The untapped power of SMS marketing in banking
Think about how you use your own mobile device. When do you first watch it during the day? Which messages do you check first? What messages are you most likely to respond to? For most people, the cell phone is accessed within minutes of waking up in the morning, and text messages are viewed before an email is opened.
When it comes to direct marketing, no channel is more immediate or impactful than SMS marketing. 68% of people say that viewing, sending and replying to text messages is the activity they are most engaged with on their phone throughout the day. In addition, 82% of consumers say they open all the text messages they receive.
82% of consumers open every text message they receive.
Since the pandemic, more and more businesses have used SMS marketing to communicate with receptive customers. With much higher open rates and faster than email, SMS marketing is an extremely effective way to reach a large audience of consumers with important messages.
Research has shown that it takes 90 seconds for someone to reply to a text message compared to 90 minutes or more it takes for someone to reply to an email. Since most consumers are carrying their phones at all times, texting is a very reliable way to reach your target audience. And, while text messages may not have the depth of other forms of communication, the simplicity of linking content and compatibility with all brands of mobile devices is why text messages have become so popular. .
Important information about SMS text messaging
More than ever, consumers expect brands to use personalized, real-time communication. There is no such direct and agile communication platform as an SMS message. But, while over 65% of the world regularly uses text messaging, only around 40% of marketers use SMS. The delay in adoption by marketers is a combination of lack of familiarity with how to maximize channel effectiveness and concerns about perceived channel intrusion.
While email inboxes and social media feeds are cluttered with brands speaking directly to consumers enticing people to buy something, brands are looking for new places to talk to customers where they don’t. are not fed up with hearing brands yet. In fact, over 75% of consumers say they prefer to receive promotions via text message rather than seeing advertisements when browsing the internet and social media. By giving consumers the choice to accept or decline, you give them control over the messages they see, instead of interrupting their social browsing.
According to Text Messaging Marketing Report 2020 From SimpleTexting, 42% of Millennials check their SMS 10 or more times per day on average. When asked, “How fast do you check your SMS notifications throughout the day,” nearly 60% of all consumers surveyed said they checked within five minutes of receiving the SMS. In fact, 68% of those surveyed said checking, sending and replying to text messages is the activity they’re most engaged with on their phone throughout the day, followed by:
- Checking for social media updates.
- Checking their emails.
- Make calls.
- Consume news or entertainment.
As with all communication options, consumers have preferences regarding the types of information they want to receive via text message, how often they want to receive text messages from businesses, and other preferences. For example, when it comes to SMS marketing, consumers are most receptive to text messages regarding shipment tracking (75%), order confirmation (65%), schedule reminders (46%), and special offers (35%). Additionally, the majority of respondents (60.8%) would like to be able to text businesses to businesses regarding customer support issues.
60% of customers want to actively respond to businesses by text message regarding customer support issues.
When it comes to who consumers want to receive SMS from the top three industries, customers say they are more likely to opt for SMS are: e-commerce / retail (46%), health care (43%), and banking or financial services establishments (41%). Businesses are seeing 98% open rates and 36% click-through rates for special offers, as consumers appreciate good deals that come to them directly via SMS, rather than sifting through websites, e-mails and emails. -mails and social networks.
When asked about the benefits of texting, over 62% of business owners and marketers surveyed said fast message delivery was the top benefit of texting their audience, followed by customer engagement. strengthened and profitable. With consumers with their phones in hand almost every waking moment, the speed of message delivery and SMS engagement is hard to beat. Text marketing is also very profitable compared to other forms of digital marketing and advertising.
Text marketing is incredibly effective, with SMS open rates reaching 98%.
When asked about the main motivation for using SMS, over 52% of businesses said having a large mobile audience was their main motivation for investing in SMS marketing, followed by capacity for strong customer engagement, real-time reach and open pricing.
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6 Ways To Maximize The Success Of SMS Marketing Campaigns
If you are trying to recommend a new service, activate an inactive account, or provide advice when you need it, communicating over the mobile channel will be one of the most effective options. SMS marketing is a low cost, high performance marketing process that can deliver short messages or multimedia content to customers.
Below are some of the most effective SMS tactics used to increase engagement and response rates.
1. Get permission. Before you send SMS to your customers, you need their permission – by law. Asking for permission gives the opportunity to discuss how text messaging will be used in the future and provides a very easy way to accept or decline. This simple process will increase engagement in the future.
2. Send urgent messages. SMS messages can be perfectly synchronized depending on consumer behavior. From a welcome message after opening a new account to an engagement or special offer message to help a customer use a product or service more effectively, SMS is an ideal marketing channel for communications. that need to be opened and dealt with promptly.
3. Integration with other channels. With only a 160 character limit, you can get the most out of a campaign if you use other channels besides SMS. For example, you can send personalized videos, images, and links to your webpage in text and supplement SMS messages with emails, mobile banking messages, and even phone communications.
4. Personalize SMS messages. As with all outbound marketing, customers respond better to messages addressed to them directly. With text marketing, you can tailor your message to each recipient based on data collected from customer intelligence.
5. Reference locations. Geolocated textual campaigns are a method of personalization as well as an effective way to initiate action and engagement. This type of communication can lead them to a local branch or provide them with an offer from a local business.
6. Measure efficiency. SMS marketing offers a direct, measurable and traceable marketing channel. You can easily determine which messages and promotions are working and which are not, allowing you to refine and improve your text campaigns. Most importantly, you can capture leads and textual responses for sales tracking.
SMS messaging has become one of the most effective ways for financial institutions large and small to connect with their customers and prospects in a very personalized and immediate way. As more and more consumers switch to digital channels, the use of SMS messaging is definitely on the rise. With the success of these campaigns stronger than any other channel in existence, businesses are finding exciting new ways to incorporate them into their marketing plans.