3 Benefits of Using SMS for Lead Generation

By Jake Meador | 28 Feb 2020


woman responding an sms message



There are three main benefits to using SMS marketing to help with lead generation.

First Benefit: Actually reach your audience. 👋

According to email marketing software provider Mailchimp, email open rates average around 21% overall and 17% for marketing and advertising. Even successful email marketers—people who have higher open rates than the average marketer—only succeed around 30% of the time.


The crazy thing is that relative to social media, display advertising, or traditional advertising techniques, email is actually the strongest. Social media reach on Facebook is basically zero. Twitter does not drive traffic in any kind of significant way. Organic search is difficult and requires a huge investment of time as well as a high degree of expertise. Traditional advertising is ineffective.


Compared to all of those failing channels, text message-based marketing is a remarkably successful channel with open rates averaging 95% or higher. 


You can’t even come close to that kind of engagement with any other marketing channel. If you want your marketing communications to reach your prospects and customers, then texting is the way to go.


Second Benefit: Segment your audience and reach them with relevant messages. 👥

Different prospects have different interests and are at different phases in thinking about making a purchase. By observing user behavior and maintaining separate lists, you can target messages and offers to highly specific groups.

  • ✅ Cold Prospects - “Take 40% off one item today! [link]”

  • Past Customers - “Join our free loyalty program! [link]”

  • Current Customers - “How are we doing? Share your thoughts in this survey [link]”

Segmentation is something you can do on email too, but thanks to text messaging’s higher open rate, segmentation with SMS marketing is far more effective.


Third Benefit: Improve marketing messaging by running more effective tests. 🔬

You’ve probably heard the old story about the executive complaining about his marketing: “I know half of it is wasted,” he says. “I just don’t know which half.” 


A common problem in marketing, as that story illustrates, is that plenty of marketing tactics can sound like a good idea and then fail in practice. But, unfortunately, figuring out which ideas are actually good and which ones only sound good is expensive—the only way you find out is by trying.


You run a campaign. You monitor the results. You learn something. You make appropriate changes.


What’s great about SMS marketing is that you can learn things relatively quickly because engagement with SMS messages is so high. 


Let’s say you’re trying out a new discount to see if it increases sales. You want to see how 50 people respond to the offer before deciding whether or not you will continue to use that discount. Assuming an email open rate of 20%, you would need to send the email to 250 people to get 50 opens. So you’ll need to send out 250 messages to find out if the discount is effective.


In contrast, with text messaging, if we assume a 95% open rate, you would only need a text to 53 people to get 50 opens.


In other words, because text messaging is so much more efficient than email you can gather data to assess your marketing performance much faster because you will gather data very quickly. Armed with this data, you can improve your marketing more quickly and identify the best possible ways to generate leads and, ultimately, drive revenue.



Conclusion ⭐

Though businesses are only starting to use SMS marketing as a lead generation channel, the benefits are obvious. You can be confident of reaching your audience, send targeted, relevant messages to specific groups, and quickly improve marketing offers by gathering data to show how campaigns are performing.


If you want to see for yourself what SMS marketing can do, sign up for a free trial today.