SMS messages may be limited to 160 characters, but when done right, they can pack a serious punch—driving customer engagement, boosting sales, and strengthening customer connections.
These days, people are more connected to their devices than ever. But just because a text lands in someone’s inbox doesn’t mean they’ll read it—let alone take action. The difference between a message that gets ignored and one that drives results? Strategy.
In this guide, we’ll break down how to drive ROI from SMS marketing, covering must-know best practices for crafting high-impact messages and increasing subscriber engagement.
Note: The brands and examples discussed below were found during our online research for this article.
What is SMS marketing?
From checking notifications to scrolling social media, mobile phones have become a constant companion in daily life. Studies show that 36% of people check their phones at least 50 times a day, and 16% do so over 100 times. SMS marketing allows businesses to tap into this habitual behavior, delivering timely, direct messages that reach customers where they’re already engaged.
SMS marketing (or text message marketing) involves sending direct, personalized marketing communications to customers via text. Because recipients opt-in to receive these messages, they’re already interested in your brand—making SMS an incredibly effective channel for engagement.
SMS marketing campaign examples
You can use SMS marketing to achieve a variety of business goals, from increasing sales to strengthening customer relationships. Here are some of the most common types of SMS campaigns:
- Promotional SMS: Encourage conversion rates with exclusive offers, flash sales, and limited-time offers. An online fashion retailer might send: “Exclusive 24-hour sale! Get 20% off all new arrivals. Use code STYLE20 at checkout: [link].”
- Transactional SMS: Transactional SMS messages keep customers informed with real-time updates on orders, deliveries, and appointments. A logistics company might send: “Your package has been shipped! Track your order here: [tracking link]. Estimated delivery: March 5.”
- Customer support SMS: Offer quick, convenient customer service through two-way messaging. A retailer might use SMS to resolve issues: “Hi [name], we’ve received your inquiry about your order. A support agent will contact you shortly.”
- Loyalty and retention SMS: Loyalty program-focused SMS campaigns help businesses reward and retain customers by keeping them engaged with program updates and exclusive VIP offers. A coffee shop chain might send: “You’re just two purchases away from a free drink! Track your rewards here: [link].”
- Event-based SMS: Manage RSVPs, send appointment reminders, and confirm attendance. A tech company hosting a webinar might send: “Reminder: Our exclusive webinar on AI trends starts in one hour! Join us here: [link].”
SMS marketing best practices
Ready to get started with SMS marketing? The following SMS best practices ensure your messages drive engagement while staying compliant and customer-friendly.
Obtain explicit consent and maintain compliance
Before launching an SMS marketing campaign, businesses must secure explicit customer consent. This is essential for complying with regulations like the Telephone Consumer Protection Act (TCPA) in the U.S. and the General Data Protection Regulation (GDPR) in the EU. These frameworks protect consumer privacy by ensuring recipients knowingly agree to receive marketing texts.
Failing to obtain proper consent can lead to legal penalties—not to mention damage to your brand’s reputation. To stay compliant, follow these key requirements:
- Opt-in consent: Customers must voluntarily subscribe to receive SMS messages.
- Clear disclosure: Businesses must inform subscribers about the type and frequency of messages they’ll receive.
- Easy opt-out options: Every SMS must include a simple way for customers to unsubscribe, such as replying “STOP” to opt-out.
Once a customer subscribes, send a confirmation message that sets clear expectations, such as:
“Thanks for signing up for [Brand Name] SMS alerts! Expect 2–4 messages per month with exclusive deals and updates. Reply STOP to unsubscribe.”
Align your SMS marketing strategy with your general marketing goals
The most effective SMS marketing campaigns don’t work in isolation—they integrate seamlessly with your broader marketing strategy. Whether you’re running email campaigns, social media ads, or in-store promotions, SMS should complement these efforts to create a cohesive, omnichannel experience.
To maximize impact, set clear, measurable goals for each SMS campaign. Whether your focus is post-purchase engagement, conversions, customer retention, or loyalty sign-ups, every message should serve a specific purpose that aligns with your larger strategy. By ensuring SMS works alongside your other marketing channels, you can create a more consistent brand experience and drive better results.
Keep messages short, clear, and actionable
With a 160-character limit, every word counts in an SMS message. The most effective texts are concise, direct, and actionable, ensuring recipients instantly understand the value and what to do next.
Here are some examples of strong vs. weak SMS messaging:
- Effective message: “Flash Sale! Get 20% off all orders today only. Use code FLASH20 at checkout. Shop now: [link].”
