Key takeaways:
- Consumer Interest: Over 87% of Australian consumers are interested in or have signed up for text messaging from brands.
- Higher Conversion Rates: Two-way SMS communication boosts conversions by 30% compared to non-interactive SMS approaches.
- Industry-Wide Data: SMS usage is growing, with 66% of companies using text to engage customers. Open rates and conversion rates for SMS far surpass those of email.
- Personalised SMS Strategies: SMS combined with personalisation and segmentation offers unique opportunities for timely, effective customer engagement.
It feels like a broken record every time marketers and business leaders hear “the digital landscape continues to evolve.” And yet here we are, all swinging around that same broken record trying to hang on. This most recent go around for brands has been focused on SMS (or refocused I guess? SMS isn’t exactly a ground-breaking new channel). Yet in the past 12 months, businesses have been putting more time and money into the unique advantages of SMS, including some newer features like two-way, that have led to exceptionally high open rates and rapid response times, especially compared to the old-faithful channel (yes, we’re talking about you email).
As companies embrace two-way messaging and personalised interactions, they are discovering that SMS not only fosters deeper connections with customers but also significantly enhances conversion rates. The shift towards SMS reflects a broader trend in which brands are prioritising effective, direct communication to meet consumer expectations and improve overall engagement. So let’s break down the latest numbers as to why this trend only seems to be growing, and walk through why two-way communication has become a need, not a nice-to-have.
The stats we can't ignore
Research highlights why SMS is on the rise: over 87% of Australian consumers are either interested in or have already opted to receive text messages from brands. Brands employing two-way SMS have observed a +30% increase in conversion rates, emphasising the value of interactive messaging. This aligns with our observations at Pendula, where we’ve seen an average engagement rate of 37% and a cross/upsell rate of 27%.
Third-party data further supports this trend. Salesforce’s latest State of the Connected Customer report reveals that 66% of businesses are using SMS for customer engagement. Although mobile apps (76%) and social media (64%) are still popular, SMS is quickly catching up. Email remains dominant at 93%, followed by phone (88%) and in-person interactions (86%).
In the United States, a SimpleTexting survey found that marketers are increasingly turning to SMS due to its higher engagement rates (60.5%) and better open and click-through rates (53.5%) compared to other channels. A recent Klaviyo survey also indicated that 72% of shoppers made purchases after receiving a text from a brand—69% in the APAC region. Notably, 14% of these shoppers reported making purchases they hadn’t even considered prior to receiving the message.
During a recent panel discussion, it was noted that 38% open rates for SMS are common, far surpassing email’s 20%. SMS also boasts response rates of 45%, compared to single digits for email, making it a more responsive and effective communication tool.
The rise of two-way SMS
Moreover, it’s not just simple broadcast SMS that seems to be driving these impressive numbers. SMS has evolved from a basic marketing tool to a central pillar in omnichannel communication strategies. No longer limited to one-way messaging, SMS is now leveraged for two-way interactions that offer real-time customer service and support. This shift allows brands to respond directly to customer inquiries or concerns, providing instant updates or solutions that foster trust and loyalty. Companies are experiencing significant benefits from this approach, with real-time SMS communication driving conversion rates up by 30% through more personalised, responsive customer experiences.
In an increasingly fast-paced digital landscape, consumers expect quick, efficient interactions, and two-way SMS fits the bill perfectly. The ability to engage customers at critical moments—whether it’s addressing cart abandonment or offering a quick solution to a service issue—can transform a disengaged or dissatisfied customer into a brand advocate. As consumers become more accustomed to immediate responses, two-way SMS provides a unique opportunity to create meaningful, lasting connections while also boosting conversions and overall brand perception.
Seamless, personalised communications with Pendula
With our fast expansion into the UK and consistent growth in Australia, Pendula is quickly establishing itself as a leader in the customer engagement space, particularly for two-way SMS communications. By enabling organisations to create seamless, automated, and personalised two-way conversations across SMS, email, and other channels, Pendula is redefining how businesses communicate with their customers.
Use Pendula SMS marketing to:
- Ensure compliance with ease through built-in consent management and data security protocols, reflecting our SOC 2 Type 2, UK GDPR and ISO 270011 accreditations.
- Seamlessly integrate SMS into your broader customer engagement strategy, synchronising with other owned marketing channels like email, WhatsApp, and mobile messaging.
- Personalise every message with Pendula’s advanced audience segmentation and targeting tools, driving relevant, timely interactions with your customer base.
- Engage in real-time with customers via transactional and two-way conversational SMS, proven to boost conversion rates by over 35%.
- Speed up campaign development with AI-powered tools in our intelligence suite, helping you deliver efficient, tailored responses and sentiment analysis that help drive deeper engagement.
Say hello to more customer conversations today with a personalised demo from our team.
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