SMS marketing used to be just about last-minute deals, like flash sales, limited-time offers, and those “Hey, you left something in your cart!” nudges. And that definitely works. But lately, SMS has been stepping out of its retail bubble and doing a whole lot more, especially for software-as-a-service (SaaS) brands.
See, here’s the thing: SaaS isn’t about one-and-done transactions. It’s about keeping people around and helping them get the most out of what they’ve signed up for. Turns out, a quick text can go a long way there. So, what used to be a promo tool is now pulling double (or triple) duty.
Sounds promising, right? Let’s break down how to use SMS in smarter, more strategic ways. From onboarding to support to re-engagement, it can do a lot more than send promotional messages.
The SMS messaging advantage
Customer communication can get messy fast. With emails, social posts, chatbots, and a dozen other touchpoints, it’s no surprise when key messages slip through the cracks. SMS offers a clearer, more direct path. It’s quick, easy to see, and doesn’t require more than a few taps on your mobile phone.
Think of it like a helpful concierge for your SaaS product. SMS messages don’t wildly shout at everyone in the vicinity. They step in at the right moment with just the thing each user needs, whether it’s onboarding support, new feature announcements, or renewal reminders.
One well-timed text message can make all the difference. And for SaaS teams, this instant connection is more than convenient. It’s a serious competitive advantage.
What text messages can do for your SaaS business
At the end of the day, every SaaS company wants to win new users, keep them engaged, and build lasting relationships. SMS might not be the flashiest tool in the stack, but it delivers real results in all 3 of these areas.
Boost conversions
The trial-to-paid jump is where many SaaS companies struggle, but SMS changes the game. When almost every message gets opened within minutes, you can guide free trial users to success in real time. A quick text about completing onboarding, trying out features, or snagging a limited-time deal helps people see your product’s value before they walk away.
Level up the user experience
A great user experience means being helpful when people need it most. SMS lets you jump in with quick tips when someone gets stuck, warn them before they hit limits, or share features to solve their specific problems. It’s like having a dedicated assistant for every single user.
Improve customer loyalty
SaaS product loyalty comes from feeling valued and supported. SMS helps you create those moments with quick check-ins, proactive help, or simple appreciation messages. When customers feel like you care about their success, they stick around longer and tell others about you.
How SaaS companies put SMS to work
Once you start thinking about SMS strategically, you’ll spot opportunities everywhere in your customer journey. It’s not here to replace your other channels like email, chat, or in-app messages, but to support them. Used the right way, SMS fills the gaps and helps you exceed customer expectations at every turn. Here are some ways to put this channel to work for you.
Marketing campaigns
You need a steady pipeline of prospects to keep your SaaS business growing, and SMS marketing campaigns deliver results fast. Text messages help you capture new leads, upsell current customers to premium plans, and re-engage with inactive users.
The key? Always include a clear incentive and deadline, like “Get 20% off annual plans—offer expires Friday!” For maximum impact, automatically trigger SMS marketing messages based on email or website activity, using automation to keep everything working together behind the scenes.
Trial and demo follow-ups
When users sign up for a free trial or demo, the clock starts ticking. Interest is high, but it can fade quickly. SaaS SMS enables your Sales team to follow up while prospects are still engaged and actively exploring your product.
Sometimes, all it takes is a well-timed message with a helpful tip or a quick check-in to see how things are going. It’s also a great chance to offer a phone call in case they’d like to talk through their goals or ask questions in real time.
Onboarding support
A new user’s first experience with a product is the most critical—and often the most confusing part of their journey. While long welcome emails have their place, they can be overwhelming or just get missed in cluttered inboxes.
SMS helps by breaking the onboarding process into small, bite-sized pieces directly delivered at just the right time. This could be something as simple as a “Welcome!” text on the first day, followed by a link to a short video tutorial about 24-48 hours later.
Feature announcements
Launching something new is exciting, but only if your users actually know about it. Text messages give you a direct channel to share updates without relying on users to check their inbox or log into your app.
To increase customer engagement, be strategic about who gets which messages. Most users care about features related to their daily workflow, not every single update.
Renewal reminders
Losing a customer due to an expired credit card is a problem that’s easy to avoid. You just need to send a quick renewal reminder via text to give users a gentle heads-up before their plan lapses.
Add a secure text-to-pay link, and you make it effortless for users to update their billing info on the spot. A simple message like “Your plan renews in 3 days. Need to update your payment info? Just tap here: [link]” makes the whole process easy and stress free.
Customer support
When users have tech issues or complaints, quick support is a must. Start with an SMS chatbot to handle common issues. If they need more help, the conversation can easily shift to a live agent.
Want to give users more flexibility? Add links to other support channels, like Facebook Messenger or a customer self-service portal. That way, they can pick up the conversation wherever it’s most convenient for them.
Urgent product alerts
When your service goes down or you need to do scheduled maintenance, customers deserve to know immediately. SMS ensures critical updates reach users right away, not hours later when they finally check their email.
Use mass text messaging to quickly inform your entire user base about downtimes, security issues, or other urgent situations. It shows you’re proactive about communication and you respect that your customers rely on your service to get things done.
Security messages
When it comes to account security, timing is everything. SMS delivers instant alerts for unusual login attempts, password resets, or suspicious activity so users can respond immediately if needed.
It’s also the perfect channel for sending SMS one-time passcodes (OTP) and two-factor authentication requests. These extra layers of protection help keep accounts secure, even if login credentials end up in the wrong hands.
Must-have features in any SMS marketing tool
SMS marketing tools range from basic broadcast systems to sophisticated automation platforms. For technology companies serious about customer engagement, settling for a basic service provider isn’t an option. Here are the features to look for.
