How can Text Message Advertising Help Your Local Business?

It may be a bit outside your comfort zone because it’s a new type of marketing, but using text message marketing can really help increase foot traffic for local businesses. From restaurants to mortgage companies, this type of marketing provides a high “open and read rate”, along with a large return on investment. With the right message, you can see your restaurant fill up with guests, watch shoppers fill your store or experience a flood of phone calls about the services you offer.

What is Text Message or SMS Marketing?

Text message or SMS marketing is a type of advertising allowing your business to send a text message to the phone numbers on a list you’ve created yourself or purchased the rights to use. The message can include a coupon code, QR code or advertise a special promotion. Local businesses use these messages to deliver coupons, drive people into their business or create leads through phone or email.

Benefits of Text Message Advertising

1.  Open Rate

Compared to many of the other types of marketing, the open rate for text message marketing is much higher. In fact, over 95% of the people you send a text message to will read it within 15 minutes of receiving it. Email marketing doesn’t even compare with an open rate less than 20%.

2.  Response/Redemption Rate

Direct mail marketing is one of the most popular ways to get the word out whenever you’re having a sale, releasing a new product or you just want to drive business to your store. However, this type of marketing only gives you about a 2% response or redemption rate. With SMS text messaging you gain a much higher response/redemption rate of 20% on average and in most cases much higher. This is better than the rates found with print advertising, radio, TV and email.

3.  Permission Based Marketing

With SMS marketing, the person receiving the message has actually opted-in to receive your advertisement. Either they signed up for a rewards program within your business or they opted-in through another source to receive your message. This means they want discounts, coupons and special offers. When you send out your coupon through text, these people are more likely to redeem.

4.  Speed

One of the major benefits of text message marketing for local business is the speed of delivery. Unlike direct mail, the message is delivered instantly and unlike email, it goes directly to a mobile phone, which most of us carry with us 24/7. Imagine sending a text coupon at 11:30am for a lunch special in your restaurant and seeing a crowded dining room by 12:30pm. This is very possible with the right message and the right implementation of SMS marketing.

5.  Return on Investment

Most traditional marketing methods require physical printing or creation, but with text message marketing you don’t need to create anything other than your message. This helps to save you money and with the higher “open and read rate”, you receive a larger ROI. Typically, it’s less than $30 to send 1,000 text messages and you get a redemption rate of 20%, which means you will make more compared to sending 1,000 direct mail pieces giving you a redemption rate of 2% and costing far more to send.

An Example of How You can Benefit from SMS Marketing

A restaurant owner discovered he was losing customers to a new restaurant that opened up down the street. Through text message marketing, he offered a buy one entree, get the second at half price to anybody signing up for his VIP mobile list. Within just a few days, his list had over 100 subscribers. As he continued to build this list, he started sending out weekly discount codes to all those on the VIP list.

In just a few short weeks, he increased his sales by nearly 20% and had built his list to over 200 subscribers. This list gives him direct access to reach out to his customer base whenever necessary. He can run specials, discounts and other promotions with an almost guaranteed full restaurant because of his SMS marketing efforts. He was able to cut all other types of marketing after just one month, which saved him thousands of dollars every year.

This is just one example how a business can use SMS marketing to increase revenue, cut marketing costs and gain instant access to their customer base. By communicating with people already interested in your product, service or business, you can stay at the front of their mind. This leads to more sales to your customers and can make each customer worth more than triple the revenue every year.

Statistics to Back up the Success of Text Message Marketing

  • Over 75% of smartphone users reported they use their smartphone to help with shopping
  • More than 50% of US mobile ad spending is done on a local basis
  • In the UK, the most effective form of advertising in 2011 was SMS marketing
  • With SMS advertising companies can achieve nearly a 100% impression rate
  • Over 90% of text message ads are read within 4 minutes of sending
  • Over 60% of all mobile consumers (18-50 years of age) use SMS on a daily basis
  • ALL mobile phones in the United States are capable of sending and receiving text messages
  • SMS marketing is the leader in ease-of-use, cost savings, adoption rate and availability
  • Over 85% of Americans own a cell phone

With the ability to send a coupon, special offer or any other type of message instantly, text message marketing is becoming one of the most popular ways to follow up with customers. The process is very easy to implement and the low cost of sending your text messages makes it one of the most affordable ways to advertise. Simply collect customer information and use SMS marketing to advertise to consumers already familiar with your business.

If you’re looking for a great way to increase your business and you want to make sure you can stay in contact with your customers, text message marketing will provide you a viable solution. Local businesses can increase foot traffic, fill their restaurant or drive more traffic to their website simply by using SMS marketing.


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