SMS Marketing Archives - Act-On Marketing Automation Software, B2B, B2C, Email Mon, 03 Feb 2025 18:17:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://act-on.com/wp-content/uploads/2023/03/cropped-AO-logo_Color_Site-Image-32x32.png SMS Marketing Archives - Act-On 32 32 The Medium is the Message: Best Practices Guide to SMS Marketing https://act-on.com/learn/blog/the-medium-is-the-message-best-practices-guide-to-sms-marketing/ Fri, 06 Oct 2023 22:14:27 +0000 https://act-on.com/?p=498080 SMS (Short Messaging Services) is a daily communication channel for nearly 65% of the global population. Though many people have now grown up with SMS technology at their fingertips, it is only recently evolving as a key part of marketing and communication strategies for both B2B and B2C businesses. Widespread use of text messaging, coupled with modern technologies like marketing automation makes SMS marketing a smart and effective way to connect with leads and customers throughout the buyer’s journey.

Use this best practices guide to plan, build, improve and successfully implement your SMS marketing programs on an ongoing basis (or improve the efficiency and success of those you already run). Dive in for specific tips and more on:

A man in business suit checks his phone to find sms marketing messages
Ready to delight your customers with SMS marketing messages that excite and engage? Let’s go!

Key Advantages of SMS Marketing

There is no doubt that SMS messaging is an attractive communication channel for businesses across industries, from manufacturing to banking to software. In any of these sectors, and so many others, it’s safe to bet that much of your customer base is using SMS already. With the right planning and the right tools, SMS can bring advantages for your marketing, sales and customer service programs, because of its benefits in immediacy, personalization, universality and user experience.

Immediacy

SMS alerts are immediate. Users are conditioned to respond to their devices right away when they hear that chime, or see that screen light up. If you have the right strategies, content and timing in place, this immediately can work in your favor for automated SMS marketing.

For example, say you provide B2B products and services. You can use SMS to alert customers and prospects of upcoming events, like a webinar starting in an hour. The reminder can allow your new lead enough time to get to her desk for your demo, reschedule the call, or seek a webinar recording, if she has to miss a live session. In each case, the notification creates options for the recipient, and builds connectivity with the brand.

Personalization

Used in connection with CRM and marketing automation, your text messages can make a big impact with personalization. One way to achieve this is to use customer data and geotargeting to deliver relevant messages that inspire immediate action. Personalized messages that use the recipient’s first name and reference a recent activity also are going to feel more personal, and therefore are more likely to be read and responded to. Ultimately, the personalization helps cement the bond between the brand and the SMS recipient.

Take this as a for instance: Retail businesses can use the known history of transactions and marketing engagement to segment buyers, and drive follow up purchases with a strategic suggestion or discount.

10 Best SMS Marketing Examples To Inspire Your Text Message Campaigns

Ubiquity

Nearly everyone on the planet with a mobile phone has SMS capability. That means using SMS can provide an advantage for building relationships at every stage of the buyer’s journey, wherever that buyer exists. This ubiquity allows businesses of all types to reach customers when internet connectivity is not available. A hospitality business might use SMS to remind customers how to get to a remote resort location, or alert the guest about an important change to their itinerary.

Intimacy

Ultimately, SMS offers an important channel for businesses that want to build better relationships with their customers and prospects. Used correctly, SMS marketing can be an important complement to other channels that are part of your overall strategy, and help you build engagement and grow your business. Any brand can use SMS as a direct relationship building channel. Try using SMS to offer exclusive pre-release access to a product, or deep discounts for loyal customers.

A man walks down a well lit corridor with a briefcase, illustrating the idea of sms marketing software
Finding customers at exactly the right moment is one of the primary advantages of using SMS marketing software.

Creating Your SMS Marketing Plan

An effective SMS marketing plan has several important components, some of which you may already have in place, and some of which you may need to think about before moving too quickly and risking an SMS flop. It’s important to consider your plan ahead of time, so that you are prepared for all the possibilities, and therefore provide a great experience for the people you text. Remember, the subscriber controls the conversation, not the sender.

Here are few tips to get you started with your SMS marketing strategy:

  • Think about who would benefit most from your messages.
  • How can you provide an enhanced experience for that person / group?
  • Do you have the right tool to segment your messages and send at the right time?
  • What’s your approach to responding when someone texts back?
  • How are you going to make sure you stay compliant with regulations and guidelines around SMS marketing?

