Is SMS Marketing Still Effective in 2025? Real Stats & Honest Answers

SMS marketing is absolutely still effective in the modern marketing world. Although other methods like email and social media marketing get the spotlight, SMS marketing boasts many unique advantages.

SMS marketing actually has one of the highest open rates (98%) and click-through rates (19%) of any outreach type. What’s more, it’s incredibly cost-effective, costing just around 1-2 cents per message!

However, there’s a catch: it has to be done right. Get SMS marketing wrong and you risk alienating your customers and confining your messaging to the junk folder.

Is SMS marketing effective? 100% yes. Read on to learn exactly why and how SMS marketing is the quiet king of outreach marketing in 2025, and use it to level-up your own business strategy.

How SMS Marketing Improves Customer Retention

If SMS marketing is great for one thing, it’s retention. The technique brings messaging right into the palm of every customer, wherever they are, at any time.

• Direct & immediate communication - quickly let customers know about reminders and offers and keep your brand top-of-mind.
• Personalized engagement - SMS texts feel more personal. Businesses can take this even further by personalizing messages with customer data like name and past purchases.
• Exclusive offers/rewards - a great way to make customers feel special with exclusive deals or early access.
• Timely reminders - combat problems like cart abandonment by sending customers polite nudges.
• Two-way communication - SMS is a great way to make customer feedback (through surveys or queries) feel more immediate and personal.
• Low friction, high convenience - SMS marketing doesn’t require internet or app installation of any kind, making it highly accessible for a broader audience.

SMS Marketing by the Numbers (Performance Benchmarks)

Overall, SMS marketing enjoys some of the strongest numbers of any outreach method. Results are generally positive across industries and across message types.

Let’s dig into some SMS marketing analytics and explore some key performance benchmarks:

Open and Click-Through Rates Still Lead

SMS open rates are among the best there is. An average of 98% leaves email’s 21.5% average open rate in the dust. More than that, some research shows that most consumers (over 90%) actually open SMS marketing messages within just three minutes of receiving them!

Likewise, CTRs are extremely strong in SMS marketing. The average SMS CTR across industries ranges between 19% and 36% (again, compare that to email’s 2.6%), with anything over 20% considered healthy.

This success comes down to two things: speed and visibility. It’s much quicker to reach people on their phones. Plus, we tend to see phone notifications quicker than computer ones, so business can reach people more easily.

Conversion and ROI Trends

Conversion rates are comparatively high in SMS marketing. Giving an exact number is tricky, as it depends on the industry and also on the type of SMS message. Conversion rates on cart recovery SMSs, for example, can be around 15-20%, while other message types might see lower CVRs.

Now, let’s take a look at some CVR SMS marketing trends by industry. Here are some average SMS conversion rates in a few major industries:

• Technology - 31-40%
• Construction - 21-30%
• Education - 21-30%
• Manufacturing - 21-30%
• Finance - 20%
• Healthcare - 20%
• Ecommerce & retail - 11-20%

SMS ROI tends to also be high. Some sources suggest anything between 500% and 3,000% can be expected, depending on the type of message.

Subscriber Growth and List Health

SMS marketing analytics suggest that opt-out rates are relatively low. This means the vast majority of people on your SMS list want to stay on that list, even more so if you’re using SMS marketing to offer exclusive deals. The average opt-out rate across industries is only around 1%.

Evidence also shows opt-out rates (or “unsubscribe” rates) are highest within the first 30 days. So, if you can keep your customers engaged for that first month, they’ll likely stick around.

However, this relies on clean, high-intent lists. Lists with outdated contact details and dormant customers likely won’t see these kinds of results, so regularly clean up your lists to guarantee maximum health.

Timing and Engagement Curve

Combine high open rates with the fact that 74% of consumers (in Europe) have bought something after getting a marketing text from a brand, and it’s clear that engagement is high with SMS marketing.

However, engagement depends heavily on timing. Mistimed texts see much lower engagement and time-to-open rates.

Here’s what the latest research into SMS marketing timing suggests:

• The best days to send SMS messages are Thursdays, Fridays, and Saturdays.
• The best times are between 9am and 12pm and 5pm and 9pm.
• Industry matters. Some industries will see better results at specific times. For example, retail brands should send messages after work hours, while B2B SMS marketing works best during the work day.

Where SMS Still Outperforms Other Channels

SMS isn’t just “still worth it”. In some cases, it’s actually the best option. A great SMS marketing strategy can outperform other outreach methods in many ways and in many areas.

