The Ultimate Guide to SMS Lead Generation: Turning Text Leads into Customers

14 Nov 2024

TJ Gaushas

“You are out of business if you don’t have a prospect.” This famous quote by Zig Ziglar shows how imperative lead generation is for any business. Whether you are a small business owner or the sales head at Google, lead generation is essential and tricky at the same time. Why? Nowadays, businesses have countless ways to reach their potential customers, such as social media, paid ads, email marketing, traditional marketing, SMS and MMS, etc. However, SMS lead generation is one tool that stands out because of its simplicity, effectiveness, and pocket-friendly nature. If you are wondering how to convert your text leads into loyal customers, this guide is your roadmap!

Imagine this simple scenario: you have sent a well-crafted SMS to your potential customer. After a few minutes, their response pops up on your screen! It means you have grabbed their attention but also sparked their interest. SMS lead generation is all about taking advantage of text messaging to engage, nurture, and convert leads effectively.

Many questions will pop into your mind: how does SMS lead generation work? How is it different from other methods? How to use it to convert your potential customers into loyal buyers.

Read on to find all the answers!

Let’s first start with understanding what SMS lead generation is.

What is SMS Lead Generation?

SMS lead generation is the process of collecting phone numbers from existing and potential customers to introduce them into your marketing campaign pipeline. Do you know what is the purpose behind this practice/strategy? It is establishing direct communication channels with customers, which will last beyond the transaction point and help you build strong customer relationships.

In SMS lead generation, businesses use SMS messages to capture, qualify, and nurture leads and send targeted messages to individuals who have expressed interest in their product/service. The main aim here is to convert them into loyal customers.

Benefits Of SMS Lead Generation

Undoubtedly, email inboxes are overflowing these days, and there are endless social media feeds, but text messages have positioned themselves firmly. Using SMS for lead generation can be an excellent companion in finding new clients. Through SMS, you can reach your potential customers directly with a high chance of your message being read.

1) High Open & Response Rates

As per the study, SMS offers 98% open rates and 45% response rate, which is almost 200% higher than the response rate you get through phone, email, or any other communication channel. High open rates ensure your target audience sees your transactional and promotional messages. In short, its high open rates make it an effective lead-generation channel.

2) Instant Engagement

As SMS directly reaches your customers’ pockets immediately, it gives you an opportunity for real-time interactions with your potential customers by creating a personal touch. You can send them promotional or follow-up messages, which allow you to engage with your leads when they are most interested. It increases the chance of conversion.

3) Scalability

You can easily generate and scale leads through SMS. Whether targeting a specific audience group or launching a national campaign, SMS can handle everything by maintaining personalization and text message relevancy.

4) Versatility

As a business owner, you can use SMS in various ways, including lead generation, lead nurturing, and scheduling messages.

5) Accessibility

Let’s be honest. Do you open and read every email? Like you, many people do not check their emails regularly or don’t prefer to use social media. However, almost everyone has a mobile phone. So, take advantage of it and start sending text messages to your prospects.

6) Simplicity & Automation

Using the right SMS lead generation software, you can automate and schedule messages and even track various SMS metrics like engagement rate, open rate, click-through rate, etc.

Main Aspects Of Successful SMS Lead Generation

To run an effective SMS lead generation campaign, focus on the following key aspects. Check out this table for the main pillars of SMS lead generation.

Main Aspects	Importance
Explicit Consent (Opt-in)	Get your leads’ permission before sending them an SMS. By doing this, you are getting a number of potential customers who are genuinely interested in your brand. Use an SMS marketing platform like Textdrip to make the opt-in process simple.
Segementation & Personalization	Segment your audience properly and ensure you craft tailored SMS campaigns based on the audience group, and it reaches them to maximize conversions. Address each customer through their name to create a personal touch.
Message Timing	Send messages when your target audience is most likely to read and respond.
CTA	Include a clear call to action to guide recipients on what to do next, like “Click here to learn more.”
Compliance	Ensure your messages comply with SMS regulations like TCPA, 10DLC, and CTIA.
Automation	Use SMS lead generation software with automation and scheduling features. It will let you automate repetitive tasks such as follow-up messages to save time.
Conversational Tone	Write messages encouraging interactions and letting your customers know they can reply.
Opt-Out	Use the automated SMS platform that automatically opts out leads who text keywords like UNSUBSCRIBE and STOP.
Tracking	Monitor how recipients interact with your messages to refine your strategy.

How Does SMS Lead Generation Work?

