SMS marketing is an effective and direct way to engage customers. With 98% open and 40% clickthrough rates, businesses have relied on this channel to reach customers with promotions, updates, personalized offers, and abandoned cart reminders. However, the consumer communications landscape is rapidly evolving this year. Emerging technologies, shifting consumer expectations, and changing regulations are pushing brands to rethink how they approach SMS marketing.

 

Here’s how SMS marketing will change in 2025 and what companies can do to stay ahead of the curve.

1. RCS Gains More Traction

 

RCS (Rich Communication Services) will transform SMS marketing in 2025. As mobile devices increasingly support RCS, businesses can deliver more engaging and visually appealing content to their customers. From sending a personalized product catalog to offering instant customer service within the chat, RCS will enable more immersive interactions.

 

To remain competitive in the coming years, companies must integrate RCS into their messaging strategy today. This means working with a CPaaS provider like Mitto to adopt RCS capabilities, testing interactive elements, and designing dynamic, personalized customer experiences. Early adoption of RCS will improve customer satisfaction by offering more seamless and rich communication.

2. Meeting Customer Expectations in Real-Time

 

This year, automation will play a central role in SMS marketing. Consumers demand immediate responses, and businesses are under pressure to deliver timely, personalized communication at scale. Automated SMS campaign workflows allow brands to engage customers in real-time, even outside traditional working hours.

 

Businesses can automate follow-up messages based on consumer behavior. If a customer abandons their cart on an e-commerce website, an automated SMS can trigger to remind them. Over three-fourths of consumers will return to their abandoned cart after receiving an SMS reminder.

3. Creating Hyper-Personalized Experiences with AI

 

As generative AI improves, brands can create highly personalized SMS marketing content. By analyzing customer data, like past purchases, browsing behavior, and engagement history, generative AI can craft hyper-personalized messages that speak directly to individual needs and preferences.

 

For example, a clothing retailer could use AI to create personalized outfit recommendations based on a customer’s past purchases, size preferences, and seasonal trends. Similarly, businesses like travel, entertainment, and health could use generative AI to send tailored offers or information based on user behavior and historical data.

 

In 2025, AI-powered SMS marketing will be a cornerstone of customer retention strategies. Brands that leverage AI will improve engagement rates and foster deeper customer loyalty. However, businesses must use AI responsibly, respect customer privacy, and comply with SMS compliance regulations like CTIA and FCC.

4. Staying Ahead: Best Practices for 2025

 

As the SMS marketing landscape evolves, brands must proactively adopt new technologies and strategies. Here are a few steps businesses can take to elevate their SMS marketing tactics:

 

  • Leverage RCS Early: Work with a CPaaS provider to incorporate RCS into your messaging strategy. Experiment with rich media and interactive features to create more engaging customer experiences.

 

  • Automate Wisely: Invest in automated messaging tools allowing behavior-triggered, real-time messaging. Focus on creating workflows that deliver timely, relevant, personalized customer communications based on their actions.

 

  • Use Generative AI: Adopt AI-powered tools to create more personalized content. Utilize customer data from your CRM to tailor messages to individual preferences and needs.

 

  • Prioritize Privacy: With the rise of personalized marketing, it’s crucial to prioritize data privacy. Be transparent with customers about data collection and usage, and comply with regulations to build trust.

 

  • Test and Optimize: Regularly test your SMS campaigns through A/B testing or data analytics to ensure they deliver the desired results. Always be ready to adapt your strategy based on what works.

 

  • Boost Security: Nearly 20% of global one-time-password (OTP) SMS traffic was artificially generated by fraudsters in 2022, costing brands billions and putting customers’ sensitive data in jeopardy. With these attacks predicted to rise in 2025, businesses must optimize security for themselves and their customers. Partnering with a CPaaS provider that actively combats artificially inflated traffic (AIT) fraud ensures safer and more secure messaging.

Turbocharge SMS Marketing ROI with Mitto

 

SMS marketing is set to evolve in exciting and transformative ways this year. By embracing technologies like RCS, automation, generative AI, and hyper-personalization, brands can crush the competition and deliver more engaging, relevant, and timely customer experiences. Adopting these innovations now ensures companies are well-positioned for success in the future of SMS marketing.

 

Mitto’s SMS API can take your customer communication efforts to the next level. Our secure, reliable delivery paths, deep global compliance expertise, and proprietary AI-routing system ensure your texts are delivered safely, reliably, and cost-effectively.

 

Contact us today to learn more.