Think about approaching SMS marketing as one piece of your larger overall marketing strategy, and clearly identify when and where it will best enhance the experience of your leads and customers. The use of SMS should be prompted by your strategy, and not the other way around.

Getting Buy-in for Your SMS Marketing Plan

In order to get this SMS marketing idea off the ground, the first step is getting buy-in from your team. Building a proposal helps you get started, because it explains how SMS marketing can benefit your customers and business. Defining parameters like expected volume of messages and sending frequency, as well as success measures, will help you better define expectations.

Getting organizational buy-in is important for any project like this, because a new communications channel will always represent opportunity as well as some degree of risk. It’s essential to transparently describe possible options for how your SMS marketing program will be executed. Using this document or others that describe best practices can help you define your program’s parameters and obtain buy-in from your teams.

For some, talking about including SMS in your marketing programs may create a hostile backlash from customers and prospects, but SMS marketing is not necessarily a negative. When best practices are pursued, SMS can provide a unique opportunity to build brand affinity and lifetime customer relationships.

Today, many best practice parameters and compliance rules for SMS are well-defined, and partnering with your customers to set expectations and balance is a good path forward. After all, given the possibility of delivering improved brand experiences to customers through SMS, both you and your customers should want this to work perfectly. And you can do so.

Once your team is on-board, it’s time to start thinking more about what you want to accomplish with SMS marketing, and who you’ll contact. Defining the volume of SMS messages you intend to send at which frequency and on which topics will help you build a proposal that your team can succeed with.

SMS Traffic Types: Marketing vs. Useful Messaging

Defining Your SMS Marketing Plan

It’s important to note that SMS messaging is not email. Not only do recipients have to explicitly opt-in to receive SMS (unlike email), but each send has a cost associated with it, and your ability to send graphics or long form messaging does not convey to SMS. You should not expect to scale SMS as you can email. Instead, use it when and where it matters.

As noted above, SMS is a great channel for bonding with customers or sending notifications, but keep in mind it’s likely that your recipients will both open and react to your message within a few minutes of receipt. Where an email message may be included in hundreds of other daily messages that can be ignored, SMS messages are much more immediate.

Because you intend for those who volunteer to receive your messages to enjoy the experience, stepping into the channel with a solid communication plan is the best way to ensure success. For example, some businesses use SMS as the first outreach channel for opted-in buyers, or as a supplemental channel to reinforce email messaging or to add a sense of urgency or exclusivity.

Building your SMS Marketing List

No company can get into SMS marketing without a list of people to text. So, it makes sense that building a list is one of the first tasks to consider once you’ve built your program’s parameters. Getting the first opt-ins for SMS requires you to adapt form fields to include a mobile phone number, and an additional module for explicit SMS opt-ins, including SMS definitions, rules, opt- out availability, and expectations, with an opt-in checkbox.

One best practice for building your SMS list includes adding an SMS opt-in on your forms as a default. This allows you to start building an SMS opt-in list while building or considering how, exactly, to execute an SMS marketing program. While it warms customers and prospects to the possibility of SMS messaging from your organization. Doing so also allows you to build separate lists of opted-in and opted-out (or not yet opted-in) customer lists. Having both will allow for simpler control when you initiate your SMS program.

To entice customers and prospects to opt-in to SMS, consider including an opt-in message in your email and landing page footers and lead gen forms. Here are some ideas for building your SMS list:

  • Run exclusive promotions and campaigns that are open only through SMS, for example access to special content or an insiders-only deal.
  • Alert B2B customers of software or product renewals or of critical product changes.
  • Offer exclusive access to brand influencers and events.
  • Create a unique shopping experience with tailored suggestions as they browse your site or store.

Setting Expectations for SMS Marketing

Once someone opts into your list, it’s really helpful to set expectations around your SMS interactions with them. Consider sending a one-time welcome text to explain how your company uses SMS, remind what they’ve signed up for, or to deliver a promised incentive.

Here are some ideas of what else you can include with your welcome message to set clear expectations and retain your SMS marketing list.

  • How often you send messages
  • What they will be about
  • Specific benefits of receiving SMS from your company
  • Opt-out process
  • Whether or not you reply to texts
  • How to get more information or help

When you start sending SMS, you should be able to track how many credits you’re planning to use to do so, and once completed, how many remain. Your program’s reporting should also include a record of how many intended recipient numbers were not SMS eligible, to allow you to clean your lists and optimize your outreach.

