How Much Does Text Marketing Cost?

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If you want to get ahead of the competition, cut through the noise, and reach customers, you need to try all the marketing channels that are available to you. This includes marketing channels that you don’t think are mainstream or popular.

For example, a lot of business owners and marketers underestimate the power of SMS marketing. They think it’s old-fashioned or overshadowed by social media and email marketing. They don’t think obtaining phone numbers is worth the effort, since you have to ask for permission and get people to opt in.

But in reality, they are actually missing out on the incredible benefits of text message marketing. Did you know that SMS messages have higher click through rates compared to email? And that’s just one of the reasons why you should use it.

Gone are the days where single-channel marketing is enough. In this modern landscape, you have to use a multichannel marketing approach or else you will be left behind. SMS marketing can help you reach the largest audience possible.

Today we will be talking about SMS marketing costs, and what to expect in terms of return on investment (ROI). Let’s take a closer look.

What is SMS Marketing?

SMS stands for short message service. SMS marketing is a digital marketing strategy that gives you a direct line to your customers through their mobile devices. This is a good way to complement your existing marketing efforts because you can reach customers no matter what kind of phone they are using. You can reach smartphone users and non-smartphone users alike.

There is literally nothing for you to lose by adding SMS into your multichannel marketing campaign. It’s just like using Facebook messenger to reach your customers.

SMS marketing is all about texting your customers. While this sounds simple enough, the content of your text message marketing matters. Some marketers use it to send multimedia messaging service or MMS, while others stick to text.

One of the biggest advantages of SMS marketing is that these messages are delivered in real time. They are also viewed within a few minutes of being sent. Your recipients are gonna see your message immediately. This makes it perfect for sending bulk text messages and targeted messaging, especially for time-sensitive messages like events and flash sales. If your goal is to increase conversions and sales, you need to start sending SMS marketing messages.

The two main types of SMS messages are promotional texts and transactional texts.

Promotional SMS messages are what you would probably expect to send when you think about SMS marketing. These are promos, discounts, sales, events, etc. The purpose of promotional messages is to build hype around your latest products and services, as well as your limited-time offers. You can generate interest and attract more people to your brand. This is how you generate sales using SMS marketing campaigns.

But you can also send messages that are purely transactional. Transactional texts are alerts and notifications about your customers’ purchases. While they don’t necessarily promote anything, they do improve customer engagement and provide satisfactory customer service. You can give them order confirmation texts, shipping notifications, cart abandonment alerts, etc. This improves the customer experience and makes them more loyal to your brand.

Don’t miss out on the benefits of SMS marketing. More and more consumers are becoming comfortable with interacting with the businesses they love. In fact, most of them now expect to be able to reach businesses via text.

Now let’s talk about how much it would cost you to start your SMS marketing campaign.

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SMS Marketing Cost

Before you can get started with SMS marketing, you might wanna know how much it’s going to cost you. When setting your budget for SMS, you need to think about marketing cost. The three main factors to consider are: cost per message, cost per keyword, and monthly fee.

When we talk about cost per message, this is pretty self-explanatory. It’s what you can expect to pay per message, and this usually goes from $.01 to $.05 per text. If you want to send MMS messages, the cost may be slightly higher.

This will only increase due to the number of customers in your contact list, but generally speaking, the cost is actually very low for the amount of buzz it will generate.

You don’t want to send too many messages anyway, because there are text messaging laws that protect consumers from spam. Later on we will talk about best practices when it comes to text message marketing.

If you want your subscribers to text certain keywords—for example, texting “BRANDNAME” to 55623—you will have to pay for the use of that keyword.

These keywords will cost you around $10 to $25 per month. The good news is that opt out keywords such as STOP are usually free.

Finally, you have monthly fees to consider. This is for using SMS marketing programs. These SMS tools vary widely when it comes to cost, but most of them offer a free trial. These SMS marketing providers help you automate your text message marketing, help you segment your audience, or schedule your texts, among other functions.

