What is SMS Marketing?

SMS marketing is underrated — because it’s misunderstood. Most brands still treat it like an annoying little brother to email. But in 2025, that couldn’t be further from the truth.

SMS is the direct line. No spam folders. No open-rate games. Just your message on your customer’s lock screen — instantly. It’s fast, effective, and when done right, surprisingly personal.

But with great power comes great potential to annoy. This guide will walk you through how SMS marketing actually works, where it thrives, and how to build a strategy that customers welcome, not block.

what is sms marketing

Key Takeaways

  • SMS marketing sends timely, short-form texts to opted-in customers for updates, promotions, or reminders.

  • It boasts open rates above 98%, making it one of the highest-performing marketing channels.

  • SMS works best when it adds value — not just pushes sales. Think: delivery updates, reminders, back-in-stock alerts.

  • You need explicit permission to text customers — and compliance laws like TCPA are strict.

  • Great SMS messages are short, friendly, and include a clear call to action and opt-out link.

  • Start small, test often, and respect the intimacy of the channel. You're not emailing — you're texting.

So What Is Actually SMS Marketing?

SMS marketing is sending short, timely text messages to customers who’ve opted in — to promote, remind, or simply connect. Think of it as email’s cooler, faster cousin.

But don’t confuse “short” with “shallow”. In the world of ecommerce and service businesses, SMS often drives more action than a polished newsletter or a clever Instagram Story. Why? Because people check their texts. Immediately.

This is the marketing channel that doesn’t wait in line. It shows up on your customer’s lock screen, taps them on the shoulder, and gets to the point. No spam folders. No swipe-right-to-ignore.

Done well, it feels personal. Done badly, it feels like an intrusion. So the real art of SMS marketing is knowing what to say, when to say it, and who actually wants to hear from you.

How SMS Marketing Works (Step-by-Step)

You can’t just start texting customers. You need permission — and a plan. Here's what the basic SMS flow looks like:

  1. Consent comes firstYou can’t (and legally shouldn’t) send SMS without explicit opt-in. This usually happens via checkout checkboxes, pop-ups, or keyword opt-ins (“Text JOIN to 12345”).

  2. Segment your audienceNot every subscriber needs every message. Segment by purchase history, location, loyalty status, or even behaviour (e.g. abandoned cart).

  3. Build your messageYou’ve got 160 characters (sometimes 320 with extended SMS). Make it count. Include a clear CTA — “Shop now”, “Book here”, or “Reply YES to confirm”.

  4. Choose your timingSMS is immediate, so timing matters. Don’t send a flash sale at 1 am or a delivery update 10 minutes before the package arrives.

  5. Send and trackMost platforms let you A/B test messages, track clicks (via short links), and monitor opt-outs. The best ones integrate with your ecommerce platform and CRM.

💡Pro tip: If it wouldn’t make sense in a real conversation, don’t send it as a text.

what is sms marketing

Common Use Cases for SMS Marketing

Not every text should be a promotion. SMS works best when it feels like a service, not just another pitch. Here’s where it really shines:

  • Flash sales and limited offers “20% off ends tonight” lands harder via SMS than email. It’s urgent, it’s quick, and it gets opened now.

  • Abandoned cart recoveryA gentle nudge — “Hey, you left something behind 👀” — often performs better over SMS than email. Especially if there’s a sweetener like free shipping.

  • Order and delivery updatesCustomers want these. “Your order just shipped” or “Out for delivery” builds trust and reduces support queries.

  • Back-in-stock and low inventory alertsIf someone waited weeks for a product, an instant SMS saying “It’s back!” is golden.

  • Loyalty and VIP perksGive your best customers early access, birthday discounts, or surprise deals — by text. It feels personal. It feels earned.

  • Appointment reminders and confirmationsFor service businesses, SMS cuts no-shows dramatically. People forget emails. They don’t forget texts.

  • Product education and onboardingA well-timed tip or how-to via SMS (e.g. “Here's how to apply your serum for best results”) improves retention and reduces returns.

💡Pro tip: Don’t make every message a pitch. Think service, not spam.