Relevant SMS Fees

As we have all likely seen, “message and data rates may apply” when sending text messages. Accordingly, when you’re ready to launch your SMS initiative, it’s important to understand that there are costs involved when sending SMS messages. Most SMS marketing vendors have created a pre-purchase credits model that simplify individualized costs and adapt to international sending and sending multiple messages.

We therefore recommend purchasing SMS credits from your provider at a reasonable level to allow yourself to scale your program as you need it to throughout the year. At Act-On, for example, we enable customers to send SMS around the world through a tiered credit model that aligns to the local cost of sending SMS messages. This credit model makes it easier on marketers to plan and create messages, knowing how many credits they currently have and expect to use when sending an SMS message.

Must-Know SMS Marketing Regulations in the U.S.

Regulations for SMS Marketing

Successful implementation of your SMS marketing plan can only happen when following the appropriate regulations around SMS marketing. What’s the point of spending time and resources on planning and implementing great programs only to have them shut down as soon as you start sending?

While each global region and many nations have implemented some level of regulations around how, why, and how much SMS can be used to engage with recipients, there are also best practices that should govern how marketers use SMS. Ultimately, SMS messaging guidelines and relevant regulations are designed to ensure a positive experience for everyone.

Regulations on SMS messaging in the US require the following:

  • Express written consent to receive SMS marketing prior to receiving the first message
  • Predefining SMS messaging topics, messaging triggers, and frequency
  • Disclosure of any potential fees associated with any text messaging
  • Confirming enrollment and sharing data privacy, opt-out details and where to get help
  • No SMS before 8 am and after 9 pm in local times

Best practices suggest the following as well:

  • Sending a welcome message when recipients opt-in, including details on what they’ve signed up for, who you are, and how they got signed up
  • Providing clear examples of the type of content recipients should expect
  • Clearly informing recipients before changing messaging types and criteria
  • Sending SMS only within business hours, and not sending business content on weekends
  • Not sending blast messages with irrelevant content to a generic audience, with overgeneralized and inapplicable messages, no personalization or no actions to take

For more information on SMS marketing regulations, take a look at our complete and authoritative guide on the topic.

a man in an outside space listens to headphones and uses his smartphone to receive sms marketing messages
Since our phones are so important to our lives, they offer a great chance to win over customers and prospects with SMS marketing.

Implementing Your SMS Marketing Plan

Once you’ve defined the outreach strategy, it’s time to start executing your program. Whatever your plans for SMS marketing, there are a few first steps to ensure your program succeeds.

As a reminder, your SMS marketing plan should include:

  • Which audience segment to target
  • The position of the message in your communications workflow
  • Length of text and whether you’ll include a link
  • Personal and compelling messaging
  • Desired outcome and calls to action
  • Plan for responding

Start Small with SMS Marketing Messages

Make sure your messages are getting through with an incremental outreach program. There are some delicacies to doing SMS right, as we’ve discussed, and it’s advisable to do some initial testing before going full force into SMS marketing.

When you’re first getting started, you may want to limit the scope of your SMS topics and frequency. Try targeting opt-ins for a particular use case, like an event or a loyalty program. With that in mind, you can strategically place your opt-in forms where those particular buyers will see them, and where your incentives to opt-in speak to them. Be very clear about what they’re signing up for, and stick to that only.

With a smaller handful of opted-in customers, you can send relevant messaging with a measurable outcome. Something like a loyal customer discount or coupon, or a live event invite to meet the speakers, where you can assess a direct correlation between the messaging you sent and the outcomes. In both of these cases, you’re also building a deeper relationship with your recipients.

It’s also important to not try to do too much with your first SMS messages. Keep it simple, keep it under 160 characters so it doesn’t potentially spill into two messages. Keep it in a single time zone so you don’t risk pinging people when they aren’t expecting it. Include a shortened URL to an exclusive landing page with some kind of benefit, so you can track clicks. Track responses, and see how people are taking it.

You can include personalization in your earliest sends, addressing the messages to individual recipients. You can schedule it to be sent at a certain time – 11:30 am with a coupon for a lunchbox – testing the features and functionality of your marketing automation SMS sending solution.

Ultimately, you want to build positive relationships with your recipients, and you want to prove the viability of your program. Those first SMS adventures should be designed to demonstrate success and reach a milestone you’ve set to determine whether or not it worked. If it didn’t come out quite as expected, you will not have gone down the SMS path so far that you can’t back up and try it again. Give yourself the ability to test and win or test and fail, and explore the opportunity to iterate, improve, and hit your targets.

