How to Drive Revenue with SMS Sales

Businesses of all sizes can use SMS sales strategies to foster loyalty, inform customers about new products and services, or gather feedback while creating an essential touchpoint in a multi-channel marketing strategy, driving traffic to online platforms or physical stores.

Keep reading to learn more about SMS sales strategies and how they can help your business stand out.

What makes SMS such a powerful sales channel?

Mobile devices have firmly entrenched themselves in the fabric of modern society. From the moment we wake up to the last check before sleep, these devices play a pivotal role in communicating, working, entertaining, and shopping.

SMS boasts an astounding open rate of around 98%, unlike other communication channels. This dwarfs other mediums, and even more impressively, most of these text messages are read within just a few minutes of receipt.

When integrated seamlessly with other sales channels, the potential of SMS marketing multiplies. Consider e-commerce websites: An SMS can alert customers of a flash sale, with a link driving them directly to the site.

Similarly, for brick-and-mortar stores, an SMS might offer an exclusive in-store discount, incentivizing foot traffic. When combined with social media or email campaigns, SMS can be a reinforcement, ensuring the message is received and acted upon.

Ultimately, the directness and immediacy of SMS offer businesses a unique advantage. It provides an additional touchpoint that's almost guaranteed to be seen. Utilizing the right SMS marketing software further enhances the campaign's efficiency.

When comparing SMS vs. MMS (Multimedia Messaging Service), SMS is generally more versatile and has a broader reach. While MMS allows for richer content like images and videos, it might not be supported on all devices or might incur additional costs for the recipient.

Thus, for sales strategies, the straightforward nature of SMS often proves more effective.

How to build an SMS sales list

Building an effective SMS subscriber list is the foundation of any successful SMS marketing campaign, with the goal of converting leads into loyal customers.

Unlike other channels, SMS requires a delicate balance of personal touch and respect for privacy. As such, a targeted and opt-in list becomes crucial to ensure your text messages are welcomed and effective.

To collect opt-in SMS contacts, you can:

• Promote on other channels: Use your existing email newsletters, social media profiles, and website to promote your SMS subscription.
• Incentivize sign-ups: Offer exclusive deals, discounts, or early access to sales for customers who opt into your SMS list. This encourages sign-ups while setting the tone of the kind of value SMS subscribers can expect.
• Use physical store promotions: If you have a brick-and-mortar store, use point-of-sale (POS) displays or receipts to encourage customers to join your SMS list. QR codes can also be a quick and efficient method for in-person sign-ups.
• Collect during checkout: Another effective method is to collect phone numbers during checkout. Physical stores can ask customers if they'd like to sign up, while e-commerce brands can include an empty opt-in checkbox on the checkout page.

It's crucial to understand that there are several regulations that govern SMS marketing and protect consumers from spam and unwanted text messages. Complying with these regulations avoids penalties and helps you to build trust with your customers.

Always ensure that customers have explicitly opted-in to receive text messages from you.

Provide a clear and straightforward way for SMS subscribers to opt-out, typically in the form of a simple "STOP" reply command or an unsubscribe link. You should also be transparent about the frequency of text messages they can expect and stick to it.

As your SMS subscriber list grows, you may have difficulty managing it manually. Several tools and platforms like Mailchimp can help manage contacts, segment lists, draft and schedule messages, and ensure compliance with regulations.

Write compelling SMS messages

While SMS offers a direct route to your customers, its limited character count poses a challenge. Every word counts and the message needs to be concise yet impactful.

Crafting an effective SMS marketing message can make the difference between an engaged customer and one who opts out. Here are a few tips to help you create compelling messages:

• Keep it short and sweet: With typically just 160 characters to work with, brevity is key. Avoid jargon and be direct in your messaging.
• Create urgency: Phrases like "limited offer" or "today only" can push customers to take action immediately.
• Include a clear call-to-action (CTA): Be explicit in what you want the receiver to do. Whether it's "Shop Now," "Reply Yes," or "Visit Our Store," make sure the action is clear.

For example, let's say you're an e-commerce business promoting its flash sale. You might use a text message like this: "Flash Sale! 50% off select items until midnight. Shop now."

Meanwhile, if you wanted to target a specific customer, you might use "Exclusive for you, Sara! Free shipping on your next order. Use code SHIPFREE at checkout."

