SMS Marketing for Small Businesses: Examples and Best Practices

Text message marketing, also known as SMS marketing, is a powerful and cost-efficient strategy for small businesses to nurture and strengthen customer relationships.

Quick and efficient, text messages reach customers where they are, with 90% of texts being read within three minutes, according to Validity’s State of SMS Marketing report. That means your flash sales, appointment reminders, and other requests have a real chance of getting noticed.

This guide will explore what SMS marketing is, including best practices, benefits and challenges, and tips on including it in your overall marketing strategy. 

Key takeaways

• 87% of consumers check a new text within 15 minutes, making it one of the most attention-grabbing channels available.

• Use SMS for short, time-sensitive messages, like appointment reminders and flash sales, and save longer content for email.

• Compliance isn't optional: the TCPA, GDPR, and CASL all require documented consent before you send marketing texts.

• Start with one or two use cases that fit your business, like appointment reminders or abandoned cart alerts, and expand as you learn what resonates.

• Segment your list by purchase history, engagement, or preferences so messages feel personal instead of like a mass broadcast.

What is text message marketing (SMS marketing)?

SMS marketing is when businesses send short promotional or informative messages to customers on a mobile phone. For example, an exclusive discount code sent via text message is a common SMS marketing tactic.

To get these messages, customers have to give the business their mobile phone number and opt into SMS marketing. Businesses often draft and automate messages ahead of time to send to groups of customers at once, so there’s no manual writing or sending to each number. 

SMS marketing is just one strategy in your overall marketing efforts. There are many different channels, content opportunities, and pathways to engage and nurture your customers to make purchases, confirm appointments, or capture feedback. 

How does SMS marketing work?

SMS marketing gives your customers information in a text message. That information can be based on user behavior, such as appointment reminders, order confirmations, or an abandoned cart. Other messages are sent as promotional tactics for new product launches or seasonal discounts. 

SMS marketing can also be customized to reach specific customers or clients. You can segment messages using information such as demographic, purchase history, engagement and response, and preferences or interests.

One example of SMS marketing is a hair salon sending a text appointment confirmation and reminder to clients. They may also send a message to a repeat client about discounts on specific services, like special occasion styling during wedding season or the holidays.

Like email marketing, SMS marketing relies on a subscriber list. Customers join that list by sharing their phone number and explicitly opting in to receive marketing text messages from your business. Depending on your messaging provider, those messages can be sent from a short code, a local 10-digit number, or a toll-free number.

What are the benefits and limitations of text marketing?

SMS marketing has many advantages for small businesses, but it's not the right fit for every situation. Understanding the benefits and limitations can help you decide if it makes sense for yours.

Benefits

• High engagement rate: Text messages are read faster than nearly any other marketing channel. According to EZ Texting, 87% of consumers check a new text within 15 minutes of receiving it. Higher open rates lead to higher conversion, with customer purchase behavior data backing this up. Research from Morning Consult found that about 2 in 5 U.S. adults have made a purchase after receiving a text message from a brand, with millennials leading at 51%.

• Direct access to your audience: SMS marketing puts you in direct contact with your customers, with no algorithm deciding whether they see your message. You own your subscriber list, so your reach doesn't depend on search rankings or social platforms that can change their rules overnight and cut off your visibility. Because you control when and how you show up to your customers, SMS is a powerful and reliable channel to invest in and leverage.

• Fast delivery: A text message reaches your customer's phone almost instantly, which makes SMS one of the best channels for time-sensitive communication. If you're running a flash sale, filling last-minute appointment slots, or promoting a same-day event, SMS gets the message there while it's still relevant.

• Easy to measure and test: You can track real-time open and click-through rates for every message you send, which makes it straightforward to see what's working and what isn't. If one subject line, offer, or send time outperforms another, you can easily adjust your next campaign without waiting weeks for results to come in.

• High return on investment: SMS is one of the more cost-effective marketing channels for small businesses. Most platforms charge per message sent, so the price scales with your list, and there’s no large upfront investment. Because messages reach customers directly and conversion rates are high, even a smaller list size can bring in a meaningful return.

Limitations

• Consent requirements: Before you can send marketing messages to a customer, they must explicitly opt in to receiving texts from your business. Sending messages to customers who haven't agreed can damage your relationship and violate regulations. Make sure your sign-up process clearly states what customers are agreeing to receive.

• Filtering and delivery issues: Mobile phone carriers sometimes flag legitimate marketing messages as spam, which means your messages may not reach your customers even when they've opted in. This can affect your open rates and make it harder to measure the true performance of a campaign. Having your number registered through your SMS platform can help reduce the likelihood of your messages being filtered.

• Character limit: A standard SMS message is limited to 160 characters, which means you have very little room to deliver your message. Going over that limit splits your text into multiple messages, which can look unprofessional and cost more. It can be a challenge to keep your message brief and impactful. Lead with the most important information to make the most of the space you have.