Your business is unlike any other, and your customers and buyers are going to have unique relationships with your brand. If you can successfully use SMS to bridge gaps, to build brand attachment and loyalty, and better engage your advocates and loyalists, that’s a great success.

Must-Know Regulations for SMS Marketing in EMEA

Timing your SMS Marketing Messages

Once you’ve got your team’s buy-in and defined what and how you want to use SMS to build customer engagement, and after you have acquired the credits you need to get started, there are a few additional operational elements to define.

Regulatory requirements dictate no SMS marketing messaging is permitted in off work-day hours. You’re not allowed to and should not want to message people in the middle of the night or during dinner. Your best practices should define sending hours and your SMS delivery system should stop you from sending in off-hours.

For the most part, country codes and area codes can help define the time zones of your recipients, and automated marketing solutions can help with ensuring your SMS timing is scheduled appropriately.

In some cases, you may put into place SMS messaging based on an activity your recipient completes, like making a purchase at a point-of-sale in a physical store, or making an online order in the middle of the night, or registering for an event that triggers a receipt or confirmation SMS message. If your system sends an automatic confirmation, let your customer know to expect that text message in response to their purchase or reservation.

At Act-On, we send confirmation SMS messages to opted-in customers and prospects who register for our webinars one hour before they start. While our webinars are typically in the morning to allow for American and European registrants to attend, we can suppress the SMS message for any registrants that are in Asia or Australia, for example. And we can include links to access the recordings when they are available.

Responsiveness of your SMS Marketing Messages

While your SMS marketing program may be mostly outbound, there are occasions when you’ll want to do more than track opt-outs. It’s important to think about responsiveness when

building out your SMS marketing program, because users will have expectations, depending on the messaging you send, and how effectively you’ve set expectations.

Can your SMS marketing tool react beyond responding to ‘reply STOP to opt-out’ and removing the user from youst list? In some cases, your automated marketing solution can identify key terms – beyond STOP or Opt-Out – to generate the next component of an SMS conversation. If a brand texts about a furniture sale to opted-in customers, and the recipient responds with an “I need help with my product,” that message could generate an automatic response with customer support contact information.

Bi-directional SMS based on recipient responses has the potential to further enrich that customer’s experience with the brand. And unlike where an actual individual may actively respond to the messages, an automated solution for SMS can scale and adapt as the engagement grows.

Defining Metrics for your SMS Marketing

Marketing metrics help prioritize decisions, drive optimization of cross-channel programs, and allow marketers to build on successful efforts. And the same is true with SMS marketing programs, even where they are used for limited audiences.

Keep in mind that your intention with an SMS marketing program is to reinforce and enrich a known buyer’s relationship with your brand. Therefore, some of the measures that matter will be more qualitative, and may not show immediate results. For example, unlike email, open rates are not tracked with SMS. But you can track recipient responses (how many TACO responses did you get?), recipient click through rates where you include a URL, or numbers of customers that stick with your SMS marketing program over the long term.

SMS connects with an already highly engaged audience seeking benefit and value from your brand. Accordingly, recognizing when a known customer purchases more from you after your SMS message was sent can be an indicator of its effectiveness. Using SMS delivered coupons, or seeing an uptick in webinar attendance after SMS reminders are sent can be indicators of a program that’s working.

Marketing Automation and SMS

It is only possible to implement your SMS marketing plan at scale through automated SMS sending solutions. Automated solutions enable businesses to send SMS to opted-in recipients at the right time – whether triggered by a recipient’s recent activities, or a calendar event, or a purchase history – with the right message, delivering a personalized experience. Because automated systems send based on lists and tracking systems, they greatly reduce the likelihood of sending SMS to non-opted-in recipients, or exceeding the promised volume of messages within a prescribed period of time.

Integrating SMS into marketing automation platforms also enables better control over when recipients receive messages in a communications sequence and workflow, how messages can reiterate or reinforce critical messages also shared via email (or at an event, or through a website), and the degree of adaptation in those messages based on response data, replies, and other SMS-specific behaviors. In an automated solution, marketers can set trigger points for immediate follow up SMS messages, including thank you notes for purchases, resort check-ins, delivery schedules, and many other immediately meaningful notifications.

