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Top 40 SMS Marketing Statistics You Must Know

Top 40 SMS Marketing Statistics You Must Know

October 30, 2024

Top 40 SMS Marketing Statistics You Must Know

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It's interesting how SMS marketing still remains such a formidable tool. With all the new ways to communicate, like instant messaging apps and email, you'd think good old-fashioned texting would be a thing of the past. 

But it's still going strong.

Think about it: if you're putting together a marketing campaign and want to reach your customers directly, SMS is a fantastic option alongside your emails and social media posts. It's like getting a message right in your pocket! Plus, SMS marketing can be really cost-effective and deliver a great return on your investment.

But the question is, how do you ensure SMS can actually perform better than many other marketing channels? What are the leading benchmarks? And most importantly, what are some examples of successful campaigns where SMS marketing has held true to its promise? 

To answer such queries, we have compiled 40 SMS marketing statistics in this article. Let’s see what the numbers really tell us about SMS marketing. 

Widespread SMS marketing adoption rates

According to PwC’s Mobile Messaging Adoption Report 2021, businesses are preferring SMS marketing because it helps:

  • Generate cash flow
  • Reach out to customers promptly 
  • Engage more customers 
  • Reduce administrative burden and cut costs 

The same PwC report estimates the top industries that are increasing their spending and adoption rates:

Industry Industries adopting SMS marketing
IT & telecom 35%
Retail/wholesale 33%
Finance & banking 36%
Professional/Administrative 18%
Manufacturing 23%

Why are businesses adopting SMS marketing

As per a 2020 Infobip report titled How RCS is Redefining Business Communications, here is why businesses are adopting SMS marketing:

  1. Answering customer questions: 58%
  2. As a direct marketing channel: 57%
  3. Cultivating customer loyalty: 47%
  4. Building brand recognition: 46%
  5. Distinguishing themselves from competitors: 40%
  6. Building brand recognition: 46%
  7. Cultivating customer loyalty: 47%
  8. Distinguishing themselves from competitors: 40%
Source

High engagement and open rates

As per SimpleTexting’s State of Texting and SMS Marketing 2023 study, 80% of consumers check their text notifications within five minutes, with 47% of GenZ customers checking once every 10-30 minutes. 

This results in high engagement and open rates for SMS marketing campaigns.

Text messages bypass email filters and are delivered directly to phones, which increases their chances of being read. Plus, the character limits make messages easier to skim while adding a personal touch with clear CTAs and offering timely updates.

Here is how open and response rates vary for text messages and emails:

  1. Open rate: 98% (text messages) and 20-30% (emails) 
  2. Click-through rate (CTR): 36% (text messages) and 19% (emails)

Here are some more SMS marketing statistics that highlight why businesses must choose text messages:

  1. The average response time for text messages stands at 90 seconds.
  2. 28% of younger customers prefer texting over other communication channels. 
  1. 91% of consumers have opted for at least one brand’s SMS alerts.
  2. SMS is a preferred communication channel for 52% of customers.
  3. 90% of people read a text message within the first 3 minutes. 

SMS effectiveness in driving conversions

SMS marketing is perfect for limited-time offers, as users are more likely to open texts promptly than emails. Brands can also announce flash sales via SMS to create a sense of urgency and get quick engagement.

For example, e-commerce companies can send automated reminders to customers who have abandoned their carts. Restaurants can also notify their members of daily specials or appointment reminders.

This drives conversions as users are more likely to open text messages than emails. Let’s check out some statistics that illustrate this better: 

  1. SMS marketing conversion rates reach as high as 25%.
  2. Domino’s Pizza boosted its ROI not through video ads or TV but through SMS advertising. It cut down its CPC to 15 cents.
  3. According to an Omnisend report, the conversion rate for email marketing was 0.07%, and for SMS, it was 0.28%. This indicates that SMS marketing has a conversion rate four times higher than that of email marketing.
  4. SMS accounts for 26% of all SMS orders from just 13% of sends, showing that SMS marketing drives superior sales growth.
  5. US customers who opt-in for brand SMS messages are 87% more likely to purchase. 

Personalization and customer experience

Based on past interactions, you can send customized messages that include customer names, order details, and recommendations. This is achieved when you segment the audience based on demographics, purchase history, and behavior. 

Such segmentation helps you personalize text messages and improve engagement and conversion rates. 

For instance, you can personalize messages for birthday greetings, special campaigns, specific preferences, and reminders for abandoned carts. This approach not only makes customers feel valued but also builds a stronger connection with the brand, ultimately driving loyalty and sales.

