Messaging • Last Updated 5/15/2024

Leveraging SMS customer engagement to increase ROI

Learn how SMS customer engagement can be used to deliver a positive customer experience and drive more sales.


By Emily Bowen

Man wearing glasses looks at text on phone

What is SMS customer engagement?

SMS customer engagement is a marketing strategy that uses text messages to foster relationships between businesses and customers. It allows businesses to connect with customers in an efficient, cost-effective and direct way. By leveraging this strategy, businesses can increase customer engagement and loyalty and drive more sales.

At its core, SMS customer engagement is about providing customers with personalized, timely and relevant messages. For example, businesses can use text messages to alert customers to special discounts, provide important updates and even send birthday wishes. These messages help build relationships with customers and keep them coming back.

Businesses can use SMS customer engagement platforms to send reminders about upcoming events, product launches and other important information. This communication helps customers stay in the loop and allows businesses to keep customers engaged with their brand. Additionally, businesses can use SMS customer engagement to send surveys and collect feedback from customers. This feedback can be used to improve customer service and create better products and services.

In short, businesses can use SMS customer engagement as a means of staying connected to their customers, building loyalty and generating more revenue.

The benefits of SMS customer engagement

SMS customer engagement is an effective way for businesses to reach their target audience and increase return on investment (ROI). By leveraging SMS, businesses can easily grow their audience, improve customer satisfaction and increase revenue.

Grow your audience

Texting is the most widely used communication technology in the world today and is accessible to a much broader audience than any other communication technology.

90% of SMS/MMS messages are read within three seconds

This accessibility makes it a great way for businesses to reach new customers and expand their target audience.

Conducting targeted campaigns and promotions are one way organizations can use SMS to tap into that larger pool of potential customers. For example, businesses can send out promotional offers and discounts to their current customers. Those customers can then share their offers with their friends and family. Since text messages are easily shareable, engaging through SMS helps generate more leads and attract new customers.

Overall, texting is an efficient, cost-effective way to communicate with a very large audience. SMS campaigns can help businesses keep customers engaged and informed in an increasingly competitive marketplace.

Create meaningful connections with your customers

As a channel, SMS has yet to become saturated by businesses.

research from G2

As a result, texting still feels more personal and informal for consumers. Businesses can leverage this unique opportunity to create meaningful connections with their customers. By reaching out in a direct and personal way, businesses can build stronger relationships and give customers a personalized and timely experience.

Using SMS customer engagement to create meaningful connections with customers is especially beneficial when it comes to customer experience. Through SMS messaging, businesses can provide customers with relevant information tailored to their individual needs. This type of communication helps customers feel valued and appreciated and encourages them to engage with your business more frequently.

Integrating other types of media into your SMS customer engagement strategy can also help increase customer loyalty. By combining SMS messaging with other forms of communication, such as email, social media or voice calls, businesses can create an even more personalized experience for their customers. This personalization helps to enhance customer relationships and results in increased customer loyalty and repeat business.

Improve customer retention

More than half of consumers actually want businesses to text them with promotions or offerings. Using customers’ preferred method of communication is one easy way for organizations to show them that they care about their wants and needs and value their opinions.

valued and respected

SMS customer engagement can also improve customer satisfaction. With SMS, businesses can quickly and easily engage with their customers. They can provide timely customer support, send automated reminders and answer questions quickly, which helps customers feel more valued. Customers who feel valued are more likely to stick with your business.

Increase revenue

Finally, SMS customer engagement can help businesses increase revenue. Through SMS, businesses can upsell and cross-sell products and services to their existing customers. They can also send out promotional offers and discounts to increase customer purchases. Of course, you can use email or even snail mail to send out promotions.

SMS has a much higher click-through rate than emailnearly 60% of consumers

Businesses in the retail sector can use SMS to send customers personalized offers and discounts to entice them to make additional purchases. Restaurants can send customers special promotions and discounts or even alert them to new menu items. Companies in the travel industry can use SMS to send customers timely updates about their flights, hotel bookings and other travel services. Timely, relevant engagement keeps customers satisfied and likely to stay loyal, which, in turn, increases ROI by decreasing churn.

There are many more examples of SMS marketing spanning countless industries. Regardless of your industry, leveraging SMS for customer engagement can quickly and easily increase your bottom line.

5 tips for SMS customer engagement

When it comes to leveraging SMS customer engagement to increase ROI, there are several key tips and best practices to consider.