The fact that you can trigger, time, and send the entire flow of information to the right person at the right time is marketing automation. While it could all be managed by an individual waiting to register visitor activity and then sending a series of one-to-one personalized messages, that’s not scalable, the quality of the experience and lack of errors or missteps is defined by the marketing automation solution into which the outreach elements and messages are built.

]]> 10 Best SMS Marketing Examples To Inspire Your Text Message Campaigns https://act-on.com/learn/blog/sms-marketing-examples/ Thu, 27 Jul 2023 22:11:32 +0000 https://act-on.com/?p=479349 Are you using SMS marketing yet? If not, you’re missing out on an opportunity to reach your customers directly. Take it from these top brands in our collection of best SMS marketing examples. (Just be sure you’re following all the laws and regulations in your region before getting started).

A closeup of brown hands holding a smartphone to illustrate SMS marketing examples.
SMS marketing can get your message in front of your customers more effectively than most other channels. Photo by Pradamas Gifarry on Unsplash.

With an average open rate of 98% compared to roughly 20% for emails, the best marketing text messages have the potential to make a big impact on your marketing ROI. If you’re on board with the idea of SMS marketing, but need a little inspiration, check out these 10 examples of great SMS marketing. From software to clothing to the stock exchange, SMS marketing can be an important channel to add to your greater marketing strategy in any industry.

Text4Baby  

This one might be our absolute best SMS marketing example. It shows the power of content to build positive brand perception. Text4Baby provides updates and resources for families expecting a child. A few times a week, the service sends links to content, pregnancy milestones, and advice on staying healthy.

Sponsored by a coalition of mobile service providers, Text4Baby is a classic content marketing play. The focus is on providing something useful to the customer for its own sake, not on a transaction. However, the sign-up process and the Text4Baby website make clear that the service receives sponsorship from major mobile networks (T-Mobile, AT&T, Virgin, etc.). As a result, the unrelated service extends its brand halo to the customer’s cell phone provider. Brilliant!

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Urban Outfitters 

Screenshot of SMS marketing examples from Urban Outfitters, showing a conversation with a chatbot.
Integrate a chatbot with your SMS marketing and watch the sales flow in!

Clothing retailer Urban Outfitters uses SMS messaging to connect customers with the UO ChatBot. Through a series of message options, it’s possible to check the status of an order, find out more about their returns and exchange policies, and connect with a customer service agent for more complex inquiries.

JUDY 

Screenshot of SMS marketing examples from Judy, showing a chatbot integration.
Some of the best SMS marketing examples integrate chatbots into the experience for real-time customer help.

JUDY supplies a range of emergency products, from ready-to-go survival kits to portable power stations, first aid essentials, and more. Sign up for their SMS alerts, and they’ll send you promotional and personalized SMS messages. Their chatbot will also reply to messages asking about disaster preparation, what to include in an emergency kit, and how to prepare if you and your family find yourselves in a real-time emergency. 

Microsoft

Microsoft 365 allows users to sign up for text alerts for lists and list alerts. It’s a great example of a use case for SMS in customer marketing, because Microsoft is using hyper-personalized SMS to help embed their product. Using the immediacy of SMS, Microsoft 365 is improving adoption, and providing a supportive, helpful push toward achievement, whether it’s a business, family, or student using their products. 

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CVS Pharmacy

You’ll notice we don’t have an image for this one. And there’s good reason for that: CVS Pharmacy uses text messages to update customers on important personal medical information. So any example we picked would end up looking like a heavily redacted government document by the time we scrubbed it.

CVS customers can refill prescriptions, view resources on the medications they take (including videos), and communicate with their pharmacist…all simply by replying to automated SMS messages. Now that’s what we call a great customer experience!

Eagle Investors Stock Alert  

Screenshot of SMS marketing examples from Eagle Investors, showing alerts on stock prices.
Have timely alerts to provide for customers? SMS marketing is the perfect channel for that!

Keeping up to date with the stock market can make trading more profitable, but it’s not always easy to follow those significant changes. With Eagle Investors real-time stock alerts, traders can stay in control of investments and options. The investment firm builds brand affinity by offering the chance to join a global community of traders who share their knowledge. 

Jenna Kutcher 

Screenshot of SMS marketing examples from Jenna Kutcher, showing a prompt for user-generated content.
SMS marketing is a great way to solicit user-generated responses from your most engaged customers.

Marketing entrepreneur and beloved host of the Goal Digger podcast, Jenna Kutcher, has an SMS marketing program that nurtures her community with weekly inspirational messages, questions, and links to courses, podcast episodes, and more.  

