SMS / Text Message Marketing: a 2-minute tutorial

By Todd Bacile | June 29, 2012

Are you a retail business owner who wants to use text message marketing (also known as SMS marketing), but have no idea how it works or how you would use it? Please view the video displayed below for a real-world, simple example of how to incorporate text message marketing into your retail business (click here if the video does not load).

Statistics on mobile phone usage reveals text messaging as the most used form of communication by consumers. People now communicate more with text messages than voice calls when measured by volume. In addition to the sheer volume of text messages sent, there are three other benefits firms should be aware of when considering the merits of text message marketing:

  1. First, consumers attend to text messages they receive more often than e-mail, Facebook, and Twitter messages. This means your business communication sent to consumers has a greater chance of being received, opened, and read.
  2. Second, the cost for text message marketing campaigns is extremely low compared to other traditional forms of marketing. In most cases a retail business can pay a mobile marketing firm a flat monthly fee of $100-to-$200 to use an existing technology infrastructure, plus a fee of 5-to-8 cents per text message sent. In addition to low-cost, these mobile marketing firms also possess knowledge of the legalities associated with text message marketing, meaning that you do not need to become an expert in mobile marketing laws.
  3. Third, redemption rates are much stronger (i.e. the response rate from consumers that generate a purchase) for text message promotions compared to other traditional promotions. For example, traditional paper coupons disseminated via print media and mail historically produce about a 1%-to-2% redemption rate in the U.S. In comparison, text message promotions (also referred to as mobile coupons or m-coupons) often generate redemption rates that approach or exceed 10% in the U.S.

Todd Bacile is a marketing doctoral candidate and instructor for Electronic Marketing and Services Marketing in the College of Business at Florida State University. His research on mobile marketing topics has been presented and at numerous national marketing conferences and published in the Journal of Research in Interactive Marketing. Please visit his website for more information regarding his research within e-Marketing and services marketing topics. You can contact him on Twitter @toddbacile

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5 thoughts on “SMS / Text Message Marketing: a 2-minute tutorial

  1. Pingback: 124 Not-So-Boring Marketing Ideas for Small Business from Really Smart Bloggers | Direct Marketing Blog

  2. Great Post. Thanks for sharing. Text marketing is the great way to target audience through SMS.

    Like

    • Thank you, Frank. It is interesting how all these “newer” forms of media vary on the richness of messages sent via each particular medium. Facebook ads vs. Facebook Sponsored Stories vs. Tweets vs. YouTube videos vs. etc… Some people tend to to forget that a simple text message, in the right situation and with the right target consumers, can produce extremely powerful results for marketers.

      Like

  3. Pingback: Todd Bacile's Marketing Blog | Infographic: 11 Amazing Text Message Marketing Stats

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