SMS Marketing
Term #30
Sending marketing messages via SMS. Open rate: 90%+ within 3 minutes. Requires opt-in.
In practice
SMS is the most personal channel. A 98% open rate compared to 22% for email. Limit to 2-4 SMS messages per month.
Common misconception
'SMS is spam.' SMS with consent, relevant content, and low frequency is highly effective.
How to fix it
Low sign-ups? (1) offer an incentive unavailable via email, (2) opt-in at checkout, (3) a first flow within minutes.
Example
A cosmetics store: an SMS flash sale to 3,000 subscribers generated 340 orders within an hour. An email to a 25,000-person list generated 290 orders.
Priority
SMS is step 3, after email and retargeting.
Related terms
Keep learning. Metrics that touch the same area:
- Email MarketingMarketingA direct marketing channel. Average ROI: $36 for every $1 spent. Generates 20-30% of revenue for mature stores.
- eCommerce / Electronic CommerceMarketingAll business activity conducted online — showcasing products, ordering, payment, shipping, and post-sale service. The backbone of every online store.
- CPC – Cost Per ClickMarketingThe price an advertiser pays each time a visitor clicks the ad. Influenced by competition, Quality Score, and landing page relevance.
- CPM – Cost Per MilleMarketingThe cost of advertising per 1,000 ad impressions. A key metric in awareness-focused and brand-building campaigns.
- CPA – Cost Per AcquisitionMarketingThe amount it costs to get a customer to complete a desired action. A core profitability metric — if CPA exceeds gross profit, the campaign loses money.
- CAC – Customer Acquisition CostMarketingTotal marketing and sales spend divided by the number of new customers. Always compare to LTV. A healthy ratio: LTV at least 3x higher than CAC.
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