SMS Marketing for Service-Based Businesses: Re-Engage Customers

April 24, 2025
A hand holds a smartphone emitting colorful icons, suggesting SMS marketing for service-based businesses, while a blurred network of connected people and digital devices appears in the background.
Table of Contents

SMS marketing for service-based businesses is the most effective way to reach clients quickly and directly. Send individualised SMS marketing messages to communicate essential appointment reminders and exclusive promotional offers to your customers. This way, customers are informed and engaged every step of the way!

SMS has a 98% open rate—significantly higher than the average email open rate of 20%. This ensures that your message is opened within minutes, making SMS ideal for urgent communication. Own a salon, massage therapy practice, or handy repair shop?

This customer-centric approach enables you to craft meaningful experiences that foster loyalty and advocacy. It brings the value right to their phones! In the subsequent sections, we'll provide practical tips and service industry-specific examples.

You'll learn best practices to get the most out of SMS marketing for your service-based business.

Key Takeaways

  • SMS marketing has the unique ability to engage your customers on an extremely personal level. This is crucial because it sends fast, highly individualised and action-oriented text messages. The immediacy of communication and high open rates truly set it apart from other channels, such as email and social media.
  • Service-based businesses can leverage SMS marketing to send appointment reminders, provide real-time updates, and maintain ongoing communication, thereby enhancing customer satisfaction and reducing missed appointments.
  • When done correctly, SMS marketing yields significant benefits. It increases open rates, is highly affordable, and enables you to send targeted, relevant messages in real-time, building customer loyalty and driving sales.
  • To succeed, businesses should build a consent-based contact list, segment their audience, craft concise and compelling messages, and optimise send times based on customer behaviour.
  • Your compliance is critical. Staying compliant with regulations such as the TCPA ensures you establish legal and ethical SMS marketing practices. This misleading approach fueled growing customer distrust.
  • Regularly track metrics like open rates, conversion rates, and ROI to evaluate campaign performance and refine strategies for better results.

What is SMS Marketing?

SMS marketing, or Short Message Service marketing, is a direct communication method that uses text messages to engage with customers. It uses the power of the built-in text messaging app that comes with every mobile phone to send short, direct, and effective promotions.

SMS marketing boasts an impressive 98% open rate. It's the most effective channel to reach your audience today. Unlike email and social media, SMS cuts through the clutter to deliver your messages straight to the palm of customers ' hands.

Texting is an integral part of people's lives — they spend an average of 26 minutes a day texting, meaning your messages always get opened right away.

SMS Marketing Defined

At their core, SMS marketing involves sending targeted promotional or informational messages directly to customers' mobile devices. These messages are brief, generally no more than 160 characters, and are meant to be direct and to the point.

SMS provides an instant, personal touch to communication. Unlike email, which often languishes unread in inboxes or social media posts that are quickly scrolled past, SMS demands immediate attention.

With open rates approaching 1, that's just how powerful this channel can be. For example, a salon could send appointment reminders and confirmations to its clients via email.

Additionally, it can send members exclusive discount codes, further strengthening loyalty within its customer base.

SMS Marketing's Role for Businesses

As a bonus, this channel is crucial for establishing customer loyalty. Regular updates, flash sales, or time-sensitive offers sent via SMS can create a sense of urgency and prompt immediate action.

For instance, an upholstery cleaning company might send out messages announcing seasonal specials, such as spring cleaning, to inspire cash-in bookings.

SMS further enhances email or social media campaigns, too, making it an integrated marketing strategy. When done legally, with consent and adherence to FCC and FTC guidelines, it's a reliable tool to engage customers while driving revenue growth.

Why SMS Marketing for Service Businesses?

A hand holds a smartphone displaying SMS marketing for service-based businesses—showcasing notifications for a salon appointment reminder, repair follow-up, and massage therapy discount—with digital graphs in the background.

Service-based businesses operate in a unique space that requires direct, timely, and personal communication. No one is better at fostering loyal connections with customers than service businesses. This differs significantly from the product experience, which is typically based on one-time transactions.

SMS marketing fits perfectly into this dynamic due to its immediacy, high engagement rates, and ability to foster ongoing interaction.