Segmentation
Not every user needs the same message. A good SMS platform should let you segment your audience by behavior, lifecycle stage, plan type, location, and more, so you can target the right people with relevant content.
Automation
Good SMS timing runs on smart automation. You’ll want a tool that makes it easy to send messages at just the right moment, like when someone signs up or reaches out for help. Try it out first to confirm that building workflows feels intuitive, not like a total headache.
SMS scheduling
Sometimes, you need to schedule SMS notifications in advance, like sending a reminder before weekend maintenance. Your platform should make scheduling across time zones simple and even suggest optimal send times based on your audience’s activity.
Two-way messaging
Texting shouldn’t be a one-way street. Choose a platform that supports replies so users can ask questions, confirm details, or give feedback right in the conversation. Bonus points if your tool makes it easy to loop in your team when a human needs to step in.
MMS message capabilities
Don’t settle for text-only platforms if you plan to share screenshots, product demos, or visual content. Ensure the tool supports images and videos without complicated work-arounds. Also, check if there are file size limits that might restrict what you send.
Analytics and reporting
You can’t improve what you don’t measure. Your platform should show you which messages land (and which ones flop). Look for clear metrics like delivery rates, click-throughs, and replies so you can fine-tune your approach over time.
Integrations
SMS works best when it’s connected to the rest of your tech stack. Only consider tools that integrate smoothly with your customer relationship management (CRM) system, marketing platform, or support channels. This way, everything stays in sync and your data flows cleanly.
SMS message templates
Templates save time and keep your tone consistent. Your SMS tool should let you create and reuse messages for things like onboarding, payment reminders, or quick check-ins. Ideally, you’ll be able to simply adjust the details and send.
Compliance support
SMS has rules, like getting consent, respecting quiet hours, and making opt-outs easy. Your platform needs to have built-in features to help you follow those rules automatically. It’s the only way to truly protect your brand and ensure you retain your audience’s trust.
Steps to launching your first SMS marketing campaigns
Your first SMS campaign sets the tone for everything that follows, so it’s worth doing it right. Follow these steps to launch with confidence and start seeing results quickly.
Step #1: Align with your marketing strategy
Think about where SMS fits into your overall strategy. The idea is to have it complement your other marketing channels, like email or in-app messages, not compete with them. Look for spots where a brief message could help people take the next step.
With that in mind, pick a specific goal for your first campaign. For example, are you trying to get more trial users to convert to a paid plan? Or do you want to improve customer satisfaction? Clear goals now help you determine which features you need in an SMS platform and how you’ll measure success.
Step #2: Choose the right SMS platform
Now, it’s time to find the right SMS platform for the job. Revisit those must-have features with your strategy in mind.
- Want to boost trial conversions? Look for strong segmentation and automation.
- Prefer to improve customer support? Make sure two-way messaging is easy to manage.
- Planning omnichannel campaigns? Verify that your SMS and email tools can work together.
As you compare options, closely read the fine print:
- Does the SMS service provider offer short codes or toll-free numbers?
- Can you replace your phone number with a custom sender ID?
- What happens if you go over your SMS message limits?
- How reliable is message delivery?
Then, look at the SMS pricing. Is it pay-as-you-go or subscription-based? Are you able to start with a lower-tier plan and then scale up as you grow?
Once you find a platform that checks all the boxes, try before you buy. Switching platforms later is a pain, so you want to get it right the first time around.
Step #3: Build and segment your SMS marketing list
Building your SMS list isn’t as simple as copying your email database. In fact, that’s a big no-no. You need explicit permission to text people.
To get proper opt-ins, use pop-ups on your website, targeted email campaigns, and checkboxes during account creation. Always clearly explain what kind of texts people can expect and how often.
As your list grows, segment your audience by behavior, plan type, or stage in the customer journey. This allows you to send personalized texts at just the right moment every time.
Step #4: Craft personalized messages
Now that you have your audience nicely segmented, you can move on to the fun part: writing the messages themselves. The best texts are short, easy to understand, and have a clear call to action (CTA).
Using your goals as a guide, think about the types of messages each group should get, like a welcome text for new users, a check-in during a trial, or a renewal reminder for active subscribers. Then, craft messages to speak directly to each segment’s needs.
Write conversationally and in your brand voice. Make every word count, as you have limited space and only seconds to capture attention. Need to share more details? Include a link to a landing page, blog post, or help doc.
Step #5: Set up automation, launch, and optimize
With your personalized messages ready, the final step is to put your campaign into action. This involves setting up automation triggers to send the right text at the perfect time. You might also want to set up additional messages to go out automatically for things like product launch announcements and scheduled downtime.
Once your campaign goes live, keep tabs on performance. The metrics you monitor will depend on your goal for the campaign. If you’re trying to convert trial users, track conversion rates and trial-to-paid percentages. For customer support campaigns, focus on response times and resolution rates.
Use your data to make quick adjustments. SMS campaigns can be optimized in real time, so don’t wait weeks to improve what’s not working.
Key takeaways
- Think beyond promotions: For SaaS, the real power of SMS isn’t in sending deals, but in guiding users through their entire journey, from onboarding and support to long-term retention.
- Choose your tools wisely: Look for SMS platforms with automation, segmentation, two-way messaging, and built-in compliance support so your campaigns run smoothly from the start.
- Get the timing right: Whether it’s a trial follow-up or a renewal reminder, a well-timed message can guide users to take action while interest is still high.
- Make every message personal: Tailor texts based on user behavior, lifecycle stage, and preferences to boost engagement and get excellent results.
- Start smart, then optimize: Launch with a goal in mind, monitor performance, and tweak your approach as you go to get better results with every send.