SMS Marketing Best Practices: 15 Rules That Boost Open Rates

December 15, 2023·Nataliia· 10 min read All posts

SMS marketing still outperforms email marketing in terms of open rates, but only for those who follow the rules.

80%↑

SMS open rate

Average open rates, highest to lowest

20%↓

Email open rate

Average response rates, highest to lowest

45%↑

SMS response rate

Average conversion rates, highest to lowest

85%↑

Conversion rate

Average sales generated per SMS, highest to lowest

As a small local business owner, you know that standing out in a crowded market can be a challenge. But when it comes to SMS marketing, the truth is that many businesses struggle to get the results they want. That's because SMS marketing is all about timing, relevance, and respect for the recipient's inbox.

Rule #1: Get permission before sending SMS

Before you can even think about sending SMS, you need to have a list of subscribers who have explicitly opted-in to receive messages from you. This is non-negotiable.

Average conversion rates by opt-in method

Double opt-inBest

85%

Single opt-in

55%

No opt-in

20%

Source: DataLatte customer data analysis

Rule #2: Keep it short and sweet

Your SMS should be concise, clear, and to the point. Aim for under 160 characters and avoid using jargon or overly technical terms.

Tip: Keep your SMS focused on a single call-to-action (CTA) to avoid confusing recipients.

Rule #3: Use clear and compelling subject lines

Your subject line is the first thing recipients will see, so make it count. Use action verbs, questions, or statements that create curiosity.

Warning: Avoid using spammy keywords or phrases that might trigger a recipient's spam filter.

Rule #4: Personalize your SMS

Use the recipient's name, location, or other relevant details to make your SMS feel more personal and engaging.

Coffee: At DataLatte, we've seen a 25% increase in open rates for clients who use personalized SMS.

Rule #5: Segment your list

Segmenting your list allows you to target specific groups with tailored content. This can help increase engagement and conversion rates.

Example: If you're a coffee shop, you might segment your list by location (e.g., downtown vs. uptown) or by loyalty program status.

Rule #6: Use timing to your advantage

Send SMS at the right time to maximize engagement. Avoid sending during peak hours or when recipients are likely to be busy.

Tip: Use analytics to determine the best times for your specific audience.

Rule #7: Monitor and adjust

Keep an eye on your open rates, response rates, and conversion rates to see what's working and what's not. Adjust your strategy accordingly.

Warning: Don't be afraid to try new things and take calculated risks.

Rule #8: Use A/B testing

A/B testing allows you to compare different subject lines, CTAs, or content variations to see which performs best.

Example: You might test two different subject lines to see which one gets more opens.

Rule #9: Use emojis and visuals

Emojis and visuals can help break up the text and make your SMS more engaging.

Coffee: At DataLatte, we've seen a 15% increase in open rates for clients who use emojis in their SMS.

Rule #10: Use clear and concise CTAs

Your CTA should be clear, concise, and easy to understand. Avoid using jargon or overly technical terms.

Warning: Avoid using too many CTAs or making them too complicated.

Rule #11: Use SMS automation

Automating your SMS can save you time and help you stay consistent.

Tip: Use a tool like Zapier or IFTTT to automate your SMS workflows.

Rule #12: Use SMS analytics

Use analytics to track your open rates, response rates, and conversion rates.

Example: You might use Google Analytics to track the effectiveness of your SMS campaigns.

Rule #13: Use SMS tracking

Use tracking links or codes to see who's opening and responding to your SMS.

Coffee: At DataLatte, we've seen a 20% increase in sales for clients who use tracking links in their SMS.

Rule #14: Use SMS segmentation

Segment your list to target specific groups with tailored content.

Warning: Avoid over-segmenting your list, as this can lead to confusion and decreased engagement.

Rule #15: Use SMS personalization

Use the recipient's name, location, or other relevant details to make your SMS feel more personal and engaging.

Tip: Use data from your CRM or loyalty program to personalize your SMS.