1. Personalize your messaging

Personalized messages are more likely to grab the attention of customers than generic ones. Use customer data to personalize messages for each customer, such as their name, location or purchase history. You can even use dynamic messaging to create personalized messages for each customer based on their past interactions with your brand.

2. Integrate other channels

Integrating SMS with other engagement channels such as email, web and social media can help businesses reach more customers and increase engagement. For example, linking to a web page in an SMS can increase traffic to the page and encourage customers to take action.

3. Ensure compliance

Taking time to understand laws and regulations around SMS is essential to ensure that your messages will be delivered. If you don’t want your communications marked as spam, it’s important to be mindful of the various regulations governing the use of SMS, such as the federal law Telephone Consumer Protection Act (TCPA), or Cellular Telecommunications Industry Association (CTIA), SHAFT, and 420-related restrictions.

The TCPA is a federal law that was designed to protect consumers from unwanted texts. It requires consumers to express written consent—or opt in—before companies are able to send them any messages. The CTIA provides best practices for companies when it comes to SMS messaging. These best practices include being upfront about volume and frequency, including your business name, and providing an opt-out option.

We’ve put together an SMS compliance checklist to help you craft engaging, compliant messages. Simply put, you need to:

  1. Obtain express written consent before beginning communications.
  2. Provide a clear opt-in and disclose details.
  3. Confirm the opt-in and remind subscribers of terms and conditions.
  4. Time your communications appropriately.
  5. Include your organization’s name in each message.
  6. Avoid prohibited language.
  7. Offer a way to opt out.
  8. Respect opt-outs and the Do Not Call Registry.

Here are some examples of what your marketing messages should look like:

SMS Compliance 1

You must obtain written consent via form, checkbox, or text keyword before messaging consumers.

SMS Compliance 2

You must give consumers the opportunity to opt into communications and disclose details of your messaging campaign.

SMS Compliance 3

Make sure the consumer knows what organization is contacting them.

SMS Compliance 4

Give consumers an easy way to opt out of future messages.

4. Take advantage of automation

Automation can help streamline your SMS customer engagement efforts and increase your ROI. For example, you can use automated triggers to send customers timely messages tailored to their individual preferences. This can help ensure that your customers receive messages at the right time—like when they’re finally ready to hit check out and purchase the items that have been sitting in their cart for weeks. Additionally, you can use automated A/B testing to optimize your messages and make sure they’re hitting the right note with your customers.

5. Track results

Measuring the results of your SMS engagement campaigns is essential for gauging ROI. You can measure your delivery rate by tracking the percentage of messages that are successfully delivered to their intended recipients. Tracking delivery rates with handset receipts is ideal, but there are other options as well. It’s difficult to get an exact click-through rate (CTR), but you can use link tracking and reply rate data to monitor the amount of traffic your messages are generating. This can help your team identify which messages are performing well and which ones may need to be improved.

The future of SMS customer engagement

With the advent of new technologies like artificial intelligence (AI), machine learning (ML), and natural language processing (NLP), SMS customer engagement is becoming increasingly sophisticated. You can use AI and ML to automate customer service and marketing campaigns, while NLP can help parse customer messages and provide more tailored responses.

The market outlook for SMS customer engagement is also very positive. According to Beyond Market Insights, the global SMS messaging market size is anticipated to grow from 62.2 billion in 2021 to 89.2 billion by 2030. Increasing demand for personalized customer experiences, better customer service and cost savings are the main drivers of this anticipated growth. So if you haven’t already integrated SMS into your customer engagement strategy, now is the time.

When choosing the right platform for SMS customer engagement, there are a few tips to keep in mind. Look for a platform that:

  • Can handle large volumes of traffic and is scalable. By choosing a system that can grow with your business, you can avoid shopping for a new platform after getting comfortable with your original one.
  • Is secure and compliant with data privacy regulations. If you end up having to pay fines for messaging violations, you won’t be able to reap the benefits of increased revenue.
  • Integrates with other customer relationship management (CRM) and marketing automation tools. Integrations can help you easily manage your customer data and campaigns in a more organized, centralized way.

At Telnyx, we offer a suite of SMS customer engagement tools to help you maximize ROI. Our SMS API allows you to send high volumes of messages quickly and securely, while our ML-driven intelligent routing and NLP capabilities ensure your messages are delivered to the right customers in the right way. Plus, our platform integrates with popular CRMs and marketing automation tools, so you can easily manage your customer data and campaigns.

To learn more, talk to our experts today.

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