46 SMS Marketing Statistics Your Customers Wish You Knew

Just like romance, text messages are not dead.

When it comes to digital marketing, there isn’t a channel more connected to the customer than SMS marketing. 

The key to successful SMS marketing is building a mutually beneficial relationship between your customers and your business. SMS marketing software helps achieve this by ensuring your messages are seen and lead to increased conversions.

We've compiled trending industry statistics. Reading statistics on SMS marketing provides insights into campaign effectiveness, helping you optimize strategies, set realistic goals, and target audiences more effectively for better results. So, dive in!

General SMS marketing statistics

Businesses are increasingly recognizing the potency of SMS marketing in the digital era. The significance of ensuring visibility for marketing campaigns underscores the effectiveness of distributing them via text messages. Amidst prevailing marketing myths, these statistics elucidate why SMS marketing holds immense potential for businesses of all kinds.

• The SMS marketing industry is projected to expand to $12.6 billion.
• Globally, marketers allocate $327.1 billion towards SMS marketing.
• SMS marketing stands as a highly lucrative marketing channel, yet only 39% of businesses presently utilize it.
• Marketers cite three primary reasons for favoring SMS marketing: a substantial existing mobile audience (52%), robust customer engagement (44%), and high open rates (43%).
• 25% of businesses opt for SMS Marketing due to its efficiency and effectiveness.
• For 78% of buyers, checking, sending, and responding to text messages constitutes the primary use of their phones.
• About 72% of millennials send text messages at least ten times every day, and around 31% of them send more than 50 texts per day.
• During the pandemic, around 34% of businesses began using SMS marketing.

SMS communication preferences 

A customer's communication preferences can vary widely, and it's essential to respect these preferences in SMS marketing efforts. Simply because a customer frequently uses a phone doesn't guarantee their willingness to receive texts from businesses. Factors such as the type of information received and frequency of messages play significant roles. Understanding these preferences is paramount for effective SMS marketing.

• The average SMS marketing response rate stands at an impressive 45%.
• Surprisingly, 91% of customers express a desire to receive text messages from businesses.
• A staggering 90% of consumers respond to a text within 30 minutes of receiving it.
• The majority (58%) of customers consider texting as the optimal way for businesses to reach them.
• Notably, 90% of customers have found value in SMS loyalty programs.
• Only 13% of businesses enable their customers to respond to SMS messages
• 51% of consumers are more likely to make a purchase if they receive a text message with images and media.
• 75% of consumers are only okay with getting messages for tracking their shipments, confirming orders, or receiving alerts.
  

SMS marketing effectiveness

SMS marketing has emerged as a highly effective tool for businesses to engage with their audience in the digital age. Its efficiency is underscored by compelling statistics that highlight its impact on consumer behavior and engagement.

• Text messages have an average open rate of 98%
• Over 50% of consumers make a purchase after a marketing text
• 96% of marketers report using text messages helped them drive revenue
• 55% of people prefer using SMS over Facebook Messenger and WhatsApp, which shows how powerful SMS still is during the social media boom. 
• Studies show that a coupon received via SMS is redeemed ten times more often than any medium. 
• 33% of SMS recipients react to CTAs in SMS marketing messages, and 47% of them end up making a purchase.
• On average, about 45% of people respond to SMS marketing messages.

SMS marketing statistics by industry

In today's digitally driven world, SMS marketing has emerged as a versatile and powerful tool for businesses across various industries to engage with their target audience effectively. From retail and e-commerce to healthcare and hospitality, industries are harnessing the potential of SMS marketing to drive customer engagement, boost sales, and enhance brand loyalty. 

• 47% of businesses across various sizes and industries utilize mobile messaging.
• Real estate stands out as the leading industry employing SMS marketing, with a notable 17.9% adoption rate.
• In the finance and banking sector, 46% of companies have ramped up their SMS marketing investment over the past three years.
• Approximately 47% of businesses, regardless of size, incorporate SMS Marketing into their strategies.
• E-commerce brands witness impressive SMS marketing click-through rates, with figures soaring as high as 36%.
• 56% of US retailers plan to increase mobile SMS marketing investments.
• Coca-Cola allocates 70% of its mobile marketing budget to SMS marketing.

SMS vs. email marketing statistics

Email marketing is undoubtedly one of the most popular forms of direct marketing today. Marketers often wonder why they should add another channel to their roaster when email marketing works so well. Can SMS marketing truly compare to email marketing? Let's see.

• SMS marketing lists hold ten times the value of email marketing lists.
• On average, SMS messages achieve a click-through rate of 19%, surpassing email rates by 15%.
• SMS messages typically boast an 82% open rate, whereas email open rates hover around 21%.
• Less than 5% of SMS subscribers unsubscribe, while email sees a 20% annual subscriber churn rate.
• SMS messages enjoy a 45% response rate, significantly higher than the 8% response rate for email.
  
• It takes about 90 seconds for someone to reply to a text message and around 90 minutes to respond to an email.
• Sending an automatic text message to your customers to check if they've read your email can boost the number of people who open your email by up to 30%.
• 65% of consumers get somewhere between 6 to 21 emails from businesses every day.
• Sending a follow-up text message after an email boosted open rates by 20-30%.

Future of SMS marketing 

SMS marketing is expected to keep growing and stay important in the marketing world. With almost everyone using mobile phones, businesses see the value in reaching customers directly through text messages. As technology gets better, SMS marketing becomes even more powerful, allowing businesses to send short, targeted messages instantly. This means SMS marketing will continue to be a key tool for businesses to connect with customers in the future.

• By 2025, the SMS marketing industry is projected to exceed $12.6 billion, solidifying its status as one of the most prevalent communication channels.
• With an estimated 7.5 billion mobile users anticipated by 2025, the SMS market is poised for further expansion.
• SMS marketers demonstrate exceptional return on investment, generating $71 for every dollar spent.
• 85% of interactions between brands and customers will be managed without speaking.
  

SMS Marketing: Frequently answered questions (FAQs)

1. How does SMS marketing work?

SMS marketing software collects phone numbers from customers who opt-in to receive text messages from a business. Then, businesses can send targeted messages, promotions, or updates directly to these customers' phones.

2. Is SMS marketing effective?

Yes, SMS marketing can be highly effective. Text messages have high open rates and are usually read within minutes of being received, making them a powerful tool for reaching customers.

3. What types of businesses can benefit from SMS marketing?

Any business that wants to reach customers directly and quickly can benefit from SMS marketing. This includes retail stores, e-commerce businesses, service providers, nonprofits, and more.

4. What are some best practices for SMS marketing?

Best practices for SMS marketing include getting permission before sending messages, personalizing messages when possible, keeping messages concise and relevant, providing value to recipients, and offering an easy way for recipients to opt-out.

5. Is SMS marketing on the rise in 2024?

Yes, SMS marketing is growing fast. It's projected to reach a value of $12.6 billion by 2025, with its popularity increasing at a rate of 20.3% annually over six years. This growth is attributed to the development of new AI tools, which enhance the effectiveness of SMS marketing, and its expansion into new industries.

Make your SMS game strong!

The best way to reach your customers is to go directly to them. With SMS marketing, you can send targeted messages that provide real value faster. With the help of an SMS marketing software solution, you can do everything from tracking interaction data related to each SMS campaign to providing analytics into SMS marketing efforts and more.

Interested in learning more about how SMS is changing the digital marketing game? Read about transactional SMS and how it’s revolutionizing text messaging.