SMS marketing is a powerful tool for businesses to reach their customers. It provides an efficient and cost-effective way to communicate with customers, and it has been growing in popularity over the past few years. In this blog post, we will explore some of the most interesting SMS marketing statistics and how they can help businesses better understand their customers and improve their marketing strategies.
We will discuss the advantages of using SMS marketing, the effectiveness of SMS campaigns, and the current trends in the industry. By understanding these statistics, businesses can make more informed decisions about their SMS marketing strategies and maximize their return on investment.
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SMS Marketing: The Most Important Statistics
Globally, businesses are predicted to spend $50 billion on SMS messaging by 2025.
9 out of 10 consumers prefer communicating with businesses through text messages.
SMS Marketing General Statistics
SMS marketing has seen a significant increase in popularity in the United States, with the market reaching 6.2% and projected to reach a valuation of $31.7 billion in 2023.
Globally, businesses are predicted to spend $50 billion on SMS messaging by 2025.
The average daily screen time for a US consumer has increased by 50% between 2019 and 2021, with 78% of consumers stating that texting is the most common smartphone activity.
Meanwhile, a majority of customers (90%) prefer text messages over phone calls.
Additionally, 62% of consumers have subscribed to at least one business to receive text messages in the past year.
As a result, nearly half of customers (48%) prefer receiving special offers via text message, with click-through rates of up to 19%, compared to other marketing channels such as Email marketing (4%) and Facebook (1%).
Besides, SMS marketing is cheaper than other forms of advertising. The average cost per send is $0.07 for SMS, while the cost per click for Google Search is $1.39 and Linkedin $3.87.
The Real Estate industry is the largest user of SMS marketing at 17.9%.
Juniper Research reported that global mobile business messaging traffic rose 10% in 2020 to 2.7 trillion.
Over 42% of business owners and marketers used text messaging services to communicate with customers in the past year, and over half (57%) plan to increase their text marketing budget.
Opt-in rates for text message campaigns have increased by 9.6% between 2020 and 2021, with 53% of users reporting an increase in opt-in rates.
Finally, 43% of business owners and marketers report click-through rates between 20-35%.
Benefits Of SMS Marketing
SMS marketing has proven to be a highly effective tool for marketers, with almost 96% of those who use it reporting increased revenue generation.
Mobile devices are the primary means of shopping online, and 66.5% of consumers signed up to receive text messages from more brands over the past year, contributing to marketers’ success on this channel.
Attentive customers have driven an average of 20.5% of total online revenue from SMS, and retail/e-commerce companies generated $71 for every dollar spent on text message marketing in 2020.
Retailers have experienced a significant increase in total owned channel revenues, with a lift of 30-60% after launching SMS campaigns.
The vast majority of text messages are opened and responded to within three minutes of being delivered, and 98% of all text messages are opened.
Furthermore, 9 out of 10 consumers prefer communicating with businesses through text message.
Promotional texts have an average click-through rate of 36%, which is 8 times higher than email marketing’s average click-through rate of 4.5%.
An overwhelming majority of consumers (73%) have made a purchase based on receiving a text message from a brand, and over half of them have done this 2-3x.
24% were motivated by a text message to make a purchase they were not planning on, while 60% bought earlier than they had planned to.
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Why Consumers Opt In For Marketing SMS
The reasons why customers opt in for SMS marketing vary.
According to a survey, 51% of consumers subscribe to text message marketing when they are about to make a purchase, and 55% do so after becoming frequent shoppers.
51% opt-in from a place of love and appreciation for the brand.
Meanwhile, 50% of shoppers are more likely to sign up after receiving a discount.
The study also shows that almost 70% of shoppers are willing to subscribe to SMS for a discount.
Consumers are more likely to opt-in to SMS marketing if they are offered unique products or experiences (42%), can ask questions and get quick responses via text messaging (39%), or receive personalized messages (32%).
