33 SMS Marketing Statistics in 2021: Are Text Messages Effective?

Last Updated: October 20, 2021

Jason

Jason

There are endless possibilities for SMS customization to earn the trust and loyalty of the customer. The statistics show that SMS will become even more prominent in society in the future. 
33 SMS Marketing Statistics in 2021: Is SMS Marketing Effective?
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What is the quickest way to reach your customers when you want to let them know about the new offer of your product? And what if you don’t have a big marketing budget?

Yes, you guessed it right. SMS or short message service is the best way to send bulk text messages to all your customers in a shorter time.

By a shorter time, I meant just 5 seconds within a normal network coverage area! With the emergence of social media applications, people once thought that the era of SMS was over.

But it is not! People are always looking for reliable business agencies to buy a product or service. The best way to become a reliable business is by creating a close bond with them.

According to GSMA, 66.92% of the world population is using mobile phones. Smartphones or not, it has one common inbuilt feature. And that is SMS! 

Personalized Texting can nurture a strong communication bond between a customer and a service. The customer is always looking for the best product that they can get.

SMS helps businesses to understand customer requirements better. Also, they can directly collect genuine user feedback for their products and services from the customer with the help of Texting.

This post showcases the significant benefits accomplished by the use of SMS in business areas. 

Quick SMS Marketing Statistics

  • The SMS market was valued at $3.5 billion in 2018
  • 16 million SMS are sent worldwide every minute
  • People are using the internet 54% more than before COVID
  • 67% of people book an appointment via text
  • Missing bill payment reduced by 80%
  • Almost 100% of people open an SMS

What Are the Advantages of SMS Marketing?

  1. It is very cheap compared to other modes of digital marketing techniques. 
  2. Email, CRM systems, etc., can easily combine SMS with them.
  3. SMS triggers customers to check more details of your business offers, promotions, and discounts by 20-25% more effective than any other method.
  4. Customers open Only 20% of the Emails, but they check more than 80% of the SMS. 
  5. E-commerce sites, BaaS(Business as a Service), etc., use SMS to let customers track their orders and get regular customer feedback.
  6. It is easy to share the best offers through SMS. And almost 20% of the offer links are clicked, compared to the mere 2% clicks via Email. 

How Business Benefit from SMS Marketing

Based on a study made by Delloite, 8% of the world’s population has visited a store and purchased products due to SMS marketing.

Let us check out some of the key benefits of SMS Marketing.

  1. The sudden growth of the smartphone market has opened up new possibilities for SMS marketing. SMS is the fastest way to let the customers know about a new branch location or a new product/service arrival.

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  1. The cheapest of all the marketing methods is SMS marketing.
  2. SMS builds trust among customers. Businesses can earn loyal customers by regularly keeping in touch with them.
  3. Since almost all mobile phones support SMS, it offers a wide range of audiences.
  4. SMS can keep the customers informed about the progress of the order they placed on an online platform. 
  5. SMS can work as a stand-alone as well as an integrated channel. It can provide offer details to the customer, and at the same time, it can remind the customer to check the e-commerce site or Email to find out what’s new.
  6. SMS interactions can be clubbed with technologies to create a customer database. The customer-specific database can help the business understand their requirements even without describing them!

What Are the Latest SMS Statistics in 2021?

  1. According to Grand view research, the value of the US SMS market recorded 3.5 billion in 2018. This rate is going to increase by 20% from 2019 to 2025.
  1. Automated SMS requires 60% less human intervention.

The latest AI technologies make it easier to deliver bulk SMS without the help of people.

Hence, SMS marketing can be a lot cheaper than the other techniques where human intervention is required.

  1. 16 Million SMS sent in a minute worldwide

The CTIA points out that 6 billion SMS are sent each day in the US alone.

  1. The Covid-19 pandemic has made 64% of people spend more time on the phone.

The unexpected pandemic created a situation where people started to depend more upon their phones sitting at home, indirectly boosting the SMS marketing industry.

