How much does text message marketing cost?

Text messaging is the #1 preferred method of communication. This fact is one of the many reasons why SMS marketing has taken the business industry by storm. Companies across the world are implementing this new digital strategy to build brand awareness on a more personal level with customers by segmenting groups by tags and automating follow-ups. Text message marketing allows businesses to send out mass texts to all of the contacts in their database at once. Or, to increase personalization, contacts can be grouped together by a common characteristic such as location so a more specific audience can be reached. With the incorporation of automation, text message marketing can take your business to new heights. But how much does this asset cost? 

Text Message Marketing vs Email Marketing?

Emails require layout design and creative subject lines, taking time and effort to complete. On the other hand, text messages can be pre-written with the use of templates and sent out to hundreds or thousands of contacts in just one click. SMS messaging is not only easier to sustain than email marketing but easier to sustain. In comparison, the higher response rate of SMS messages compared to emails means you spend fewer resources for a better return on investment. Text message marketing has a huge advantage over email marketing in terms of open rates. The average open rate for an SMS campaign is as high as 98% while email is just 20%. By extension, response rates for text messages are much higher than for emails as well. Making SMS a more cost-effective way to share your message with many people at once. 

PhlashLite vs Podium

To give you a better understanding of the structure of text message marketing platforms we will compare our software PhlashLite with our partner’s Podium. The price of SMS marketing is often broken down into segments and the base price of the platform. The base price of PhlashLite per month is $395 while Podium’s standard plan costs $449 per month. PhlashLite and Podium also both offer unlimited contacts and team members with the purchase of their plan, however, Podium caps the contacts their clients can market to at 500. Unlike other platforms that break their costs down for each texting action, PhlashLite allows 10,000 free text message segments each month. Text messages are measured in character batches called segments. Most SMS marketing platforms charge their client on a per-segment basis. Just one segment can be as little as an emoji and can quickly build in count as you construct your message. In addition to all segments Podium also charges processing rates for sending and receiving texts. 

Questions to consider when choosing a text message marketing platform for your company:

• Are incoming messages free of charge?
• Is there a setup fee? 
• Is there a limit on the number of contacts and team members I can have
• How much is the base cost of this service a month?
• Are templates offered? 
• What is the pricing guide per message? 

What makes a texting campaign a success?

The driving force in a successful texting campaign is a creative segmentation strategy. We have found that sending messages to distinctive groups of subscribers will improve your message performance. For example, targeting engaged customers, past purchasers, non-purchasers, loyalty status members, or customers based on their location. It is also important for businesses to send campaign messages to the subscribers that are not as engaged in an effort to increase revenue and their repeat customer rate. A simple text can make all the difference!

With the many factors that weigh into the price of each SMS marketing platform, it can be difficult to find the right software for your company. Our team at Phlash Consulting understands the challenges of growing your business in a modern world. We built PhlashLite to aid the transition from companies’ traditional styles of marketing to new approaches that reach a much larger audience. Schedule a demo with PhlashLite here and start texting your customers today without restriction.