Just as with email marketing, personalization can elevate the impact of text message marketing campaigns and increase customer loyalty. Addressing the subscriber by name or referencing a past purchase can make the text message feel more tailored and special. Segmentation can further refine this approach.

For instance, if you have a list segment of customers who frequently purchase skincare products, an SMS about a new skincare line or discount on their favorite products can be more effective than a generic text message.

Conversely, for a segment that's been inactive, a special "We Miss You" discount might re-engage them.

Another emerging trend in SMS marketing is conversational SMS. This approach enables two-way messaging between the brand and the customer.

Rather than just sending out promotional content, businesses can engage in real-time conversations, address queries, and provide immediate assistance. It creates a personalized experience, making the customer feel valued and understood.

When is the best time to send SMS campaigns?

Getting your timing and frequency right is one of the most important parts of SMS marketing. Unlike emails that sit in inboxes, texts get read within minutes — which means sending at the wrong time can hurt your campaign. Here are the key timing strategies to follow for your next SMS campaign:

• Respect personal boundaries: Skip the early mornings and late nights. Stick to regular waking hours when people are actually ready to engage with your message.
• Target peak activity times: Think about when your customers are most likely to shop or use your services. Lunch hours and early evenings often work well for retail, but this varies by industry.
• Limit your frequency: One to two texts per week keeps you top-of-mind without overwhelming subscribers. Sending more than that increases opt-out rates.
• Make every message count: Only send SMS text messages that offer real value, like exclusive discounts, info about upcoming events, or important updates. If it's not worth interrupting someone's day, don't send it.
• Let subscribers control the experience: Most SMS marketing services let you set up preferences in just a few clicks, allowing people to customize how often they hear from you or what types of updates they want to receive.

What types of sales work best for SMS?

Not every product or offer is a good fit for SMS marketing. The channel works best when you're selling something that benefits from immediate action or when you're reaching customers who are already engaged with your brand.

Products and offers that convert well via SMS

Time-sensitive promotions are the perfect fit for SMS. Flash sales, limited-time discounts, and exclusive deals create urgency that matches the immediate nature of text messages. If someone needs to act within hours, SMS works perfectly.

Lower-priced items also tend to perform well. When the decision is simple and the price point is accessible, customers are more likely to buy on the spot. Think impulse purchases or everyday items rather than major investments that require research and consideration.

A mass texting service makes it easy to reach your entire list when you have the right message for a promotion.

Here are specific offer types that consistently drive conversions:

• Flash sales: Short-term discounts that expire within 24 hours or less push customers to act immediately. A mass text message about a flash sale can reach your entire list instantly.
• Exclusive subscriber deals: Offers available only to your SMS list make subscribers feel valued and give them a reason to stay opted in.
• Appointment reminders with booking links: Sending SMS reminders reduces no-shows and makes it easy for customers to reschedule if needed. Small businesses that rely on scheduled appointments can attract more clients by reducing scheduling friction.
• Restock alerts: Let customers know when popular items are back in stock, especially for products that sell out quickly.

B2C vs. B2B SMS sales use cases

SMS is primarily a B2C channel. Consumers are used to getting texts from brands, and the casual nature of SMS fits with how people shop for personal purchases.

Retail, restaurants, salons, fitness centers, and e-commerce brands all see strong results with SMS because their customers make quick purchasing decisions. Mass texting works well for these businesses because you can reach hundreds of customers with one campaign.

B2B SMS is a little more difficult. Business buyers typically need more information, multiple stakeholders, and longer consideration periods.

However, SMS can still play a role in B2B sales for specific use cases like event reminders, appointment confirmations outside of business hours, or time-sensitive contract renewals. Use SMS for logistics and follow-ups rather than trying to close complex deals via text.

When SMS should support sales, not replace other channels

SMS works best as part of a larger marketing strategy, not as your only sales channel. Think of it as a reinforcement tool that drives people to other platforms where they can get more details, compare options, or complete purchases.

Use SMS to drive traffic to your physical store, website, or app. A text with a compelling offer can get someone to click through, but your website or store is where the actual selling happens. SMS also works well to remind customers about abandoned carts, upcoming sales, or items they've shown interest in.

