SMS service is a text messaging system that allows businesses and other organizations to send out mass scale texts to a large number of users. It is commonly used as a marketing tool to create brand awareness and increase customer loyalty.
SMS Service can prove to be very beneficial to both small and large businesses. It does not involve technology that is too complicated or advanced which would require employees to undergo training. Hence, it comes with low capital costs and a semi-skilled labor force. All that is needed is an up to date computer system along with a good Wi-Fi connection. Furthermore, signing up on a web-based platform comes cheap as well. There are different packages available that include keywords and shortcodes. Each keyword costs around $10-$25 whereas the average cost of a single text ranges from only $0.01-$0.05 (Fit Small Business). The affordability of this method of marketing can be the reason behind its recent popularity.
An SMS service keeps buyers and sellers more integrated into the buying process. Consumers can find out about sales and offers from their favorite brands within seconds. If they purchase goods online, they can remain updated on their order status. Brands aim to increase customer loyalty by sending out reminders for events, sending personalized offers on special events such as birthdays and even by just customizing texts with each sender’s name. Technology has enabled SMS platforms to offer many added features apart from customization – including hyperlinks, extending the 160 character word limit, MMS picture messages, sign-up forms, tracking results i.e. open and read rates and much more.
As this information proves, SMS marketing is not only beneficial for small businesses but also larger businesses. However, it is important to note that start-ups and small businesses that cater to price-conscious customers do not have the resources to advertise on a larger scale. Billboards and TV advertisements cost millions of dollars and most forms of advertising other than that do not target mass audience so they are not as effective. That is how SMS marketing becomes the solution to this problem. It is the first of its kind to be personalized and yet targets the masses (within seconds might I add). It is now rated as the most effective method of marketing.
Statistics on SMS service show that this method is rendering other marketing methods obsolete. CustomerThink states that 90% of business leads (potential customers) would prefer to receive a text message rather than a phone call. Advertising calls are considered to be annoying which could very well drive a business’s target audience away from the brand instead of towards it. Moreover, texting is the most used feature in a smartphone, regardless of the age group. Even the age group above 55 years is reported to send and receive over 16 texts per day. The average texting of millennials is far higher.