How to Use Text Message Marketing

While not widely used by financial advisors, text message marketing (also known as SMS marketing) is of great interest to many advisors. This is because text messages have higher open and response rates than emails.

If you plan to use SMS marketing, a good rule of thumb is to employ it for important or time-sensitive messages such as:

1. Appointment or event confirmations and reminders

2. Reminders for documents you are waiting on from a client or prospect

3. One-time follow-ups after an event, appointment, or download of an ebook or other resource

4. Outreach during urgent or catastrophic events (e.g., hurricanes, pandemics, 2008-style market crashes)

5. Upcoming financial deadlines (e.g., quarterly taxes being due, Medicare open enrollment period)

While SMS marketing can be impactful, it’s important not to overdo it. Otherwise, people will opt out or, worse, form a negative impression of you. Make sure to avoid:

1. Sending unsolicited messages

2. Promoting your content (e.g., weekly marketing commentary)

3. Overdoing it (e.g., don’t send a series of texts after a prospect downloads an ebook)