Are you considering text messages to scale your business but don’t know how SMS marketing pricing works?
In this article, you’ll learn everything you need about the factors influencing the final cost. Additionally, at the end, you’ll find the answers to common FAQ.
Without further ado, let’s start!
SMS Marketing Price List: Factors to Consider
An SMS marketing price list will always depend on the features and type of campaign you plan to run. Therefore, you need to check the prices with your provider. Here you find a list of the factors that affect the final cost of text marketing:
- Message volume: The more messages you send, the lower the cost per message. Location: Due to different carrier fees, costs vary depending on whether you send messages locally or internationally.
- Length of messages: Standard SMS messages are typically 160 characters. Extended messages beyond this limit may be split into multiple messages, increasing costs.
- Short codes or long codes: Short codes are 5-6 digit numbers used for high-volume, fast and reliable SMS messaging. Long codes are standard 10-digit phone numbers. Short codes are more expensive but support higher volumes and better deliverability. Long codes are cheaper but have limitations on message throughput.
- Monthly plans options: Different providers offer various plans. Some include a set number of messages, while others offer pay-as-you-go options.
- Additional credits for extra messages: You may need extra credits if you exceed your plan’s limit.
- Features: Advanced features such as API access or unlimited contacts can add to the overall cost of SMS marketing. Choose your SMS platform wisely.
- Integrations: Integrating your system with CRM, email marketing tools, or other platforms can increase message marketing costs.
- Compliance with regulations: Ensuring compliance with regulations in your region can involve extra costs, such as consulting a lawyer for legal advice.
- Carrier fees: Different carriers impose various fees and surcharges that can affect the overall cost.
- Customer service levels: Premium support services can increase the overall cost. However, it might be necessary for businesses that require quick issue resolution.
- Setup fees: Some providers charge an initial setup fee to configure your account and integrate their services with your systems.
How Much Does It Cost To Do SMS Marketing?
Are you wondering, “how much does it cost to do SMS marketing?”
The cost to do SMS marketing typically ranges from $0.01 to $0.05 per message. The final price depends mostly on volume, provider, and features.
Beyond these, other elements might impact your SMS campaign more than others.
For example, sending messages overseas can be more expensive due to higher carrier fees. This might be the most influencing factor, regardless of other elements.
However, you can reduce the cost by managing your list of contacts. List management is a necessary practice to save money. Therefore, optimize your list and campaigns by evaluating each contact’s engagement.
Most providers offer analytics that tells you which contacts are the least engaged. Therefore, act on this data.
Who Should Consider SMS Marketing?
Businesses that want to communicate quickly and directly with their customers should consider text marketing.
This marketing approach is typically effective for restaurants, cafes, hospitality, and service-based businesses.
However, to understand whether you need to implement this strategy, consider these crucial elements:
- Customer interaction frequency. If your business frequently interacts with customers for appointments, reservations, or updates, go for it. SMS marketing can streamline the process.
- Need for timely communication. If your business needs to send time-sensitive information, nothing beats messaging marketing. Therefore, consider the strategy.
- Customer engagement goals. If you aim to increase, SMS marketing strategies offer higher open rates than other approaches. It can improve customer engagement, retention, and satisfaction.
- Budget constraints. SMS marketing ROI is higher compared to other advertising methods. There are many examples of SMS campaigns that can result in impressive conversion rates.
FAQ on SMS Marketing Cost
As we have covered the basics of SMS marketing cost, let’s now look at the most common questions about the subject.
How is SMS marketing pricing typically structured?
The structure of SMS marketing pricing is a combination of factors such as message volume, length, and geographic location.
Other factors affect the final cost of text marketing. Therefore, when choosing a plan, it is important to consider your needs and choose accordingly.
Is email marketing better than SMS marketing?
Whether email marketing or SMS marketing is better depends on your business goals. SMS advertising boasts higher open rates and immediacy, making it ideal for time-sensitive messages.
Email marketing is better for detailed content and longer campaigns. Many businesses find success using both methods in a complementary way to maximize engagement and reach.
What is the open rate for SMS marketing?
The open rate for SMS marketing often exceeds 90%.
This makes SMS marketing one of the most effective ways to reach your customers. However, ensure that your communication is relevant to your customers. You don’t want to bombard users with irrelevant texts. Otherwise, they might unsubscribe.
Additionally, carriers might consider your SMS as spam, reducing the open rate.
How much does an SMS cost?
The cost of an SMS typically ranges from $0.01 to $0.05 per message.
Higher volumes often result in lower costs per message, and some providers offer bulk pricing discounts. Considering the open rate of this strategy, text messages can strongly support a business strategy.
Is sms marketing legal?
Yes, SMS marketing is legal. Businesses must comply with regulations. If your business is in the U.S., you must follow the Telephone Consumer Protection Act (TCPA). The General Data Protection Regulation (GDPR) applies in the EU.
These regulations require obtaining explicit consent from recipients and providing opt-out options.
Getting Started with SMS Marketing
Your needs should be the starting point if you are evaluating this strategy. SMS marketing pricing depends mostly on the features you expect and the number of messages you send.
Therefore, evaluate the strategy as part of your business model. Consider how you gather the contacts and run the campaign.
If you want to scale your marketing with SMS, check out Beambox.
It is a WiFi marketing solution that helps you building an SMS list and creating effective texts. Additionally, with Beambox you can automate the process and run other types of marketing campaigns.
Beambox has no hidden fees and requires no additional hardware. Over 12,000 businesses are using Beambox. Do you want to be next? Start your free trial now!