- Ineffective message: “Hey! We have some great deals for you. Check our website for more info.”
- Effective message: “Reminder: Your hair appointment is at 2 pm on March 10. Reply YES to confirm or CALL to reschedule: [number].”
- Ineffective message: “Hello, we wanted to remind you that your appointment is coming up. If you need to make any changes, please get in touch.”
Personalize messages for higher engagement
Consumers are far more likely to engage with messages that feel personal rather than generic, one-size-fits-all communications. By leveraging customer data—such as name, purchase history, location, or preferences—businesses can craft targeted messages that resonate on a deeper level.
Beyond increasing customer engagement, personalized SMS marketing for the slow season can help drive sales year-round. For instance, using location data, you can send timely SMS messages to encourage in-store visits when foot traffic is slow. For example, “Hey [name]! Stop by today for an exclusive in-store discount—20% off apparel!”
By making SMS messages feel relevant and tailored to each recipient, businesses can create stronger connections and drive better results.
Send your text messages at the right times
A common SMS marketing mistake is sending texts too early in the morning or too late at night, which can feel intrusive and prompt recipients to unsubscribe. Even the most compelling message can be ignored—or worse, lead to an opt-out—if it arrives at the wrong time.
To maximize effectiveness, businesses should schedule SMS messages when customers are most receptive and active on their phones. As a general rule, Thursdays, Fridays, and Saturdays tend to yield better response rates. However, every audience is different, so it’s best to use A/B testing and analytics (more on that later!) to pinpoint the optimal send times for your brand.
Offer value in every message
For SMS marketing to succeed, every message you send should provide real value—whether that’s a special offer, a helpful reminder, or a personalized recommendation. Messages that feel irrelevant or overly promotional can lead to opt-outs and lower engagement rates.
Here are some ways to ensure your texts are worth reading:
- Exclusive offers: Reward customers with VIP perks, early access to sales, or special giveaways.
- Useful reminders: Share appointment confirmations, restock alerts, or subscription renewal notices.
- Personalized messages: Recommend products based on past purchases, re-engage abandoned carts, or share educational content related to recent orders
By ensuring every SMS is timely, relevant, and valuable, businesses can keep engagement rates high and customer relationships strong.
Make opt-out simple and transparent
While SMS marketing can strengthen customer relationships, overuse can have the opposite effect. In fact, 56% of consumers have either purchased less or stopped buying from a brand altogether due to excessive SMS messaging.
To maintain trust and credibility, be mindful of how often you send messages—aim for two to four texts per month. Additionally, always include a clear and simple opt-out option in every message. A straightforward instruction like “Reply STOP to unsubscribe” reassures customers that they have control over their communication with your brand, reducing frustration and improving long-term engagement.
Segment your SMS audience for better targeting
Not all customers have the same interests or behaviors, so sending generic messages to your entire list isn’t the best approach. Instead, use segmentation to ensure each recipient gets content that’s relevant and valuable to them.
Here’s how segmentation can improve engagement:
- Long-term subscribers: Offer early access to upcoming sales or exclusive product launches.
- New customers: Send a welcome message with a special discount to encourage their first purchase.
- Inactive customers: Share a re-engagement message with a personalized offer to reignite their interest.
By tailoring SMS campaigns to different audience segments, businesses can increase relevance, improve engagement rates, and drive more conversions.
Use short links to track SMS performance
Including short links in your SMS messages gives you more room for impactful, conversion-driven content. But it’s not just about saving characters—branded short links enhance credibility and drive better ROI.
With marketing tools like Bitly, you can create branded, trackable links by replacing a generic domain (for example, bit.ly) with a recognizable, brand-specific identifier (New York Times uses nyti.ms). This not only reinforces brand trust but also makes links feel more professional and reliable.
Beyond branding, short links with built-in analytics provide valuable insights. With Bitly Analytics, businesses can track metrics such as:
- Total clicks to measure engagement.
- Clicks over time to identify engagement trends.
- Location data to understand where customers are engaging.
By analyzing these data points, you can fine-tune your SMS marketing strategy and continuously optimize for better results.
A/B test SMS messages for continuous improvement
A/B testing is key to refining and optimizing your SMS strategy. By testing different elements—such as your call-to-action (CTA), message timing, or copy—you can identify what resonates best with your target audience.
To conduct an A/B test:
- Choose a single variable to test—for example, different CTAs like “Shop Now” vs. “Claim Your Discount.”
- Split your audience into two equal, random groups and send each group a different version of the message.
