Prejudice 4: SMS marketing is too expensive
Interestingly, the price of SMS is also an argument that is occasionally brought forth against getting started with SMS marketing. But here’s the thing: just because SMS marketing is a bit more expensive than email marketing, it doesn’t mean it’s not worth the cost.
For example, if we look at the ROI that can be expected in a well-optimized SMS campaign, it clearly speaks in favor of SMS, as it is significantly higher than comparable campaigns in other media.
This above-average ROI in SMS marketing results from the interaction of a number of factors such as:
- An opening rate of 98%
- Above-average CTR and conversion rates with well-optimized campaigns
- Easy integration, which leads to a low workload
- A high acceptance rate of the messages among recipients
In addition, automated, personalized mass SMS campaigns save time, which is then available to your employees for other projects.
How come SMS is perceived as an expensive marketing channel? Presumably, memories of SMS in private communication play a role here as well. Many of us still remember times when SMS cost more than 20 ct. per message.
Certainly, today’s P2P SMS prices also contribute to the perception, because private SMS are often included without limit in mobile rates, giving the impression that they are free. Comparison with the very low cost of email marketing also plays a role. However, as mentioned above, the expected ROI of an SMS campaign is a lot higher than that of an average email campaign.
The question: “Is SMS marketing worth it financially” must be answered individually. The high ROI basically speaks for a use of SMS in marketing, but how useful SMS can complement other marketing measures has to be determined individually in each company. The potential is there in any case.