Conversational SMS: Improve your text messaging strategy

Businesses have used text messages to interact with customers for decades now, but there’s a new emerging trend: conversational SMS marketing. This type of marketing involves text messaging between your business and customers. And that’s the true impact of conversational SMS.

It can be a powerful tool to grow your business, improve customer experience, and increase conversions. Keep reading to discover how it works. 

How does conversational texting work? 

You can now have two-way conversations with your audience in real time, even with your busiest customers. SMS marketing has proven consistently successful, even in a digital age where other alternative messaging apps like WhatsApp and Viber exist. It can also be a reliable marketing tool for your business if you use it right. 

So why use conversational SMS? Here are some reasons: 

• You can use conversational business texting to create a genuine and meaningful connection with customers 
• Conversational SMS can help you reach current and potential customers across multiple marketing channels
• Conversational SMS is an ideal form of contactless communication
• It’s also a low-investment marketing method, and your customer can respond at their convenience

Conversational SMS vs. traditional SMS vs. two-way SMS 

Would you rather send a quick text message to all your customers at once and forget about it, or have a conversation with them? Which is better for your business: one-way, two-way, or conversational SMS? 

Before you answer these questions, let’s explore how each type of SMS differs from each other. 

One-way text messaging 

Many businesses already use traditional SMS. Most one-way texting campaigns are straightforward, and recipients don’t typically reply. It requires little effort on your part as a business, and it costs even less. 

Moreover, you can use one-way text messages on a wide array of marketing campaigns, including: 

• Bulk SMS and business text message broadcasts 
• Promotional offers 
• Alerts and updates 
• Order and payment notifications 
• Reminders 
• Two-factor authentication 

Two-way SMS and how it differs from conversational SMS 

Two-way SMS is an evolution of one-way messaging. It lets users send and receive messages using predefined keywords for basic interactions. As A2P (Application-to-person) messaging improves, two-way SMS further develops into conversational SMS.

Instead of relying only on keywords, conversational SMS combines human agents and AI to interpret messages more flexibly. This enables more natural interactions, making the experience feel more human-like. 

Key features of two-way SMS: 

• Allows customer replies but often restricted to specific keywords (e.g., “Reply YES to confirm”) 
• Commonly used for surveys, confirmations, and support inquiries 
• Can be automated but lacks AI-driven personalization 

Best for: 

• Customer feedback surveys 
• Event confirmations 
• Opt-in/opt-out requests 
• Basic customer support interactions 

Why leveraging conversational SMS is a smart move 

There are plenty of benefits to using conversational text messaging. Here’s why it works so well: 

Real-time engagement and instant responses

Example: A local coffee shop could use conversational SMS to quickly respond to customer inquiries about store hours, promotions, and product availability. This way, customers receive fast answers without having to wait for an email response or browse a website. 

Advantage: With conversational SMS, customers receive almost immediate responses, which improves satisfaction and reduces wait times.

Personalization and contextual conversations

Example: An online bookstore could use conversational SMS to recommend new titles based on their previous purchases. If the customer replies, expressing an interest in fantasy books at the moment, the AI chatbot can provide more tailored recommendations, enhancing engagement and increasing the likelihood of a sale. 

Advantage: Conversational SMS allows businesses to send targeted messages that make customers feel valued, leading to higher response rates and stronger customer loyalty. Unlike one-way SMS, conversational SMS allows customers to reply back. 

Smooth customer support and problem resolution

Example: A telecommunications company might use conversational SMS to inform customers of issues with their account, like an expired data plan, and allow them to renew directly through SMS. If the customer needs more help, the conversation can smoothly transition to a live agent. 

Advantage: Conversational SMS reduces friction by providing instant, easy-to-use solutions and quicker problem resolution compared to traditional customer support methods. 

Increased sales and higher ROI

Example: An eCommerce brand could send an SMS to a customer who abandoned their cart, offering a limited-time discount or free shipping to encourage them to complete the purchase. This direct and timely approach can significantly increase sales. 