Unique Opportunities for Service Industries

Using SMS marketing, service business providers can ensure appointments run smoothly by delivering reminders and appointment confirmations. For instance, a salon can reduce the number of missed appointments by sending a text reminder 24 hours before the appointment.

With real-time service updates, customers always know when a repair technician will arrive. They no longer need to log into their emails or applications to receive this data.

SMS allows businesses to share promotions directly, like a cleaning service offering a discount for early bookings, encouraging immediate responses. These on-time messages help create a better experience for customers, and their loyal repeat visits come from consistently communicating value.

Overcome Service-Specific Challenges

Quality scheduling and follow-up are another big pain point for service businesses. SMS marketing makes all of this easier and more effective with a fast, efficient, trustworthy connection.

For example, automated text reminders have been proven to decrease no-shows, saving you valuable time and money. With an SMS open rate of 98%, you can be assured messages will be received and viewed, unlike emails that can easily go ignored.

Improving customer service through texting helps businesses set clear expectations by sending updates or responding to inquiries in real-time. This newfound depth and engagement reduce business inefficiencies, build stronger consumer trust, and, most importantly, drive more conversions.

Benefits of SMS Marketing

SMS marketing services provide a direct and impactful way for small businesses to connect with potential customers, making it an ideal strategy for service-based companies. With its high engagement rates and cost-effectiveness, this text message marketing approach delivers measurable results across every industry.

1. Boost Customer Engagement

SMS marketing is unique in that it has the highest potential for interaction. Tailored messages that cater to individual customer preferences can foster deeper engagement and loyalty. Sending them a quick" thank you" text feels a lot more personal, and customers love that.

Similarly, sending appointment reminders proves that you value their time. Urgent, highly relevant messaging, such as flash sales and on-demand exclusives, drives quick action. That's because they allow you to re-engage your existing customers and acquire new ones simultaneously.

2. Improve Communication Speed

SMS messages have a high deliverability. 98% of all SMS messages are opened, typically within 3 minutes. This kind of rapidity ensures that customers are always informed, whether it's an unexpected schedule change or a new service announcement.

Whether you operate in healthcare or home repair, any industry type where speedy responses are critical, SMS fosters a direct line of communication that leaves customers happier.

3. Enhance Customer Relationships

These types of strong relationships develop over time with regular, meaningful communication. With SMS, you can collect feedback through short and quick surveys or provide them with the latest updates that best meet their needs.

In return, it fosters trust over time, establishing your business as dependable and attuned to customer needs.

4. Cost-Effective Marketing Solution

SMS marketing requires the least investment for the most impressive return—25 times the cost! Its low-cost nature levels the playing field, allowing both fledgling startups and long-standing enterprises to leverage it.

Furthermore, high engagement rates ensure that these businesses derive the maximum value possible.

SMS Marketing Strategies for Services

An illustration shows a phone surrounded by user icons, a shield, a heart, and a clock, with a chart in the background. Text reads: "SMS marketing for service-based businesses—Consent + Personalization + Timing = Engagement.

Realising marketing's full potential requires an innovative approach tailored to your service-based business. By adopting approaches that cater to the needs and preferences of your customers, you'll foster greater engagement and cultivate valuable relationships.

SMS marketing has an unbelievable 98% open rate. Customers are even 134% more likely to engage with a text message over email, highlighting just how great of power this channel has. To be effective and compliant, you need to obtain consent, stay informed about consent, and adhere to regulations, using reputable platforms like Constant Contact.

Proactive Communication Methods

By proactively sending messages, you're easily reinforcing your brand in their heads and nurturing relationships. Whether it's appointment reminders, payment alerts, or service updates, SMS keeps your audience feeling valued and informed.

It could be something simple, like a salon sending customers a reminder via SMS that they have a booking the next day, which helps prevent no-shows. Promotions and event notifications drive engagement. Offering a seasonal discount or alerting customers to a special workshop can spark interest.

For example, when there are alterations to service, such as modified office hours, regular and timely communication makes you seem reliable and considerate.

Reactive Communication Approaches

SMS also shines as a reactive tool for meeting customers where they are—timely responses to questions or comments improve service quality, making a real difference in resolving issues.

