In the age of AI, automation, and endless notifications, one thing hasn’t changed: people still read their texts. SMS marketing (text message marketing) remains one of the most direct, effective, and underutilized tools in a brand’s marketing toolkit. If you’re not using it—or not using it well—you really are missing out.
In this comprehensive guide, we’ll break down the real stats behind SMS marketing, how businesses are using it successfully, why it works so well, and what trends are shaping the future of text-based engagement in 2025.
Part 1: SMS Marketing by the Numbers
98% Open Rate
Let’s start with the big one. SMS marketing enjoys a 98% open rate, compared to 20–25% for most email campaigns. That means nearly every person you send a text to will at least see your message. That’s unmatched visibility.
90% of Texts Are Read Within 3 Minutes
It’s not just that people open text messages—they open them fast. The average person reads a text within 3 minutes of receiving it, making SMS the ideal tool for time-sensitive promotions, appointment reminders, or flash sales.
45% Response Rate
SMS also commands attention in terms of interaction. The average SMS response rate is 45%, compared to only 6% for email. That means customers are far more likely to reply, click, or engage from your text message vs. your email.
29% Conversion Rates (and Higher)
Studies show that SMS campaigns can reach conversion rates up to 29%, especially when combined with personalized offers, urgency, and clear CTAs. Compare that to average e-commerce conversion rates (around 2-3%), and the power of SMS becomes clear.
75% of Consumers Want SMS Offers
The perception that SMS is intrusive is outdated. In fact, 3 out of 4 consumers say they want to receive special offers via SMS. For businesses, this means it’s not just effective—it’s expected.
50% of Marketers Increased SMS Use in the Past Year
As email deliverability drops and social media becomes more saturated, businesses are turning to SMS. In 2024, over half of marketers reported increasing their investment in SMS marketing.
Part 2: Why SMS Marketing Works So Well
SMS isn’t just effective because of the numbers—it’s effective because it fits modern consumer behavior and attention spans.
It’s Native to the Device
Unlike email or apps that require extra steps, SMS is built into every mobile device. No apps to download, no inbox to search through. It just works—and fast.
It Cuts Through the Noise
SMS delivers a direct line to your customer. It’s not competing with memes, ads, or email spam folders. When a message arrives, the phone buzzes—and the person looks.
It’s Simple and Short
Modern audiences don’t want long-winded messages. SMS forces clarity. With character limits and short formatting, brands are getting better at saying more with less.
It’s Permission-Based
Unlike paid ads or cold emails, SMS is an opt-in channel. People want to hear from you. That makes engagement more genuine and response rates more meaningful.
Part 3: Common Use Cases for SMS in 2025
Whether you’re a local service provider, a national brand, or an e-commerce store, there’s a way to integrate SMS into your strategy. Here are some of the top use cases:
Appointment Reminders
Doctors, salons, home service businesses, and fitness studios all use SMS to confirm and remind clients about upcoming appointments. It reduces no-shows dramatically.
Flash Sales and Promotions
Restaurants, retailers, and e-com brands use text to promote limited-time offers and product drops. Because texts are read quickly, they’re ideal for urgency-driven campaigns.
Abandoned Cart Recovery
SMS outperforms email when it comes to cart recovery. A quick reminder with a discount code can boost recapture rates and drive immediate conversions.
Loyalty Programs
Many businesses now use SMS to keep loyal customers in the loop about rewards, point balances, and VIP events. Engagement from loyalty-based texts is typically higher than app notifications or email.
Two-Way Customer Service
Modern platforms now allow brands to engage in two-way SMS—answering questions, taking feedback, or offering customer support right from a text thread.
Order Updates and Shipping Notifications
Texting updates like “Your order has shipped” or “Your tech is 15 minutes away” creates a better customer experience and reduces inbound support calls.
