Short messaging service (SMS) may be limited to 160 characters, but its impact goes beyond its size. With SMS, brands can reach customers directly, right where they already spend their time: on their phones.
Think of SMS as a powerful complement to email, social, and other touchpoints in your omnichannel strategy. With the right approach, it strengthens relationships, drives conversions, and keeps audiences engaged throughout the customer journey.
You can even use short links in SMS marketing to connect subscribers seamlessly to your other content, whether it’s a landing page, a limited-time promotion, or a product drop.
In this guide, we’ll explain how SMS works, why it’s effective, and the best practices to drive results while keeping messages relevant, compliant, and customer-friendly.
Note: The brands and examples discussed below were found during our online research for this article.
What is SMS marketing, and how effective is it?
SMS is a text-based communication channel used for promotions, reminders, alerts, and two-way conversations with subscribers.
It’s effective because it reaches customers quickly. Research shows that 81% of consumers check messages within minutes of receiving a text. The open rates and ROI of SMS marketing are also consistently strong, often outperforming other channels.
With the right tools, you can scale your SMS marketing efforts across a large audience. Many modern platforms integrate with customer relationship management (CRM) systems, making it easy to automate messages for existing contacts.
However, consent is non-negotiable. Sending texts without permission not only violates privacy regulations but can also damage trust. Always make sure subscribers opt in before launching any campaigns.
And one quick distinction: SMS and MMS (multimedia messaging service) aren’t the same. While they’re both types of text messages, SMS is text-only, whereas MMS supports images, audio, GIFs, and other media.
Types of SMS marketing campaigns
From retail to healthcare to finance, SMS adapts to nearly every industry and audience. Let’s look at the most effective types of SMS marketing campaigns so you can find the right fit for your strategy.
Promotional campaigns
Promotional SMS campaigns are designed to grab attention and drive purchases. When done well, they create urgency and excitement around your products.
You can use promotional SMS to announce new launches, flash sales, or exclusive offers. For example, an online fashion retailer might send: “Exclusive 24-hour sale! Get 20% off all new arrivals. Use code STYLE20 at checkout: [link].”
Transactional messages
Transactional SMS provides timely updates about a customer’s purchase. A logistics company might send: “Your package has been shipped! Track your order here: [tracking link]. Estimated delivery: March 5.”
These messages often include order confirmations, shipping updates, or delivery notifications. And with online shopping so prevalent, customers expect this kind of transparency. In fact, 90% of consumers want the ability to track their order, and 41% want play-by-play updates in real time. Sending these alerts reinforces that your brand is reliable, builds trust, and encourages future purchases.
Conversational SMS
Conversational SMS marketing enables two-way communication between a brand and its customers. It’s an efficient way to answer questions, resolve issues, and build stronger relationships.
This approach is especially effective for customer support. Customers can chat with a bot or connect to a live agent right from their phones, getting answers quickly without the hassle of email threads or long hold times.
Loyalty and retention campaigns
If you have a loyalty program, you can use SMS marketing to communicate directly with members. Sending personalized offers by text drives repeat purchases and, over time, increases customer lifetime value.
These messages might share points balances, alert customers when they’re eligible for rewards, or highlight exclusive VIP perks. A coffee shop chain could send: “You’re just two purchases away from a free drink! Track your rewards here: [link].”
Event-based reminders and alerts
Service-based businesses often use SMS for appointment reminders, helping clinics, salons, and other providers reduce no-shows.
It’s also a reliable way to collect RSVPs and keep attendees engaged with webinars, pop-ups, and other events. For busy consumers, a timely reminder can jog their memory and boost attendance.
Retailers can use SMS messages to announce when in-demand or limited-edition products are restocked. Restock notifications create urgency and drive customers back to your e-commerce site.
Industry-specific SMS campaigns
SMS messaging is most effective when tailored to your industry and customer goals. A few examples include:
- Healthcare providers sharing test results, check-in instructions, or prescription refill alerts
- Retail stores promoting flash sales to drive immediate traffic
- Consumer packaged goods (CPG) brands announcing new product drops to create excitement
- Financial institutions sending fraud alerts or payment reminders to build trust
Benefits of SMS marketing
From speed to engagement, SMS marketing brings unique strengths to your communication strategy. Here’s what makes it so effective:
- Speed: If you need to reach customers fast, SMS content is the most effective option. You can send time-sensitive messages immediately or schedule batches ahead of time.
