What is SMS Marketing & How Does it Work?

SMS marketing (short message service marketing) is a technique that uses permission-based text messaging to spread promotional messages.

To receive text message specials, new product updates or more information, customers are usually required to opt in to an automated system by texting an initial shortcode. When the 5 digit code is texted, that user’s phone number is then stored by whatever SMS marketing software is issuing the texts. A confirmation response is usually sent as receipt for opting in, with an opt-out code included for potential future unsubscribing (Ja.Txt).

Generally speaking, the goal of SMS marketing is to build a database of subscribers to increase customer loyalty. When implementing close range marketing tactics, text messages are an ideal way of notifying people within your vicinity of any immediate offers, without having to use push-notification applications. More than informing your customers of upcoming deals, it can also be a great way to send reminders for upcoming events and engage your customers by polling their opinions.

In fact, for at least 60% of consumers, SMS marketing is preferred to other email marketing and push-notification services (Forbes). Many delivery platforms allow for easy segmentation and management, so the most relevant text messages can be sent to those who are most likely to convert. It’s also preferable in that it tends to be less expensive when compared to other methods of distribution, making it a cost effective mobile solution.

Keep in mind that while similar, SMS marketing is not the same as close range marketing. To learn more about the relationship between SMS and close range marketing, read my brief on the differences between the two. Furthermore, see how we can help you with your SMS and mobile marketing needs.

Reader Interactions


  1. brihaspathitech says

    Thanks for sharing. All you put here is very helpful.
    SMS has been very useful and effective marketing channel that should be an integral part of any mobile that tends to achieve real success in today’s mobile world.

  2. پنل اس ام اس says

    The experience of working with an SMS panel in various businesses has shown me that the gap between customer attraction and customer loyalty is as much as a haircut. The smallest inaccuracy in SMS advertising year will block your customers and lose them

  3. Sam Li says

    I like what you said about SMS marketing and how it’s preferred to other email marketing services. SMS services offer a great method of communication between multiple parties. If I were to own a small business, I would be sure to implement the best SMS service I could find.

  4. Ajay Thakur says

    Thank you for this informative article. SMS marketing is one of the best channels for digital marketing. Many big and small brands are using SMS marketing in their marketing campaigns.

  5. Akash Sharma says

    Nice Post!! For small, medium and big businesses SMS is considered as a great tool to generate quality leads, feedbacks, to provide real-time updates on products, event information etc. But the main focus is to the engaged consumer for long period.

  6. Chetan says

    I would say one of the most informative articles I have ever read on SMS marketing. SMS marketing is not only limited to sending offers, promotion, OTP verification but if we use SMS marketing in a proper manner for feedbacks and communication we can engage customer for a longer time of period and can build a loyal customer base.

  7. anwitasinha says

    Frankly speaking its a great info on techniques and methods to do proper research on SMS Marketing for any kind of business to grow… Really a great way to convey message to all at once. Gratitude towards the article.

  8. Kenneth Momanyi says

    Great Article Kasey! You just summarized why businesses should engage on SMS Marketing -“The goal of SMS marketing is to build a database of subscribers to increase customer loyalty”

  9. Brendan Mace says

    I am a big fan of your blog. I have read many of your articles and have learned great techniques and methods to do proper research. This information is very interesting and all of the case studies are very inspiring.

  10. says

    Fantastic article.

    Businesses need to do their research before selecting their tool of choice because leaving or switching can often be costly. They also must have a look that their SMS tool has all their countries anti-spam laws built in.

    For Australian’s right now the cheapest and simplest choice is TextGoose.com.au.

  11. says

    Hello Kasey, It is very informative article. SMS marketing is a medium to send text message advertisements to customers. SMS is a fast, cost-effective, and measurable marketing tool. It is a direct way to share a special offer or company information with large group of people easily from an online platform.

    • Kasey Larsen says


      Thank you for your response. I am glad you found this informative, as well as I appreciate your understanding of how powerful a practice SMS marketing can be. If you have any further insight to share, or a question you would like answered, I would love to hear from you.

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