  1. Internet recorded increased Web traffic from mobile users at 54%.

Earlier, Google promoted desktop-based indexing first and then mobile-based indexing.

But due to the sudden increase of mobile browsers, Google has reversed this, making mobile version contents get the top reach than its desktop version.

  1. In 2020, 23% of people had shown interest in receiving mobile marketing messages compared to 2016.

The business SMS profits were showing welcoming rates in 2020. Around 48.7 million people have demonstrated their willingness to receive business SMS.

  1. Text messages are faster compared to other modes of chat communications. Almost 58% of people respond to a text message in less than 5 minutes.

The marketing calls are tedious and sometimes irritating for customers. They prefer to receive the Text messages and will respond if interested. 

  1. 67% of people like to book an appointment or order something by texting rather than calling.

It is easier to use the SMS option to get instant slot confirmation for purchasing products and services! Customers can omit the slow-loading websites and confusing app interfaces for booking an appointment with a doctor through a simple SMS service.

  1. People check their phones once every 5.5 minutes.

Based on a study conducted in the US, people have checked their mobile phones almost 262 times a day. According to the survey conducted in 2021, people spend nearly 3-4 hours using mobile phones. 

  1. Bill payment missing is reduced by 80%.

Since people often check their phones when they hear the SMS notification sound, it is less likely to miss the bill payment dues.

The banks, insurance agencies other finance industries use SMS as a reminder method. This setup makes a 60% reduction in the customer service interaction.

  1. 59% of people prefer inbuilt text message service rather than app-based message service.

People sometimes hate to use multiple apps to send and receive text messages. Also, these mobile apps have to be installed and regularly updated.

But inbuilt SMS services are easy to use and faster compared to the app-based text message service.

  1. Almost 100% of people open the SMS on their phone.

The mobile SMS setup instantly notifies the presence of a new message in the phone, and one-click directly opens up the Text message.

But for an email or other apps, people have to open the application and wait for it to load.

People who are busy with other things find it time-wasting. The people consider only 20% emails while almost all of them check the text messages.

  1. People like to get recent updates and offers from their favorite brands

48% of the people like text messages from the brands to know about offers and promotions.

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  1. 8 in 10 people receive a text message from a business.

In 2020, more than 80% of people receive SMS from a business they follow.

  1. 10.63% CTR success rate recorded in 2020

CTR(Click Through Rate) is a measure that can calculate the total number of times the customer views a particular marketing ad. 

  1. Almost 50% of the customers prefer to spend their money on a business that regularly sends updates.

People think that those companies who regularly provide updates are considering them closer. Due to this reason, people tend to buy products and services from such companies.

  1. 90 seconds are needed for customers to respond to Text messages.

Customers react to such text messages within 90 seconds compared to the 90 minutes for Email responses.

  1. The default Texting service is preferred by 63% of people

The default message service is easy to use. It is just one click away from reading the message and responding compared to Facebook Messenger, Whatsapp, Twitter, etc.

  1. In 2025 18.2 billion smartphones can be expected compared to the 14.02 billion in 2020.

More people use mobile phones to pay bills, book various services, purchase products, etc. This trend is going to double in the next 4-5 years. 

  1. When compared to email marketing, the SMS conversion rates are 6-8 percent higher. 

It is the people who can decide the permission for various businesses to send SMS notifications.

People usually trust SMS messages since they know the business provider earlier. At the same time, the spam and unauthorized messages in Email make it untrustworthy.

  1. Black Friday made $10.8 billion in sales from the SMS follow-ups in the US.

SMS marketing alone achieved almost 2.5% of the Black Friday sales.

  1. Almost 3/4th of the age groups prefer SMS to contact Business providers.

More than 70% of people aged 45 or less like to communicate with business agencies using Text messages 

  1. According to Zipwhip, an average person sends 13 Text messages in a day.

The average daily number of emails sent by a persona(not for business purposes) is 3-4. 