  1. 91% of consumers are more likely to interact with brands when they provide personalized offers and recommendations.
  2. 34% of consumers become annoyed by SMS messages irrelevant to their needs and interests.
  3. Half (50%) of customers want to receive incentives or coupons when opting in for SMS messages.
  4. 90% of customers are more likely to make a purchase if SMS is personalized. 
  5. 31% of consumers sign up for SMS marketing for more personalized SMS messages, such as to receive birthday, anniversary, and other special day discounts
  6. 60% of US consumers prefer digital coupons to traditional paper coupons.
  7. Sending too many irrelevant marketing messages can drive customers away. 47% of customers found such texts annoying, and 28% stopped using the brand.
  8. 53% of customers unsubscribe when they receive no-purpose SMS messages from brands and 46% unsubscribe when messages from brands are about products they aren’t interested in.
  9. 15% of customers want to receive reward points for making purchases. 
  10. According to Validity Research data, messaging too frequently (49%), duplicate messages (29%), or messages sent at inappropriate times (17%) reduces customer experience, making them 58% likely to unsubscribe from SMS messages from the brand. 

Transactional SMS: building customer trust

By providing real-time updates and confirmations, you can reduce some customers' purchase-related anxiety. These updates could be security alerts or even password reset codes. 

This addresses common customer concerns and prevents them before they arise. Such personal messages improve customers’ trust in the brand. 

Transactional SMS efforts perfectly complement marketing efforts by sending quick reminders for upcoming events or loyalty program updates. The main aim is to ensure customers feel valued and connected to the brand at every stage of their journey.

As per this report, here are the top 5 SMS marketing statistics:

  1. 64% of consumers want to receive more delivery confirmation SMS messages.
  2. 60% of customers want to receive text messages about product shipment confirmations.
  3. 50% of consumers confirmed that they would also like to receive order confirmations.
  4. 29% of customers want to receive SMS updates about loyalty programs and benefits.
  5. 30% of consumers would like to receive back-in-stock notifications, and another 17% wanted  reminders about items left in their carts 

Let’s go over some more SMS marketing statistics that show consumer behavior towards transactional SMS:

  1. 58% of consumers subscribe to SMS marketing to receive transactional updates.
  2. More than 90% of customers expect a response within a day when they reach out.
  3. 41% of customers sign up for SMS messages to receive shipping notifications.

SMS marketing and customer retention

SMS is also a smart tool for customer retention. You can send early access to promotions, new product updates, and exclusive offers, keeping your loyal customers engaged. You can strengthen this connection further through quick feedback requests and personalized recommendations.

Such regular updates keep the brand at the top of mind and help maintain long-lasting customer relationships while encouraging repeat purchases. Here are some SMS marketing data you must know

  1. 58% of marketers see a noticeable impact on customer re-engagement and retention after adopting SMS marketing. 
  2. 56% of customers were instantly reminded about the brand they forgot due to an SMS message they received.
  3. 79% of marketers utilize SMS to retain their customers.
  4. 35% of consumers subscribe to SMS to make purchases during sales.
  5. Sharing SMS messages on products the consumer is interested in makes 57% of consumers less likely to unsubscribe.

Reach your customers right when it matters with Plivo CX

As an omnichannel customer engagement tool, Plivo CX provides an SMS marketing platform that integrates with Shopify. This allows you to leverage customer data to create targeted, personalized campaigns that drive engagement and revenue. 

Here are some key things Plivo CX can do for SMS marketing:

Targeted SMS campaigns

  • Leverage first-party data from your Shopify store to run targeted SMS campaigns
  • Create campaigns tailored specifically for each user based on their profile details and event data
  • Use AI assistance to write audience-specific content that inspires action

Customer engagement

  • Delight first-time sign-ups with warm welcomes and exclusive discounts
  • Re-engage current customers with personalized promotions, restock notifications, back-in-stock alerts, reward program updates, and more
  • Proactively interact with users through SMS workflows to drive engagement, upsells, and repeat purchases

Abandoned cart recovery

  • Recover abandoned carts by leveraging browsing activity data

Rapid campaign creation

  • Set up high-impact SMS campaigns in seconds, perfect for flash sales or time-sensitive promotions
  • Easily connect to your Shopify store and sync contacts, key data points, and Contact Properties

Analytics and optimization

  • Get detailed analytics on ROI, revenue generated, and conversion rates to continually optimize campaign performance

Secure and reliable messaging

  • Securely deliver each message on time every time
  • It is GDPR compliant, 10DLC compliant, and SOC2 certified

To learn more, schedule a demo now!

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