- Measure results with a third-party analytics tool like Google Analytics to track click-through rates, response rates, and conversions to determine which version performs better.
Ensure SMS messages are mobile-friendly
Every word in your SMS marketing message should serve a purpose—no fluff, just value. A clear, concise structure makes messages easier to read and act on. Use this simple template to keep messages personal, direct, and actionable:
[Name], [Offer]. [CTA + short link].
Here’s how it works in practice:
- Personalized discount: “John, your exclusive 15% off deal ends tonight. Shop now: [short link].”
- Last-chance offer: “Sarah, final hours to access our VIP sale. Don’t miss out: [short link].”
- Event reminder: “David, your supper club tickets for tonight are ready. Tap here to download: [short link].”
By keeping SMS messages short, scannable, and action-driven, you make it easy for recipients to engage.
Optimize SMS keywords for better engagement
An SMS keyword is a short, predefined phrase that customers text to a designated number to trigger an automated response. Whether it’s for signing up for SMS alerts, entering a contest, or unlocking a discount, keywords make engagement effortless.
For maximum effectiveness, keep SMS keywords simple and easy to type—no long, complicated phrases that can lead to typos.
- Better: “SAVE20” (short, clear, and easy to remember)
- Weaker: “EXCLUSIVEDEAL20” (longer, prone to errors)
Tips for increasing SMS engagement and subscriber growth
A strong SMS marketing strategy goes beyond just sending messages—it’s about creating meaningful interactions that keep customers engaged and drive long-term value. To maximize engagement and grow your subscriber base, follow these SMS marketing tips.
Promote to your SMS list across channels
To grow your SMS subscriber base, actively promote your text program across multiple touchpoints. Here are some effective ways to drive sign-ups:
- Website: Add pop-ups, banners, and checkout opt-ins with offers like “Sign up for texts and get 15% off your first order!”
- Email marketing: Send dedicated emails highlighting SMS perks and include opt-in links in email footers.
- Social media: Promote SMS sign-ups through posts, stories, and exclusive giveaways.
- In-store promotions: Use QR Codes on receipts, posters, or checkout displays to encourage easy opt-ins.
The more visibility your SMS program gets, the more subscribers you’ll attract.
Incentivize signups with exclusive offers
One of the best ways to drive SMS sign-ups is by offering exclusive perks that make subscribing feel rewarding. While a simple discount or freebie can boost opt-ins, the real key is to create an ongoing VIP experience that keeps customers engaged.
For example, you could offer birthday discounts, loyalty points for referrals, and early access to sales or new products. The goal is to ensure signing up remains valuable all year, not just at the moment of opt-in.
Combine SMS with other marketing channels
SMS works best when integrated into a broader omnichannel marketing strategy. When aligned with email, social media, and offline efforts, it can reinforce key messages, build credibility, and create a consistent customer experience.
For example, an ecommerce brand launching a major sale can build anticipation through multiple touchpoints:
- Email: Send an early teaser: “Exclusive 48-hour sale starts tomorrow! Keep an eye on your texts for early access.”
- Social media: Share countdown posts and interactive stories to generate excitement.
- SMS: Deliver a real-time alert when the sale goes live: “The wait is over! Your VIP sale starts now—shop before it ends: [short link].”
By combining SMS with other channels, you increase visibility and engagement across your entire audience.
Regularly clean up the SMS list
A healthy subscriber list leads to better engagement rates and lower costs. To maintain quality, routinely remove inactive contacts—those who haven’t interacted with messages over a set period.
Try this two-step re-engagement approach:
- Gentle reminder: “We miss you! Reply YES to keep receiving exclusive offers, or STOP to unsubscribe.”
- Final follow-up: “We noticed you haven’t responded. To continue receiving exclusive offers, reply YES. If we don’t hear from you, we’ll remove you from our list.”
If a customer remains unresponsive, it’s best to remove them to keep your list engaged and effective.
Use Bitly branded short links to power your SMS marketing strategy
SMS marketing is a powerful way to engage customers, drive conversions, and foster long-term brand loyalty. But to truly maximize its impact, businesses should focus on personalization, action-driven messaging, and audience segmentation—ensuring the right message reaches the right audience at the right time.
With the Bitly Connections Platform, you can transform your SMS marketing efforts into a data-driven strategy. Use our branded mobile links to connect customers to exclusive deals without wasting valuable SMS characters. Access engagement data in your Bitly Analytics dashboard, and get the insights you need to refine campaigns, boost engagement, and drive measurable results.
Ready to optimize your SMS campaigns with Bitly’s branded links and analytics? Get started today.
