Key Insights
Essential data points from our research
SMS open rates are as high as 98%, compared to just 20% for email marketing
90% of SMS messages are read within 3 minutes of being received
The average response rate for SMS marketing is 45%, while email response rates are around 6%
75% of consumers are comfortable receiving SMS messages from brands as long as they opt-in
64% of consumers think businesses should use SMS usage more often to communicate with them
58% of consumers say texting is the most effective way for business communication
SMS marketing campaigns can produce a 6-8x higher ROI than email marketing
Coupons delivered via SMS have redemption rates 10 times higher than those of printed coupons
29% of targeted SMS recipients click on a link in the message and 47% of those make a purchase
61% of marketers planned to increase their SMS marketing budgets in 2023
Only 39% of businesses currently use text messaging to communicate with customers, indicating a growth gap
28% of large enterprises are currently using SMS marketing for promotional purposes
56% of businesses use SMS to schedule appointment reminders for support or service
SMS support reduces customer churn by up to 15% through faster resolution
77% of consumers are likely to have a positive perception of a community that offers SMS customer service
Adoption & Usage
- 161% of marketers planned to increase their SMS marketing budgets in 2023
- 2Only 39% of businesses currently use text messaging to communicate with customers, indicating a growth gap
- 328% of large enterprises are currently using SMS marketing for promotional purposes
- 4The SMS marketing software market is expected to grow at a CAGR of 20.3% through 2028
- 570% of small businesses use SMS marketing to communicate with existing customers
- 635% of marketers are currently adopting SMS as part of their multi-channel strategy
- 7Use of A2P (Application-to-Person) SMS is projected to reach 3.5 trillion messages by 2025
- 880% of business professionals currently use text messaging for business purposes
- 9The number of people opted in to receive business SMS messages is projected to rise to 3.6 billion by 2025
- 10Retail and E-commerce sectors account for over 25% of the total SMS marketing usage
- 1155% of companies that use SMS marketing are B2C companies
- 12SMS traffic is expected to reach 44.8 Exabytes annually by the end of the decade
- 1342% of marketers say the biggest barrier to SMS adoption is lack of staff/resources
- 1453% of marketers include SMS in their top 3 revenue-driving channels for 2023
- 1592% of US adults carry a text-enabled phone, driving ubiquitous adoption of the channel
- 16The global SMS marketing market size was valued at USD 5.7 million in 2020
- 17Over 65% of brands now have a dedicated mobile marketing strategy that includes SMS
- 18Cross-channel campaigns including SMS see 90% higher customer retention than single-channel aiming
- 1933% of B2B marketers utilize text messaging to communicate with clients
- 20Mobile users in the US send 2 trillion text messages annually, driving the infrastructure for business adoption
Interpretation
SMS marketing is a sleeping giant in plain sight: almost every adult carries a text-enabled phone and the channel is forecast to handle trillions of messages and billions of opt-ins by 2025, yet only a minority of businesses have scaled it, creating a huge revenue and retention opportunity for companies that overcome modest staffing and resource gaps.
Consumer Preferences & Behavior
- 175% of consumers are comfortable receiving SMS messages from brands as long as they opt-in
- 264% of consumers think businesses should use SMS usage more often to communicate with them
- 358% of consumers say texting is the most effective way for business communication
- 454% of consumers would like to receive marketing promotions via text message
- 560% of consumers prefer to book appointments via text rather than calling
- 666% of consumers prefer mobile messaging to any other communication channel
- 791% of consumers are interested in signing up for texts from brands
- 867% of people would rather text with a business about appointments than talk on the phone
- 977% of consumers have a positive perception of a company that offers text capability
- 1044% of consumers would rather send a text to support than wait on hold
- 11Consumers are 2x more likely to prefer texting over email for urgent matters
- 1233% of adults under 30 prefer text for business inquiries compared to email
- 1359% of users say they want communications about billing and collections via SMS
- 1485% of mobile device users prefer a text from a business over a voice call
- 1550% of US consumers make direct purchases after receiving a branded text
- 1643% of consumers say they text businesses proactively to ask questions
- 17The top reason consumers unsubscribe from SMS lists is receiving too many messages (59%)
- 1883% of millennials open SMS messages within 90 seconds
- 1958% of consumers try to reply to a missed call via text
- 20Consumers are 4.5x more likely to reply to an SMS than an email
Interpretation
Consumers have basically handed brands the keys to their thumbs, preferring opted in texts for appointments, billing, urgent matters and promotions, replying and converting far faster than by email and seeing texting as modern service, yet they will quickly unsubscribe if you abuse their inbox.