Key Benefits of SMS Marketing: Why It Works

SMS feels old-school — but it performs like a pro.

BenefitWhy It Matters
Insanely high open rates98%+ of SMS messages are opened. Try getting that in email.
Speed and urgencyTexts are read within 3 minutes. Ideal for real-time actions.
Direct and personalIt’s a 1:1 channel. No filters, no distractions.
Great for mobile-first buyersYour audience is already on their phones. Meet them there.
Short, sweet, and scannableNo need for long copy or fancy design — just value in 160 chars.

Pro tip: SMS doesn’t replace email — it complements it. Use email for long-form storytelling, and SMS for triggers and conversions.

What an SMS Message Looks Like

Keep it short. Make it human. Always include a clear CTA and an opt-out link.

Here’s a simple ecommerce example:

Hey Mia! 👋 Your summer bundle is back in stock. Grab it before it’s gone: [link] Reply STOP to unsubscribe.

Or a service-based message:

Just a heads up — your appointment is tomorrow at 3:00 pm.Need to reschedule? Reply YES.

You’re not writing War and Peace here. You're writing a friendly Post-it note on someone’s phone. Think clarity, not cleverness.

Getting Started With SMS Marketing

Ready to text? Here’s how to start without being spammy.

  1. Choose a trusted SMS platform
    Some Shopify-friendly options include Klaviyo, Postscript, and Attentive. Look for integrations, automation, and compliance tools.

  2. Set up compliance from day one
    SMS laws vary by region (e.g. TCPA in the US, GDPR in the EU). Get explicit consent, provide opt-outs, and store consent logs.

  3. Create an onboarding flow
    Welcome texts, discount codes, abandoned cart reminders — start with just one or two automations and grow from there.

  4. Don’t overdo it
    One or two messages per week is often plenty. Respect the channel. You’re in someone’s pocket, not their inbox.

  5. Measure and optimise
    Track click-throughs, conversions, and opt-out rates. Test message length, send times, tone, and frequency. SMS is small, but the data is mighty.

what is sms marketing

SMS Marketing Laws (Don’t Skip This)

SMS marketing can boost sales fast — but legal mistakes can cost even more. Different regions have different laws. Here’s what you need to know for the US and EU.

SMS Laws in the United States (TCPA)

The Telephone Consumer Protection Act (TCPA) governs all marketing SMS in the US.

RuleWhat It Means
Prior express written consentYou can’t send marketing texts unless they opted in
Opt-out mechanism requiredEvery message must let them unsubscribe (e.g. "Reply STOP")
Record-keepingYou must store proof of opt-in and consent logs
Time restrictionsMessages must be sent between 8 am–9 pm recipient time zone

Penalties? Up to $1,500 per message if you violate TCPA. And yes, people sue.

SMS Laws in the EU (GDPR + ePrivacy)

In the EU, the General Data Protection Regulation (GDPR) and the ePrivacy Directive (soon to become the ePrivacy Regulation) apply to SMS marketing.

RuleWhat It Means
Freely given, informed consentYou can’t text without active and clear permission.
No pre-ticked boxesConsent must be explicit — not assumed or hidden.
Right to withdraw consentYou must provide an easy opt-out mechanism in every message.
Proof of consent requiredYou need to document who opted in, when, and how.
Data minimisationOnly collect and store what's necessary — e.g. no harvesting extra data.

Penalties? Fines under GDPR can reach €20 million or 4% of annual global turnover, whichever is higher.

💡Pro tip: Use a compliant platform. They’ll help manage consent, logs, and opt-outs. Don’t DIY your SMS infrastructure.

What is SMS Marketing? Is About Respect, Not Just Reach

SMS is powerful — but not because it’s loud. It’s powerful because it’s close. 

You’re in the most personal space your customer has: their phone. That means you need to earn your spot.

Do that by sending messages that help, not just hustle. Make every text feel like a service, not a scream. And always make sure they asked to hear from you.

Done well, SMS doesn’t just drive revenue. It builds trust. And trust is the most scalable marketing asset you’ve got.