SMS marketing

What is SMS marketing and how does it work?

SMS marketing is a direct communication channel where businesses send text messages to customers for promotions, updates, reminders, and post-purchase follow-ups. The term is used interchangeably with text message marketing, and it has become a core engagement channel in ecommerce because messages land directly in a subscriber’s phone inbox, where open rates are typically much higher than email.

It works in three steps. First, the business collects customer phone numbers with explicit opt-in consent (required by regulations such as the TCPA in the United States and GDPR in the European Union). Second, using an SMS marketing platform, the merchant segments their audience based on purchase history, behavior, or subscription status. Third, targeted messages (usually 160 characters or less) are sent either on a manual schedule or automatically triggered by customer actions such as cart abandonment, an upcoming subscription renewal, a payment failure, or a shipping update. Most modern platforms integrate directly with Shopify and other ecommerce tools, making it straightforward to personalize, schedule, and automate flows.

Why use SMS marketing?

• High open and response rates compared to other marketing channels
• Direct, personal, and time-sensitive communication that reaches subscribers within minutes
• Ideal for flash sales, abandoned cart reminders, shipping alerts, replenishment nudges, and loyalty updates
• One of the highest-engagement channels for customer retention campaigns, particularly for subscription and DTC brands

Example of SMS marketing

A skincare brand sends a 20% off coupon via SMS to all loyalty members with a link to redeem it, resulting in a surge in same-day conversions. Subscription brands also use SMS for post-purchase touchpoints (delivery updates, replenishment nudges, upcoming charge reminders) and for win-back flows that re-engage subscribers showing early signs of subscriber churn.

Driftcharge Tip

Keep messages short, relevant, and actionable. Always include an opt-out instruction (typically “Reply STOP to unsubscribe”) to stay compliant with TCPA, GDPR, and similar regulations, and only send to subscribers who have given explicit prior consent. Send within local business hours, avoid over-frequency, and personalize where possible. SMS is a high-trust channel, but it is also the fastest way to drive unsubscribes if the cadence or content feels intrusive.

Ganesh Pawar

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Ganesh Pawar is the founder of Driftcharge, a subscription management app designed to help Shopify merchants streamline and scale their subscription businesses. With a deep focus on solving real-world pain points—like legacy account page support, flexible subscription options, and advanced analytics—Ganesh is passionate about building tools that drive growth and retention.