Executive Summary

As one of the fastest-growing tools in a marketer’s arsenal, SMS can be a highly effective customer communication channel, but it also comes with its own set of challenges.

How big is SMS in the business world?

Business-to-consumer (B2C) text messaging is growing rapidly. According to Juniper Research, global mobile business messaging traffic hit 2.7 trillion in 2020, up 10% from 2019. Brands are using SMS in various customer communication applications, including marketing messages, customer support, transactional messages, and more.

What is driving growth for SMS marketing?

The pandemic undoubtedly accelerated adoption of SMS marketing, with cloud communications provider Infobip seeing 8.5% and 20% growth in SMS marketing messages in March and April 2020, respectively, compared with February. In January 2020, 51% of retail marketers in a CommerceNext survey sponsored by Exponea said they planned to increase investment in messaging or SMS marketing; that figure grew to 56% in June.

What are some of the challenges to SMS marketing?

Because customers open SMS marketing messages more frequently than emails, SMS unsubscribe rates are higher, according to experts we interviewed. SMS marketing messages are also regulated by federal law, and marketers should be aware of brand safety issues when using shared short codes.

How should marketers prepare for SMS marketing in 2021?

Marketers must develop or audit their SMS marketing strategies, including figuring out what types of messages they will send, determining frequency and length, and embracing tactics that will allow their marketing lists to grow.

WHAT’S IN THIS REPORT? This report discusses the business applications of SMS messaging, the pros and cons of SMS marketing, its relationship to email marketing and live chat, and best practices within the discipline.

KEY STAT: Pre-pandemic, 51% of US retailers planned to increase their investment in messaging and SMS platforms; by June 2020, that figure had jumped to 56%, above all other technologies.