- High open and response rates: SMS delivers engagement levels that stand out across marketing channels. Gartner reports that SMS open rates can reach as high as 98%, with response rates up to 45%. By comparison, email averages 20% open and 6% response.
- Global reach: SMS marketing messages connect with customers around the world. If your business has an international audience, SMS ensures you can reach them wherever they are.
- Cost-effectiveness: When compared to other channels, SMS marketing for CPG brands is relatively affordable and delivers strong ROI. While there is some upfront investment, the payoff is often significant.
- Complements other marketing channels: SMS can funnel traffic to social media, email, or web content, and reinforce campaigns across digital, TV, or print. Rather than competing, these channels work best together.
- Personalization and segmentation: Today’s SMS marketing tools make it easy to segment your list by factors like location or purchase history. Sending tailored messages increases relevance and engagement.
- Access to customer data: SMS campaigns provide insight into customer behavior and preferences. With Bitly Analytics and other engagement tools, you can track which content resonates most and even gather feedback through two-way messages.
- Scale with short codes: Short codes are five- or six-digit numbers businesses lease from a regulatory agency to replace 10-digit phone numbers. Customers can simply text a keyword to the shortcode to opt in, making it easier to grow your SMS list.
- Personalize with branded links: With Bitly, you can create branded short links that fit neatly into a text message. With premium plans, you can also use a custom domain and back-half, making your links more trustworthy and visually appealing while still saving characters.
Challenges of SMS marketing (and how to overcome them)
SMS marketing delivers clear benefits like speed, scalability, and stronger customer engagement. But it also comes with challenges that can undermine results if left unaddressed. Marketers need to understand these limitations and plan ahead to overcome them.
Limited character space for messages
With only 160 characters, every SMS needs to make its point quickly. Messages that run long may split into multiple texts, weakening their impact.
The key is clarity: include a strong call-to-action (CTA) and avoid fluff. If you’re linking to digital marketing assets, use Bitly to shorten URLs and save valuable space.
Instead of something like this:
“[Store name] is having a sale this weekend! Hurry, this offer won’t last long! Visit our site now to shop [link]”
Condense it to:
“40% off all [store name] clothing this weekend! Shop now and save [link]”
The latter delivers value and direction clearly, while still fitting within the limit.
Getting customers to opt in (and preventing high opt-out rates)
To stay compliant, every customer must opt in to your subscriber list. That requires written consent before you can send any marketing messages.
The challenge is convincing people to sign up when their phones already feel crowded. The solution is clear: show the value upfront. Special offers, early product alerts, or timely shipping updates give customers a reason to subscribe.
Promote this value consistently through your email newsletter, social media posts, or even QR Codes on in-store displays, so potential subscribers know exactly what they’ll get when they enroll.
While opting in is important, it’s just as critical to give customers an option to opt out. Every marketing text needs to include an opt-out option so recipients can unsubscribe at any time. If your messages lack value, customers won’t think twice about using it.
The best way to reduce opt-outs? Make every text worth the tap. Share promotions, updates, or reminders that feel relevant, and use audience segmentation so only the right subscribers receive them.
Navigating compliance and security regulations
When sending marketing texts, you must follow telecommunications and privacy laws in every country where your recipients are located. Ignoring these rules can lead to fines from government bodies and, just as damaging, a loss of customer trust.
While regulations vary by region, most require businesses to disclose that they’ll be sending marketing messages, obtain clear written consent, and provide subscribers with an opt-out option at any time.
SMS marketing regulations you need to know
Around the world, governments have set rules to protect consumers from unwanted text messaging. Some of the most important include:
- Telephone Consumer Protection Act (TCPA): A U.S. law passed in 1991 that sets telemarketing best practices. Businesses must obtain consent before sending texts, include clear exit paths, and avoid contacting anyone on the National Do Not Call Registry.
- Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM): Originally created to regulate email, this 2003 U.S. law also applies to text messaging. It requires businesses to clearly identify themselves and avoid misleading practices.
- General Data Protection Regulation (GDPR): This 2016 EU law strengthens consumer privacy protections. Like TCPA, it requires consent and opt-out options, but also mandates the secure storage of consumer data and deletion upon request.
Some industries must follow additional compliance rules:
- Healthcare: HIPAA and related laws prohibit sending protected health information via SMS. Providers must use secure text messaging services instead.
