By clicking "Accept", you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
Understanding two-way SMS : How to unlock 70% engagement from customers
6 minute read
Let’s be honest—nobody likes being ghosted. So why are businesses still sending one way texts that don’t allow customers to reply? In 2025, 84% of consumers opted in to receive texts from businesses, up 35% since 2021. There’s a large growing interest in hearing from brands—but even more importantly, they want to talk back! Recent reports say that 71% of consumers want the ability to text a business back, up 18% from last year. This isn’t just a trend, it’s a shift in how people expect to engage.
That’s where two-way SMS comes in. Instead of shouting into the void with one way messages, two-way SMS opens up real-time, back-and-forth conversations. It’s fast, direct, and feels a lot more like texting a friend than interacting with a faceless brand.
In our article, we’ll break down what two-way text messaging actually means, how it works, and why adding two-way communication to your SMS strategy can seriously level up customer engagement, satisfaction, and loyalty. Because true engagement starts with listening—and two-way SMS gives your customers a voice.
Benefits of two-way SMS communication
When done right, two-way SMS can become one of your most effective communication tools. Let’s break down the benefits that make it such a powerful addition to your customer engagement strategy.
1. Enhanced customer engagement
Let’s start with the obvious: when customers can actually respond to your messages, engagement skyrockets. Two-way SMS creates an open line of communication—whether it's a simple reply to a promo, a question about a product, or a follow-up on a service. It turns passive messages into real-time interactions, making customers feel seen, heard, and involved.
2. Improved customer satisfaction
Speed really matters. A recent report found that 46% of customers expect companies to respond within four hours, and 12% expect a reply within just 15 minutes. With two-way SMS, businesses can meet these expectations by providing fast, real-time responses—often in just minutes. This level of responsiveness not only builds trust but also boosts customer satisfaction. And in a world where expectations are higher than ever, being easy to reach can be a serious competitive advantage.
3. Increased efficiency
Two-way SMS can be powered by smart automation. Think auto-replies for FAQs, appointment confirmations, or order tracking. It saves time for both your team and your customers, while still delivering a personal touch. The result? Less manual back-and-forth, fewer support tickets, and smoother operations overall.
4. Personalisation that hits
Customers crave personalisation—and two-way messaging makes it easy to deliver. Whether you're sending tailored offers, follow-ups based on past behaviour, or using first names in replies, two-way SMS helps you connect on a more human level. It’s not just a message; it’s a moment that feels made just for them.
5. Cost-effective communication
Compared to phone calls, emails, or live chat support, two-way SMS is surprisingly affordable—and it often delivers better response rates.
Research indicates that SMS boasts a 45% response rate, significantly higher than the average email response rate of just 6%.
You can scale up without blowing your budget, and because texts are quick to read and easy to reply to, you’re getting more bang for your communication buck.
Two-way SMS in practice
Two-way SMS is incredibly versatile, and businesses in nearly every industry are using it to streamline their operations and boost engagement. Here’s how businesses from various sectors are leveraging SMS for different touchpoints:
1. Customer support and inquiries
In the telecom industry, two-way SMS is used to handle customer inquiries about account status, plan details, or service issues. Many telco providers such as Telstra and MATE, allow for customers to text in to get quick answers to their questions, troubleshoot problems, or request service updates. This real-time communication enhances customer satisfaction by providing immediate, accessible support.
2. Appointment reminders and confirmations
Healthcare providers use two-way SMS to streamline communication with patients—sending appointment reminders, assisting with prescription refills, and handling scheduling queries. Patients can easily reply to confirm, reschedule, or ask questions, reducing missed appointments and boosting satisfaction.
In the e-commerce space, two-way SMS is a game-changer for keeping customers informed and engaged post-purchase. Brands can send real-time updates on order status, tracking numbers, and delivery windows—while giving customers the ability to reply with questions or requests. For instance, Zalando, a leading European online fashion retailer, uses two-way SMS to share shipping updates and respond to delivery-related queries, such as changes to instructions or tracking concerns—all in real time.
