Is Text Message Marketing the Next Hot Trend?

Yes, and it’s bringing AI and 5G with it

Text Message Marketing (TMM)

Text Message Marketing has been around for years, but it seems to be making a comeback. And there are good reasons for it.

In the past, marketers relied on Email Marketing as a way to reach customers directly. But, add Text Message Marketing (TMM) to the mix, and you will expand your direct to customer reach. Both tactics have their own set of valuable capabilities and make a powerhouse team when combined.

With mobile phone users expected to increase by 77% in 2025, TMM is a sure-fire way to reach customers where they are- on the phone.

What is Text Message Marketing (TMM)?

It’s typically used to send reminders (prescription ready), tickets (boarding pass ), relevant information (Covid-19 testing sites), announcements (your table is ready), and elevated customer service.

But, new ways to use TMM are popping up that are more incentive-based, like promotions, coupons, and discounts. Incentives generally work and prompt people into action to make a purchase.

A mobile marketing tactic is best-used to provide value to the customer. It is a personal space that should be respected and not contain spam messages.

Infographic courtesy of SlickText.

Is Text Message Marketing (TMM) Effective? Does it Work?

All types of businesses use TMM: Retail, Schools, Universities, Consumer Brands, Car Manufacturers, Service Industries, Entertainment Companies, and more.

1. It’s the fastest and most direct way to reach a customer.
2. Mobile shopping will only increase in popularity.
3. TMM software tools provide valuable data analysis.
4. TMM campaigns drive traffic to websites and generate revenue.
5. Most people carry their phones at all times. TMM is an opportunity to grab someone’s attention while they are commuting, standing in line at a store, waiting around at a car wash, or sitting in a waiting room.
6. Powered by AI, it provides faster customer support 24/7.
7. Because of AI, TMM is a low-cost channel with a high response rate.
8. With 5G on the rise, TMM capabilities will only improve.

Case Studies-Statistics-Open Rates-ROI-Analytics

Text Message Marketing click-through rates are higher than other mediums because 99% of people open their text messages.

According to Tatango, Kiehl’s hair and skin products company, had 73% of its customers make a purchase after signing up for one of their TMM campaigns.

Ace Hardware increased sales in its chain of stores by $401,000 for its loyalty program.

Through online, in-store, and print advertising, National Wholesale Liquidators retail stores gained 50,000 opt-ins.

Recently, a chain of Seattle Sun Tan salons ran a $20 off next purchase campaign as an incentive to opt-in and gained 4,774 users in thirty days.

Dunkin Donuts claims it increased traffic by 21% at their Boston area stores.

Sony Music Entertainment used Text Message Marketing to send a movie trailer to promote their film, October Baby and saw an 11% click-through rate.

According to Marketing Charts, response rates happen within 15 minutes of receiving a promotional text.

Opt-in campaigns achieve success through aggressive advertising and incentives. Spread the word through social media, newsletters, point of sale, print, billboards, sales receipts, and more.

Text Messaging Software Platform Features

To implement a Text Message Marketing campaign, you will need special software. Here is a list of functions and features they may include:

• Analytics and reports: Includes campaign reports, link tracking, and more.
• Automation: This is useful if you have a recurring campaign or reminders.
• Contact management: This tool will segment users for a more targeted campaign, and scrub lists to eliminate inactive users.
• Customization: This allows for personalized messages.
• Drip campaigns: This allows control of the sales funnel.
• One Per Person: This feature prohibits someone from redeeming a promotion more than once.
• Integrations: Connect with other platforms, such as Shopify, Facebook, and Constant Contact.
• Message templates.
• Multimedia messaging: Embellish your campaign with pictures, videos, and audio clips.
• Mobile keywords: This allows you to choose custom keywords and track them.
• Scheduling: Set specific dates and times to run a campaign.
• Surveys: Vote, polls, and surveys.

10 Marketing Tips to Give Your TMM Campaign a Better ROI

According to Tatango, only 2.3% of people opt-out after redeeming a promotion. That’s pretty good.

1. Campaign incentives do not work for in-store redemption. Include a call to action, like buy now, or vote now, to trigger an impulse buy.
2. Make your call to action clear and concise.
3. Make the message easy to read by including a line break between the text message and the hyperlink.
4. Use a URL shortener for a cleaner look.
5. Timing is everything, send a promotion when it’s easy for the customer to redeem it.
6. Optimize hyperlinks to make the campaign message visually appealing. This requires someone tech-savvy. You can learn more here.
7. Include the brand name so it’s clear who sent the message.
8. Provide an easy way to opt-out: Text -Stop- to Opt-Out.
9. Protect your company with a disclaimer: Data rates may apply.
10. QR codes make it easy for customers to engage with you.

Photo courtesy of Tatango.

Laws & Regulations & Opt-in Compliance

As Text Message Marketing gains popularity, so does scrutiny from the Telephone Consumer Protection Act. Marketers are not allowed to use Text Message Marketing unless they have consumer permission. It’s best to stay informed of the changing laws since non-compliance can cause hefty fines. For instance, texts are only allowed between the hours of 8 a.m. and 9 p.m (Contact’s time zone).

Below are the best practices guidelines from the Cellular Telecommunications Industry Association and the Mobile Marketing Association:

• All advertising should include the program name, production description, link to terms and conditions, message that data rates may apply.
• Don’t use the term “free” unless you have a free-to-end-user program.
• Get opt-in approval before sending messages.
• Allow your customer the choice of opting out.
• Maintain opt-in and opt-out records for at least six months.
• Do not advocate the use of tobacco, alcohol, or other drugs.
• Age verification is required for some marketing campaigns.

Here is a comprehensive guide on mobile marketing best practices from the Mobile Marketing Association.

Text Message Marketing is a 21st-century strategy too good to ignore, and it’s inexpensive to implement. Most TMM platforms offer a free trial -What do you have to lose?

Please share any tips and tricks you may have for a successful Text Message Marketing campaign.