- Finance: SEC and FINRA guidelines require archiving all business-related text messages for audits.
Many other countries have similar SMS marketing regulations. Wherever your customers are located, the essentials remain: obtain consent, clearly identify your business, be transparent in every message, and always include a way to unsubscribe.
SMS marketing best practices
Ready to incorporate SMS marketing into your sales strategy? Following proven best practices helps ensure your messages feel timely, relevant, and trustworthy. Use the guidelines below to build campaigns that engage your audience and strengthen long-term relationships.
Obtain explicit consent and maintain compliance
Getting explicit opt-in consent before sending SMS messages is crucial—not just as a best practice but as a legal requirement. Regulations like the TCPA in the U.S. and the GDPR in the EU mandate it.
Failing to secure consent risks fines and can damage your brand’s reputation. To stay compliant, follow these essentials:
- Opt-in consent: Customers must voluntarily subscribe to receive SMS messages.
- Clear disclosure: Let subscribers know the type and frequency of messages they can expect.
- Easy opt-out options: Every SMS must include a simple unsubscribe method, such as replying “STOP.”
Once a customer opts in, send a confirmation message to set expectations:
“Thanks for signing up for [Brand Name] SMS alerts! Expect 2–4 messages per month with exclusive deals and updates. Reply STOP to unsubscribe.”
For added transparency, consider a double opt-in process—sending a follow-up confirmation text after the initial sign-up. This not only clarifies consent but also strengthens your compliance record.
Align SMS with your broader marketing strategy
The most effective SMS marketing campaigns don’t stand alone. They fit seamlessly into your broader strategy. Whether you’re running email campaigns, social ads, or in-store promotions, SMS should reinforce those efforts to create a unified, omnichannel experience.
For example, you might use SMS to follow up on email marketing campaigns, sending timely reminders or exclusive offers to subscribers who haven’t opened your emails. You can also drive traffic to your social channels or spotlight limited-time contests to boost participation.
Keep messages short, clear, and actionable
With a 160-character limit, every word counts. The strongest SMS messages are concise, direct, and actionable, so recipients instantly understand the value and the next step.
Examples of strong vs. weak SMS messaging include:
- Effective: “Flash sale today! Click here to shop: [link]. Use code FLASH20 at checkout for 20% off.”
- Ineffective: “Hey! We have some great deals for you. Check our website for more info.”
Personalize messages for higher engagement
Consumers are more likely to respond to SMS campaigns that feel personal instead of generic. By using customer data, businesses can craft targeted messages that resonate on a deeper level.
Segmenting your SMS list by demographics, location, or past purchases is one of the easiest ways to send relevant messages to your target audience. For instance, a retail chain might focus on specific cities where foot traffic is low, sending personalized offers designed to drive visits and sales.
Send your text messages at the right times
One of the most common SMS marketing mistakes is poor timing. Messages sent too early or too late can feel intrusive and drive unsubscribes.
Aim to send texts when customers are already active on their phones. Midday often works well, as many people check messages on lunch breaks. Research also shows Thursdays, Fridays, and Saturdays tend to see higher response rates.
That said, timing isn’t one-size-fits-all. A/B test different send times to find what sticks with your audience, and always match the timing to the campaign type. For example, delivery notifications should arrive within minutes of drop-off, while appointment reminders are most effective about 24 hours before the scheduled time.
Offer value in every message
For SMS marketing to succeed, each message should give recipients a clear reason to engage. Texts that feel generic or overly salesy risk being ignored or driving people to unsubscribe.
Here are some ways to keep your texts worth reading:
- Exclusive offers: Reward customers with VIP perks, early access to sales, or special giveaways.
- Useful reminders: Send appointment confirmations, restock alerts, or subscription renewal notices.
- Personalized messages: Recommend products based on past purchases, re-engage abandoned carts, or share educational content tied to recent orders.
Make opt-out simple and transparent
While SMS marketing can strengthen customer relationships, overuse can quickly backfire. In fact, 56% of consumers have purchased less or stopped buying from a brand altogether because of excessive texts.
To maintain trust and credibility, keep frequency reasonable (two to four texts per month is a safe benchmark). Just as important, include a clear way to opt-out in every message. A simple instruction like “Reply STOP to unsubscribe” reassures customers they’re in control, reducing frustration and strengthening long-term engagement.
