Text message marketing has numerous advantages over traditional forms of marketing beyond just the fact that the use of text messaging is expanding greatly (see Industry Statistics: links to Overview).
Text message marketing has a lower cost than most other marketing approaches. One of the major reasons is that the cost of text messaging campaigns is primarily in the cost of sending the message itself. In fact, the cost of setting up and preparing an SMS campaign is virtually nothing. Effective targeting enables marketers to refine and improve their one-to-one relationships with potential customers, actually decreasing the cost of finding buyers.
Reduced risk of investment
Because performing an SMS campaign is so quick and easy, without all the setup and preparation fees, there is a much lower risk of investment. Campaigns can be tested and refined for the money the average person carries in his or her wallet!
With a sophisticated text messaging platform, marketers can track response rates in real time. This ability to capture and store data enables marketers to compare the effectiveness of various strategies, tactics, and messaging, resulting in not only measurable ROI, but improved ROI!
Higher response rates than other direct marketing channels
Text messaging marketing has a much higher response rate than direct mail at a much lower cost. It is even more effective than email with a response rate around 15% compared to email with a response rate between 2%-3%. Also, when combined with other forms of traditional marketing like billboards or newspaper ads, text messaging increases response rates on average by 30%.
SMS is targeted and personal
With text messaging you can reach a highly targeted audience, which means you can personalize your messages for different groups of customers. Over time this will foster loyalty and even a sense of a personal relationship between you and your customers. As your interactions with your customers increase, you collect more data on them, and in turn your campaigns will be more successful.
SMS campaigns can be conducted on the fly, often being created and sent in a manner of minutes. This allows agencies and their clients to react to changing conditions or time relevant opportunities. It also is conducive to testing so that campaigns can be refined in real-time for effectiveness and revenue capture while the opportunity is at hand.