SMS marketing remains one of the highest-ROI channels available, with 98% open rates and 45% response rates. But success requires more than just sending texts—it demands strategy, compliance, and continuous optimization.
This guide covers the 10 essential SMS marketing practices that separate successful campaigns from those that fail (or worse, violate regulations).
Quick Reference: SMS Marketing Checklist
| Practice | Priority | Impact |
|---|---|---|
| 1. Get explicit consent | Critical | Legal compliance |
| 2. Optimize message timing | High | Open/response rates |
| 3. Keep messages concise | High | Engagement, costs |
| 4. Personalize content | High | Conversion rates |
| 5. Segment your audience | High | Relevance, engagement |
| 6. Include clear CTAs | Medium | Click-through rates |
| 7. Always include opt-out | Critical | Legal compliance |
| 8. Test and optimize | Medium | Long-term improvement |
| 9. Integrate with other channels | Medium | Customer experience |
| 10. Monitor metrics religiously | High | ROI optimization |
1. Get Explicit Consent (It’s the Law)
Why it matters: TCPA violations can cost $500-$1,500 per message. A single campaign to unconsented recipients could mean millions in fines.
Consent Requirements Checklist
- Clear opt-in language (not hidden in ToS)
- Disclosure of message frequency
- “Message and data rates may apply” notice
- Easy-to-find privacy policy
- Separate consent from other checkboxes
- Double opt-in for sensitive industries
Good vs Bad Opt-In Examples
Bad (Non-Compliant):
☑️ I agree to the Terms of Service and Privacy Policy
Good (Compliant):
☑️ Yes, I want to receive marketing texts from [Brand].
Expect 4 msgs/month. Msg & data rates may apply.
Reply STOP to opt out. View our Privacy Policy.
Consent Documentation
Keep records of:
- When consent was given
- How consent was obtained
- What the user agreed to
- IP address (for web opt-ins)
Retention period: Minimum 4 years after last message sent.
2. Optimize Message Timing
Why it matters: The same message can see 30-50% variance in response rates based solely on send time.
Best Send Times by Industry
| Industry | Best Days | Best Times |
|---|---|---|
| Retail/E-commerce | Thu-Sat | 10 AM, 2 PM, 7 PM |
| Restaurants | Thu-Sun | 11 AM, 4 PM |
| Healthcare | Tue-Thu | 9 AM, 2 PM |
| Finance | Tue-Wed | 10 AM, 1 PM |
| B2B Services | Tue-Thu | 10 AM, 2 PM |
Timing Rules
| Do | Don’t |
|---|---|
| Send during business hours (8 AM - 9 PM) | Send before 8 AM or after 9 PM |
| Consider recipient time zones | Blast at midnight |
| Test different times | Assume one time fits all |
| Match urgency to timing | Send flash sales at 6 AM |
Time Zone Strategy
For national campaigns:
- Segment by time zone: Send at 10 AM local for each region
- Use carrier data: Most SMS platforms can detect recipient time zone
- Default conservatively: When uncertain, send at 12 PM ET (safe for continental US)
3. Keep Messages Concise
Why it matters: SMS has character limits, and every character costs money. Longer messages also have lower completion rates.
Character Limit Quick Reference
| Encoding | Single SMS | Multi-part (per segment) |
|---|---|---|
| GSM-7 (English) | 160 chars | 153 chars |
| Unicode (emojis, non-Latin) | 70 chars | 67 chars |
One emoji can triple your message cost by forcing Unicode encoding. Learn more about GSM-7 vs Unicode encoding.
Message Structure Template
[Brand]: [Value proposition in 1 sentence].
[Clear CTA with link].
Reply STOP to opt out.
Before and After Examples
Before (180 chars, 2 segments, Unicode):
🎉 AMAZING NEWS! We're having our biggest sale ever
this weekend only! Get up to 50% off everything in
store and online. Shop now at example.com/sale!
After (148 chars, 1 segment, GSM-7):
[Brand]: Weekend Sale - Up to 50% off everything.
Shop now: example.com/sale
Reply STOP to opt out
Savings: 50% fewer SMS credits, same message.
4. Personalize Your Content
Why it matters: Personalized SMS messages see 29% higher click-through rates and 40% higher conversion rates.