Segment your SMS audience for better targeting
Not all customers share the same interests or behaviors, so sending generic texts isn’t effective. Segmentation can help ensure each recipient gets content that feels timely and meaningful.
Here are a few ways segmentation can boost engagement:
- Long-term subscribers: Give early access to upcoming sales or exclusive product launches.
- New customers: Send a welcome message with a special discount to encourage their first purchase.
- Inactive customers: Reignite interest with a re-engagement text that includes a personalized offer.
These are just starting points. You can also build segments around lifecycle stage or purchase frequency so that new leads get a different experience than loyal, repeat customers.
Use short links to track SMS performance
Short links give you more room for impactful, conversion-driven copy while making your messages look clean and trustworthy. With Bitly, you can replace a generic domain (like bit.ly) with a branded identifier (like The New York Times using nyti.ms), reinforcing brand recognition and professionalism.
The real power comes from analytics. Bitly Links track key metrics that show how your audience engages with your content, including:
- Total clicks to measure engagement
- Clicks over time to reveal trends
- Location data to see where customers interact most
A/B test SMS messages for continuous improvement
A/B testing helps you refine campaigns by comparing different elements to see what resonates most with your customers. You might test message timing, CTA placement, or even the type of offer.
To run an effective A/B test:
- Choose one variable to test—for example, different CTAs like “Shop Now” vs. “Claim Your Discount.”
- Split your audience into two equal, random groups and send each version separately.
- Measure results with a third-party analytics tool like Google Analytics to track click-through rates, response rates, and conversions.
Advanced SMS marketing strategies to try
Once you’ve covered the basics, the next step is to optimize your SMS marketing for even stronger results. Moving beyond short, generic promotions, you can use automation, personalization, and cross-channel integrations to deliver a richer customer experience. These advanced strategies help transform SMS from a simple touchpoint into a seamless part of your overall marketing mix.
Automate SMS campaigns with smart triggers
Automation lets you deliver tailored communications at the right time, without manual effort. Modern SMS tools use smart triggers to respond instantly to customer actions, such as:
- Welcome message for new sign-ups
- Post-purchase follow-ups for feedback
- Re-engagement nudges for inactive customers
- Retargeting messages for cart abandonment
Use conversational SMS to enable two-way engagement
Conversational SMS makes it easy to create dialogue with your customers. By enabling two-way messaging, you can connect them to AI chatbots or live agents for quick support, or even run feedback surveys in real time. This interactivity not only resolves issues faster but also strengthens engagement and loyalty.
Integrate SMS with your CRM for customer journey mapping
Connecting SMS tools with your CRM or customer data platform (CDP) gives you a complete view of the customer journey. With existing data, you can segment more precisely and deliver targeted outreach that matches each stage of the lifecycle.
This integration also ensures SMS works in harmony with other strategies—think coordinated campaigns across SMS, email, and digital retargeting—so customers stay engaged without feeling overloaded.
Launch holiday and event-based SMS campaigns
Seasonal and event-driven campaigns tap into urgency and motivate customers to act fast. Use SMS to promote holiday promotions, pop-up events, sales, or new products, and plan them in advance so your timing feels intentional, not rushed.
Segmentation is key here too: if a sale is happening at one location, target only nearby customers to keep messages relevant and effective.
Combine SMS with QR Codes and landing pages
Bitly’s short links, QR Codes, and customizable landing pages extend the impact of your SMS campaigns by creating richer digital experiences. With Bitly Analytics, every click and scan is trackable, giving you clear insight into what’s working.
For instance, you might use Bitly Pages to share product details, coupons, or event info, link to it with a short link in your SMS, and reinforce it with Bitly Codes on in-store signage or print materials.
Turn SMS best practices into real business impact
SMS is a powerful, cost-effective way to reach customers directly on their phones. With well-crafted messages, it drives quick engagement, scales reliably, and when integrated with your omnichannel strategy, strengthens relationships and supports business growth.
Bitly’s short links, QR Codes, and landing pages amplify your SMS marketing strategy. Branded short links save space and build trust, QR Codes bridge the gap between digital and physical touchpoints, and landing pages give subscribers a clear next step—all backed by Bitly Analytics for measurable results.
Ready to elevate your SMS campaigns? Sign up for Bitly today and turn every text into a trackable, conversion-driving connection.
