You’ve got a brilliant business, a fantastic product, or a service. But still, you are not able to make it in the market. What’s missing? Are you effectively connected with your audience? Remember what Benjamin Franklin once said, “Lost time is never found again”. In this fast-paced era, you just can’t sit and wait for customers to come to you. All you need is a powerful communication channel that connects your business with the target audience effortlessly. Yes, we are talking about an SMS platform for business.
The impact of SMS platforms on business success isn’t a myth; in fact, we have some solid statistics substantiating the remarkable effectiveness of SMS. Let’s take a look:
In addition to the stats shown in the above image, recent studies reveal that SMS has a 209% higher response rate than email. Large enterprises like Subway implemented SMS marketing in 2015 and by 2018, their campaigns reached over 5 million subscribers. These striking statistics reveal the significance of incorporating the SMS platform for business into your marketing strategy for 2023 and the years ahead.
What is an SMS Platform for Business?
An SMS platform is a software tool that allows companies to send and receive SMS messages to/from their clients, customers, or any contacts. The purpose behind sending/receiving these SMS messages could be marketing, customer support, alerts, notifications, etc.
An SMS platform is alternatively termed Business Text Messaging Solution, Business SMS Software, Enterprise Messaging Platform, Business Texting Platform, and many more.
SMS platforms act as a central hub that facilitates communication between businesses and customers through SMS. These platforms are software-based applications with a very intuitive and easy-to-use interface. Here’s a brief step-by-step working of an SMS platform for business:
- The software-based SMS Platform has a web-based interface just like other software applications. Through this interface, the user can access the platform.
- To create an SMS campaign, Users can start by composing text messages. This is done by selecting the relevant options from the UI and adding content as required. Many SMS platforms come with pre-built templates that make the job more easy.
- The next step is to upload the phone numbers to which the user wants to send SMS messages. A list of contacts can be uploaded to the SMS platform web interface in a suitable format.
- The SMS campaign can be scheduled for immediate release or sent later from the UI.
- The platform provides delivery reports and analytics so that message delivery and engagement rates can be tracked.
- An SMS platform that supports Two-way messaging will allow recipients to reply to the messages. This is useful in the case of feedback or interactive campaigns.
The above-mentioned steps are generic. Based on the SMS platform that you are using, you might have to follow certain steps accordingly.
9 Solid Reasons to Invest in an SMS Platform for Business
As per Statista, “Worldwide, SMS marketers spend $327.1 billion on SMS Marketing, with the US being the biggest market. This figure is expected to reach $339 billion in 2023. The market size is expected to double by 2024. Even global brands like Coca-Cola are spending a large portion of their mobile marketing budget on SMS services.
Now coming to the point. Why it is essential to invest in a reliable SMS platform for business ? Here are 10 solid reasons:
1. An Exceptionally High Open-Rate
Do you know that “The average open rate for text message marketing is 98%.” Surprised?
In a study done on US-based retailers, it was found that 64% of their consumers prefer texting over a voice call and 81% are frustrated being stuck on a call while trying to reach a company.
Well, there’s more. As many as 45% of people reply to SMS marketing messages, allowing brands to start a real-time conversation with consumers. For comparison, email marketing campaigns have an open rate of less than 20%.
2. Instantaneous Reach
SMS Messages are delivered and read immediately. No matter where the customers are, a business can reach them by sending SMS messages on their mobile phones. In scenarios where urgent communication is required, SMS serves as the ideal tool. For example, an airline sends flight delay notifications to the passengers via SMS, reducing customer frustration significantly.
3. Higher Engagement Rates
SMS messages are not just tools to share information, rather they engage customers to respond and interact with businesses or brands. As per statistics, the average response rate for SMS is 45% compared to just 8% for email. That’s a huge difference.
A prevalent use case for a high engagement rate of SMS is “The Time Warner”. The company is a debt collection agency that implemented SMS communication strategies for late bill collection. The results were quite impressive – a 49% increase in late bill collection.
4. Business Opportunity
To understand, take an example an e-commerce clothing business. The e-commerce store sends out cart abandonment reminders via SMS by including the link to users’ carts. Such a campaign results in increased conversions.
5. Versatility in Use
SMS is a versatile communication tool. The adaptability of SMS across various sectors and scenarios facilitates effective communication, engagement, and action. It can be used for marketing purposes like a retail chain sending out discount codes via SMS. A telecom company can offer customer support services via business SMS for telecoms. A healthcare provider can send appointment reminders to patients.
6. Increased Conversion Rates
The average SMS marketing conversion rate is 29%. In terms of the average increase in conversion rates attributed to text message marketing, it’s 156%. The conversion rate for SMS is much higher than other digital marketing channels:
- 3.26% for email marketing
- 3.17% for Google Ads
- 9.21% for Facebook ads
To understand, take an example an e-commerce clothing business. The e-commerce store sends out cart abandonment reminders via SMS by including the link to users’ carts. Such a campaign results in increased conversions.
7. Offers Customization Opportunities
The fundamental rule for successful marketing is getting the right message delivered to the right audience. Now with SMS, a business can send specific messages to certain customers. This can be done by segmenting the contact lists based on different factors like location, time, preferences of the customers, etc.
8. Compliance and Security
Reliable SMS platform vendors ensure data security. They also make sure to comply with the regulations. While this is useful for businesses of all types, financial institutions can significantly benefit from secure SMS ensuring the security of their sensitive data.
