Loyalty Register glossary
SMS marketing
Sending marketing and account messages to members by text message. In the US it requires prior written consent for automated marketing texts.
SMS marketing is the use of text messages (SMS, or MMS when they carry images) to send offers, reminders and account updates to customers who agreed to receive them. For a loyalty program it can carry promotions, points and reward alerts, order updates and sign-up confirmations. Text messages are read quickly and reach members who do not use the brand’s app, which makes the channel valuable and easy to overuse.
Updated · By Loyalty Register Editorial TeamRelated terms
What are the US rules for SMS marketing?
The rules come mainly from the Telephone Consumer Protection Act (TCPA) and FCC regulations. FCC rules require prior express written consent for telemarketing calls and messages sent to cell phones with an automatic dialing system. That consent is a signed written agreement, which can be electronic, that clearly authorizes the marketing messages and names the phone number they go to. Whether a texting platform counts as an automatic dialing system is a legal question, so most US programs collect written opt-in before any marketing text. FCC rules also bar telephone solicitations, defined as calls or messages encouraging a purchase, before 8 a.m. or after 9 p.m. at the recipient’s local time.
Members can revoke consent by any reasonable method. Under FCC rules, replies such as “stop,” “quit,” “end,” “revoke,” “opt out,” “cancel” or “unsubscribe” always count, and the request must be honored within a reasonable time of no more than ten business days. Carriers and industry codes add requirements such as sign-up disclosures, so programs usually work through a provider that enforces them. Consult counsel before launch; penalties can be high.
Which loyalty messages suit SMS?
Messages where timing matters and the content fits in a sentence or two:
- points about to expire, with the date;
- a reward unlocked or a tier reached;
- order and pickup updates;
- a short, time-limited offer for members who chose to receive them;
- confirmation codes and account security alerts.
A monthly newsletter by text is a poor fit. Longer content belongs in email or the app.
How often should a program text members?
Less often than it emails. Each text interrupts, and the cost of losing the channel is high: a member who replies STOP is usually gone from SMS for good. Tell members at sign-up roughly how many messages to expect, keep to it, and apply a frequency cap that covers SMS together with push and email.
How do you measure SMS marketing?
Track opt-out rate per send, delivery rate, clicks and, most importantly, purchases or redemptions compared with a holdout group. SMS has a direct cost per message, so compare the extra revenue against both the sending cost and the value of members lost to opt-outs. A campaign that sells well but drives a spike in opt-outs may cost the program more over a year than it earned in a week.