Personalization Levels
| Level | Example | Impact |
|---|---|---|
| None | ”Dear Customer” | Baseline |
| Name | ”Hi Sarah” | +15% CTR |
| Behavior | ”Since you bought X…” | +25% CTR |
| Timing | ”Your membership renews tomorrow” | +35% CTR |
| Full context | Name + behavior + timing | +50% CTR |
Personalization Variables
| Variable | Example Use |
|---|---|
{first_name} | ”Hi {first_name}, your order shipped!” |
{product_name} | ”Your {product_name} is ready for pickup” |
{order_number} | ”Order #{order_number} delivered” |
{loyalty_points} | ”You have {loyalty_points} points to redeem” |
{last_purchase_category} | ”New arrivals in {last_purchase_category}“ |
Personalization Caution
- Always have fallback values (“Hi there” if name missing)
- Test merge fields before sending
- Don’t over-personalize (creepy factor)
- Respect privacy preferences
5. Segment Your Audience
Why it matters: Segmented campaigns perform 14% better than broadcast messages. Relevance drives engagement.
Essential Segments
| Segment Type | Criteria | Use Case |
|---|---|---|
| New subscribers | Joined <30 days | Welcome series |
| Active customers | Purchased <90 days | Loyalty offers |
| At-risk | No purchase 90-180 days | Win-back campaigns |
| Churned | No activity >180 days | Re-engagement or remove |
| VIP/High-value | Top 10% by spend | Exclusive offers |
| By product interest | Category browsing data | Targeted promotions |
| By location | Geographic data | Local events, store offers |
Segmentation Strategy
All Subscribers
│
┌─────────────────┼─────────────────┐
│ │ │
New (<30 days) Active (30-90) Inactive (90+)
│ │ │
Welcome Flow Product Updates Win-Back Campaign
│ │ │
└────── Convert to Active ──────────┘
Segment-Specific Messaging
| Segment | Message Focus | Frequency |
|---|---|---|
| New | Brand story, key benefits | 2-3x/week (onboarding) |
| Active | New products, exclusive offers | 1-2x/week |
| At-risk | Incentives to return | 1x/week |
| VIP | Early access, special perks | 2-3x/week |
6. Include Clear Calls-to-Action
Why it matters: Messages without clear CTAs see 60% lower engagement. Tell people exactly what to do.
CTA Best Practices
| Do | Don’t |
|---|---|
| Use action verbs | Use passive language |
| Create urgency | Leave it open-ended |
| Make it specific | Be vague |
| One CTA per message | Multiple competing CTAs |
Effective CTA Examples
| Weak CTA | Strong CTA |
|---|---|
| ”Check out our sale" | "Shop the 50% off sale now" |
| "Click here" | "Get your 20% coupon: [link]" |
| "Learn more" | "Reserve your spot today" |
| "Visit us" | "Order now, pickup in 1 hour” |
CTA Placement
Place your CTA after the value proposition, before the opt-out:
[Brand]: [What's in it for them].
[CTA with link].
Reply STOP to opt out.
7. Always Include Opt-Out Instructions
Why it matters: It’s legally required (TCPA, GDPR), and making opt-out difficult leads to carrier complaints that can get your number blocked.
Required Opt-Out Keywords
Every SMS program must honor these standard keywords:
| Keyword | Response |
|---|---|
| STOP | Opt-out confirmation, no further marketing messages |
| UNSUBSCRIBE | Same as STOP |
| CANCEL | Same as STOP |
| END | Same as STOP |
| QUIT | Same as STOP |
| HELP | Program info and support contact |
Opt-Out Response Template
You've been unsubscribed from [Brand] messages.
No further texts will be sent.
Reply START to resubscribe.
Opt-Out Best Practices
- Include opt-out in every marketing message
- Process STOP requests within seconds
- Don’t send “Sorry to see you go” follow-ups
- Keep opt-out lists forever (never re-add)
- Make opt-out language visible, not buried
When Opt-Out Isn’t Required
Transactional messages (order confirmations, shipping updates, appointment reminders) may not require opt-out in every message, but you should still honor STOP requests.
8. Test and Optimize Continuously
Why it matters: Small improvements compound. A 10% lift in conversion rate can mean 10% more revenue from the same list.
What to A/B Test
| Element | Test Variations |
|---|---|
| Send time | Morning vs afternoon vs evening |
| Day of week | Weekday vs weekend |
| Message length | Short (1 segment) vs detailed |
| Personalization | Name vs no name |
| CTA | Different action verbs |
| Offer type | % off vs $ off vs free shipping |
| Urgency | ”Today only” vs “This week” |
Testing Framework
1. Hypothesis: "Morning sends will have higher CTR"
2. Test: Split audience 50/50, identical message
3. Measure: CTR, conversion rate, opt-out rate
4. Sample size: Minimum 1,000 per variation
5. Duration: Allow 24-48 hours for full results
6. Implement: Roll out winner to full list
Test One Variable at a Time
Running multiple tests simultaneously makes it impossible to attribute results. Change only one element per test.
