Happy Friday! Chase and Jimmy here. 👋

If retention is the goal, SMS needs to be part of the playbook. But, if you’re sending SMS campaigns without a solid strategy, you might as well be lighting your budget on fire. 🔥

Sure, SMS marketing is one of the most powerful channels out there—98% open rates, 5x the click-throughs of email, and 80% of consumers actually want texts from brands. But if you’re blasting generic messages to your entire list? You’re burning money and annoying customers in the process.

The good news? A few smart tweaks can make your SMS strategy way more efficient (and profitable). In today’s newsletter, we’re breaking down six clever ways to get better results without blowing your budget.

Ready? Let’s gooo…

SMS isn’t a “nice-to-have” anymore—it’s a revenue machine.

And Omnisend did the digging to prove it! Get this, in 2024, brands sent 31% more SMS messages YoY, and for good reason:
🚀 US brands pulled in $25M+ in SMS sales in 2024.
🚀 Automated SMS made up just 9% of sends but drove 18% of orders.
🚀 Click rates for SMS automations? +147% higher than campaigns.

The takeaway? SMS isn’t just working—it’s winning. If it’s not in your 2025 retention playbook, you’re already behind.

Read Omnisend’s free report (no opt-in) and get the data-driven insights you need—no guesswork required.

💡 Knowledge Drop of The Week

To know someone, is to sell to them… or something like that—Tap into buyer psychology with Chase Dimond’s 10 reasons why people buy!

6 Clever SMS Marketing Strategies to Drive Retention and ROI

SMS marketing is fast, personal and remarkably effective.

According to Omnisend, texts drive up to 5x more clicks than email campaigns. What’s more, 80% of consumers actually want to get texts from brands.

But what if you’ve got a huge mobile audience? Won’t all those texts eat up your budget?

Well, they could – if you do it wrong.

Luckily, there are some incredibly easy, cost-effective strategies you can implement right now to squeeze more juice out of your SMS marketing spend.

Let’s take a look below.

But first…

Why use SMS marketing?

First, let me drop a mind-blowing stat: texts have an average open rate of 98%.

Yes, you read that right. No other marketing channel comes close. This means almost everyone who gets your message will actually see it.

Even better? About 73% of customers have bought something because of a text message, and more than half have done it multiple times!

But here’s the thing: SMS marketing might seem simple, but it's easy to make costly mistakes. Here are six ways to make your texts drive results while keeping costs low.

1. Pick the right SMS platform

Your SMS platform makes all the difference in your marketing success. While some platforms might look cheaper at first glance, they could actually cost you more in the long run.

The best platforms help you work smarter, not harder. They streamline your workflows, automate routine tasks and make sure your messages reach the right people.

Here’s what to look for in an SMS platform:

• List management: Find a platform that lets you group your customers based on factors like demographics, purchase history and engagement patterns. This way, you can send tailored messages that really speak to them.

• Scheduling features: The best platforms let you plan your campaigns ahead of time and send them when your customers are most likely to engage. No more staying up late to send that midnight flash sale text!

• Detailed analytics: Look for a platform that lets you track key metrics like delivery rates, opens, clicks and conversions. You want to know what’s working, what isn’t and how you can tweak your future campaigns to perform better.

• Email + SMS integration: Text campaigns are effective, but they’re even better when paired with email marketing. Choose a platform that lets you run unified email and SMS campaigns from a single dashboard so you can not only save time and costs, but also keep your marketing consistent.

2. Segment your audience

Sending mass texts to your entire list is like throwing spaghetti at the wall–messy and pointless. You want to break your audience into smaller groups (with shared characteristics) and send messages that resonate with each one.

For example, let’s say you run an online home decor store. Instead of blasting everyone with the same promotion, you might segment your list by:

• Customers who bought wall art recently

• Shoppers interested in seasonal decor, like Christmas lights

• Subscribers who haven’t visited your store in 90 days

Now you can send more targeted messages, such as recommending matching accessories, bundling up products they might be interested in or sharing discounts on seasonal items. This focused approach means fewer messages sent, lower costs and better results!

3. Keep your texts short and simple

In SMS marketing, length matters.

Standard text messages limit you to 160 characters from the GSM-7 character set. Go beyond that, and you’ll pay double for what could have been a single message.

