A Complete Guide to Advertising with SMS: Proven Strategies That Drive ROI

February 10, 2025
Get the best prices on business texting

The Strategic Power of SMS Marketing Today

SMS marketing has become essential for successful businesses looking to connect with customers. With most people glued to their phones throughout the day, text messages provide a simple yet powerful way to share updates and offers that get noticed immediately. While other marketing channels struggle to break through the noise, SMS delivers messages straight to customers' hands.

The Rise of Mobile and the Preference for Text

Mobile phones are now central to daily life, creating prime opportunities for SMS marketing. Since people check their phones constantly, text messages have an advantage over lengthy emails or social posts.

The average person reads a text within 3 minutes of receiving it, making SMS perfect for time-sensitive promotions and updates. Simple, direct messages align perfectly with how people prefer to consume information today.

Reaching the Right Audience at the Right Time

SMS marketing lets businesses target messages with incredible precision. Companies can segment their audience based on factors like purchase history, location, and demographics to ensure each message resonates. For instance, a store could text nearby customers about a flash sale on items they've bought before. This level of targeting helps businesses connect with the right people at moments when they're most likely to act.

The growth in SMS marketing shows customers welcome texts from brands they trust. In 2024, 79% of consumers opted in to receive business texts, with Gen Z leading at 85% subscription rates. Learn more about SMS marketing trends and statistics.

Driving Conversions and Building Loyalty

Well-timed, relevant text messages help build lasting customer relationships. Businesses use SMS to announce new products, share exclusive deals, and thank customers for their business. These personal touches make customers feel valued and drive engagement. The immediacy of SMS also makes it ideal for spurring quick action - whether promoting a limited-time offer or sending helpful reminders about upcoming appointments.

Mastering SMS Performance Metrics That Matter

SMS marketing success requires more than just sending messages - you need to track and understand how those messages perform. Looking at basic open rates is just the start. The real insights come from diving into the key metrics that separate great SMS campaigns from mediocre ones.

Beyond the Open Rate: Measuring Engagement

While open rates matter, engagement tells the fuller story. Response rates show how many recipients took action - whether clicking links, replying, or using keywords. Conversion tracking reveals how many people completed desired actions like making purchases or signing up for services after receiving your message. Together, these metrics paint the real picture of campaign effectiveness.

The numbers behind SMS engagement are compelling. Research shows SMS campaigns achieve an incredible 98% open rate, far above email's 20%. Even more impressive, 45% of SMS messages get responses, compared to just 6% for email. Speed is another advantage - 95% of texts are read and answered within 3 minutes, while emails average 90 minutes for responses. For more details, check out SMS engagement statistics.

Calculating ROI for SMS Campaigns

Like any marketing channel, proving return on investment is essential. For SMS campaigns, ROI calculation is straightforward - compare your campaign costs against the revenue generated through tracked conversions. This direct connection between spending and results helps demonstrate the real value of your SMS efforts.

Optimizing Your SMS Strategy with Data

Smart brands closely monitor their SMS analytics to improve message content and timing. Campaign data reveals which days and times drive the strongest engagement. For example, A/B testing different message versions can show which wording resonates best with your audience.

To succeed, establish a framework for consistent data tracking and analysis. Regular monitoring of your key metrics enables data-driven adjustments that lead to better-performing campaigns and stronger ROI from your SMS marketing investment.

Building Customer-First SMS Campaigns That Convert

Want your SMS campaigns to actually work? Focus on your customers first. This means really getting to know who they are, what they like, and how they use their phones. Building genuine connections beats sending endless promotions.

Understanding Your Audience and Their Preferences

Success starts with knowing your audience inside and out. Map out key details like age groups, shopping patterns, and how they prefer to communicate. For example, younger folks often respond well to emojis and casual language, while older audiences may prefer a more professional tone.

Smart timing matters too. Messages during work hours might annoy people, but evenings or weekends could get better results. Take time to analyze when your specific audience is most receptive.

Setting Expectations and Obtaining Consent

Be completely upfront about your SMS program. Tell subscribers exactly what kinds of messages they'll get and how often. Make it super easy for people to opt out if they want to. When you're transparent, you build trust.