The reality is that SMS has limitations. You can't include detailed product information, multiple images, or complex pricing structures in a text message.

While an MMS text message allows you to add images or videos, it's still not a replacement for a full website experience. That's why successful SMS campaigns focus on getting attention and creating urgency, then directing customers to channels where they can learn more and buy.

Measure SMS sales success

Your SMS marketing strategy should be dynamic, evolving based on the feedback and metrics from previous campaigns. Understanding the impact of your SMS campaigns allows you to track specific metrics that give insight into the effectiveness and areas of potential improvement. Key metrics to track for SMS marketing campaigns include the following:

• Open rate: While text message marketing typically enjoys high open rates, keeping an eye on this metric ensures that your text messages remain effective and aren't being ignored.
• Click-through rate (CTR): If your SMS contains links to promotions or products, engagement metrics like CTR can provide insights into how compelling your CTA was.
• Conversion rate: Beyond clicks, how many of those led to the desired action? Conversions could be a sale, sign-up, or another defined action.
• Opt-out rate: Monitor how many subscribers are choosing to leave your list after a campaign. A sudden spike might indicate that a particular message didn't resonate or was considered intrusive.

Using SMS marketing examples from successful campaigns can be beneficial to understand what resonates with your target audience. Monitoring these metrics can help inform your strategy while highlighting elements that worked or didn't.

Mailchimp has integrated SMS tracking to provide insights on the above metrics, along with others. Our analytics tools offer a comprehensive view of SMS campaign performance, allowing for continuous optimization.

With the data at hand, businesses can refine their SMS marketing strategies. For instance, SMS messages sent at a particular time of day may perform better, or certain types of offers resonate more. By leveraging this data, you can craft more targeted, effective text campaigns in the future.

Common challenges in SMS sales and how to overcome them

SMS marketing isn't without its hurdles. From managing unsubscribes to staying compliant with regulations, you'll face obstacles that can hurt your campaign performance if you're not careful. Here are the most common challenges businesses encounter and practical ways to address them:

Managing opt-outs and maintaining list quality

Losing subscribers is part of SMS marketing, but a high opt-out rate usually signals a problem with your content or frequency. Clean your contact list regularly to remove inactive numbers and people who haven't engaged in months. When you add new subscribers, set clear expectations about what they'll receive and how often.

Most SMS platforms let you test different messaging strategies to see what keeps people engaged. Focus on sending valuable content that subscribers actually want, and make the opt-out process simple — trying to make it difficult only frustrates people and damages your brand reputation.

Handling regulatory restrictions and compliance issues

SMS marketing comes with strict legal requirements, and violations can result in serious fines. You need explicit consent before sending texts, which means pre-checked boxes or assumed consent don't count.

Every message must include a clear way to opt out, and you have to honor those requests immediately. Different countries and regions have their own rules, so if you're marketing internationally, you'll need to understand each area's requirements.

The good news is that many SMS marketing platforms handle compliance features automatically, making it extremely easy to stay on the right side of regulations. You can even set up a free account with compliance features built in rather than trying to manage everything manually.

Balancing automation with a human touch

Automation makes SMS marketing scalable, but over-automating can make your messages feel robotic and impersonal. The challenge is using automation for efficiency while still sounding like a real person wrote the message.

Avoid corporate jargon and overly formal language. A picture is worth a thousand words, but in SMS, simple and conversational language is worth even more. Use automation for timing and delivery, but write messages that sound natural and personalize them with subscriber names or past purchase information.

Connect your SMS platform with your favorite apps to pull in customer data automatically, then use that information to make messages feel relevant and personal.

What’s next for SMS sales?

SMS will continue to adapt and evolve alongside technology. Emerging technologies like artificial intelligence (AI) and machine learning (ML) may play a more significant role in SMS marketing as time goes on. They can provide predictive insights on customer behavior, allowing for even more personalized text messaging.

Additionally, the integration of e-commerce platforms and payment gateways directly within SMS interfaces could streamline the shopping experience, making it more seamless than ever.

Mailchimp can be an invaluable tool for businesses looking to stay ahead of the curve in SMS sales strategies. Our suite of marketing tools is continuously evolving, offering integrated solutions for SMS marketing, analytics, and more.