SMS Lead Generation: A Beginner’s Guide

Did you know that the average American spends 5.5 hours on their mobile phone daily? And the average mobile user checks their phone up to 58 times a day. With all that time on mobile comes the opportunity to connect with existing as well as potential customers in a whole new way. 

More and more local businesses are using text messages and SMS marketing to revolutionize the way they connect with their customers. And find new ones. Read on to learn how to harness the power of messaging to generate and nurture valuable leads.

What is SMS lead generation?

The main idea behind SMS lead generation is this:

1. Text is an immediate, direct communication tool.
2. Your customers want you to text them. 
3. Ergo: Local businesses should use text to find and nurture new customers.

Essentially, SMS lead generation is the practice of gathering potential customer phone numbers to introduce them into your marketing campaign pipeline. The main purpose of this marketing strategy is to create direct communication lines with customers that will last beyond the point of transaction and lead to strong customer relationships.

Benefits of SMS Lead Generation

Just as there are many benefits of SMS for local businesses, there are many benefits of SMS lead generation as well. We’ve highlighted just a few below. 

1. High Open and Response Rates

Texts have an incredibly high open rate of up to 98%. That’s over 200% higher than the response rates averaged by phone, email, or Facebook. On average, 95% of texts are opened within three minutes of reception. If you had the chance to get your marketing seen 98% of the time, why wouldn’t you take it? 

2. Immediate and Direct Communication

Text messages are delivered immediately. And because they have a character limit, they necessitate direct and concise communication–something your customers (and employees) value. It’s no wonder that customers are 2x as likely to prefer messaging to any other method of communication. 

3. Convenience and Accessibility

The convenience that text offers your customers is unparalleled. It’s the reason they use it–and why they might choose one business over another. Research shows that over 40% of customers are likely to switch to a different business because they offer texting. And over 65% of your customers think text makes working with you more convenient. Also, because the majority of consumers in the US can text, offering text increases the accessibility of your business. 

10 Effective SMS Lead Generation Strategies and Tips

Ready to get started? We’re here to help. Here are ten tried and true strategies, tips, and best practices to improve your SMS lead generation. 

1. Turn interactions into opt-ins.

If you want access to your customers’ mobile phones, you have to get their permission first. This means they have to opt-in to your marketing. The key to getting opt-ins is to turn interactions into opt-ins by carefully integrating opt-in entry points at every touchpoint in your unique customer journey: 

• Online sign-up pages and forms (on your landing page)

• Website banners, pop-ups, and prompts (web forms)

• Website chat

• Point of sale or transaction

• Review collection 

2. Offer prospects incentives.

Offering incentives is a great way to make opting in as enticing as possible. You’re able to provide real value up-front while earning your potential customers’ permission to send marketing materials to them. Incentives can be direct incentives like discounts or special offers, or they can be contests and giveaways. 

3. Utilize existing channels.

Utilizing your existing channels can be a great way to cast a wider net for your SMS messages. Send an email blast inviting people to opt in, put a banner in your ecommerce communications, or add a QR code graphic or even a printed keyword to your mailers to encourage opt-ins. 

4. Get active on social media.

Your LinkedIn, Facebook, and Instagram pages are great places to socialize your online sign-up forms. Create posts with your QR code, URL, or keyword to capture opt-ins from your social media channels and optimize your presence. 

5. Craft SMS drip campaigns.

Want new leads? It’s time to automate. Use automation to create drip campaigns that send on a regular schedule, prompting customers to refer friends and family, join your loyalty program, or cash in personalized promotions. 

6. Optimize your campaign for mobile.

People are tired of digital noise. They want valuable, accessible content that’s tailored specifically to them. Optimize your SMS marketing campaign for mobile by making sure you stay within the character limit, include links and media that load correctly, and communicate directly.

7. Include MMS.

Your customers might come for the new products, but make sure they stay for the media. Utilize MMS messages to include pictures, videos, GIFs, links, and other kinds of media. Don’t sleep on the emojis! 

8. Add attractive CTAs.

Every message you send should direct customers to an action, whether it’s to click a link, take a quiz, open a new guide, or attend an event. Make sure your CTA is clear and that you don’t include more than one. 

9. Customize and personalize.

Over 70% of your customers want you to provide personalized experiences. This is where your CRM comes in. Use data tracking and customer profiles to personalize every message, addressing customers by name with offers based on their history with you. 

10. Continue engagement.

Don’t forget to follow up. After an interaction or transaction, invite continued engagement by sending a review invite, feedback invite, thank you message, or relevant promotion. 

