12 Benefits of Using SMS for Your Small Business

Is SMS prevalent in increasing customer engagement for small businesses?

Text messaging can be used as a marketing campaign to reach a global audience. It boosts customer engagement, leading to business growth. 

SMS is one of the most effective marketing channels for your business. It is a reliable means of communication that enables the company, customers, and clients to communicate easily via text messages. Additionally, it is an affordable service channel that is easy to set up and operate and provides immediate analysis of the outcomes. Sometimes, phone calls can be overwhelming, so many businesses prefer texting.

In this blog, we will discuss how SMS can be a powerful marketing tool for your business and provide a complete overview of how it works. Additionally, we discuss the advantages of SMS for small businesses in detail. 🚀

Introduction to SMS for Small Businesses

Short Message Service is the process of exchanging short text messages between mobile devices with a maximum length of 160 characters. Although messaging is overtaken by direct calling, it is still considered a valuable tool for message marketers to support two-way personal conversations and increase business productivity.

SMS as a marketing channel helps your business increase customer retention, attract new customers, and build a brand image through immediate communication.

However, sometimes the messages sent need to be delivered. Delivery can be delayed due to heavy traffic, device issues, etc. When an important message is not delivered to the destination on time, the business can experience negative online reviews for service delays. 

Effective business communication via text messages or other platforms is vital for small businesses to encourage teamwork and build positive relationships. Additionally, it helps maintain transparency within your company and facilitates innovation through group brainstorming, leading to continuous growth.  

How does SMS text messaging work as a service?

SMS messaging is possible using cellular infrastructure and network protocols such as GSM,  CDMA, or SMSCs. It is a reliable mode of communication as the data is transmitted over control channels. Here is a brief overview of how SMS works: 

1. Sender Interaction: The sender inputs the recipient number and initiates the text messages on their mobile device.

2. Message sent to the SMSC: The composed messages are sent from the sender’s cellular device to the centralized servicer, the Short Message Service Center (SMSC), responsible for managing, routing, and delivering the SMS messages. 

3. Message routing: The SMSC verifies the recipient’s phone number to choose the best network to deliver the sender’s message over.

4. Message Delivery: The SMSC uses the signaling sequence to deliver the message to the recipient’s mobile network. The recipient’s SMSC then receives the delivered messages and stores them until the recipient’s device is available.

5. Notification in the recipient’s device: The notification for the new message is sent once the receiver’s mobile device is detected. Retrieving messages involves connecting the receiver’s mobile device to the recipient’s SMSC. 

6. Delivery Confirmation: The receiver’s mobile device could send the delivery confirmation to the sender’s SMSC to verify the message was received.

12 Benefits of Using SMS for Small Business

Text marketing is essential for all businesses to increase customer engagement with the company. Text-based communication helps customers avoid spam calls and emails. Businesses can enjoy many benefits of SMS marketing. The benefits of SMS include:

1. Quick delivery

The SMS message takes just a few seconds to reach a large audience.  It is easy and quick to send and receive messages instantly from mobile devices. Additionally, you can send text from a computer. 

Therefore, your business can choose time-sensitive text message marketing channels to sell your products or information.

2. Instant Result

You will have instant insight into the analytical data, such as who opened and read the message. Additionally, it also notifies you of the responded messages.

3. Personalization

The business can use text-based personal SMS to get a quick response from customers, contributing to effective communication. Customers are likely to see and respond to personalized messages from mobile devices. Therefore, you can enhance the engagement in your business. 

4. Cost-effective

Text messages are cheaper than traditional marketing, such as TV, newspaper, and radio advertisements. Therefore, businesses of all sizes can use text messages for personalized interactions.

5. Simple and easy

SMS is simple and easy to use. Everyone can easily send messages via their phone or open and read a text message. It does not require additional training or knowledge. Therefore, it is still relevant and globally adopted for smooth conversations. 

6. Global Marketing

SMS can help your business reach a global audience. Text messages are designed to reach millions of people anytime, anywhere, in a short fraction of time using a mobile device. SMS enhances customer engagement and outperforms marketing channels like email and Facebook.

7. Direct delivery

SMS enables the business to meet its clients directly, in addition to phone calls and face-to-face meetings. Phone calls and meeting customers or clients can be time consuming, challenging, and costly. Therefore, text messaging is a cost-effective option for engaging with customers.

8. Precise

After evaluating your customers, you can precisely target customers with various marketing messages. Additionally, you can improve your strategies to increase revenue by understanding what works for your business. 

9. Efficient

SMS has message scheduling features that help your business plan and automate communications. A single scheduled text can target a group of customers, eliminating the need to write a message for an individual. Therefore, you can save additional free time to focus on improving other areas for business. 

10. Trackable and analytics

SMS is easy to track. Many providers provide reports that help your business analyze SMS delivery results and provide clear insights into your text message campaign’s overall performance. Then, you can take notes to improve the following customer interaction.

11. Reliable

SMS is a reliable means of communication for sharing information and data within the company or with your business. Phone messages are safer than email for sharing data. 

12. Direct line of feedback

Nowadays, most consumers prefer text messaging to phone calls for inquiries. Nearly half of consumers initiate text messages to start a discussion, and even more would instead communicate directly with businesses. However, companies do not respond to one out of every three texts. Ignoring customers’ messages makes them feel left out or annoyed, causing them to lose valuable customers.

Conclusion

Despite the digitalization and evolution of advanced communication channels, text messages are still a prevalent and widely adopted means of communication globally. They are quick and easy for businesses of all sizes, enhancing customer engagement and leading to business growth.  

Additionally, text messages are delivered at the speed of light, ensuring they reach customers when needed. Fast message delivery makes SMS one of the reliable communication channels for your business and customers. Despite its speed, SMS has higher opening rates than emails. Therefore, many companies can still use it to enhance their revenue.

FAQs

What are the advantages of SMS messages?

Despite the evolution of messaging applications such as WhatsApp, Slack, etc, SMS messaging is still prevalent and considered an essential communication tool. SMS messaging has multiple benefits and includes:

1. Privacy
2. Inclusivity
3. Safety
4. Accessibility
5. Anonymity 

What is the purpose of SMS in business communication?

SMS in business communication plays a vital role in sending notifications and reminders to customers. It also helps you interact one-on-one or two-way from anywhere and anytime.  The purpose of SMS in business communication includes: 

1. Increase customer retention
2. Develop greater brand loyalty
3. Attract new customers
4. Authentication and Security
5. Instant communication

What is the benefit of adding SMS marketing to your business strategy?

SMS marketing is a powerful tool for businesses of all sizes. It enables the company to reach customers directly with clients face-to-face and promptly update them on new offerings.  The advantages of adding SMS marketing to your business include:

1. Increased reach
2. Higher engagement
3. Cost-effective
4. Loyalty building
5. Personalization

Why is SMS better than email marketing?

Compared to other forms of advertising, text messages are shorter, easier to read, and generate more client responses. Additionally, they are simple, easy to use, and mobile-friendly, where businesses can communicate with clients faster. Therefore, SMS is better than email marketing.