The data backs this up - according to research, an overwhelming 96% of people report feeling annoyed by brand text messages at some point, mainly because messages come too often or aren't relevant. See the full research here.

Crafting Engaging and Relevant Content

Make every message count by keeping them short, useful and matched to what your audience cares about. This could mean sending exclusive deals, personalized suggestions, or important updates they need to know.

Think birthday discounts or appointment reminders. These kinds of messages show you're paying attention to individual needs while providing real value. Over time, this personal touch helps build lasting customer relationships.

Utilizing Personalization Techniques

Simple personalization like using someone's name or mentioning their past purchases can make messages much more engaging. You can also group customers based on their behaviors and preferences to send more targeted content.

When you personalize well, your messages feel less like generic ads and more like helpful updates from a brand they trust. This focused approach helps create the kind of customer experience that keeps people coming back.

Strategic List Building and Audience Growth

A strong subscriber list forms the core of successful SMS advertising. The key is not just collecting phone numbers - you need an engaged audience that wants to hear from you. Focus on building your list in a way that prioritizes both customer experience and proper consent.

Smart Ways to Grow Your List

While website signup forms work well, you'll see better results with a broader approach. Get creative by promoting SMS signups across all your channels - social media, email newsletters, and in-person at your store or events. Offering special perks like exclusive discounts or early access to new products can boost signups significantly.

Making All Your Marketing Channels Work Together

Top brands excel at coordinating their marketing efforts across platforms. Website promotion of your SMS list is essential, but don't stop there. Cross-promote through your email campaigns and social media posts to reach more potential subscribers. When all your channels work in harmony, your SMS subscriber base grows faster.

Managing Your List for Maximum Impact

Once people join your list, smart segmentation becomes crucial. Break your audience into specific groups based on factors like demographics or past purchases. This lets you send messages that really click with each segment. Keep your list healthy by regularly removing inactive subscribers - this improves delivery rates and cuts unnecessary costs.

Keeping Subscribers Happy and Engaged

High unsubscribe rates often mean your messages aren't resonating. The fix? Make every text count by sharing genuinely helpful info, special offers, and personalized content that speaks to individual interests. When subscribers feel they're getting real value, they stick around longer and engage more with your SMS advertising.

Advanced Campaign Optimization Techniques

Building a strong SMS subscriber list and creating customer-focused campaigns is just the beginning. To get the most out of your SMS advertising, you need to keep analyzing and improving your approach over time.

A/B Testing: Finding What Works Best

A/B testing helps you make data-driven decisions about your messaging. Create two versions of a message with slight differences - like different calls-to-action or promotional offers. Send each version to different audience segments and track which one gets better results. This helps you identify what resonates most with your subscribers and leads to better performance.

Personalization at Scale: Making Messages More Relevant

Going beyond just using customer names, effective personalization means understanding individual preferences and behaviors. Break your audience into smaller segments based on what they buy, how they browse, and their demographic details. When you match your message content and offers to these specific groups, you'll see much higher response rates.

Timing is Everything: Sending Messages at the Right Moment

When you send SMS messages has a huge impact on their success. Poor timing can annoy subscribers and cause them to opt out. Look at your customer behavior data to find out when people are most likely to engage with messages. For example, sending reminders right before lunch or during commute times often works better than mid-morning messages.

Data-Driven Decision Making: Always Getting Better

The best SMS advertising comes from consistent monitoring and improvement. Set up tracking for key metrics like open rates, click-throughs, conversions, and unsubscribe rates. Regular analysis shows what's working and what needs to change.

This means learning from real audience feedback to keep improving your strategy. Textla includes built-in analytics tools to help track and understand your campaign performance. Consider using these analytics platforms to gain deeper insights and keep making your SMS advertising more effective.

Emerging Trends in SMS Marketing

Text message marketing continues to grow and adapt as new technologies emerge. Here's what's making waves in SMS marketing and how these changes can benefit your business.

AI-Powered SMS Solutions

Artificial intelligence is bringing new capabilities to SMS marketing. Modern AI tools can analyze customer data to create personalized messages for each recipient based on their specific interests and behaviors. For example, AI can recommend products based on past purchases or determine the optimal time to send messages to individual customers for maximum engagement.