Here are three clever ways to keep your texts short and sweet:

• Use a casual tone + abbreviations: Using short form and an informal, conversational tone often helps you say more with less. It also helps your brand look more friendly and approachable. Here’s an example: “Can’t wait 'til Fri? Use code WEEKEND for 20% off”.

• Don’t give it all away: Instead of cramming every detail into your text, spark curiosity and link to more info or next step. A message like “Spring collection now live! Shop first: [link]” drives action without overwhelming.

• Be careful with emojis: While emojis can spice up your messages and add personality, they can affect your character limit by converting your text to Unicode format. Be mindful when using emojis to keep costs low.

  

4. Use SMS automation

Automations help you reach your subscribers with targeted texts at just the right time. Instead of manually drafting and sending each SMS, you just need to set up your workflows once and let your platform take care of the rest.

Set up behavior-based automations to trigger messages based on customer actions, such as a new purchase or an abandoned cart.

For example, when a customer views patio furniture in your store but leaves without buying, they might receive a personalized, automated text based on their browsing history:

Automated messages drive more engagement and conversions than manual campaigns because they’re sent when buyers are still warm from their interaction.

You can also use contextual or intent data to send hyper-personalized SMS automations based on triggers like specific link clicks or emails opened.

5. Personalize your text messages

Personalization isn’t just for email. You can easily tailor your texts so they feel like you’re speaking directly to each individual recipient.

Here are some SMS personalization tactics (and examples) to inspire you:

• Mention their name: “Hey Alex! Just found something perfect for your running routine: [link]”

• Use their purchase history: “Looking for your next great read? Based on your love for mystery novels, we think you’ll enjoy these new arrivals: [link]”

• Remember special occasions: “It's your membership anniversary, Pat! Enjoy 25% off your next purchase to celebrate. Code: YEAR1”

• Reward customer loyalty: “Sam, thanks for being such a great customer! Here’s an exclusive early access pass to our summer collection: [link]”

You can also leverage quiz results, browsing behavior or location data for even more relevant messaging.

6. Run incrementality tests (RCT)

Want to measure the true impact of your SMS campaigns? Run incrementality tests (also called Randomized Controlled Trial or RCT tests)

Here’s how incrementality testing works:

1. Split your audience randomly into two groups.

2. Send your campaign to one group while leaving the other group as a control.

3. Compare how both groups behave.

Did the group receiving messages make more purchases? Visit your website more often? Spend more per order? This comparison reveals the real value of your SMS marketing and helps you focus your budget where it matters.

For example, let’s say a local bakery wants to test a weekend promotion.

They might find that customers who received their “Fresh Bread Saturday” text alerts spent 40% more each month than those who didn’t.

That's clear proof of SMS marketing’s impact on their bottom line.

Drive higher ROI from your SMS marketing

SMS marketing isn’t rocket science, but it does take strategy. When you put the tips above to work, you’ll actually spend less while driving better results.

Good targeting means fewer wasted messages. Smart automation saves time and money. And personalization keeps customers engaged, making every text worth the investment.

Remember: the most expensive text is the one that gets ignored. Send messages your customers actually want to read, and you’ll find that better engagement and lower costs go hand in hand.

For one day and one day only, the hottest DTC event of the year is coming to Miami! The stage is set for April 25th & geared up to be another can’t miss event featuring:

📍 Stunning Venue: 360-degree views, overlooking the water & Miami skyline.

🎤 Top Speakers & Panels: Hear from the brightest minds in eCommerce, DTC, and retail.

🍽️ World-Class Food: The best conference meals you’ll ever have!

💥 Exclusive Networking: Connect with 240 of the brightest innovators in the space.

🕺 Non-stop Fun: Pre and after parties to keep the good vibes rolling.

78 days away and this event is already 50% SOLD OUT—Once we hit 240 attendees, the doors are closed. Get your tickets now! 🎟️

🔥 DTC Win of The Week

New beauty brand on the block! Tilt Beauty made their debut this week launching three products designed with the body in mind. Aiming to reshape the cosmetic industry, their accessible products feature one-of-a-kind ergonomic packaging and grip.

And that's a wrap for this week!

Big thanks for hanging out with Chase and me—hope you found some gems in here! If you did, share the love and pass ecomemailmarketer.com along to your favorite DTC marketer. Let’s get them in the loop for next week's insights! 🚀

Remember: Do shit you love and have an awesome weekend!

🤘 Jimmy Kim