SMS marketing has been one of the most effective channels for direct and personalised communication for decades. Although technology has evolved significantly and AI has made its entrance, SMS has remained relevant - but what does the future hold for SMS marketing? And how does your company best utilise these new opportunities?
With technological advances such as RCS and AI changing consumer behaviour and increasing data protection requirements, new opportunities - and challenges - are emerging regardless of marketing platforms. Should you fear them or embrace them?
We believe in the latter.
In this article, we take a closer look at the key trends that will shape SMS marketing in the coming years and how your business can utilise them to build even stronger customer relationships.
Technological advances in SMS marketing
Various technologies are making quantum leaps these days, enabling activities not thought possible just a short time ago.
This provides new opportunities to fine-tune SMS campaigns and boost business sales. Below are some examples of the technological advances that can empower businesses.
Rich Communication Services (RCS) - SMS of the future?
RCS is predicted to revolutionise SMS marketing by making messages more interactive and visual. RCS makes it possible to send more dynamic and interactive SMS messages with images, videos, live updates, GIFs and buttons directly in the messages you receive via your SMS app. RCS will not require an app download.
When (and if) RCS becomes widely available in the Danish market, it will allow e-commerce companies to create more engaging and dynamic shopping experiences directly in the customers' messaging app.
Artificial Intelligence (AI) in SMS marketing
AI already plays a big role in digital marketing, but in the future it will become even more integrated into SMS strategies - and it can be a huge advantage if you manage to utilise it correctly. Some of the areas that AI is likely to make more advanced and efficient are:
- SMS chatbots: AI-powered chatbots will be able to handle customer service via SMS and create more personalised interactions.
- Advanced segmentation: AI will analyse customer data and optimise when and how messages should be sent to maximise open and conversion rates.
- Automated campaigns: With AI, businesses can create hyper-personalised campaigns that adjust messages in real-time based on customer behaviour.
Consumer demands for SMS marketing
Consumer expectations of communication with brands have changed and continue to evolve along with the rest of society. That's why you should always keep consumer trends in mind when launching SMS marketing activities.
Authentic and transparent communication
Consumers - especially the younger generation - demand honest and value-based messages from brands. SMS has the advantage of already being a very personalised channel.
The businesses of the future should therefore use SMS to create authentic and meaningful relationships.
Personalised shopping experiences
Customers increasingly expect personalised shopping experiences. By utilising AI and data analytics, businesses can deliver messages tailored to customer preferences and purchase history.
A personalised SMS message during the customer's shopping experience, for example, could be one of these scenarios:
- A customer buys running shoes → SMS with an offer for matching running socks.
- A customer leaves items in the basket → SMS with a discount code as an incentive to complete the purchase.
Stricter rules for data protection and security
With increased digitalisation comes a greater focus on data security, and it can be difficult to keep track of what you can and cannot do as a business. The rules will only increase over the years and more resources will be needed to ensure that legislation is complied with at all times on the ground.
Consumers demand control over their data
Customers are becoming more aware of how companies handle their data. To maintain trust, organisations should be transparent about data processing and only send relevant messages.
The fight against SMS spam and phishing
Spam and phishing are still big problems in SMS. New technologies and regulations are likely to be tightened to ensure SMS remains a credible communication channel. However, businesses should still be aware of the following when sending SMS messages:
- Opt-in and opt-out processes should be clear and easy for the customer.
- Organisations should use verified senders to avoid phishing scams.
The future of SMS marketing is bright and innovative
The bottom line is that to capitalise on future opportunities, your business should do the following:
Invest in automation - Use AI to make your SMS marketing more effective.
Leverage personalisation - Use data to create relevant messages for each customer.
Keep up with technological advances - Keep an eye on the development of RCS and AI.
Ensure compliance with data protection regulations - Transparency and data security are essential for consumer trust.
SMS marketing will continue to be a powerful and reliable channel for sales, retention and information - but only for those businesses that adapt to change and use technology wisely.
Are you ready to take your SMS marketing into the future? Contact inMobile today to find out how we can help your business optimise your SMS strategy.