good a place as any.

Sign up for a free trial to see how SMS works for your business. You get full use of the Text Marketer platform, with no contract, set-up fees or sign-up fees forcing you to commit.

We created a beginner-friendly four-step process that’ll have your first campaign pinging phones in minutes:

  1. Select an existing contact list or upload a new list from a spreadsheet (CSV file)
  1. Enter your sender details (e.g. your company name) or choose a reply number
  1. Write your SMS and personalise it with customer details
  1. Hit ‘Send now’, or choose to schedule or spread send your SMS

Plus, you get double the credits on your first order of up to 10,000 and a price-match guarantee that means you’ll always get the lowest rate. 

Sound good? Sign up here.

Got questions about our platform or business SMS? We’re all ears and answers. Contact us here.

Business SMS FAQs

Is business SMS legal?

Yes. So long as you adhere to the rules and best practices covered in this guide, you’ll have no problem with regulators.

If you’re up for some in-depth reading, here are various regulations you need to follow: 

How much does business SMS cost?

In most cases, business SMS runs on a per-text pricing model. You buy credits that convert to texts. 1 credit = 1 SMS. 

The average cost per text in the UK is around 6p. But the more you buy, the lower per text rate.

Text Marketer’s average rate is 3.6p per text, or as low as 2.5p if you use our double credits offer. 

Most providers don’t charge extra for campaign tools, though the free reply number, keyword and unsubscribe tool included with a Text Marketer account aren’t available as standard on all platforms. You may need to buy those separately. 

What are the best times to send business SMS messages?

Research shows the best time to send a bulk SMS is noon on a weekday or weekend.

The next best times are 2 pm and 6-8 pm.

The best days to send an SMS are Thursday, Friday and Saturday.

Monday is the worst day, as this is when people are most overwhelmed with work tasks and messages from different channels. 

These benchmarks are a good place to start, but it’s important to experiment and find what works for you as you learn more about your audience.

How can I build an SMS marketing subscriber list?

Make your list visible everywhere you interact with your audience. 

  1. Add a signup form to your website footer and/or sidebar, and as a well-timed pop-up (e.g. after someone has been browsing your website for a few minutes)
  1. Invite email subscribers and social media followers to join your SMS list by highlighting the unique benefits (e.g. exclusive offers or stock notifications)
  1. Run SMS entry competitions that encourage people to sign up for the chance to win big (remember to get explicit consent before sending entrants marketing messages)
  1. If you collect phone numbers for order updates during checkout, include an opt-in message and checkbox for people to sign up to your SMS list

In each case, add an incentive to make signing up worthwhile. A common example is a next-order discount, but you might choose to entice subscribers with free swag or the promise of exclusive perks. Whatever makes sense to your brand.