If you’re a small business owner and are not using text marketing as a component of your marketing mix, chances are there’s a solid opportunity in front of you.
What is text marketing?
Text marketing is a method of marketing to your customers via highly targeted, opt-in text messages. There has been an explosion in popularity for this marketing method over the past few years and it’s becoming more common for small businesses now than every before.
Chances are you may have experienced another company using it if you ever seen ads like “Text BURGER to 31996 to join our VIP text list” or something of that sort.
How does text marketing work?
You reserve what’s know as a “keyword” that is unique to your business. The keyword should be relatively short; easy to read/type, and have something to do with what your business is about. A person can then text that keyword to what’s called a “shortcode”, which is a 5 or 6 digit phone number. Upon doing so, they will receive an instant response back that you can customize. Their number will also be added to your text list so you can market to them when necessary.
You let people know how they can sign up for your text marketing list by posting you info where they will see it, asking them to join, and using your other marketing streams to help grow your list.
Now when business is slow or you want to communicate a special offer, you can send a mass text message out to all your subscribers and get it into their hands immediately.
Why is it so effective for small business?
- Open rates are amazingly high. 97% of text messages are read. 95% are read within the first 5 minutes. Think about how powerful that is for small business owners! So much more so than email marketing. The fact that your customers will read your message every time is a gigantic feather in your cap.
- It’s specifically targeted. The mobile coupons and promotions you send out are ONLY read by people who care about what your business has to say. That’s so much more effective than traditional advertising methods like newspapers and radio.
- It produces instant results. Things slow? Need to drive traffic and get some cash in the register? Run a spontaneous sale right when you need it. If your text message creates value and is timed correctly, you’re sure to bring some customers in the door.
- Redemption rates are much higher than other forms of marketing. On average, 24% of mobile coupons sent through text messages are redeemed. It’s very common to have 500 or 600 people on your text list as a small business. Imagine 150 people cashing in on a special promotion you decided to run on a slow day!
- Text marketing is fairly inexpensive. Most small business owners spend less than $120 per month on their service. For how effective it is, it’s definitely worth the investment.
- It’s measurable. Text marketing allows you easily measure what promotions and messages are working and which ones aren’t. There is a tremendous amount of value in this learning as you’ll be able to replicate those campaigns not only with text but across your other marketing streams as well.
- The overall ROI is much higher than other forms of marketing. Combine the power of the last 6 points and ponder on what type of return you’ll have if you take it seriously. You’ll most likely be very pleased.
How does it benefit small businesses?
Text marketing drives traffic right when it’s needed most. It get’s the word out to your customers quickly and easily without a large dent in your bankbook. Your customers gain access to special deals and notifications from the businesses like yours that they choose to follow. When they receive your texts, it also inspires immediate action generating the traffic you need, when you need it most.
About the author:
Matt Baglia is a co-founder and CEO of SlickText.com, a leader in the text message marketing industry. Their service provides and incredibly easy and cost effective way for small businesses and organizations to market to their customers via text.
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Gary Shouldis
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That makes so much sense, I don’t think I’ve ever not opened a text message, even the stupid one’s from my cell provider. We’ve been disappointing in our email open rates, maybe it’s time to look into text marketing. Thanks!
Text message marketing is one of those areas in mobile that has largely been left untouched. Lots of opportunity there.
Its largely untouched because its highly regulated and permission based. It works amazing if you know the ins and outs of it.
Check SlickTexts blog @ slicktext.com/blog or check out the great strategies articles on textmarketingtoday.com. You can easily become a pro at it.
Hey Bobby, you’re right, text marketing has a different set of rules than traditional email marketing. There are also less marketing experience (even with agencies) with the platform. I’ll check out the resources you included, thanks!