In SMS lead generation, you must collect and nurture leads’ phone numbers through tailored text messages. Here is the complete breakdown of the process.

1) Attract Leads

To attract leads, you can use multiple marketing channels and run campaigns like ads, social media posts, website pop-ups, etc., encouraging them to share their phone numbers.

2) Build a Subscriber List through a Clear Opt-In Process

Once potential leads share their phone numbers, send them a message asking for permission to send them messages. Once the leads opt in, build the targeted list of contacts.

3) Engage Through Personalized Messages & Clear CTA

You can engage leads who have opted in to receive messages from your business by offering them incentives and discounts through personalized messages and including a clear CTA like “Visit our website.” Or “click here for more information.”

4) Monitor & Track Performance

Use the analytics tool to monitor your campaign’s performance through key metrics like open rate, conversion rates, click-through rates, etc. Based on this data, refine your strategy.

5) Send Follow-Up Messages

Once you generate leads, automate the follow-up process by sending personalized messages to nurture relationships.

6) Convert

Through the clear CTA, encourage your leads to take the next step, such as buying a product or booking a service.

In short, with the perfect combination of automation + personalization + on-time messaging, you can turn text leads into customers.

SMS Lead Generation: Features to Look For

Selecting the right SMS lead generation software is imperative if you want to get the most out of your SMS lead generation efforts. For that, you need to consider the following features.

Essential Features	Description
Automated Drip Campaign	This feature helps schedule and automate the series of SMS to engage leads over time.
Personalization	Choose a software that lets you craft a personalized SMS campaign by including lead’s name, preferences, etc., to build a stronger connection.
Opt-In/Opt-Out Keywords	Look for software that helps you automate and manage opt-in and opt-out processes via keywords like DEMO, INFO, STOP, UNSUBSCRIBE.
Easy Integration	Invest in an SMS lead generation software that you can easily integrate into your existing tools/systems such as CRM. It will help you make the lead-generation process simple and hassle-free.

Besides all these, there are other features, such as quick response messages, contact segmentation, automation, scheduling, two-way texting, bulk texting, etc., that you should consider when investing in SMS lead generation software.

SMS Examples & Strategies to Convert Text Leads into Customers

1) Personalized Your Message

We all love it when someone addresses us by our name. The same goes for business. When you address your leads by their name, it adds a personal touch to the conversation.

For example, if you want to reach leads who have previously shown interest in your project management tools, you can send them personalized messages by including their names and clear CTA like “book a demo”.

B2B SMS Example for SaaS Companies

“Hey [Company Name], want to manage all your projects effectively? Book a free demo of our project management tool today! Click here to book: [Link].”

B2C SMS Example for Restaurants

Suppose you want to engage diners and boost visits, then you can send personalized offers like this:

“Hi [Name], Craving for something delicious? Get 20% off your next meal at [Resurant Name]! Show this text! Valid Until [Date & Time].”

By including a personalized offer of 20% off when the customer shows this SMS, you have encouraged them to revisit your restaurant.

2) Create Urgency

You can add deadlines or countdowns to your SMS to create urgency. It will encourage your leads to do what you expect them to do.

B2B SMS Example Travel Agencies

If you want to target travel agencies and encourage them to attend the Expo/conference, here is how you can send them a message. This message will create urgency and drive immediate action.

“Exclusive Offer! Book your spot at our Travel Expo today and get a 15% flat discount for early registrations. Valid ONLY for 24 hours! Reply ‘EXPO’ to book your spot – [Your Travel Agency Name].”

You can also send them limited-time reminders for unused discounts by sending SMS like this:

“Offer Ends Soon! You have unused discounts waiting! Use them before it expires! Don’t miss out on saving for your valuable clients. Act NOW! [contact info]”

B2C SMS Example Salon & Spa

Salons and spas can make their booking process easy by using clear language and offering a limited-time discount like this:

“FLASH SALE ALERT! Book a spa session today & get 20% OFF. Limited slots. Offer Valid for Today ONLY! To secure your slot, revert ‘BOOK’. – [Salon Name]”

Salons and spas can even request their customers to give them feedback and offer them incentives for it. Here is how they can do it.

“Your feedback is valuable! Share your thoughts and enjoy 15% OFF on your next visit. Click here to share a review :[Link]. Your review will help us to improve! Thank You!”

3) Optimize CTA

You should make your call-to-action clear and action-oriented. For the lead generation, you can even create urgency.

B2B SMS Example Real Estate

A commercial real estate company provides detailed market insights to potential investors to spark interest and generate leads.

