Checking our phones for notifications, texts, or alerts have become almost an unconscious act for many. It’s not controversial to say that smartphones take up a big part of many people’s lives.
This is why SMS marketing, also known as text message marketing, has become so popular in recent years. With so many people paying attention to their phones, why not send alerts and offers through these channels?
Because the cost of SMS marketing is low and open rates are high, companies are leveraging SMS marketing software to increase their conversions and reach more consumers. Some of the statistics regarding this relatively new strategy are staggering.
In this article, we’ll be outlining 40 SMS marketing statistics that are sure to convince you why it’s the next big thing in digital marketing.
1. 29% of recipients clicks on a link in an SMS message they receive
2. Less than 3% of SMS messages are marked as spam
3. The SMS open rate is around 90%
4. The average response rate for SMS marketing is 45%
5. The average SMS marketing campaign conversion rate is 45%
SMS Marketing And Consumers
It’s no secret that SMS marketing is becoming more popular and generally accepted by modern consumers. Much of this has to do with the growing number of people who own mobile devices.
Not only is SMS marketing more visible because of how frequently consumers check their phones, but the response to these strategies is also relatively popular. This section explores how this trend is developing and general consumer response to SMS marketing:
- 72% of millennials text 10 or more times a day, and 31% text more than 50 times a day.
- 83% of millennials cite opening a text within 90 seconds of receiving it.
- 60% of millennials want to be able to text their preferred businesses, but most currently receive five or fewer messages a week from companies.
- Millennials prefer to receive texts from businesses for appointment reminders (62%), delivery notifications (59%), and payment reminders (48%).
- 77% of consumers have a positive perception of companies who use text messaging.
- 31% of consumers will respond to a survey via smartphone.
- 62% of smartphone users check their phones immediately after waking up and 79% check theirs within 15 minutes of waking up.
- 75% of millennials prefer SMS for deliveries, surveys, and promotions.
- 64% of consumers prefer texting instead of a voice call for customer service needs and another 81% are frustrated being tied to a phone or computer in order to reach a company.
- 71% of online retailers are not addressing consumer communication preferences.
SMS Marketing Compared To Other Strategies
With access to smartphones being a relatively recent phenomenon, SMS marketing is a newcomer in the world of online marketing. However, statistics have shown that this late entrance into the industry hasn’t hindered the effectiveness of SMS marketing one bit.
When compared to other methods such as email marketing, figures point towards SMS marketing closing in and even performing better than its counterparts. In this section, we’ll be looking at statistics that show how well SMS marketing performs compared to other online strategies, and even how they can work together to increase conversions:
- At around 90%, the SMS open rate is almost triple that of the average email open rate.
- Marketing emails only have a 20% open rate.
- It takes 90 seconds for someone to respond to a text and 90 minutes to respond to an email.
- Sending an automated follow-up text to your customers asking if they’ve read your email can increase open rates by as much as 30%.
- 53% prefer SMS for fraud and service outage messages compared to 34% for email.
- SMS produces engagement rates six to eight times higher than email marketing when used for redemption, data collection, and brand awareness.
- 32% of recipients respond to SMS offers and texted coupons are redeemed 10 times more often than traditional coupons.
- Less than 3% of SMS messages are marked as spam while almost 50% off emails are filtered as spam.
- 29% of recipients click on a link in an SMS message they receive. In contrast, average email click-through rates hover around 2.5%.
- The average office worker receives 121 emails per day while SMS ads are generally fewer in volume.
Effectiveness of SMS Marketing
We’ve illustrated how SMS marketing is not only resonating with consumers but also competing well with more traditional online marketing strategies. But how effective is SMS marketing when put on its own?
In this section, we’ll be exploring concrete figures that demonstrate how SMS marketing elevates companies’ marketing departments. Things like conversion rates, ROI, and success stories will be featured here:
- Time Warner used SMS to boost late bill collections by 49% and Kiehl's saw over 73% of their opted-in customers make a purchase as a result of receiving SMS product alerts.
- SMS programs with fixed time frames and strong calls to action typically see a 23.3% conversion rate for their ongoing mobile CRM initiatives.
- The average response rate for SMS marketing is 45%.
- 54% of consumers receive at least one SMS message daily and 50% of US consumers receiving branded SMS texts go on to make direct purchases.
- 29% of SMS marketing recipients click on links in SMS messages they receive and 47% of those go on to make a purchase.
- SMS-based surveys enjoy high conversion, with 31% of consumers responding to such invitations, on average within five minutes.
- British motor racing circuit Silverstone sent a bulk text message to 45,000 people in their database inviting them to purchase tickets for an upcoming Formula 1 race, resulting in an ROI of 680%.
- The average SMS marketing campaign conversion rate is 45%.
- The click-through rates for SMS promotions are around 19%.
- Interactive content, like some SMS or MMS campaigns, generates conversions 70% of the time compared to passive content stats, which sits at 36%.
Future of SMS Marketing
With more and more people projected to own smartphones or at least have text message capabilities going into the future, it’s not outlandish to say that companies will use SMS marketing strategies going forward. It’s important to consider how prevalent this technique will be, and whether or not SMS is a temporary trend. It's also critical for companies to stay aware of the current text message marketing laws and regulations.
While businesses are using SMS marketing more and more, there are still large portions of the market that aren’t aware of its effectiveness. In this section, we’ll be exploring statistics that tip us off to the future of SMS marketing and its general trajectory:
- Roughly 60% of business owners plan to increase their SMS marketing budget.
- SMS marketing market is expected to grow to $83.03 billion by 2024.
- The number of consumers who accepted to receive advertisement via SMS stood at 37.2 million and is projected to rise to 48.7 million.
- 61% of marketers increased their text marketing budgets in 2020.
- 60.8% of consumers would like the capability to text businesses back about customer support issues.
- The global digital marketing software market size was valued at USD 43.8 billion in 2019 and is expected to register a CAGR of 17.4% from 2020 to 2027, with $65.9 billion for mobile ads alone.
- The use of SMS marketing grew 197% as a strategy in B2B efforts from 2015 to 2017.
- The number of mobile users worldwide will climb to 7 billion by 2024.
- 85% of interactions between brands and customers will be managed without speaking
- 23% more people will opt-in to receive SMS messages from companies in 2020.
How to Leverage SMS Marketing Statistics
Regarding the rise in popularity for SMS marketing and its various applications, businesses and companies should take note.
Not only are consumers warming up to SMS, but it’s also proven to be effective at generating conversions and providing returns on investment. As the number of smartphone users increases, so does the pool of opportunity for companies to attract new customers through SMS marketing.
Whether you’re offering coupons, product offers, or new arrivals, businesses can supplement their marketing efforts by leveraging SMS marketing to increase their revenues and improve their bottom line.