Providing clear messaging during unexpected service disruptions, such as delays in restorative services, establishes reasonable expectations while fostering a healthy customer relationship. Customers love transparency, and with SMS, you can provide it quickly and directly.

Personalise Customer Interactions

Personalising SMS messages using customer data encourages loyalty. A health care provider could send customised fitness centre referrals based on personal preferences and needs.

Concise, 160-character messages maximise the information you provide, while ensuring you're not wasting the audience's time.

Encourage Two-Way Conversations

SMS opens communication lines by addressing issues before they arise with two-way conversations. Requesting a review of a recent service or asking for recommendations can boost engagement.

This two-way interaction not only cultivates deeper connections but also helps you hone in on your audience's needs and preferences.

How to Run Effective SMS Campaigns

From sending personalised SMS marketing messages to tracking performance metrics, creating successful text message marketing campaigns requires a methodical approach to planning, segmentation, and measuring success. By implementing the right SMS marketing strategy, you can ensure that your messages are timely, relevant, engaging, and aligned with customer preferences.

Build an SMS Contact List

Begin by gathering customer phone numbers using strategies such as online registrations, in-store campaigns, or SMS-exclusive deals. Always get explicit permission first. Always get explicit consent before sending messages to comply with regulations and build customer trust.

To attract new subscribers and grow your list, consider offering incentives such as discounts or early access to sales. For instance, a salon could advertise a text-to-subscribe campaign that promises 15% off a first visit.

Segment Your Audience

Segmenting your audience into smaller groups enables you to send more targeted messages that resonate with them. For example, a gym could send class reminders to frequent attendees and promotional deals to less frequent ones.

Personalise by age, location, previous purchases, etc. To make campaigns more relevant to recipients and drive up engagement.

Craft Compelling Messages

With a hard limit of 160 characters, you can understand why clarity and brevity are key. Maintain a friendly, candid tone to ensure your message remains personal, and conclude with compelling calls-to-action, such as "Book Now" or "Claim Your Offer."

If "you have time-sensitive promotions, such as a flash sale, SMS is your best option since 98% of texts are opened within minutes.

Optimise Send Times

Timing is one of the most critical factors. Avoid sending messages at all before mid-morning or after early evenings—not too early or too late.

Experiment with sending messages at different times and review past engagement data to determine what resonates most with your audience.

Track and Analyse Results

Always track key metrics, such as response rates and conversions, to determine the success of your campaign.

Draw from these insights to optimise your future campaigns, resulting in improved performance with each endeavour.

Best Practices for SMS Messaging

A smartphone screen displays a checklist for SMS marketing for service-based businesses—items include obtaining consent, concise messaging, reputable platforms, personalized content, and timely delivery—set against a data graph background.

When appropriately executed, text message marketing can be a game-changer for service-oriented businesses. With a staggering 98% open rate, SMS marketing far exceeds any other form of communication. Its potency hinges on careful implementation and following best practices. Below, we provide marketing strategies to help you achieve success.

Obtaining customer permission is not just a matter of customer kindness; it is a legal requirement under laws such as the Telephone Consumer Protection Act (TCPA). Customers must opt in explicitly, either through a form on your website, a text response to an initial message, or in-person consent.

Transparency is key, essential here. Be transparent about your messaging to customers, the frequency of messages you plan to send, and how their information will be used. For example, in your sign-up message, you can clearly state your terms, such as "Sign up to receive 2-4 exclusive offers each month." Reply STOP to unsubscribe.

Keep Messages Concise

With 160 characters, there's no room for fluff. Get to the point, and do it in an easy-to-read, conversational tone. Being brief gives customers the chance to understand your message at a glance without feeling overwhelmed by information overload.

We call these real-time, high-urgency transactions transactional. e.g. [First Name], schedule your service by Friday to save 20%! [Lin"k].

Provide Value in Every Message

Customers are more likely to interact when your messages provide tangible benefits, such as special offers, appointment reminders, or helpful advice. Do not include messages that lack relevance or personalisation.

For example, "Reminder: Your service appointment is tomorrow at 2 PM. Have to change plans? Reply YES.

Include a Clear Call to Action

Most importantly, guiding customers through effective text message marketing services is key. Avoid generic terms such as "Click here," "Reply YES," or "Book now." Clear CTAs in your text message marketing campaign encourage prompt action, driving engagement and conversions most effectively.

