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SMS Marketing Making a Comeback! Discover How AI and Data Rules are Changing the Game


SMS marketing is making a comeback thanks to AI advancements and stricter data regulations. Brands are leveraging text messages to build customer loyalty, capitalizing on high open rates. However, they must tread carefully to avoid spamming customers, as opting out is as easy as replying “STOP.” By delivering personalized and targeted content, businesses can keep subscribers engaged and valued, leading to increased conversions and customer satisfaction. Adhering to proper opt-in practices, offering relevant deals, and respecting SMS marketing guidelines ensures campaigns remain effective while safeguarding consumer privacy rights and preferences.

With new technologies and privacy regulation shifts, text messaging has emerged as a more effective approach to building a robust customer base compared to email or social media. Conversational commerce, including SMS marketing, is projected to experience a remarkable 29.5% growth, reaching $1.7 billion in 2023. The surge in text messaging as a marketing tool is attributed to its immediacy, personalization, and impressive engagement rates. Companies are capitalizing on SMS’s power to foster lasting relationships with customers, offering exclusive deals, targeted messaging, and real-time support, ultimately elevating customer satisfaction and fostering loyalty.

The Container Store, a major retailer, is pushing the boundaries of mobile marketing, especially with text messages for its 2023 back-to-school campaign. Through a partnership with the mobile marketing platform Vibes, the business hopes to customize its app and text messaging to increase sales via mobile wallets. The campaign will use consumer data to provide tailored product recommendations and incentives based on individual likes and habits, alluring buyers with a hefty 25% discount on their total purchase. This innovative program attempts to increase sales while also fortifying the relationship between The Container Store and its clients, encouraging sustained engagement and loyalty.

The retailer experienced resounding success with mobile marketing during the 2021 and 2022 back-to-school seasons, witnessing a staggering 61% increase in college program subscribers in 2022, totaling over 121,000 enrollments. In 2022, the company’s mobile-attributed revenue tripled compared to 2021, credited to their targeted marketing strategies and continuous adaptation to the ever-changing mobile landscape. Moving forward, The Container Store plans to expand its mobile marketing endeavors, emphasizing customer engagement and personalization to sustain the remarkable growth in subscriber numbers and revenue.

“The Container Store’s Chief Marketing Officer, Melissa Collins, states, “It’s about the engaged audience for college at this time of the year, but there’s also the simplicity of delivering offers easily. It’s efficient and effective.” Incorporating mobile wallet technology enhances accessibility and convenience for college students, increasing the likelihood of redeeming offers. Moreover, this tech-savvy generation appreciates seamless marketing integration into their daily lives, fostering positive customer experiences and fortifying brand loyalty.

A recent report from Simple Texting reveals that 71% of consumers willingly subscribe to receive texts from businesses, and 53% desire the ability to text companies back. As a result, a staggering 86% of businesses have utilized text messages to connect with customers this year, compared to a mere 5% in 2018. The report highlights the growing demand for swift and convenient interactions through text messaging, pushing businesses to adapt and meet customer expectations.


  1. What is causing the resurgence of SMS marketing in recent times?

The resurgence of SMS marketing is due to advancements in artificial intelligence (AI) and increasingly stringent data regulation policies. These factors have allowed companies to deliver targeted and personalized messaging while adhering to strict privacy laws, making SMS marketing an effective communication tool in the digital landscape.

  1. How does the use of AI enhance SMS marketing campaigns?

AI enables companies to analyze customer data and tailor their marketing messages accordingly. This leads to more personalized and targeted content, which is likely to resonate better with the audience, resulting in higher engagement rates and improved customer satisfaction.

  1. How are privacy regulations affecting SMS marketing?

Due to the stricter privacy regulations, companies are now more conscious of maintaining compliance while sending SMS campaigns. This has led to a greater focus on providing value and building trust, which ensures that customer relationships remain authentic and mutually beneficial.

  1. How has the success of The Container Store influenced their mobile marketing initiatives?

The Container Store’s success with mobile marketing during the 2021 and 2022 back-to-school seasons led to significant growth in subscriber numbers and revenue. This growth has encouraged the company to further expand its mobile marketing initiatives, focusing on enhancing customer engagement and personalization for continued growth.

  1. What does the report from Simple Texting reveal about consumer preferences in relation to text messaging?

The report shows that 71% of consumers are subscribed to receive texts from businesses, 53% wish to have the ability to text companies back, and 86% of businesses have used text messages to reach customers this year. This indicates a growing preference for fast and convenient interactions through text messaging, leading businesses to adapt their strategies accordingly.

  1. How does incorporating mobile wallet technology benefit companies in their SMS marketing campaigns?

With AI-powered strategies and compliance with data regulations, SMS marketing is experiencing a revival, offering a potent way to engage customers. The emphasis on personalized, relevant content and respect for consumer privacy has breathed new life into this tried-and-true marketing approach, elevating customer satisfaction and brand loyalty in the digital era.

First reported by Forbes.

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