Advanced Performance Tracking

Basic metrics are no longer enough to gauge campaign success. Today's analytics platforms reveal detailed insights about how customers interact with your messages. By tracking specific actions like link clicks and purchases, businesses can identify their most successful message types and offers. This data helps continuously improve campaign performance and return on investment.

The Future with RCS

Rich Communication Services (RCS) takes SMS beyond plain text. This new messaging standard lets businesses include images, videos, and interactive elements directly in text messages. Picture sending customers product demo videos or quick polls - all through text. RCS creates more engaging mobile experiences that can boost customer response rates.

Connected Marketing Channels

SMS works best when combined strategically with other marketing channels. For example, use email or social media to grow your SMS subscriber list. Then leverage SMS for time-sensitive updates and exclusive offers related to your broader campaigns. This connected approach helps reach customers through their preferred channels while maintaining consistent messaging.

Want to get started with modern SMS marketing? Textla provides small businesses with an easy-to-use platform featuring automated campaigns, personalized messaging, and detailed analytics. Try Textla free and see how text messaging can help grow your business.

When our family bought an electric cargo bike earlier this year, one of my biggest fears was that this lovely and expensive new machine was going to get stolen. So I got the best lock money could buy, and I started to investigate: did I need ebike insurance?

First, I called my homeowners insurance provider to see if they would cover the bike if it were stolen. To my surprise, because it’s an electric bike, not only did my policy not cover it, they wouldn’t even add it for an additional fee or sell me a separate policy for it, the way they did for our family car.

Instead they referred me to an insurance company that specializes in bikes and ebikes. I bought a policy from them and sleep a little better for it.

I’ve heard similar stories from other ebike owners. And I’ve heard worse.

What can happen without ebike insurance

The saddest stories are the ones where someone assumed their homeowners or renters or car insurance covered their ebike, and after it was stolen or seriously damaged, it turned out it wasn’t covered.

"And then there are the stories about people whose ebikes were covered by their homeowners policy, but their premium went way up when they made a claim for a stolen ebike."
<span class="blog-quote-name">-Kyle Miller, CEO Brass Hands</span>

Why it’s hard to insure an ebike

When it comes to insurance, ebikes land in a gray area outside standard homeowners insurance and auto insurance. Here’s why:

  • Ebikes are new in terms of the insurance industry. Most of the several million ebikes in the U.S. were purchased in the last two years. Insurers aren’t familiar with them, and insurers don’t like to be surprised by unfamiliar products.
  • Ebikes are more expensive than regular bikes. Policies that cover bikes, like most homeowners or renters policies, might have also covered ebikes until the insurer had to pay much larger claims than they expected to replace a damaged or stolen ebike. See above about insurers and surprise. So some policy terms got changed.
  • Finally, ebikes get stolen a lot, and not only from people’s homes. They are ridden and locked up outside all over the place, which makes them more vulnerable than other valuable household items.

Steps to take to properly insure your ebike

The odds that your ebike is covered by your existing insurance is lower than you may think. Here’s what to do to find out if you need ebike insurance:

  1. Call your insurance company and find out what they cover. Things to bring up: coverage of accidental damage, theft, and travel (like what would happen if you flew somewhere with your bike and the airline did a number on it). Does the insurance company consider your ebike a “luxury item”? If you’re happy with the coverage, great! You’re good to go.
  2. Consider bike-specific coverage. If you aren’t covered, or feel like the coverage you do have isn’t enough, here are some things to think about.

Bike insurance covers all kinds of bike specific things, not just theft. Think damage to the bike from a collision, medical payments if you are injured in a collision, insurance for the bike if you are traveling with it or racing it, or a bike rental while your bike is being repaired. Some policies even cover things like accessories (like bike lights and panniers) and riding clothes.

Bike claims won’t affect your other insurance premium. Should you need to make a claim on your ebike, your home insurance premium won’t change or get canceled.

We can help

Want to learn more about ebike insurance? Join Tempo and get easy access to insurance quotes, and other ways to protect your ebike right inside the app.

This is some text inside of a div block.
This is some text inside of a div block.
Textla Team
The Textla team offers expertise in SMS marketing, sales, and business growth. Receive tips to enhance customer engagement and boost ROI. Follow for practical and effective SMS marketing strategies for your business!
Get the best prices on business texting