The Beginner’s Guide to Text Message Marketing (infographic)

Updated January 2025 by the Top Draw team

How do you reach customers instantly with messages they’ll actually open? SMS marketing delivers open rates around 98%, vastly outperforming email’s typical 20% rate. This mobile communication channel enables businesses to connect with customers through timely, relevant text messages that promote events, deals, and important updates. Around 85% of Americans own a smartphone, and 97% have a mobile phone capable of receiving text messages, creating unparalleled reach for businesses ready to leverage this channel strategically.

8 current SMS marketing statistics that prove why text messaging drives results in 2025

1. 98% of text messages are opened and read, making SMS the highest-engagement communication channel available to marketers today
2. SMS response rates reach 45%, compared to email’s 6%, demonstrating significantly stronger customer engagement with text-based communication
3. 86% of consumers made multiple purchases via SMS in the past year, showing widespread acceptance of text messaging for business transactions
4. 64% of consumers appreciate SMS reminders for their appointments, particularly effective in healthcare, finance, and service-based industries
5. 65% of SMS-driven buyers purchased sooner than planned, highlighting how SMS accelerates purchase decisions and drives immediate action
6. 81% of consumers check their text messages within five minutes of receiving them, creating unprecedented opportunities for time-sensitive marketing communications
7. SMS marketing conversion rates range between 21% and 40%, significantly outperforming most other digital marketing channels including email and social media
8. The SMS marketing industry is projected to reach $12.6 billion by 2025, reflecting businesses’ increasing investment in this high-performing channel

Essential TCPA compliance requirements for SMS marketing in 2025

Before you launch SMS campaigns, understanding compliance is critical. The Telephone Consumer Protection Act (TCPA) requires businesses to obtain express written consent before sending promotional or automated messages. New FCC Opt-Out Rules that took effect April 11, 2025, require businesses to honor opt-out requests through various methods including emails, voicemails, and informal messages.

Key compliance requirements businesses must follow:

• Obtain clear, affirmative opt-in consent before sending any marketing messages
• Include opt-out instructions in every message and process opt-out requests within 10 business days
• Effective January 27, 2025, consent must be specific to one seller—no more blanket consent for multiple companies
• Maintain detailed records of when, how, and where consent was obtained for at least four years
• Send only one confirmation message after opt-out requests, with no promotional content
• Follow the general guideline of 1-2 promotional messages per week to avoid being perceived as harassment

Non-compliance can result in fines of $500-$1,500 per violation, with no requirement to prove actual injury. Major brands have paid millions in class-action settlements for improper SMS practices, making compliance both a legal necessity and a brand protection strategy.

Building your SMS marketing strategy: best practices for 2025

Success with SMS marketing requires more than just compliance—you need a strategic approach that respects your customers while driving measurable results. Here are proven best practices:

Segmentation and personalization

Customers demand fast, personalized communication, with segmentation by behavior, geography, or preferences improving both compliance and performance. Avoid blanket messaging that treats all customers the same. Instead, send targeted messages based on purchase history, browsing behavior, or customer lifecycle stage.

Timing and frequency

90% of SMS messages are read within three minutes of delivery, making timing crucial. Use engagement analytics to determine optimal send times for your audience. Test different time slots and monitor response rates to identify when your customers are most receptive.

Message content and value

Keep messages concise and valuable. Include clear calls-to-action and make every character count. Click-through rates for SMS average 19-20%, but only when messages provide genuine value—exclusive deals, time-sensitive alerts, or personalized recommendations that benefit the recipient.

Integration with other channels

SMS works best as part of an omnichannel strategy. Coordinate your text messages with email campaigns, social media, and other marketing channels. Businesses that use follow-up texts after emails increase email open rates by 20-30%.

Measuring SMS marketing success: key metrics to track

Track these essential metrics to optimize your SMS campaigns:

• Delivery rate: Percentage of messages successfully delivered to recipients
• Open rate: Should approach 98% for well-maintained lists
• Click-through rate: Industry average ranges from 19-45% depending on message quality
• Conversion rate: Target 21-40% depending on your industry vertical
• Opt-out rate: Should remain consistently below 3%—higher rates signal messaging problems
• ROI: SMS marketing typically returns $4-$8 for every dollar spent

Industry-specific SMS marketing performance

SMS marketing success varies widely across industries due to customer expectations, regulatory constraints, and channel fit. Here’s what businesses can expect by vertical:

• Retail and E-commerce: 47% of businesses use mobile messaging to promote products and services, with strong performance for flash sales, cart abandonment recovery, and inventory restocking alerts
• Healthcare: Healthcare sees the lowest no-show rate at 19% when using SMS appointment reminders, making it highly effective for patient engagement
• Finance and Banking: 62% of banking and finance businesses use SMS for transaction alerts, fraud prevention, and account updates
• Hospitality and Services: Customers expect real-time confirmations, booking updates, and special offers through SMS

Emerging trends shaping SMS marketing in 2025

The SMS marketing landscape continues evolving with new technologies and consumer expectations:

Rich Communication Services (RCS)

RCS is a next-generation messaging protocol designed to accompany SMS, with Apple releasing RCS for Messenger with its iOS18 update in late 2024. This enhanced messaging format supports multimedia content, interactive buttons, and richer customer experiences beyond traditional SMS.

AI-powered personalization

80% of businesses now use automation software to power their SMS marketing strategies. Machine learning helps optimize send times, personalize content, and predict customer behavior, making campaigns smarter and more effective.

Conversational commerce

In 2025, texting overtook email as the top way consumers prefer to reach customer service, with 31% now preferring SMS. Two-way messaging enables customer support, order tracking, and transactional conversations directly through text.

Getting started with SMS marketing: your action plan

Ready to launch compliant, effective SMS campaigns? Follow these steps:

1. Choose a compliant SMS platform: Select software with built-in consent tracking, automated opt-out management, and TCPA compliance features
2. Build your subscriber list: Use web forms, point-of-sale opt-ins, and promotional incentives to gather explicit consent from customers
3. Segment your audience: Group subscribers by behavior, preferences, or demographics for targeted messaging
4. Create valuable content: Develop message templates that provide genuine value—exclusive offers, important updates, or helpful reminders
5. Test and optimize: Run A/B tests on message content, timing, and frequency to identify what resonates with your audience
6. Monitor compliance: Regularly audit your campaigns, consent records, and opt-out processes to maintain TCPA compliance
7. Measure and refine: Track key metrics and continuously improve based on performance data

Need help developing an SMS marketing strategy that drives results while maintaining compliance? Contact Top Draw to discuss how we can integrate SMS into your comprehensive digital marketing approach. Our team stays current with the latest regulations and best practices to help you leverage this powerful channel effectively.

For more insights on digital marketing strategies that work, explore our digital marketing insights or learn about our full-service digital marketing solutions.