Part 4: SMS Marketing Trends to Watch in 2025
As we move through 2025, SMS marketing is evolving much like everything else in the digital space. It’s no longer just “blast a coupon to everyone.” Here’s what we’ve found that the future holds:
AI-Powered SMS Campaigns
AI is now used to personalize messages, optimize send times, and even write SMS copy based on past performance. Tools like Postscript, Attentive, and Klaviyo are leading the charge.
Segmentation and Smart Lists
Successful brands aren’t sending the same message to everyone. Segmentation—by location, purchase behavior, time zone, or engagement history—is driving higher ROI.
Multichannel Integration
In 2025, SMS is no longer a silo. The best-performing campaigns tie together email, SMS, and even retargeted Meta or Google Ads into a single, automated sequence.
Rich SMS & MMS
Brands are using images, GIFs, and short videos in SMS to increase engagement. MMS (Multimedia Messaging Service) allows for more expressive and branded content.
Interactive Text Experiences
With tools like two-way messaging, smart replies (like “Reply 1 for YES”), and conversational flows, SMS is becoming a channel where customers can interact, not just receive.
Part 5: Compliance & Deliverability in 2025
With power comes responsibility. Here’s what to keep in mind when running SMS campaigns:
You Need Consent
SMS is governed by laws like the TCPA and CTIA guidelines. You must have express written consent to send marketing texts—and a clear opt-out method.
Clear Opt-Out
Every marketing message should include language like “Reply STOP to unsubscribe.” Failure to comply can lead to carrier blocks or legal fines.
Brand Trust is Everything
Don’t abuse the privilege of access. Send messages people actually want. Segment your list, be clear about frequency, and don’t bait-and-switch with clickbait offers.
Part 6: How to Build a High-Performing SMS Funnel
If you’re just getting started—or want to improve your results—here’s a simple high-converting SMS funnel to model:
Step 1:
Offer a Strong Opt-In Incentive
This could be:
10% off your first order
Entry into a giveaway
Early access to new products
Use a pop-up on your website, a QR code at your location, or a landing page on your ads.
Step 2:
Send a Welcome Message Immediately
This should consist of thanking them for joining, delivering their offer and setting the tone for future messages.
Step 3:
Segment Your List Based on Behavior
Track who clicks, buys, or replies. Use that data to split your audience into segments and personalize future campaigns.
Step 4:
Drip Campaigns That Have Value
Mix promotional texts with valuable or entertaining ones (e.g., tips, inspiration, or relevant reminders). SMS doesn’t have to sell every time.
Step 5:
Re-engage Dormant Subscribers
If someone hasn’t engaged in 60–90 days, send a win-back text: something like.. “We miss you! Here’s a 15% code to come back.”
Step 6:
Track, Test, Improve
Look at delivery rates, click-throughs, opt-outs, and conversions. Test message timing, tone, and structure.
Part 7: Real-World Examples
Local Business: Home Service
A plumbing company in New Jersey uses SMS to:
Confirm appointments
Send “tech en route” messages
Run seasonal promos like “Winter Pipe Checkup – $89 flat rate”
They reported a 30% increase in booking rates after switching to SMS over email for promotions.
E-Commerce Brand
A lifestyle apparel brand uses SMS for:
New product drops
Back-in-stock alerts
Abandoned cart recovery
Their average SMS ROI? Over 25x spend during promotional windows.
Conclusion: SMS Isn’t Optional—It’s Essential
If you’re serious about cutting through the noise and reaching your audience, SMS marketing isn’t a “maybe”—it’s a must.
It’s permission-based. It’s mobile-first. It’s immediate. And it converts.
As we move deeper into 2025, the businesses that invest in clean, compliant, well-crafted SMS campaigns will have the edge. Whether you’re running ads, building funnels, or nurturing leads—don’t forget the channel nearly everyone opens and reads.
Need help building a high-performing SMS strategy for your business?
Bradford Strategies helps local businesses connect smarter—with SMS, ads, websites, and more. Let’s talk!