Use Cases Where SMS Wins

• Time-sensitive promos - when you’re dealing with urgent promos like limited-time discounts and flash sales, SMS is unbeatable. Consumers open promotional texts 8x faster than promotional emails. Emails might go unseen until it’s too late.

• Cart abandonment & restock alerts - the average cart abandonment rate is a huge 70.19%. SMS is a great way to combat this. Likewise, it’s an easy way to draw their attention to the fact a sold-out product they viewed is back in stock.

• Appointment reminders & confirmations - from service appointments to event RSVPs, SMS reminders reduce no-shows significantly. They’re short, direct, and easily actionable.

SMS vs Email: Complementary, Not Competitive

We’re not saying “SMS is better than email”. Only that the two outreach methods work best in different areas. Email marketing is still superior when it comes to:

• Long-form content
• Newsletters
• Detailed promotions

SMS excels in other ways. SMS favors quick, high-impact messaging ideal for:

• Reminders
• Flash sales
• Urgent updates

Using both channels in a coordinated way improves retention by reaching customers in the most effective format for each message type.

SMS vs Push Notifications

Push notifications are an excellent way to reach users. Studies show they can increase app engagement by an enormous 88%.

However, the key word there is “app”. Push notifications require users to have your app installed and notifications enabled. It’s great for reaching loyal app-users, but not so great if you want maximum coverage.

SMS marketing doesn’t have that barrier:

• SMS reaches all mobile users, app or not.
• Push notifications can be ignored or disabled

This could make SMS more reliable for critical or transactional messages.

SMS vs Paid Retargeting

Paid retargeting is a great way to bring people who have already dabbled with your brand back into the picture. These consumers are more likely to buy second time round, which is why studies show it can increase conversion rates by an impressive 150%.

However, paid retargeting isn’t cheap. Businesses can pay up to $6.75 per click for Google ads, which can add up when operating at scale. It’s also indirect and somewhat delayed.

In contrast, SMS marketing:

• Reaches those who have already opted in and shown intent.
• Delivers a personal message straight to their device.
• Costs a fraction of the price of paid retargeting (1-2 cents per message).

How Effective Is SMS Marketing for Small Businesses?

SMS stands out as an extremely worthwhile marketing strategy for small businesses in particular. It has high ROI with relatively small budget needs, two aspects that are very important for smaller enterprises. It’s easy to implement and measure, too.

Aside from that, SMS marketing offers:

• High engagement rates - few other outreach methods, if any, offer open rates of over 90%.
• Low cost per message - SMS is much cheaper than paid social or search ads.
• Local reach - perfect for driving foot traffic or promoting local events and offers.
• Direct feedback - customers can easily reply or act, creating two-way communication.

For these reasons, around 40% of businesses currently use SMS marketing strategies.

Some Disadvantages of SMS Marketing

SMS marketing can have magical effects, but it’s not magic. There are some challenges that can be hard to avoid in SMS marketing, each of which can lead to poor results or even legal issues.

Some of these drawbacks include:

• Character limitations - SMS messages can only be up to 160 characters max. That can limit storytelling and details around offers. Messages must be concise and clear.
• Customer fatigue - over-messaging can be invasive. Customers can feel a brand that messages too often is intruding on their privacy and may opt out.
• Compliance risks - there are strict laws around SMS marketing, like TCPA (U.S.) and GDPR (EU). Both require clear consent and opt-out options.

When SMS Doesn’t Work (and Why)

When SMS marketing fails, it’s often down to the execution, not the channel itself. Here are some common SMS marketing pitfalls to steer clear of:

Poor Segmentation Kills Engagement

Evidence shows most consumers (71%) actually expect personalized messaging from a brand. They want interactions that reflect their interests and their location. In short: they want relevance.

First-timers often blast out the same message to everyone on their list, and wonder why their conversion rates are only at 1%.

The solution is segmentation. Use customer data to segment your audience by:

• Behavior
• Preferences
• Lifecycle stage

Then, tailor your messaging for one particular segment.

Timing Mistakes That Hurt Performance

The best offer can fall completely flat if sent at the wrong time. It doesn’t matter if the message is too early or too late, or, for that matter, too frequent. Bad timing equals missed opportunities.

This doesn’t mean your message is bad. However, you might need to spend more time researching your target audience’s behavior. Drill down and find the optimal windows in which to get through to them (for example, early afternoon on Thursdays) and avoid over-messaging your list.

Messages Without a Clear Value Proposition

Your message needs to answer one simple question: “what’s in it for me?” If your SMS outreach simply lists items on sale, or tells customers about an update that makes no difference to them, they probably won’t care. The same goes for overly promotional messages.

