SMS marketing is a quick and easy way for businesses to reach consumers, which is backed by the fact that 97% of US adults have a mobile phone and that the average open rate for an SMS campaign is 98%. To successfully leverage SMS Marketing, businesses should first understand the data and statistics.
By Simon Mannheimer / Updated: Sunday, April 16th, 2023
Did you know that SMS Marketing is one of the most effective marketing and communications strategies in the modern age? This isn’t surprising when as much as 86.3% of the world’s population owns a smartphone (1. BankMyCell).
Our statistics show that professional text message use is expected to continue growing in the next five years. So follow along with the SMS Marketing statistics below to find out why this form of marketing is the ultimate way for businesses to reach customers, and how US businesses can incorporate it into their business strategies.
Sources: 2. Pew Research Center; 3. Zippia; 4. Statista; 5. PCMag; 6. Forbes; 7. GrandViewResearch; 8. BusinessWire; 9. G2
SMS marketing has become an essential tool for businesses in the US. According to our research, 97% of adults own a mobile phone, making SMS an extremely effective way to reach potential customers. Not only is it an efficient method of communication, but studies show that 95% of text messages are read and responded to within 3 minutes after being received.
Mobile use continues to rise each year- with our findings showing up to 6.89 billion people expected to have smartphones by 2023, growing even further to 7.86 billion by 2028! This level of growth presents plenty of opportunities for more businesses to take advantage of SMS marketing as a way to connect and engage with their customers more effectively.
It is clear that SMS marketing has significant potential to help businesses reach more customers, engage with them in a meaningful way, and increase their sales.
Smartphones Worldwide (2016-2023 with forecasts for 2024-2028) In Millions
Today’s customers are both smart and cynical, keeping businesses on their toes by having worldwide information at their fingertips. Therefore, communicating with them correctly is critical for any US business that wants to thrive. With most of us having our phones within reach at all times, SMS is one of the fastest and most direct ways you can reach your target audience.
Not surprising then that it’s been found to be highly effective in driving engagement and conversion; statistics show that on average SMS campaigns have an open rate 5x higher than that of email (98% vs 20%) and 45% of text messages receive a response compared to just 6% for emails. And when it comes to response time, the average time taken after receiving an SMS is 3 minutes – 60x faster than 90 minutes for email!
Americans check their phones on average 96 times per day
in business today, it is more important than ever for companies to reach out and communicate with customers on the channels they prefer. According to our data, 48% of customers prefer to be contacted by businesses via text message to any other channel.
With 81.6% of Americans owning a smartphone as of 2023, businesses now have unprecedented access to their customer base. However, are businesses ready to meet their customers’ halfway? SMS marketing is a powerful tool for customer engagement, yet 1 in 3 messages sent to businesses is not being responded to due to a lack of 2-way messaging capabilities, which leads to missed opportunities and customer frustration.
Businesses should strive to ensure customers have positive experiences when communicating with their brand, it’s vital that an effective communication strategy is generated that meets them where they are and takes into account their preferences and needs.
SMS marketing is playing a crucial role in driving business success these days. In fact, the US SMS marketing market is projected to be worth a whopping $12.6 billion by 2025, with an impressive compound annual growth rate of 20.3%.
One reason for this surge in popularity is that around 75% of consumers actually prefer texting customer support over interacting via phone or social media. This preference for text communication extends to promotional content too, as e-commerce brands have reported SMS marketing click-through rates as high as 36%. All of these factors contribute to the increasing adoption of SMS marketing strategies by businesses, as they aim to provide a more convenient and effective way to engage with their customers.
In the US, there are a variety of effective mass text messaging, text messaging gateway, and SMS providers that make it easy for any business to send text messages to their targeted audiences, whether this be to specific niches at specific times or bulk messages for large-scale marketing campaigns. Below are a few examples of industry usage:
1. Retail Industry: A retail store can use SMS marketing to send their customers exclusive deals and discounts, such as “20% off dresses this weekend only – text DEAL to 888-888-8888 to redeem.”
2. Food & Beverage Industry: A restaurant or bar can leverage SMS marketing to reach out with fun giveaways like “Taco Tuesday – Text TACO to 888-888-8888 for a chance to win free tacos!”
3. Travel & Hospitality Industry: Hotels and resorts can use SMS messages to remind customers of upcoming hotel stays, special packages, and new amenities like “Romantic getaway package at 5-star resort available for 2 nights only – text ROMANTIC5STAR now for details.”
4. Entertainment Industry: Concerts and sports teams can promote ticket sales or presales with targeted offers sent via SMS, like “Front row tickets still available! Text CONCERTFRONTNOW for immediate access before they sell out.”
Retailers, hospitality owners, medical practitioners, and more American small businesses are able to use SMS marketing to create mobile marketing campaigns and build their brand awareness to a wide range of target demographics.
Mobile marketing providers now enable businesses to implement SMS marketing strategies and send personalized text messages straight to consumers’ mobile phones. This approach allows companies to promote new products or services, send time-sensitive messages, and facilitate two-way communication. Popular applications of SMS marketing include:
Both small businesses and large enterprises can leverage their existing customer databases to encourage customers to opt-in to SMS loyalty programs, fostering long-lasting relationships.
Navigating the vast array of options, providers, and uses within the text messaging industry can be daunting. Fortunately, SMScomparison.com simplifies the process for businesses of all sizes by allowing them to compare various text messaging providers and their plans. Our easy-to-read comparison tables help you assess the key factors:
In 2023, businesses are increasingly recognizing the importance of leveraging SMS statistics to drive success. With 48% of consumers expressing a preference for direct communication from brands via SMS text message, this channel offers a powerful means of engaging with customers. SMS marketing boasts an impressive 19% click-through rate (CTR), significantly higher than the 4% CTR for emails and the mere 1% CTR for Facebook.
Additionally, 90% of customers prefer text messages over direct phone calls, further highlighting the value of incorporating SMS into a company’s marketing strategy. By tapping into these trends, businesses can optimize their customer engagement and enhance their overall performance in an increasingly competitive market.
Ultimately, SMS marketing is a powerful tool for businesses as it allows them to reach customers directly in an effective and timely manner. However, in order to make the most out of its potential, businesses must take the time to understand the underlying data behind their campaigns before making decisions.
It’s our hope that US businesses leverage the information we’ve collected on SMS Marketing to ensure that they are targeting the right customers with relevant content or offers. Understanding SMS analytics is crucial for any business looking to get maximum returns on their investment in SMS marketing strategies!
Thanks for reading! If you liked this, also check out our SMS Provider Comparison for more information on how to leverage SMS for business success.
Published by Simon Mannheimer
What is the cost of the Text marketing? Thank you!
Hi Kelly! The price varies from provider to provider, but you can find comparisons of text messaging costs on our provider pages or on https://www.smscomparison.com/docs/cheap-mass-texting-providers/