Customer Support & Loyalty
- 156% of businesses use SMS to schedule appointment reminders for support or service
- 2SMS support reduces customer churn by up to 15% through faster resolution
- 377% of consumers are likely to have a positive perception of a community that offers SMS customer service
- 4Loyalty program members who receive SMS updates save 15% more often than non-SMS members
- 580% of consumers prefer customer service surveys to be sent via text message
- 6The average response time for customer service via SMS is under 5 minutes, compared to 1 hour for email
- 731% of consumers respond to SMS surveys, compared to less than 10% for email surveys
- 89 out of 10 consumers want to use messaging to communicate with businesses about service questions
- 970% of consumers would choose a business that offers text support over one that doesn't
- 10Collecting feedback via SMS has a completion rate as high as 45%
- 1197% of companies found that SMS customer service interactions cost less than voice interactions
- 1240% of customers say they want to be able to text a human agent for support
- 13Customers receiving order status updates via SMS are 22% more likely to return for a second purchase
- 14Loyalty programs utilizing SMS rewards see 3.5x more active participation
- 15Approximately 50% of financial service loyalty updates are now sent via SMS
- 16Companies with omnichannel customer engagement like SMS retain 89% of their customers on average
- 17Resolving a query via text is 25% cheaper for the business than a phone call
- 1838% of consumers rate text as the most convenient channel for customer support
- 19SMS payment reminders reduce overdue accounts by 20%, improving customer relationships
- 2041% of consumers have unsubscribed from a brand's SMS list due to lack of relevant content
Interpretation
Treat SMS like a customer-service cheat code: when messages are timely and relevant they can cut churn by up to 15%, slash support costs and resolution times, drive far higher response and survey completion rates, boost repeat purchases and loyalty engagement, and build positive brand perception, whereas irrelevant texts are exactly why people unsubscribe.
Effectiveness & ROI
- 1SMS marketing campaigns can produce a 6-8x higher ROI than email marketing
- 2Coupons delivered via SMS have redemption rates 10 times higher than those of printed coupons
- 329% of targeted SMS recipients click on a link in the message and 47% of those make a purchase
- 4Retailers using SMS see a 400% ROI on average for their text campaigns
- 5Abandoned cart SMS reminders recover between 15% to 30% of otherwise lost revenue
- 6Customers who receive SMS marketing messages have a 12% higher lifetime value (LTV)
- 7Businesses can reduce missed appointments by up to 80% using SMS reminders
- 8Text messages are 35x more likely to be read than emails are to be opened, increasing conversion probability
- 9SMS drives a 10-15% increase in revenue potential for eCommerce brands
- 10Real estate agents using SMS increase their conversion rate by over 100%
- 1125% of people redeem text-based coupons within 3 days, increased velocity of sales
- 12B2B sales prospects converted 40% higher when contacted via SMS
- 13General retail SMS campaigns see a conversion rate of approximately 23%
- 14Using SMS for internal communication can improve employee productivity by 30%, which indirectly boosts ROI
- 15Sending text follow-ups to warm leads results in a 112% higher lead-to-opportunity conversion
- 16E-commerce brands using SMS attribution see a 24x return on ad spend (ROAS) on average
- 1796% of marketers using SMS say it has helped them drive more revenue
- 18Automated SMS workflows generate 300% more revenue per recipient than one-off blasts
- 19Text marketing campaigns for restaurants yield a redemption rate of roughly 15-20% for timely offers
- 20Including a phone number in Google Ads and enabling click-to-text increases CTR by 6-8%
Interpretation
Ignoring SMS marketing is like leaving cash on the table: texts are read far more often than email and deliver dramatically higher click, redemption and conversion rates, recover abandoned carts and missed appointments, raise lifetime value and employee productivity, and consistently produce multiple times the ROI and ROAS across industries.
Engagement & Open Rates
- 1SMS open rates are as high as 98%, compared to just 20% for email marketing
- 290% of SMS messages are read within 3 minutes of being received
- 3The average response rate for SMS marketing is 45%, while email response rates are around 6%
- 4SMS click-through rates (CTR) can reach up to 19.3% for retail brands
- 5It takes the average person 90 seconds to respond to a text message
- 6About 60% of consumers check their text messages within 1 to 5 minutes of arrival
- 7SMS marketing campaigns generate a 209% higher response rate than phone, email, or Facebook
- 8Marketing text messages are 134% more likely to be read than emails
- 948% of internet users would prefer to receive loyalty updates via SMS
- 10Push notifications have a response rate that is often 7x lower than SMS engagement
- 11Text messages typically have a 19% click-through rate compared to 4% for emails
- 12Verification SMS messages trigger some of the highest engagement with opening rates near 99%
- 13Users interact with SMS brands 5x more than they do on apps
- 14Welcome text messages usually see a churn rate of less than 5% due to high initial engagement
- 1570% of customers say that SMS is a good way for businesses to get their attention
- 16Brands sending interactive rich media SMS (MMS) see 15-20% higher engagement than plain text
- 17SMS engagement increases by 20% when the message includes personalization like a first name
- 18Over 80% of people open every text message they receive
- 19Click-through rates for SMS abandoned cart reminders are frequently above 36%
- 2063% of SMS marketers report higher engagement during business hours (10 AM to 5 PM)
Interpretation
Treat SMS like the guest everyone actually listens to: with open rates around 98 to 99 percent, most messages read and often replied to within minutes, response and click-through rates that handily outperform email, push, and apps, and measurable uplifts from personalization and rich media, it is the fastest, most attention-grabbing channel for driving verifications, abandoned-cart recoveries, loyalty updates, and real conversions while keeping churn low.