Advantage: Research shows that businesses using conversational SMS see a higher return on investment (ROI) by recovering abandoned carts and encouraging repeat purchases. 

Which SMS type should you use

To choose the right SMS strategy for your business, it’s important to understand the key differences between traditional SMS, two-way SMS, and conversational SMS. The table below will help you decide which option best fits your customer engagement goals. 

Conversational SMS use cases 

Suppose you choose to build a conversational SMS marketing campaign. In what ways could you use it? Here are some common examples: 

1. Answering customer questions 

Conversational SMS helps businesses answer customer questions in real time, giving customers quick responses about products, services, and other inquiries.

2. Troubleshooting account problems 

If a customer encounters any issues with their account, conversational SMS can help them resolve it promptly without having to wait for emails or calls. 

3. Providing live chat support in stores 

Businesses can assist customers in real-time while they are browsing the physical store, offering help with product location, availability, or features directly through SMS. 

4. Clarifying product details and pricing changes 

Conversational SMS lets businesses immediately communicate any updates regarding products or price changes to customers, keeping them informed. 

5. eCommerce sales and abandoned carts 

Brands can use conversational SMS to remind customers of abandoned carts and encourage them to complete their purchases.

6. Sending exclusive updates 

Businesses can use conversational SMS to share exclusive offers, updates on new products, or special promotions to customers. 

7. Shipping updates and concerns 

Conversational SMS can notify customers when their order has been shipped, provide tracking information, and answer any shipping-related questions. 

AI and automation in the future of conversational SMS 

Technology gets better every day and AI and automation are becoming big parts of conversational SMS. With these tools, businesses can have more personal, faster, and better conversations with customers. Here’s how AI and automation are changing the future of conversational SMS: 

AI-driven personalization 

AI will continue to enable businesses to offer highly personalized experiences. Through analyzing customer data, preferences, and behaviors, AI can customize conversations, recommend products, and send targeted promotions, all through SMS.

This level of personalization will make interactions feel more relevant and human and it will help boost customer satisfaction and drive conversions. 

Automated responses at scale

Automation allows businesses to manage high volumes of customer interactions without sacrificing quality. AI-powered chatbots will become increasingly sophisticated, enabling businesses to respond instantly to customer inquiries, resolve issues, and even complete transactions. With the help of automated message flows, businesses can guide customers through a process or conversation.

This ensures that businesses can offer real-time customer support around the clock, without needing constant human involvement. 

Smooth integration across channels

The future of conversational SMS will likely involve deeper integration with other messaging platforms, like WhatsApp, Messenger, and more. AI can simplify these interactions, ensuring consistency and context across different channels.

The omnichannel approach will allow businesses to provide a smooth and unified experience, regardless of how the customer chooses to engage. 

Predictive analytics and customer insights

With the help of AI, businesses can use predictive analytics to forecast customer needs and behaviors. By understanding trends and predicting future interactions, businesses can proactively reach out with timely offers, reminders, or customer support, ensuring they stay one step ahead of customer expectations. 

Improved customer feedback and insights

AI-powered conversational SMS will enable businesses to capture valuable customer feedback in real time. Through intelligent sentiment analysis and automated surveys, businesses can better understand customer satisfaction, pain points, and preferences, empowering them to fine-tune their products and services based on real customer data. 

Cost-effective and scalable 

Businesses scale and maintaining personalized communication with customers can become challenging. AI and automation allow businesses to scale their conversational SMS efforts without increasing overhead costs.

Automation can handle repetitive tasks, like responding to FAQs, while AI helps manage more complex customer interactions, freeing up human agents for higher-value conversations. 

Continuous learning and improvement 

AI algorithms improve over time through machine learning, meaning that the more customers interact with a business, the smarter the system becomes. This results in more accurate responses, more effective campaigns, and better customer satisfaction in the long run. 

Start using conversational texting

Conversational SMS is a powerful marketing strategy, and now is the time to take advantage of it. Customers actively seek to engage with businesses through text, and by implementing two-way conversational SMS, you can drive conversions, boost retention, and build long-term customer relationships.