How to Set Up an SMS Campaign in Six Steps

Once you’ve got your opt-ins, it’s time to send. Here’s our proven, step-by-step guide to setting up an SMS campaign. 

1. Define your campaign objectives.

What do you want this campaign to do? Convince customers that they should purchase a product? Join your loyalty program, get an upgrade, refer a friend? Make sure you and your team are clear on what you want your campaign to do in order to set yourselves up for success.

2. Build a targeted subscriber list.

Time for segmentation. Segment your SMS subscribers by demographic using metrics that are most relevant to you and your business: area, age, behavior, purchasing volume, etc. Build a list to locate your target audience for this specific campaign, keeping in mind your specific objective and who it will apply to. 

3. Choose an SMS service provider.

SMS service providers are not built equally, and you’ll want to find one that meets your requirements and the needs of your sales team. Do you have more than one employee who will be texting your customers? You’ll probably want a service with a shared inbox. Do you want to send drip campaigns? You’ll want a service with a seamless automated campaign setup. Pricing, customizability, flexibility, and reputation are all factors to keep in mind as well. 

4. Craft compelling and concise messages.

Did you know that customers redeem text coupons 10x more than other coupon types? Your messages should take advantage of this trend by being concise and persuasive in their messaging. They should always feature the “reward” and come across as a friendly, relevant, and personalized call to action. Pro Tip: Images, links, and videos can really help you make your case!

5. Test and optimize.

Test send your message to yourself and your team. If the delivery feels off, the link breaks, or the images don’t load, regroup and optimize to get the best results for your customers. Never send a campaign that you haven’t tested first. 

6. Monitor performance and analytics.

Text message marketing is all about experimenting and improving. Send the campaign and use your SMS marketing platform to carefully monitor performance metrics like open rates, click-through rates, conversion rates, and more. 

SMS Lead Generation Tools

Want a few lead generation tools to help you gather SMS leads? You’ve got it. Here are a few platforms, what they offer, and their pros and cons. 

1. Podium

Podium offers world-class text lead capture via customizability and template access, allowing local businesses to launch SMS campaigns in minutes. With top-tier automation features, two-way conversation communication, intuitive data tracking, shared inbox, and creative opt-in touchpoints, they help you build long-lasting subscriber lists with ease and continue conversations after the point of sale. With their free trial, Podium is a great option for businesses looking for a deal. 

2. Messent

Messente is a texting service that offers pro customer service by advising you about which types of messages you should use in your campaigns. It’s a worldwide service, helping B2B organizations reach customers in 190+ countries around the globe. Messente is particularly good at helping businesses deliver notifications and pin codes to their customers via bulk SMS marketing. 

3. Emotive

Emotive has a range of features that specifically highlight lead generation and allow you to automate two-way conversations with your customers. They also have a simple data dashboard, making data processing, tracking, and analytics easier on your team. The best part? Emotive promises their new customers that they will generate $2500+ in new revenue for them if they spend $500+ on services, or pay the difference. 

Take SMS Marketing to the Next Level

Podium has helped over 150,000+ local businesses generate valuable leads via SMS. With its all-in-one communication and growth solutions like Webchat and omnichannel messaging, Podium’s platform is a one-stop-shop, making your life easier and decreasing the load on your team with the click of a button. 

Ready to make lead gen and mobile marketing a breeze with the best marketing tool out there? Get started for free today.

FAQs

Have a few more questions? We’ve got answers. Check out a few FAQs below. 

What is an SMS lead?

Good question. An SMS lead is a prospect, or potential customer, who has expressed interest in your organization by providing their contact info through SMS messaging. This type of lead is quickly becoming one of the most powerful lead types in marketing.

What is SMS branding?

SMS branding is the practice of incorporating brand elements and messaging into your text communications with customers and prospective customers. It involves customizing your content, formatting, and tone to create a consistent brand experience across all of your communication channels. Done well, SMS branding is a great way to help people get to know you and what your organization feels like and stands for.  

Is SMS marketing illegal?

Done incorrectly, absolutely. Done correctly, absolutely not. It’s essential to respect customers’ wishes when texting leads and abide by the communication laws in your area. In the US, compliance involves abiding by the Telephone Consumer Protection Act and other attendant regulations. You should always:

1. Get proper consent from each recipient.
2. Mention your organization’s name. 
3. Alert customers about possible texting fees.
4. Include the option to opt out of all future messages.
5. Honor opt-outs and customers who unsubscribe. 

Never SPAM, respect your customers, and be transparent, and you’ll be good to go.