• Opt-out risk from over-sending: Customers who receive too many messages, or messages that don’t feel relevant to them, are more likely to opt out. Be mindful of your sending frequency and make sure every message has a clear purpose. 

• Platform and messaging costs: Most SMS platforms charge per message sent, so your costs will grow as your list and sending frequency do. It's a good idea to factor in both the platform fee and the per-message rate when you're deciding which tool is right for your business.

How to include SMS in your marketing strategy

A strong marketing plan gives every channel a clear role to play, and SMS marketing can be a key part of it.

Text message marketing and email marketing work particularly well together because they each do something different. Sending emails through a tool like Squarespace Email Campaigns gives you more space for visuals or longer copy to engage your customer. SMS is better suited for short, time-sensitive messages that prompt an immediate response, like a seasonal offer, a booking reminder, or a last-minute update.

Using each channel for what it does best naturally reduces the risk of over-messaging. When subscribers receive redundant information across channels, it can feel like noise. That noise can lead to them ignoring your messages, or unsubscribing from your lists entirely.

Instead, let customer behavior guide your timing: if a promotional email goes unopened after a day or two, a short follow-up text gives your message a second chance to land on a channel people tend to check right away.

SMS marketing best practices

Getting SMS marketing right from the start saves you from common pitfalls down the line. These best practices cover the essentials, from legal requirements to message frequency, to help you build a strong foundation for your text marketing strategy.

1. Get consent and create a clear opt-out

Before you send a single message, make sure your customers have agreed to receive them. Consent is a legal requirement in many places and signals a trustworthy SMS program. Be upfront about what subscribers will receive and how often, and make opting out straightforward. In most cases, customers can reply “STOP” to unsubscribe at any time. A welcome message is a good way to confirm their opt-in, remind them what they signed up for, and set expectations from the start.

2. Understand legal requirements

SMS marketing is regulated in most markets. In the United States, penalties for non-compliance can include fines of $500 to $1,500 per message. Before launching an SMS marketing campaign, review the telemarketing, commercial messaging, and data protection laws that apply to your business.

U.S. law requires express written consent before sending marketing messages. Your opt-in form must identify your business by name, clearly state that subscribers will receive recurring marketing texts, and explain how to opt out. A checkbox that says "Sign up for updates" doesn't meet the standard.

You’ll also need to register your brand before sending messages. Unregistered traffic is frequently filtered as spam or blocked, which directly affects your delivery rates. Most SMS platforms handle registration on your behalf and provide compliance documentation.

Outside of the United States, regulations like GDPR in Europe and CASL in Canada impose their own consent requirements. If you have any customers in those regions, their rules apply to you too. 

3. Lead with value instead of a sales pitch

Not every text message needs to ask for something. Messages that inform, educate, or reward can feel more welcome than a hard sell. 

If your business is launching a new product, for example, a message that explains what it does and why it matters might land better than one that just says “Buy now.” Give customers a reason to engage and see what follows.

4. Keep your message concise and deliberate

With so few characters to work with, every word needs to earn its place. Every text message should have a clear purpose and a specific action you want the customer to take. Before you send, ask yourself what you want them to know or do as a result. If you can't answer that quickly, the message probably isn't ready.

5. Personalize messaging to your customer

A text that’s relevant to the person receiving it tends to get a better response than one that feels like a broadcast. Small details make a difference: addressing customers by name, referencing a product they browsed, or letting them know a waitlisted item is back in stock all signal that the message was meant for them specifically. Most SMS platforms automate this kind of personalization, so it doesn't require extra manual effort on your end.

Small business SMS marketing use cases and examples

From appointment reminders to exclusive offers, SMS fits into many parts of the small business customer journey. Not all SMS marketing providers may support every feature, so consult your plan for which automations are available. Here are six of the most common use cases, along with messaging examples, to try in your own campaigns. 

1. Sales and promotions

A primary reason to use text message marketing is to alert customers of an upcoming sale, or send promotional information like discount codes. There are a few common subtypes of sales and promotional text messages you can send: 

• Welcome discounts: Incentivize new customers with a discount code for a percentage off their first purchase or for signing up for texts.

• Flash sales: Create urgency with deep sales events for only a short period of time.

• Giveaways and contests: Invite customers to reply or post about your brand for a chance to win.   

• Holiday or event sales: Run a limited sales event tied to specific holidays or seasonal moments, like Black Friday and Cyber Monday, with more chances to save. 

Sending each type at the right time increases the chance a customer acts on your offer. Send welcome discounts immediately after signup, when purchase intent is highest. For flash sales with a short window, send a message to let your customers know the moment the sale goes live to keep the sense of urgency and encourage action.

In all cases, keep the copy short, lead with the discount or offer, and include a direct link to your website for easy access.

Example welcome message: 

• Glad we’re text friends! Welcome to [BRAND NAME]. Here’s 15% off your first purchase: [CODE] Shop here: [LINK]. 