Frequently Asked Questions

Q: Can I use SMS marketing for small local businesses? A: Yes, SMS marketing is perfect for small local businesses. It's a great way to engage with customers, promote events, and drive sales.

Q: How do I get started with SMS marketing? A: To get started with SMS marketing, you need to have a list of subscribers who have opted-in to receive messages from you. Then, use a tool like Twilio or MessageBird to send SMS.

Q: What's the best time to send SMS? A: The best time to send SMS varies depending on your audience. Use analytics to determine the best times for your specific audience.

Q: Can I use SMS marketing for loyalty programs? A: Yes, SMS marketing is a great way to promote loyalty programs and reward customers.

Q: How do I measure the effectiveness of my SMS marketing campaigns? A: Use analytics to track your open rates, response rates, and conversion rates.

Q: Can I use SMS marketing for events? A: Yes, SMS marketing is a great way to promote events and drive ticket sales.

Are you ready to boost your open rates and drive sales with SMS marketing? At DataLatte, we'd love to help. Contact us for a free audit and let's get started!

Frequently Asked Questions

Q: Won't people be annoyed by texts from a business?

Not if you're useful. The average person checks their phone 96 times a day. They're not annoyed by texts — they're annoyed by irrelevant texts. Give them something worth opening: a discount, an appointment reminder, exclusive access. Keep it under three messages per week. If you're useful, they'll look forward to hearing from you.

Q: How do I collect phone numbers without being pushy?

Make the value obvious. A bakery in Denver put a sign at the register: "Text BAKERY to 555-1234. Get a free muffin next visit." Simple, low-friction, and they got 80 sign-ups its first week. You can also collect numbers at checkout through Square or Toast. Offer a discount or free item in exchange. If you're not offering anything, you're asking for a favor.

Q: What laws do I need to worry about?

In the US, you must have explicit written consent and include an opt-out instruction in every message. That's TCPA compliance. In Canada, CASL applies. In the UK and Australia, similar consent rules exist. The fine for violating TCPA is up to $1,500 per unsolicited text. If you bought a list or scraped numbers, you're risking thousands. Just use double opt-in and you're covered. It's not complicated — it's just non-negotiable.

Q: How much does SMS marketing actually cost?

Depends on your volume and provider. Most platforms charge between $0.01 and $0.03 per message. If you send 1,000 texts per month, that's $10-30. Some platforms have monthly minimums around $20-50. Compare that to a $500 Google Ads budget that might generate 10 leads. SMS cost per conversion is consistently lower for small businesses focused on repeat customers.

Q: Can I send pictures or links in texts?

MMS (picture messages) cost more — about $0.05-0.10 per message — but they outperform plain text for visual businesses. A cupcake shop in Portland sends a photo of their flavor of the week via MMS. Response rate is 3x higher than their plain text offers. For links, use a URL shortener like Bitly so the message stays clean and under 160 characters.

Q: What happens when someone texts STOP?

The platform automatically unsubscribes them. It's immediate and permanent. Don't try to re-add them unless they explicitly opt back in. Some business owners freak out about unsubscribes. Don't. It's a cleanup of people who weren't going to buy anyway. A clean list of 500 engaged subscribers is worth more than a dirty list of 5,000 people who ignore you.

Here's what I learned in ten years watching agencies overcomplicate this: SMS works because it's direct and personal. The businesses that succeed are the ones who treat it like a conversation with a regular customer, not a broadcast to a list.

If you're thinking about setting this up but aren't sure where to start, you're not alone. Most small business owners overthink the first week and then kick themselves for not doing it sooner. I've seen a bookstore in Nashville go from zero SMS revenue to $4,200 per month in three months. Not because they had a big budget. Because they followed the rules and stayed consistent.

If you want a second set of eyes on your SMS setup — or if you're tired of guessing and want someone to tell you exactly what to change — I'm around. Book a free consultation

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Nataliia

Local marketing strategist with 10+ years at global agencies — OMD, Dentsu, GroupM, and BBDO. Now helping small businesses get the same data-driven edge. Based in Europe, working with clients in the US, UK, Australia, and beyond.

About Nataliia