There is no one-size-fits-all solution when it comes to SMS marketing. You will have to figure out on your own what software or program works for you. Choose one that helps you achieve your business goals for a reasonable marketing cost.

Of course, you can also start measuring your ROI to see if the platform is working out for you or not. Most SMS marketing programs help you track customer engagement through data and analytics. This way, you can tweak your messaging if something is not properly engaging with your audience.

You can check your click through rates, conversion rate, opt-out rate, and other essential information. This is a good way of assessing how interested your subscribers are in your products, offers, or content. If you are losing subscribers regularly, then your marketing strategy may need some tweaking. Perhaps you’re texting them too often, or your messages are simply not relevant to their interests.

Overall, SMS marketing is one of the most cost effective marketing channels out there because if you use it right, you will make an incredible impact on your customers while saving a lot of your marketing budget. Now let’s go into SMS marketing best practices so you can make the most out of every text you send.

SMS Marketing Platforms: Best Practices

Now that you have an idea on what to expect in terms of SMS marketing cost, we can talk about how to maximize the results of your SMS marketing campaigns through these best practices. You want to know how many messages you are able to send, and whether or not to send picture messages to your customers.

Knowing how to launch your SMS marketing campaign properly is essential, because you wanna make sure you are doing it right. Unlike cold emails, you are not allowed to send cold SMS. That is the tricky part.

As effective as it is, you cannot reap the benefits of SMS marketing without securing permissions from your customers. So the first step when it comes to launching your SMS campaign is to avoid cold SMS.

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Avoid Sending Cold SMS Messages

Sending a cold SMS message means you are sending an unsolicited text to a person who did not sign up for your SMS marketing messages. This is actually illegal, and therefore not the best way to kick off your mobile marketing campaign.

There are several laws and regulations that are designed to protect consumers from spam and unsolicited texts. Unlike emails, SMS messages are a lot more direct, and therefore a lot more personal. While this is somewhat beneficial for marketers, it also has the potential to be invasive or annoying, and that is why cold SMS messages are not allowed.

The Federal Communications Commission (FCC) and the Telephone Consumer Protection Agency (TCPA) require businesses to secure written consent from customers before sending them promotions. Businesses that fail to do so may face substantial charges and fines.

Get Customers to Sign Up for your SMS Marketing Campaign

If customers don’t know how you got their phone number, you are most likely sending them a cold SMS. But instead of risking fines, you can just secure these phone numbers yourself. It’s actually much easier than you think.

If you have customers who really appreciate your products, convincing them to opt into your SMS marketing campaign should be a breeze.

All you have to do is set up a sign up sheet, either in your website or on your landing pages. There, your customers can provide their phone number and give their explicit consent, allowing you to text them with marketing messages.

SMS marketing is an opt-in form of marketing that requires contacts to subscribe. Don’t worry: growing your contact list and collecting subscribers is easy. You can even incentivize your customers for signing up by offering exclusive deals and promos. Soon, you won’t be able to keep track of how many contacts you have.

Avoid Spamming Customers

Remember: don’t send a text unless you have a clear opt-in from your customers. But once you do have their mobile numbers, do not spam them. Some entrepreneurs think that the best way to promote their business is to text their customers regularly, but this marketing channel works best when you use it in moderation.

If you text people every day, no matter how many subscribers you have, you will lose them. People expect texts from their family members, friends, and colleagues. Anything that comes from a brand may be disruptive. Even if they don’t opt out or unsubscribe from your SMS list, they may just start ignoring your messages.

SMS is a very direct line of communication. If you are going to text your customers, you need to make sure you make every message count. By limiting the number of messages you send, you maintain its impact.

It’s also a way of showing your customers that you are only reaching out to them with the most interesting and relevant offers. This way, you are more likely to get those conversions. Text them once a week or only when necessary. This ensures that customers pay attention every time you message them.