4. Feedback collection and surveys
In the education sector, two-way SMS helps institutions stay connected with students by sending reminders about key dates like exams, assignment deadlines, and events. It also provides a simple way to gather real-time feedback from students or parents, improving communication and overall engagement. For example, TAFE NSW and MCI Institute use two-way SMS to remind students of upcoming classes and assessments, while also collecting feedback through quick text surveys—enabling staff to respond to concerns and enhance the student experience efficiently.
How to implement two-way SMS in your business
Getting started with two-way SMS doesn’t have to be complicated—but it does take some thoughtful planning to get it right. Let’s lay the groundwork for a successful rollout.
1. Choose the right SMS platform or service provider
Look for a platform that supports two-way communication, integrates with your existing systems (like your CRM or marketing automation tools), and offers features like message tracking, automation, and personalisation. Bonus points if it includes analytics so you can measure impact.
2. Set up automated responses and workflows
Automated replies are perfect for handling FAQs, order confirmations, and appointment reminders. By mapping out common customer interactions in advance, you can design an SMS journey that feels seamless and personal. Plus, with the help of AI agents, you can take your automated responses to the next level by making them smarter and more adaptive.
3. Ensure compliance with data and consent regulations
Make sure your SMS strategy aligns with government spam regulations and global privacy standards (think GDPR or TCPA). That means getting explicit opt-in consent and giving customers an easy way to opt out at any time.
4. Train your team
Good SMS communication feels human. Equip your team with training on tone, timing, and how to manage conversations effectively. It’ll go a long way in keeping your customer interactions warm and helpful.
Want a head start? Check out our Two-Way SMS Use Case Guide to see how other businesses are making it work—complete with examples and best-in-class strategies.
Best practices for two-way SMS communication
Two-way SMS is a powerful channel, but like any form of communication, how you say it matters just as much as what you say. Here are some go-to best practices to help your messages hit the mark.
Keep it short and sweet: SMS has a character limit for a reason. Stick to one key message per text and avoid jargon or fluff.
Use a friendly, human tone: You’re not writing a legal notice—keep it conversational. Use your brand voice, but imagine you’re texting a friend (just a slightly more professional one).
Include opt-in and opt-out options: Respect your customers' preferences. Always give them a clear way to opt out, and be transparent about what kinds of messages they’re agreeing to receive.
Time it right: No one wants a promo text at 11pm. Send messages during optimal hours and consider time zones to ensure you’re reaching customers when they’re most likely to engage.
Personalise when you can: A simple first name or relevant context (“Your order is on the way!”) can make a huge difference in making the experience feel tailored.
Challenges of two-way SMS—and how to solve them
As effective as two-way SMS is, it’s not without a few bumps in the road. Let’s dive into some of the common challenges as well as how to overcome them so that your customer engagement is smooth sailing from here.
Managing customer expectations When customers know they can text you, they might expect lightning-fast replies. If your team isn’t staffed for 24/7 responses, use automated acknowledgements to set expectations (“We’ve received your message and will get back to you within X hours”).
Keeping customer data secure SMS can contain sensitive information, so make sure your provider follows data protection best practices. Use secure platforms, encrypt where possible, and train staff on data privacy policies.
Avoiding message overload Too many texts can lead to unsubscribes. Be strategic about what you send—and segment your audience to ensure messages are relevant and timely.
Staying compliant From opt-ins to message content, compliance is key. Make sure your workflows follow the rules in your region (and wherever your customers are). When in doubt, consult a compliance expert or choose a platform that builds regulation into the foundation.
Ready to text smarter?
Two-way SMS isn’t just a nice touch—it’s a powerful way to connect with customers, boost engagement, and make communication feel effortless on both sides. Whether you’re sending order updates, collecting feedback, or simply making it easier for customers to reach you, two-way SMS keeps the conversation going.
