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SMS Marketing in 2024: Key Stats and Insights for USA Businesses

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What Is SMS Marketing

The modern race to acquire customers is the ever-growing need of businesses, which gives birth to various channels of reaching those potential clients, hence the whole concept of advertising and marketing. This doesn’t necessarily involve converting leads into customers but also maintaining a healthy relationship with them. One of the multiple marketing channels, which is also very efficient, includes SMS (Short Message Service). SMS marketing is a type of marketing that allows businesses of all sizes to deliver promotional information to clients via text messages. In other words, SMS marketing is the same as text marketing.

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What Is SMS Marketing

You must sign up or subscribe to an SMS marketing service like email marketing. However, a customer is more likely to engage with an SMS than an email, which is precisely what we will explore in this article.

Let’s dive into exciting SMS marketing statistics, including open rate trends, analytics, and data.

Key Trends in SMS Marketing

SMS marketing has become an indispensable customer engagement tool for businesses in the USA. According to research, 97% of individuals own a mobile phone, highlighting the high number of people reachable through SMS on their phones. Not only is texting an effective mode of communication, but studies show that 95% of text messages are read and responded to within 3 minutes of receipt, highlighting an excellent open rate and response rate.

Furthermore, mobile use continues to climb yearly, with Statista reports indicating that up to 6.89 billion people will own smartphones by 2023, rising to 7.86 billion by 2028. This development opens several opportunities for more organizations to use SMS marketing to connect better and engage with their consumers.

Not only this, with the growth in mobile phone ownership, businesses seek to tap into the SMS marketing medium of engagement, hence reported by Grand View Research that the USA text marketing size is growing at a staggering compounding (CAGR) rate of 20.3% every year till 2025. The SMS marketing business will be valued at 12.6 billion dollars by 2025, highlighting how fast this is growing with the current technological advancements, part of which is the Imperium Dynamics AI-enabled Power Textor tool, perfect for your business to join the SMS marketing race.

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Key Statistics in SMS Marketing

The anatomy of sending a text message through an SMS is divided into two parts: whether it is opened and responded to. Hence, the terms open rate and response rate were coined. Both metrics are critical for businesses to analyze a customer’s journey from awareness to conversion. On average, text messages have an open rate of 98% and a response rate of 45%. According to a survey, 91% of customers prefer text messages from businesses as a communication medium over emails.

Capturing a customer or converting them into a lead is achieved by them clicking through to a CTA (Call to Action), which is why click-through rate is another critical metric for marketers and businesses to analyze the effectiveness of their SMS campaigns. It is noticed that SMS marketing has a click-through rate of 19% compared to the 4% CTR of email marketing.

Insights for USA Businesses

Now, we will take a quick look at how the USA text marketing landscape fares to build an understanding of just how integral SMS marketing has become for businesses to have an edge over their competitors. According to research the average American citizen checks their phone 96 times per day (once every ten minutes), indicating that marketers have 96, yes you read that right, NINETY-SIX different opportunities throughout a day to reach and engage with their customers.

An SMS marketing agency reported that its customers within the retail and eCommerce sector generate an average of $71 for every dollar spent on SMS marketing campaigns, which is a staggering return on investment (ROI).

Other than the statistics and trends of SMS marketing, it is vital to highlight the need to comply with regulations for text messaging in the United States to ensure customer consent and data protection and avoid spam, which can be irritating from a customer’s perspective. One such compliance that ensures all the things mentioned earlier is the A2P 10DLC requirement for businesses in the US, and to your surprise, Imperium Dynamics’ Power Textor comes with it.

Best Practices and Future Outlook

Some statistics for what type of industries are using SMS marketing the most are as follows:

Industry  % of companies 
Real estate  17.2% 
Agriculture  15.9% 
Entertainment  15.4% 
Construction  14% 
Travel   12.3% 

The table above shows how SMS marketing is not only to industries with high customer involvement (Real Estate, Entertainment, Travel) but also to industries with comparatively low customer involvement (Agriculture, Construction), highlighting how SMS marketing is slowly penetrating all industries and will soon be a must-have for your business as well.

It’s not all rainbows and sunshine when it comes to SMS marketing. Regardless of the massive access to a large customer base, 1 in 3 text messages sent by businesses is not responsive, highlighting a discourse over why it might be happening, whether it’s the content of the text or the relevant segmentation of the customer, or even a lack 2-way messaging capability. Marketers and businesses must study customers’ behavior while brainstorming an SMS marketing campaign. Regardless of marketers carefully curating campaigns, your business will eventually need an SMS marketing tool that is more advanced than your competitors and has various features for your business to choose from. Imperium Dynamics’ Power Textor has it all, from event reminders, bulk texting, and 2-way communication; all of it is there, along with customizable features as per your business needs. This AI-enabled tool is the answer to all your SMS marketing needs.

Power Textor, your go-to SMS marketing solution

Having gone through all the stats, analytics, and trends mentioned in this article, you may be wondering whether there’s a unified tool that addresses all the functions required by a business to have a seamless SMS marketing plan, well yes, there is, Imperium Dynamics’ Power Textor is the answer to all your SMS marketing concerns, adaptable to every industry, from healthcare to manufacturing, retail to financial services, it can take them all. Gain and sustain happy and satisfied customers with Power Textor. Visit powertextor.com and get started.

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Designed for Microsoft Dynamics 365 and Power Platform, Power Textor helps businesses develop better relationships with their customers through the power of text message marketing and Microsoft Power Automate.  

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