It is worth noting that the majority of consumers (95%) subscribe to less than 7 brands via SMS, with about half subscribing to only 2-3 brands.
Only 28% of consumers will subscribe to 4-5 brands via SMS marketing, while the percentage drops to just 5% for 6-7 brands.
SMS Marketing Best Practices
Timing is an important aspect of SMS marketing, and several SMS marketing statistics can help you determine how often you should send text messages to your customers.
Almost all survey respondents (96%) said they would be willing to receive a text message at least once a week.
Most shoppers prefer to hear from a brand once a week (40%) or a few times a week (30%), while 13% of consumers prefer to receive SMS from brands once a day.
The most desirable SMS message types are confirmations, with delivery confirmations being the most preferred by SMS subscribers (64%).
Shipment confirmations (60%) and order confirmations (50%) also scored high.
Coupons and promotional codes were also welcomed by 30-50% of respondents, with 39% of consumers wanting to receive birthday deals, and 31% looking for upcoming promos/sales/discount announcements.
Personalization is crucial for successful SMS marketing campaigns.
Approximately 20% of current SMS subscribers said that the texts they received didn’t make them feel like they were part of a special group.
SMS subscribers want to feel like they belong to an exclusive group and receive personalized messages that resonate with them.
SMS messages consumers enjoy from brands include discounts tailored to their past purchases (48%), offers related to their interests (43%), and messages about products/services they are interested in (39%).
31% of consumers want to receive personalized messages from brands’ SMS marketing.
To make SMS subscribers feel seen and connected to your brand, you can invite them to a VIP experience (38%) or offer a loyalty program and benefits (36%).
What To Avoid In SMS Marketing
In SMS marketing, businesses should avoid certain practices that can lead to customer dissatisfaction and disengagement.
One of the biggest turnoffs for customers is receiving too many messages, as indicated by 73% of surveyed consumers who would unsubscribe due to this reason.
Additionally, 69% of customers dislike receiving the same message repeatedly, while 62% dislike messages that have no clear purpose.
Compared to other reasons for unsubscribing, such as irrelevant content (18%) or not having opted in initially (16%), the frequency of messages is the primary factor leading to customer attrition.
To avoid this, businesses should aim to send 2-6 messages per month on a regular schedule, and avoid sending messages during inappropriate hours, which can prompt 41% of customers to unsubscribe.
The messages should be kept short and focused on what customers are interested in, and sent during reasonable hours (between 9am and 8pm) in the recipient’s local time zone.
It’s important to note that SMS messages are limited to 160 characters, so marketers should be mindful of the length and content of their messages.
SMS marketing is an effective way to reach customers with targeted, personalized messages. It has a higher open rate than email, and customers are more likely to respond to messages sent via SMS. With the right strategy and tools, businesses can use SMS to drive sales, increase customer engagement, and build stronger relationships with their customers. With the right approach, SMS marketing can be a powerful tool for businesses to reach their customers and grow their business.
Simple Texting: “Current Texting and SMS Marketing Statistics”, cited in February 2023 (Source)
Attentive: “2021 SMS Marketing Benchmarks Report”, cited in February 2023 (Source)
Readkong: “SMS Marketing 2021: How Ecommerce, D2Cs, and Others Are Leveraging This Emerging Consumer Touchpoint””, cited in February 2023 (Source)
SMS Comparison: “SMS Marketing Statistics 2023 For USA Businesses””, cited in February 2023 (Source)
Klaviyo: “The SMS marketing consumer sentiment report: how your brand can win more customers via text””, cited in February 2023 (Source)
Klaviyo: “153 text message and SMS marketing statistics, based on ~2K consumer responses””, cited in February 2023 (Source)
Swift Digital: “24 Must-Know SMS Marketing Statistics For 2023 [Free SMS Campaign Checklist]””, cited in February 2023 (Source)
Techjury: “35+ Must-Know SMS Marketing Statistics in 2023””, cited in February 2023 (Source)