Respect Opt-Out Requests

Most importantly, always honour opt-out requests immediately. Include clear opt-out information, such" as "Reply STOP to unsubscr"ibe," to ensure transparency and regulatory compliance.

When you ignore preferences, it's your reputation that may pay the price.

SMS Marketing Compliance and Regulations

Navigating SMS marketing can be challenging, particularly with stringent regulations in place to safeguard the rights and privacy of consumers. These regulations help create a level playing field for all businesses, fostering an environment of trust between brands and consumers. Necessary regulations, such as the TCPA, CAN-SPAM Act, and CTIA (Cellular Telecommunications Industry Association) guidelines, dictate appropriate SMS marketing practices.

Compliance is more than just staying inside the lines of the law—it protects your reputation and prevents you from incurring severe fines.

Understand TCPA Guidelines

The Telephone Consumer Protection Act (TCPA) governs SMS marketing and is vitally important to the industry. This law requires companies to obtain express permission from consumers before sending them marketing text messages. A clear example is that customers need to opt in clearly, such as by checking a box to receive text communications when registering.

Companies are required to include a simple method to opt out of future messages, such as responding w"ith "S"TOP," to prevent sending unwanted SMS messages. Having clear records of how consent was obtained and your message logs readily available is crucial. These logs can serve as evidence of compliance in the event of audits or disputes.

Adhere to the CAN-SPAM Act

The same applies to the CAN-SPAM Act, which governs the use of SMS messages for commercial purposes. Marketers need to provide a clear opt-out option and ensure their messages are transparent and honest. Misleading information, such as fake coupons, is not allowed.

Being transparent will help you establish credibility, ensuring that your customers always trust your communications.

Follow CTIA Best Practices

The Cellular Telecommunications Industry Association (CTIA) outlines additional best practices. These restrictions encompass the avoidance of SHAFT (sexually suggestive, hateful, anti-social, violent, or content that uses the generic name of a drug), prohibited content.

When followed, these guidelines ensure ethical practices and uniformity throughout SMS campaigns.

Maintain Data Privacy

Protecting customer information is not only a best practice, but it's also the law. To ensure compliance with international standards such as GDPR, small businesses must protect data, keep it secure, and restrict access while sharing privacy policies with students through effective messaging services.

Measuring SMS Marketing Success

A holographic financial dashboard with charts and dollar icons projects from a smartphone in a modern office, highlighting the impact of SMS marketing for service-based businesses.

Measuring the success of SMS marketing campaigns is crucial for small businesses seeking to achieve their key business objectives. By utilising effective text message marketing services and focusing on clear, measurable outcomes, companies can refine their SMS marketing strategy. Prioritising relevant metrics and data-backed insights enables service-based businesses to refine their messaging and drive success.

Key Performance Indikey performance indicators (KPIS)rs (KPIs)

Measuring SMS marketing success starts by tracking the right KPIs. Delivery rates indicate the success of messages reaching recipients, while engagement metrics, such as open rates and click-through rates, reveal how audiences interact with the content.

For example, if you send out 50 messages and five customers click through to your website, that would give you a 10% click-through rate (CTR). KPIS should not only be tied to your campaign, but also to higher-level objectives, such as boosting subscriptions or generating sales. Month-over-month growth in active users or revenue can be a clear indicator of long-term campaign success.

Track Conversion Rates

Conversion rates measure the percentage of recipients who take desired actions, such as booking services or purchasing products. Focusing SMS efforts on creating direct sales ties them directly to the goal, providing clarity on their impact.

Businesses consistently claim that 11-20% of their revenue typically comes from SMS marketing, underscoring its significant impact. Using precise tracking mechanisms, like unique codes or links, makes it easier to track and optimise conversions.

Monitor Customer Engagement

Engagement metrics, such as response rates and opt-out rates, offer insight into how customers perceive and value text messaging campaigns. While 81% of businesses keep opt-out rates below 5%, analysing response patterns enhances SMS marketing strategies, ensuring relevance and a stronger connection with potential customers.