You need to develop a clear value proposition for each and every message. The trick is to always lead with value. Offer:

• Discounts
• Exclusivity
• Reminders
• Relevant updates

Missing Compliance Requirements

TCPA and GDPR requirements aren’t guidelines. They’re laws. If you fail to follow the compliance requirements they outline, like obtaining explicit consent and providing easy opt-out options, you can face fines. Perhaps worse, you can do your business irreversible reputation damage.

Even if you think you’re complying with TCPA and GDPR laws, it’s a good idea to check them regularly to make sure. You can make this easier by using a compliant SMS platform to manage consent and opt-outs.

SMS Marketing for B2B Businesses

B2B SMS marketing is a growing field with lots of traction. B2B marketers can drive conversions by offering educational material and exclusive offers to other businesses through SMS messages.

However, it comes with its own challenges and drawbacks. To get your strategy off to a flying start, we’re going to explore some of the top-performing B2B SMS marketing examples and see what lessons we can draw from them.

How Top Brands Personalize SMS in 2025

Discover how leading names are using B2B SMS marketing strategies to bolster their bottom line. Here are the examples you should be studying:

Allbirds Segments by Lifecycle Stage

Sustainable shoe giant Allbirds does an excellent job of SMS marketing. They’ve consistently used the method to boost sales. Last year, they had a net revenue of almost $190m!

They’ve achieved these results in part because of their smart approach to SMS marketing. Allbirds is an excellent example of segmentation. They segment their audience by lifecycle stage and target messaging accordingly. For example:

• First-time buyers - Allbirds focuses on educational material to draw customers in.
• High-intent past purchasers - exclusive promos to encourage repeat purchases.

Olaplex Runs Purchase-Triggered Flows

Olaplex has been making waves in the hair care world with its efficient SMS marketing techniques. One of the features that sets their approach apart is their focus on purchase-triggered flows. In other words, they tailor messaging to complement a customer’s recent purchases.

For example, they:

• Send hair care tips for using specific products.
• Upsell complementary products based on order history.

This is a fantastic way to show your customers you really care about them getting the most out of your product, while also encouraging more purchases.

Madewell Uses VIP Segments for Pre-Access Campaigns

Madewell is another huge brand that uses SMS marketing to great effect. However, instead of focusing on new customers and educational content, their messaging is usually focused on campaigns for existing customers.

Madewell uses SMS marketing to encourage brand loyalty. They use:

• Early-bird offers.
• Pre-access campaigns.
• Exclusive offers with loyalty programs.

As a result, Madewell enhances its image of affordable luxury and encourages repeat purchases.

Harry’s Syncs Email, SMS, and Paid Ads

Grooming brand Harry’s is a prime example of a business using different channels in harmony. They use SMS messaging, but also email and paid ads to fill the gaps SMS can’t reach.

• SMS - drives urgency with limited-time offers.
• Email - educates customers on male grooming.
• Paid ads - retargeting customers who have visited before.

All these channels work in tandem to create a healthy marketing strategy that covers all the bases. It shows: Harry’s enjoys over 3 million monthly recurring customers!

Lume Deodorant A/B Tests SMS Copy and Timing to Improve ROI

If you want an example of A/B testing done right, look no further than Lume Deodorant. Their SMS targeting approach is spot-on. They invest resources in extensive testing that secures amazing results.

Most notably, they:

• Test casual vs. direct tone to find out which drives more clicks.
• Experiment with morning sends vs. evening sends to see which their audience prefers.
• Closely monitor opt-out rates alongside conversions to refine future sends

They’re clearly doing SMS marketing right, as Lume Deodorant is one of the leading affordable deodorant companies in the world!

Final Takeaways

Is SMS marketing effective in 2025? 100%. Hopefully, we’ve shown you just how powerful SMS marketing can be, even in the age of social media. You might not think much about SMS texting these days, but leading companies are.

Almost no other outreach method has such high open rates (98%), CTRs (19%), engagement, and more. In short: consumers still see SMS as a “personal” communication method. Using it as a core marketing channel fosters a sense of loyalty. It’s the best way to reach your audience quickly and affordably.

However, you have to hone your strategy. Segmentation is essential, as is timing. Make sure you take your value proposition seriously and regularly check-in on compliance laws to avoid penalties.

Experienced marketing agencies like Influize can help you develop rock-solid messaging and omnichannel outreach delivery that secures faster results. Our team is always ready to meet new clients and start working on personalized marketing plans.