The SMS Marketing Guide for Small Businesses
What is SMS marketing and why does it matter?
When was the last time you went somewhere and, either intentionally or unintentionally, forgot your phone? How good did that feel? Your hands might already be shaking and sweating just from the thought of such a death-defying event, but if you can recall a time you ventured into the wild without it, I’d bet you experienced one of two feelings: complete freedom or an uncomfortable vulnerability.
Don’t worry, I’m not about to hit you with an emotional call to action to disconnect and leave your phone at home to escape the clutches of the digital age. Quite the opposite, actually. I want you to use our dependence on these little pocket-sized devices to your advantage.
Did you know that 90% of SMS messages are read within three minutes of being received? Let that sink in. 23 billion messages are sent every day, and 90% of those are read within three minutes. Another fun fact? SMS marketing achieves a 98% open rate, compared to email’s 20%.
At this point, it should be pretty clear what we’re talking about today. But just in case, let me spell it out: we’re diving into the world of SMS marketing.
For those of us who’ve lived in the "I can’t quite define it, but I know it when I see it" camp of SMS marketing, let’s get official for a second. SMS marketing uses text messages for direct communication between businesses and their audience to promote products or services, engage customers, and provide real-time updates.
Now that we’re all experts, let’s break down how—and why—SMS marketing makes sense for your business.
What are the benefits of SMS marketing?
In the next section, we’ll go deeper, but here’s the key takeaway: SMS is still in its early stages. Many businesses have already adopted it, while others are just beginning to explore its potential. Whether the technology is new to you or your competitors are already using it, don’t let that stop you from being curious.
SMS marketing offers a direct and profitable way to connect with customers, but I’ve narrowed it down to three core benefits:
Deepening customer relationships
Staying relevant
Leveraging a cost-effective channel with a proven ROI
Let’s break those down.
1. Deepen Customer Relationships
SMS, like email, provides an intimate and engaging experience that other channels just can’t match. This isn’t about chasing vanity metrics like reach or impressions—it’s about connection.
It takes two to tango, and the same applies to relationships with customers. Polls, surveys, and feedback forms create engagement while providing valuable insights.
SMS personalizes experiences at lightning speed. Whether it’s an abandoned cart reminder, a birthday message, or a playful touch in an appointment reminder, SMS makes marketing feel more like a friendly check-in than a cold call.
2. Stay Relevant
47% of U.S. Millennials prefer brand communications via text (Statista). That’s almost half a generation—meaning SMS is only going to become more essential as younger generations shape the market.
61% of businesses still don’t use SMS marketing (Forbes). That means there’s still time to get ahead before your competitors wake up.
51% of consumers find SMS marketing useful (Emarsys). When was the last time you heard a consumer say they actually like a marketing tactic?
79% of consumers opted in to receive texts from businesses (Simple Texting).
3. Cost-Effectiveness
On average, SMS marketing costs $0.015 per 160-character message—or $15 per 1,000 messages.
Let’s do some quick math: If you run an SMS campaign to 750 contacts and get just 5 purchases, that’s a 0.66% conversion rate—well below the 21-30% industry average. Even at that ultra-conservative rate, you’re spending $11.25. Even if the average purchase price is $15, you just made $75.
Low cost, high engagement, and measurable ROI—what’s not to love?
How does SMS fit into a marketing strategy?
Your current marketing strategy likely includes social media, blogs, paid search, or email. Each of these channels serves a different purpose within the marketing funnel (awareness, consideration, conversion).
So, where does SMS fit in?
Wherever you want it.
I’d argue SMS is strongest in the mid-to-lower funnel since users opt-in—showing some level of intent. But it can also build brand awareness and keep you top of mind, so I won’t stop you from placing it in all three.
More importantly, SMS is the ultimate wingman. It complements your other channels seamlessly:
New blog post? BOOM—text announcement.
Exciting social media post? BOOM—text alert.
Abandoned cart? Appointment reminder? BOOM—you get the idea.
SMS can stand alone as a promotional tool, but it’s also a team player that enhances your other marketing efforts.
Three Types of SMS Communication
Not all SMS strategies are created equal—some focus on promotions, others on customer service, and some create an open line for real-time conversations. The good news? You don’t have to pick just one. Depending on your business goals, you can use SMS to drive sales, keep customers informed, and build stronger relationships.
To make things easier, we can break SMS marketing into three core types: Promotional, Transactional, and Conversational. Understanding how each one works will help you determine the best way to integrate SMS into your strategy. Below are some examples of the types of content each one can provide.
Promotional SMS – Discounts, events, sales, or exclusive offers.
Transactional SMS – Order confirmations, shipping updates, and appointment reminders. (No opt-in required.)
Conversational SMS – Customer support, appointment scheduling, or feedback collection.
Not every type will fit your business, but at least one certainly will.
How to get started with SMS marketing?
I know what you’re thinking: “Just tell me what I need to get started already—how much longer can you possibly go on for?” I could go on a lot longer, honestly, and most would argue, too much longer… but here’s the short version:
1. Stay Compliant
This is a big deal in SMS marketing. Platforms will help you navigate maintaining compliance, but you’ll want to:
Get explicit opt-ins before sending marketing messages.
Respect opt-outs and honor unsubscribe requests.
Use a registered 10-DLC (10-digit long code) number.
2. Determine Your Best Path Forward
Check if your email platform offers SMS—it’ll be easier to integrate.
Partner with an agency (cough like Explorerr) to handle everything for you.
Explore SMS-specific platforms like Attentive, Klaviyo, or Optimove.
3. Define Your Messaging Strategy
This can happen before or after you get started with one of the above options, but take some time to get clear on what you want your messaging strategy to be. Ask questions like:
What does your brand’s voice sound like?
What kind of content is important to send?
How can you build trust with your audience?
Take time to clarify your approach before launching.
Conclusion
Do you feel that? That’s a conclusion coming on.
To wrap this up: Any successful SMS campaign needs to be personalized, compliant, and consistent. Nail those three, and you’re golden. SMS marketing is about connection-driven growth. It’s an opportunity to benefit both your business and your audience—and you’re still early so have some fun along the way.
Got questions? Let’s grab a coffee and talk texting. ☕📱