9. Future Proof Communication
The communication landscape is constantly evolving. Yet SMS remains one of the most fundamental tools. According to GrandViewResearch, the United States’ SMS marketing market size is growing at a compound annual growth rate (CAGR) of 20.3% from 2019 to 2025. By 2025, it will be valued at $12.6 billion. This explosive growth is largely due to SMS marketing expansion to new industries plus new AI-enabled tools that make SMS services easier and more effective for brands.
Innovative Ways in Which Businesses Use SMS Platforms
With each passing year, businesses continue to bring out surprisingly innovative ways to use SMS. Countries like Sweden started using SMS to thank blood donors for their donations as well as sending them a message when their donated blood was used to save someone’s life. They also informed the donor about their blood report via SMS.
This strategy helped to increase the number of donors when blood donations were at an all-time low. Following Sweden’s success, the Australian Red Cross has also begun to use an SMS gateway to let blood donors know when their donation saves lives. This SMS campaign has encouraged recipients to donate again.
Top 5 Industries Harnessing the Power of SMS Platforms for Business
There is a diverse range of industries around the world that rely on SMS platforms. Here are the most popular ones:
1. Telecom Operators and Carriers
Telecom companies, including Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs), and wholesale carriers, utilize business SMS for telecoms for various purposes. They use these platforms for inter-operator messaging, customer notifications, service alerts, and managing communication with their subscribers.
Telecom companies can expand their portfolio and revenue streams by offering SMS services to their customers. Certainly, they need a reliable and best-in-class SMS platform for business to ensure quality services.
2. Retail and E-commerce Businesses
Businesses in retail and e-commerce also leverage SMS platforms for promotional campaigns, order confirmations, delivery updates, and customer engagement. Through SMS, they send discount offers, sales alerts, and transactional messages to customers.
3. Service-Based Businesses
Businesses in service-based industries such as healthcare, hospitality, salons, and repair services use SMS platforms for appointment reminders, service updates, reservation confirmations, and customer support.
4. Banking and Financial Institutions
Banks and financial institutions deal largely with transaction alerts, account notifications, payment reminders, and security-related messages. SMS serves as an effective and easy communication channel for delivering critical financial information to customers.
5. Marketing and Advertising Agencies
Marketing firms and advertising agencies extensively use SMS platforms to run promotional campaigns, conduct surveys, send event invitations, and engage with target audiences. They rely on SMS for its high engagement rates and immediate reach.
Must-have Features in Business SMS Platform
How do we define the effectiveness of an SMS platform for business ? You got this right. It’s the features of the SMS platform. While every platform will offer some unique features, here are some essential ones-
- Bulk Messaging
This feature helps you send your message to a large number of people in one go.
- Two-way Communication
Through this feature, SMS recipients can reply enabling one-to-one conversations between customers and businesses.
- Opt-out management
Users should be able to opt out of receiving SMS messages from the business using this feature.
- Message Personalization
There should be personalization options so that customer names and other specific details can be added to the SMS messages.
- Contact Management
The availability of tools to manage and organize contact lists for effective usage in SMS campaigns.
- Delivery Reports
Reporting features provide insights into the delivery of SMS messages.
- Campaign Scheduling
It’s the functionality to schedule SMS campaigns for future delivery at specific times.
- Analytics and Insights
Through this feature, you can check and evaluate the performance of your SMS campaigns and engagement metrics.
- API for Integration
Using the API feature, a business can integrate the SMS platform with other systems and tools for easy management.
Get the Most Comprehensive SMS Platform for Business Communication
REVE SMS Platform is an enterprise-grade service that facilitates companies to execute their SMS marketing campaigns with ease. This platform is a golden business opportunity for telecom service providers, wholesale carriers, SMS aggregators, MNOs, and MVNOs who want to start their own Bulk SMS business.
REVE SMS Platform is available in two versions and you can opt for any one as per your requirements-
- REVE Hosted SMS Platform
- REVE Licensed Platform
3 Powerful Features of the REVE SMS Platform
An SMS Platform for business with the right set of features can change the marketing game of your business. So what makes the REVE SMS platform an ideal solution for your business? Here are 4 noteworthy reasons:
1. High Throughput – 1000 TPS from a Single Server
TPS stands for Transactions Per Second. It indicates the processing capacity of the SMS platform. REVE SMS achieves 1000 TPS from a single server. This means the platform can handle and process 1000 messages per second using only one server. Imagine the significant amount of volume of SMS traffic the platform can handle.
2. Automated Invoicing
The automated invoicing feature of the REVE SMS platform streamlines billing and invoicing processes for businesses. It allows for the automation of invoicing tasks, From generating to sending invoices to customers, invoicing tasks are automated based on predefined triggers. This automation reduces manual intervention, saves time, and ensures timely billing for services rendered.
3. Complete Campaign Management
REVE SMS Platform offers tools and functionalities to create, execute, and monitor SMS marketing campaigns effectively. From campaign creation, audience segmentation, message personalization, scheduling, and performance tracking – you can do it all from one interface. Campaign management tools help you to design targeted SMS campaigns, manage contact lists, and analyze campaign performance metrics for better engagement and results.
Conclusion
According to SlickText, over 61% of marketers don’t use SMS marketing in their current strategies. Moreover, 65% of brands admit that they do not have a formal SMS Messaging strategy in place.
This gap provides a significant opportunity for businesses who want to try their hands on SMS marketing. If you would like to discuss your specific requirements with our team, please get in touch.
Note: This post has been updated with the latest information on 13-12-2023.