Send Relevant SMS Messages

The best way to keep customers from clicking that unsubscribe option is by making sure you are only sending them offers that are actually relevant to their interests. A lot of marketers that use SMS marketing use an SMS program to segment their audience and keep their texts relevant.

You may be thinking SMS marketing won’t let you reach the largest audience since it demands an opt-in and you are not supposed to message customers every day. But SMS marketing is actually perfect for building strong business relationships with your most loyal customers. Solid connections are very important especially for small businesses. As you grow your contact list, you build a network of people who are genuinely interested in what you have to offer.

By sending relevant text messages, you are further solidifying that bond by showing customers that you are paying attention to their needs. You can segment your audience based on recent purchases, interests, demographics, etc.

Not only do you improve your relationship with customers, you also improve your chances of making a sale and converting them. Showing the right customers the right deals will almost always lead to a sale. And because of the direct nature of SMS, your customers will see these offers right away.

Find an SMS marketing software that works for you and start enjoying the benefits of this fantastic marketing channel.

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SMS Marketing Statistics: What is the SMS Response Rate?

SMS marketing is such a cost effective marketing strategy, but you may be wondering: what about ROI?

You will be investing very little in terms of budget, but the benefits are undeniable. Done right, it can improve brand awareness and brand loyalty, plus it will bring you tons of sales and conversions.

With SMS marketing, you can instantly reach everyone in your SMS list. But that’s not all, you can also enjoy a high click-through and read-through rate using text message marketing.

Those marketers who say that SMS marketing is dead are forgetting that 90% of all SMS messages are read within the first 3 minutes. Texts also have a much higher open rate compared to emails.

In 2018, the SMS open rate was as high as 98%. Meanwhile, email marketing campaigns only had an open rate of around 20%. It goes without saying that a good open rate is essential for marketing. If your customers aren’t opening your messages at all, then you’ve basically wasted time and resources.

People have to manually check their inbox to see their emails. Not to mention most branded messages go directly into the spam folder, meaning customers don’t even see them. Meanwhile, texts are displayed immediately. They even get a snippet of the SMS message before they open it.

Email subscribers are constantly getting bombarded by marketing messages. On the other hand, they voluntarily signed up for your SMS marketing.

SMS marketing even has a higher response rate. The average response rate for SMS marketing is around 45%, and the average response time is around 3 minutes.

This means even with the popularity of social media and other marketing channels you can’t beat the impact of a well-written, well-timed text.

More than Sending SMS Messages: Use Kennected to Generate More Leads

SMS marketing gives your company the ability to reach leads, prospects, and customers through their mobile devices. But if you want to take this to the next level, use Kennected while you leverage SMS marketing. This LinkedIn automation tool simplifies your lead generation.

With Kennected, you can unlock the power of automated lead generation. This revolutionary marketing software taps into LinkedIn’s database of professionals, entrepreneurs, CEOs, and decision makers to bring you the best leads for your business. Choose your target audience with ease and find your exact target customers.

Kennected lets you personalize your messages so that your leads are more likely to respond. This also increases your conversion rate significantly. If you want to find a way to stand out in your prospect’s inbox, personalizing your messages is essential. And just like any SMS marketing platform, Kennected does that for you automatically. It is the best tool to complement your existing SMS marketing strategy. This is why many clients have stayed on board for a long time.

Kennected’s Smart Inbox is integrated with your LinkedIn so you can manage all of your prospects’ communication. Imagine being able to send personalized messages to everyone in your defined area or town that has a LinkedIn account. You can craft an offer that is exclusive to LinkedIn. Whether the lead buys something off of your first message or just chooses to connect with you—you win. Once they connect with you on LinkedIn, you have access to their email, phone numbers, and other information that are publicly available.

Kennected can help you build up your SMS list as well as email list for your email marketing campaigns. It’s about being everywhere your ideal potential customers are. Kennected can help you grow your business.

More than 17,000 clients trust Kennected to help grow their businesses. You can be one of them. Book a demo with Kennected today to learn more.

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