2. Appointment reminders

Service businesses like hair salons, counselors, and coaches use SMS marketing to remind clients of upcoming appointments. Reminders can be timed to suit your operations and clients’ needs. For example, you can send your clients a reminder 48 hours in advance of an appointment or one hour before. Giving clients instructions to confirm or cancel keeps your schedule accurate and reduces no-shows. 

This type of text message needs to be brief and informative. Your client needs to know who they’re seeing, where, and at what time. 

Example appointment reminder:

• Your appointment with [BUSINESS/PRACTITIONER] is in 1 hour at 12:00 pm EST at [BUSINESS NAME]. We’ll see you soon! 

3. Abandoned cart alerts

When a customer adds items to their cart but doesn’t complete checkout, a well-timed abandoned cart text message can bring them back. A short, personalized message with a small discount gives them a reason to follow through with their purchase. 

Keep the copy brief and personal. Reference what they left behind if your platform supports it, and include a direct link back to their cart.

Example abandoned cart text: 

• Hey [CUSTOMER NAME], you left some things behind in your cart! We don’t want you to lose out. Complete your purchase today with 15% off: [LINK]

4. Order confirmation and shipping updates

Keeping customers informed throughout the fulfillment process builds trust and reduces inbound questions. From order confirmation to shipping to delivery, a short text at each stage reassures customers that their purchase is on track.

Each message should be concise and include a tracking link where relevant. 

Example order confirmation text:

• Thanks for ordering from [BUSINESS NAME]. Your order # is [NUMBER]. Track it here: [LINK]. 

Example shipping update text:

• Your purchase is on the way! Track it here: [LINK]. 

5. Event promotions

Hosting a product launch, in-store event, or community initiative? A text is a fast way to get the word out to customers who've already opted in to hear from you.

Think of this text message as a direct invitation. Give customers or clients a heads up for events or giveaways you’re running in-store, at a location, or online. Keep the text brief and provide a link to register or learn more.

Example event promotion text:

• We’re having a party! Join us on [DATE] for fun, games, discounts, and giveaways. Learn more and register here [LINK]. 

6. Loyalty rewards

Customers and clients who consistently show up for your business deserve to feel recognized. SMS is a natural fit for loyalty programs, early access offers, and subscriber-only perks. A personal, direct message carries more weight than a mass email in moments like these.

For example, you may want to give your loyalty customers an advanced shopping day or an additional promo code as an incentive to make a purchase.

Personalize the text message with the customer's name, a clear offer, and any dates or codes they need to act on it.

Example loyalty discount text: 

• Hey [CUSTOMER NAME]! As one of our best customers, you get early access to our sale. Use code [CODE] for 15% off from [SALE DATES]. Shop now: [LINK]

Get started with SMS marketing

SMS marketing is one of the most direct ways to reach your customers, and for many small businesses it can be one of the most effective. Like any marketing channel, it works best when it's used with intention: the right message, sent to the right person, at the right time. Start small, focus on one or two use cases that make sense for your business, and build from there as you get a feel for what resonates with your customers.

Frequently asked questions

How often should I send SMS marketing messages?

Most consumers say they'd rather get brand texts once a week or less, and sending too often is the top reason people unsubscribe. A good starting point for most small businesses is two to four promotional messages per month. Transactional messages like order confirmations and appointment reminders can be sent more frequently because customers expect them. As you get going, if your unsubscribe rate starts to climb, that's a sign to pull back on frequency or revisit the relevance of what you're sending.

What time of day should I send SMS messages?

Stick to regular business hours for your marketing text messages. Most platforms recommend between 9 a.m. and 8 p.m. in your customer's local time zone. For promotional messages, late morning and early afternoon tend to work well. For appointment reminders and transactional messages, send them close to the relevant event so they're useful when your customer needs them.

What is the difference between SMS and MMS?

SMS is a standard text message of up to 160 characters. MMS, or Multimedia Messaging Service, allows you to include images, videos, or audio alongside your text and supports up to 1,600 characters. MMS can be a good way to showcase a new product or add visual appeal to a promotion, but it typically costs more per message to send than a standard SMS. For most small businesses starting out, SMS is the simpler and more cost-effective choice.

What happens when a customer opts out?

When a customer replies "STOP," they're immediately removed from your list and won't receive any more messages from you. They can choose to opt back in on their own, but you can't add them back manually. It's one of the reasons it pays to be thoughtful about what you send and how often. A well-managed list stays engaged longer.

Do I need permission to send marketing texts?

Yes. Customers need to actively opt in before you can send them marketing messages. In the United States, the TCPA requires documented consent, and your sign-up process should clearly state that customers are agreeing to receive texts from your business, how often they'll hear from you, and how to opt out. Most SMS platforms will walk you through setting this up correctly.

Is SMS marketing worth it for a small business?

For most small businesses, yes. SMS has some of the highest open and engagement rates of any marketing channel, and it works especially well for time-sensitive communication. The key is starting with a use case that makes sense for your business, like appointment reminders for a service business or abandoned cart alerts for an online store, and building from there once you see how your customers respond.