9. Integrate with Other Channels
Why it matters: SMS works best as part of an omnichannel strategy. Customers who receive SMS + email have 30% higher lifetime value.
Channel Integration Matrix
| Scenario | Primary Channel | SMS Role |
|---|---|---|
| Cart abandonment | Email (detail) | SMS (urgency reminder) |
| Flash sale | SMS (immediate) | Email (full catalog) |
| Order updates | Email (full details) | SMS (quick notification) |
| Loyalty rewards | App notification | SMS (backup, reach expansion) |
| Event reminder | Email (details) | SMS (day-of reminder) |
Integration Timing
Cart Abandonment Flow:
Hour 0: Customer abandons cart
Hour 1: Email with cart contents
Hour 4: SMS reminder with discount
Hour 24: Final email with urgency
Cross-Channel Consistency
- Use consistent branding across all channels
- Don’t send the same message on multiple channels simultaneously
- Respect channel preferences (some users prefer email)
- Track cross-channel attribution
10. Monitor Metrics Religiously
Why it matters: You can’t improve what you don’t measure. Metrics reveal what’s working and what needs fixing.
Essential SMS Metrics
| Metric | Formula | Benchmark |
|---|---|---|
| Delivery Rate | Delivered ÷ Sent × 100 | >98% |
| Click-Through Rate (CTR) | Clicks ÷ Delivered × 100 | 10-20% |
| Conversion Rate | Conversions ÷ Clicks × 100 | 5-15% |
| Opt-Out Rate | Opt-outs ÷ Delivered × 100 | <2% |
| Cost per Conversion | Total Cost ÷ Conversions | Varies |
| Revenue per Message | Revenue ÷ Messages Sent | $0.10-1.00+ |
| List Growth Rate | (New - Opt-outs) ÷ Total × 100 | >0% |
Warning Signs
| Metric | Warning Threshold | Action |
|---|---|---|
| Delivery rate | <95% | Check list quality, carrier issues |
| Opt-out rate | >3% | Review frequency, content relevance |
| CTR | <5% | Improve CTA, test new approaches |
| Complaint rate | >0.1% | Immediate review of consent practices |
Reporting Cadence
| Report | Frequency | Focus |
|---|---|---|
| Campaign report | After each send | Individual performance |
| Weekly summary | Weekly | Trends, comparisons |
| Monthly review | Monthly | Strategy adjustments |
| Quarterly audit | Quarterly | Compliance, list health |
Bonus: 2026 SMS Marketing Trends
What’s Working Now
| Trend | Impact |
|---|---|
| RCS adoption | Richer messaging for Android + iPhone |
| AI-powered personalization | Hyper-relevant content at scale |
| Conversational commerce | Two-way shopping via text |
| SMS + loyalty integration | Points and rewards via text |
What’s Declining
| Trend | Why |
|---|---|
| Shared short codes | Carrier restrictions |
| Mass blast messaging | Lower engagement, higher opt-outs |
| Link shorteners (some) | Flagged as suspicious by carriers |
SMS Marketing Compliance Quick Reference
| Regulation | Region | Key Requirements |
|---|---|---|
| TCPA | USA | Prior express consent, opt-out honoring |
| CTIA Guidelines | USA | Content standards, opt-out requirements |
| GDPR | EU | Explicit consent, data protection |
| CASL | Canada | Express/implied consent rules |
| PECR | UK | Similar to GDPR for marketing |
Conclusion
SMS marketing in 2026 demands a strategic approach: compliant list building, thoughtful timing, concise messaging, and continuous optimization. The channel’s power—98% open rates—comes with responsibility to respect subscribers’ inboxes.
Key takeaways:
- Consent is non-negotiable—document everything
- Timing matters—test to find your optimal windows
- Less is more—concise messages win
- Personalization works—use the data you have
- Segment ruthlessly—relevance drives results
- Clear CTAs—tell people exactly what to do
- Make opt-out easy—it’s the law and protects your sender reputation
- Test constantly—small wins compound
- Integrate channels—SMS works best with email and other touchpoints
- Watch your metrics—data reveals what works
Ready to optimize your SMS campaigns? Use our free SMS Character Counter to ensure your messages stay within optimal character limits and avoid unnecessary multi-segment costs.
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