Analyse the ROI of SMS Campaigns

Calculating the ROI on every campaign equips businesses with a clearer understanding of their costs versus revenue earned. Considering 87% of companies report success via SMS, optimising ROI means reaching the right people with value-centric messages.

By measuring costs against revenue, campaigns can be adjusted to increase profitability.

Choosing the Right SMS Platform

Choosing the right SMS platform is a crucial first step for any service-based business seeking to maximise the benefits of customer communications. A platform that's right for you goes beyond picking a platform that fits your immediate needs, but can help you achieve your goals as your business scales.

Read on to learn how to test your options properly.

Identify Business Needs

Your first move should be to clarify your SMS marketing goals. Think about the audience you're trying to reach—are you local customers or a national customer base?

Your messaging goals are important too. When using the platform to send appointment reminders, promotional campaigns, and two-way updates, it should enable you to do all these tasks smoothly.

For example, a small salon may want to prioritise automated appointment confirmations. On the other hand, a large consulting firm may require programmatic responses or AI-enhanced communications to notify clients of changes automatically.

The platform should offer flexibility in choosing the correct phone number, like short codes for high-volume campaigns or toll-free numbers for customer service.

Evaluate Platform Features

Discover high-level features such as automation for campaign management, intuitive dashboards, and compatibility with your existing systems, including CRM.

Analytics and reporting are just as important. They allow you to see open rates, click-throughs and return on investment.

Platforms that provide conversational AI or experiences, such as Attentive Concierge, significantly increase engagement. They do this by delivering personalised, instantaneous interactions to users.

Compare Pricing Plans

Consider both one-time and recurring costs associated with the available functionalities. For example, some platforms will charge you more for advanced analytics or compliance capabilities.

Ensure the pricing aligns with the return on investment (ROI) you need to achieve.

Read Customer Reviews

Second, direct customer feedback can offer valuable insights into the platform's overall reliability and support quality.

Pay special attention to reviews that mention usability, customer support, and reliability during high-volume campaigns.

Conclusion

With SMS marketing for service-based businesses, companies have a more direct and personal channel to reach their customers. That's because it's fast, efficient, and, more importantly, reaches people where it counts the most - on their phones. With intentional strategy and defined communication, you'll be able to maintain strong engagement with your audience, encourage more bookings, and cultivate loyalty.

Learn more about effective SMS marketing strategies to ensure you maintain a consistent tone, provide genuine value with your messages, and respect customers ' time and preferences.

Frequently Asked Questions

What is SMS marketing?

SMS marketing is a tactic where small businesses utilise text message marketing services to send promotional or informational text messages directly to customers ' homes. This messaging service effectively communicates essential updates, exclusive offers, or timely reminders.

Why is SMS marketing effective for service-based businesses

That's because it works. SMS marketing services boast 99% open rates and deliver promotional messages to your customers in real-time. For service-based companies, its application ranges from appointment reminders to customer loyalty strategies.

What are the key benefits of SMS marketing?

The advantages of text message marketing services range from real-time communication and cost-effectiveness to high engagement rates and improved customer satisfaction, making it an ideal tool for sending timely reminders and exclusive offers.

How can service businesses use SMS marketing?

They might use text message marketing services to send booking confirmations, appointment reminders, special offers, customer support, and surveys. SMS is an excellent tool for ongoing customer communication and establishing credibility with clients.

What are the best practices for SMS marketing?

Limit your text message marketing to concise lengths, customise your messages for better engagement, provide one clear call-to-action (CTA) per text, and avoid sending them during inconvenient hours. Always obtain customer consent to stay compliant with regulations in your text messaging strategy.

How do I measure the success of an SMS campaign?

Track key metrics, including open rates, click-through rates, conversions, and customer responses, to refine your text message marketing strategy. Collecting these insights is wise to guide future text marketing campaigns.

Are there regulations for SMS marketing?

To be clear, businesses utilising text message marketing services should adhere to the Telephone Consumer Protection Act (TCPA). Additionally, always obtain explicit customer permission for mobile text messages and include an unsubscribe link in each SMS.

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Article by
Titus Mulquiney
Hi, I'm Titus, an AI fanatic, automation expert, application designer and founder of Octavius AI. My mission is to help people like you automate your business to save costs and supercharge business growth!

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