  1. 83% of people used SMS to communicate with friends and families during the Covid-19 pandemic.

The young generation prefers Text messages over regular phone calls and other social media services. According to Statista, 72% used phone calls, and 66% used social media.

  1. Customer redeemed coupons 10 times higher.

The coupon codes, discount offers, etc., provided by businesses via Text messages are often redeemed compared to Email. Customers find it difficult to check such promotional offers in the Email.

  1. 75% of people like to get reasonable offers from the business, and they want to get such offers as Text messages.

People always expect better offers on yearly sales, festivals, etc., from online e-commerce sites and such businesses.

But those offers promoted via emails and telephone marketing are often classified under spam. Hence customers prefer SMS offers.

  1. 45% of people use mobile phones for all kinds of online shopping.

When compared to a desktop or laptop, a smartphone is much cheaper. Due to this, more people can afford the possibilities of online shopping.

As the technology advanced, online e-commerce sites are optimizing their websites to attract mobile customers.

Meaningful SMS messages for promoting the offers, which contain direct click links to the e-commerce site, are also beneficial.

It is convenient for people to get the “track the order” details and bill details as a Text message rather than Email.

  1. 15% of US doesn’t have an Internet connection

Almost 97% of the US population uses a mobile phone. Smartphone or not, these mobile phones have their default Text messaging service.

Hence people are more familiar with and dependent upon the SMS service.

  1. 83% of the digital marketing agencies confirm that Text messages are effective over email marketing. 

Since Emails are easily filtered, and anything that has a sales pitch gets dumped into spam, it is a waste of time and money for the investors to concentrate only on emails. 

  1. 33% of people opted to receive SMS from business services to get access to better offers.

Sometimes companies provide great discounts. Most of such offers are not reaching the target audience.

The primary reason is, people don’t check emails or social media platforms regularly while at work or busy.

If the customer has subscribed for receiving SMS, it is easier for them to avail themselves of the best offers without missing.

  1. SMS recorded 45% marketing Text response.

The Google clickthrough rate for ads is 34%. The Text messages response rate has crossed this bar with 45% customer response.

This statistics means that the business with a good relationship with customers through SMS marketing is getting more answers.

  1. A 34% rise in proactive customers to get a product/service from a business

A business has to reach out to the customer to sell a product or service most of the time.

But last year statistics show that the loyal customers started to reach back to the business agencies proactively.

If the customer demands a product or service without any marketing, it is a good sign for the industry!

  1. Customers want to get after-sales support through SMS

The customer support panel of most businesses is complicated and time-consuming. Hence customers are looking for simple SMS-based customer service from the sellers.

54% of customers are furious about the sellers for not reaching back to them.

If a seller is prompt in responding to the concerns and queries of the customer, chances for more business from the same customer are at a high probability.

Conclusion

As you saw in the SMS Marketing statistics covered, there are several factors by which SMS services are moving up the marketing ladder.

Smartphones easily flag calls related to ads and sales. Most people don’t even attend the sales call if they get a notification about it.

When compared to Business class or tech-savvy, Emails are not so usual for ordinary people. Also, the Email application has a separate space for all the promotional/spam emails.

Most people don’t even open that section. In this way, Business enterprises cannot reach maximum customers to promote their latest offers and services.

A Text message has a high probability of being viewed and read by people. The short links sent via SMS have a reasonable conversion rate. 

The AI will be creating wonders by analyzing the past interactions of the customer.

Once it identifies the customer behavior pattern, AI can implement innovative marketing techniques to influence the customer.

There are endless possibilities for SMS customization to earn the trust and loyalty of the customer. The statistics show that SMS will become even more prominent in society in the future. 

Written by Jason

Hi! I’m the editor at EarthWeb. I have a deep interest in technology and business. I also enjoy testing products out. Contact me to be featured!