The Future of Marketing: Why SMS is the Next Big Thing

We live in a mobile-first world, and for many people, their smartphone is the first thing they check in the morning and the last thing they look at before bed. With open rates of over 90 percent, SMS has emerged as one of the most powerful tools in digital marketing. It offers a direct, fast, and personal way to reach customers, cutting through the noise of emails, apps and social media.

Let’s explore why SMS marketing is growing so quickly, how to implement it successfully, and what best practices can lead to results that actually move the needle.

Why SMS Marketing Is So Effective

The effectiveness of SMS lies in its simplicity and immediacy. Unlike email, which often ends up in spam or gets lost in crowded inboxes, text messages reach people directly and are read within minutes. In fact, 98 percent of SMS messages are opened, and 90 percent are read within three minutes of receipt.

More importantly, people are comfortable using SMS. There’s no learning curve. No apps to install. Just a short, clear message delivered straight to their device.

The Benefits of SMS Marketing

SMS isn’t just convenient; it delivers real advantages that other channels often struggle to match. Its directness, reliability and accessibility make it a standout tool for businesses of all sizes. When implemented strategically, SMS can become a high-performing part of your marketing mix.

The benefits include:

Immediate delivery: Perfect for flash sales, appointment reminders or urgent updates
Affordable: Compared to paid ads or printed materials, SMS offers strong return on investment
High visibility: Messages don’t get lost in junk folders or filtered out by algorithms
Personalised communication: Use data to send messages based on behaviour, purchase history or preferences
Two-way engagement: Many platforms allow customers to reply, book appointments or ask questions instantly
Low barrier to entry: SMS doesn’t require internet access, apps or complicated setups

According to Gartner, SMS response rates can be as high as 45 percent, significantly outperforming email’s average response rate of just 6 percent.

How to Build a High-Performing SMS Campaign

Creating an effective SMS campaign takes more than just sending out a few messages. It requires a thoughtful approach that aligns with your goals, respects your audience, and delivers value. Here are the key steps to help you get started:

1. Set clear goals

Are you aiming to increase sales? Promote an event? Send reminders or re-engage past customers?

2. Grow your subscriber list

Get permission first. Use online forms, opt-ins at checkout or promotions to encourage sign-ups. Explain what subscribers can expect like exclusive deals, updates or reminders.

3. Write clear, action-driven messages

Stay under 160 characters. Focus on benefits and include a strong call-to-action, like “Book today” or “Claim your offer.”

4. Segment your audience

Send relevant messages by targeting customers based on location, purchase history or interests.

5. Use automation wisely

Set up automated flows like welcome texts, abandoned cart reminders or post-purchase follow-ups to keep engagement high.

SMS Use Cases Across Industries

SMS marketing isn’t limited to retail. While it’s widely used to promote sales, restocks and loyalty rewards, other industries are also seeing strong results. In healthcare, it’s used for appointment reminders and health alerts. Hospitality venues rely on SMS for booking updates and last-minute deals, while education providers use it to share event details and schedule changes.

Fitness businesses send class reminders and membership updates, and real estate agents use SMS to alert clients about new listings or upcoming open homes. Its speed, reach and ease of use make SMS a practical tool across many sectors.

Best Practices for SMS Marketing

To ensure your SMS campaigns are effective and well-received, it’s important to follow a few essential guidelines that balance impact with customer experience.

Always get explicit consent before sending messages
Be transparent about what subscribers can expect
Keep messages short, useful and to the point
Always include a clear opt-out option, such as “Reply STOP to unsubscribe”
Limit frequency to avoid fatigue. Once or twice a week is ideal
Test and track your results to refine your strategy over time

Legal Compliance and Customer Trust

In Australia, SMS marketing is governed by the Spam Act 2003. This legislation outlines key rules that businesses must follow:

Consent: You must have either express or inferred permission
Identification: Clearly state who you are in each message
Unsubscribe: Offer a simple and free way to opt out

Violating these rules can lead to significant penalties, so it’s essential to treat SMS as both a marketing and compliance responsibility.

Choosing the Right SMS Platform

Picking the right SMS platform is key to running smooth and effective campaigns that can grow with your business. You’ll want a platform that’s easy to use, with features for scheduling, automation, and real-time analytics to track your results.

Personalisation and audience segmentation are important for sending relevant messages, while integration with your existing tools like CRM or eCommerce systems helps keep everything connected. For Australian businesses, make sure the provider supports local carriers and complies with regulations to ensure reliable and lawful delivery.

Final Thoughts

SMS marketing isn’t a trend, it’s a strategic, results-driven channel that can drive real business growth. It gives you a direct line to your customers and offers a level of immediacy and personalisation that few other channels can match.

When done thoughtfully, it can strengthen relationships, increase conversions and improve brand loyalty.

Need help planning or upgrading your SMS strategy? Whether you’re starting from scratch or looking to improve results, we’re here to help you build smarter campaigns and stronger connections. Book a consultation with us on 1300 722 395.