5 SMS Marketing Benefits for Small Business

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Last updated on March 24th, 2018

You might assume that short message service marketing, or text messaging, is only viable for large companies with big budgets. In fact, SMS marketing has become very affordable for small business. Affordability is just one of an array of best SMS marketing benefits for small business.

The following is an overview of several of the top benefits of SMS for small businesses!

1. Affordable and Cost-Effective
2. Wide Reach
3. High Response Rates
4. Message Sharing
5. Improved Customer Service

Affordable and Cost-Effective

You can send out a moderate volume of text messages for well under $100 per month. As with Internet service, cell service and similar telecommunications solutions, you pay a subscription to a provider based on the size or your contact list and the volume of messages you want to send each month.

If you compare the modest rates of SMS to costs for newspapers, radio and other common local media channels, the costs are much lower.

Wide Reach

No marketing communication channel offers better access to a wide audience than mobile phones. Ninety-eight percent of people have cell phones on which they can receive text messages. Plus, these people often have their devices with them during all waking hours (and even sleeping hours for that matter).

Text vs. Email Open Rates

High Response Rates

The data on SMS responses rates is even more impressive. Ninety-four percent of people who opt-in to your company’s SMS program open texts within three minutes of receipt. Compare this number to the 22 percent who open emails from businesses (within any time frame).

Luring customers with discounts works much better via SMS than email and other platforms as well. Customers are eight times more likely to redeem a text-based coupon than an email coupon.

Message Sharing

You can also amplify your reach and results through small-business SMS by encouraging subscribers to share messages with friends and family. Some companies incentivize such sharing by offering subscribes special discounts or rewards for text referrals.

Improved Customer Service

There are some customer service benefits of SMS for small businesses as well. You can send out appointment reminders and other pertinent announcements and updates, similar to confirmation texts doctors routinely send now. Companies also conduct customer polls through services distributed via text messages because of the relatively high response rates on them.


These are some of the most important SMS benefits for small business. Collectively, these points demonstrate that text messaging is a viable, cost-efficient way for small companies to achieve better marketing return on investment.

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About the Author: Neil Kokemuller

Neil Kokemuller is a veteran college marketing professor with an MBA. He has also been a freelance business and marketing content writer and website creator since 2008.

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