“Hey, [Name]! Get ready to expand your property portfolio with our exclusive market insights report. Reply ‘YES’ to get it. ONLY limited slots are available! – [Company Name].”

B2C SMS Example Solar

A solar product manufacturing company offers a discount along with free consultation to homeowners who want to switch to solar.

“Save FLAT 25% on our solar panels this month. Reply ‘SOLAR’ to schedule a free consultation. Limited-time Offer! – [Company Name].”

4) Follow-Up Without Being Pushy

Don’t bombard your leads with follow-up messages. Also, don’t sound pushy. Provide value with each message.

B2B SMS Example for Insurance

A business has inquired regarding insurance plans previously. Insurance agency owners can use the following example to offer value without pressurizing them. Keep a friendly tone, and CTA should be simple, such as replying without being forceful.

“Hey [Name]! This is just a friendly reminder to explore our new insurance plans tailored for businesses. Need details? Revert ‘INFO’ – [Your company name].”

B2C SMS Example for Car Dealership

The Car Dealership firm can send the following follow-up message to leads who are interested in a test drive but have not scheduled it yet. The message should look like a gentle reminder and offer help instead of pushing for immediate action.

“Hi [Name]! Your exclusive test drive offer is expiring soon in 2 days! Have any queries? Call us at [number] any time, and we will guide you. – [Your Car Dealership Name].”

5) Segment Your Leads

You can group leads according to their interest, preferences, behaviour, or demographics. If you segment the audience and send relevant messages based on a specific segment, there will be a high chance of conversion.

B2B SMS Example for Media & Advertising

A media company wants to target leads spending over $10,000 per campaign. They can do it by offering them tailored demos of their advanced tools.

“Hey [Name]! Explore how our new ad tools can boost your campaigns by 30%. To schedule a personalized demo, reply ‘ADDEMO’. – [company name]. ”

B2C SMS Example for Healthcare

A healthcare service provider wants to target leads based on their past inquiries/age by sending personalized messages and offering free consultations.

“Hi [Name]! Get a free consultation tailored to your health needs! Reply ‘CONSULT’ to book your slot – [clinic name].”

Unlock The Potential Of SMS to Generate Leads With Textdrip!

Text messages offer a 98% open rate and 45% response rate and can potentially capture more qualified leads for your business. Leads are the lifeblood of any business. To capture qualified leads, all you need is the right SMS marketing strategy ( to nurture those leads) and the right SMS lead generation software like Textdrip that helps you manage those leads effectively through their impressive features like personalization, bulk texting, SMS automation, scheduled text messages, and more.

SMS lead generation is a powerful tool that lets you engage your audience directly, personally, and effectively. Therefore, take advantage of SMS lead generation to reach your target audience where they pay the most attention – on their smartphones!

You can turn your text leads into loyal customers by implementing the tips, tricks, and strategies discussed above. Take a free trial or book demo to learn how Textdrip can help you convert your leads into loyal customers.

FAQ's

What is a keyword opt-in, and how does it work for SMS lead generation?

A keyword opt-in is a method where prospects text a specific word (like “JOIN” or “OFFER”) to a designated number to subscribe to messages. This approach allows customers to opt in quickly and gives businesses permission to send follow-up SMS, making it a great way to build a lead list.

What is the ROI of using SMS marketing for travel agents?

Generally, the ROI of SMS marketing for travel agents is high because it improves the open and conversion rates, driving increased bookings and customer retention. In short, its low cost per SMS and high ROI makes it the perfect choice for targeted updates and promotions. As it is cost-effective, it will improve overall marketing efficiency.

What role does timing play in the success of SMS lead generation?

Timing is crucial in SMS marketing. Sending messages during typical working hours or just before peak activity times, like lunchtime or early evening, can lead to higher engagement. Avoid early morning or late-night texts, as these can be intrusive and lead to opt-outs.

Can SMS lead generation work for B2B businesses as well as B2C?

Absolutely. B2B companies can use SMS for appointment reminders, follow-ups, or sharing exclusive B2B content, like case studies or product updates. Although SMS is more common in B2C, B2B businesses can also leverage its high response rate for personalized communication with decision-makers.

Is it possible to A/B test SMS messages in lead generation campaigns?

Yes, A/B testing is highly effective for SMS. You can test different elements like message content, call-to-action, personalization, and send times to see which combinations yield the best results. A/B testing helps optimize campaigns and increase conversions by refining what works best for your audience.