Divi 

Screenshot of SMS marketing examples from Divi, showing a picture of a woman applying a hair care product and a link to an online store.
SMS marketing can keep customers updated on the status of popular products.

Divi is a health and wellness company from Instagram influencer Dani Austin. The beauty brand uses SMS marketing to launch new hair care products. Subscribers to their SMS alerts have the opportunity to purchase products on a pre-release basis, a tactic that proved so popular that their new Scalp Serum sold out in record time. 

Act-On 

Screenshot of SMS marketing examples from Act-On, showing a webinar registration reminder.
We’re not afraid to make our own SMS marketing example on one of our lists, because the results speak for themselves!

One of our favorite examples is our own implementation of SMS marketing to improve webinar registrations and attendance, because it’s working. In fact, the attendance rate for our webinars grew by 80% after we implemented day-before and day-of reminders via SMS. Engagement also increased, because it’s personalized and convenient to learn about marketing and sales topics of all kinds. B2B SMS marketing can clearly be an important addition to your marketing efforts. 

USA Today, The Short List 

Sometimes the news cycle can feel a little overwhelming, so with The Short List*, USA Today editor Ashley Shaffer sends out an SMS with the day’s most popular stories, condensed into a super-speedy format. If recipients want more, they can click through to the USA Today website, and get the full roundup of the day’s most popular news. 

Screenshot of SMS marketing examples from USA Today with verification procedure and required STOP to unsubscribe message.
This SMS marketing example from USA Today shows some of the required steps to signing someone up for text advertising.

We consider this one of the best marketing text messages we’ve seen because of how well it communicates the voice of the brand in such a short space. USA Today first became famous for its pithy, to-the-point style for readers on the move. This SMS example captures it perfectly.

Create Value and Expand Your Reach with SMS Marketing 

Using SMS marketing as a direct way to stay in touch with your customers is an excellent option to future-proof your strategies. With changes to email privacy protection, and ever-changing social media algorithms, it’s more important than ever before to find a way to connect.  SMS marketing offers a direct line to the devices we all have in our pockets and purses every day. It’s definitely a great option to increase engagement with your brand and its offerings, as long as you do it correctly. We hope these 10 examples provide some inspiration.

*This newsletter is no longer available. But we still like the example. Have you noticed that this method of receiving updates has only become more popular from media brands since we first published this blog in 2021?

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]]> SMS Compliance in the US, Europe and Beyond https://act-on.com/learn/blog/sms-marketing-regulations/ Fri, 07 Jul 2023 18:18:48 +0000 https://act-on.com/?p=479639

Nobody wants to be bothered by a spammy text — or do business with a brand that sends them. So while SMS marketing can be a powerful component of your growth strategy, as a responsible marketer, you need to make sure you understand SMS compliance.

In the US, Federal and state-level regulations are in place to protect individuals from receiving unwanted text messages. Stay in SMS compliance while running successful campaigns by getting familiar with these must-know SMS marketing laws in the US. These include TCPA, CTIA, ADA, and global protections.

We’ll also look at how SMS marketing laws in Europe and other regions.

Why Following SMS Marketing Laws is a No-Brainer

SMS marketing laws are in place to protect people from unwanted texts. They’re also there to keep the consumer in control of whether, how, and how much they receive SMS messages. These regulations may make marketers’ work more complicated, but they also keep the SMS landscape safer and less intrusive. Ultimately, the goal is to deliver a better user experience for your customers. (Since most of us get notifications and alerts when we receive texts, unwelcome SMS messages tend to be way more disruptive and more difficult to ignore than a promotional email.)

SMS marketing is regulated like other automated channels, and usually falls under the same laws that govern telephone calls — but requirements vary depending on location, including global laws, national legislation, and state-specific regulations. 

It’s entirely within your best interest to follow SMS marketing laws to avoid consequences like:

  • Annoying your audience
  • Damaging your brand reputation
  • Getting blacklisted by telecom providers
  • Racking up fines 

When you understand the legal requirements and proper protocol, including how to obtain consent, you’ll be much less likely to unknowingly send unsolicited SMS messages. The last thing you want to do is spam your audience. 

You can use this short summary of the key areas of SMS compliance to get started on your thought process for compliance, but be sure to consult with your legal team.

While regulations vary across states and nations, consent is a near-universal component of SMS compliance. So before we dig into the regional details, let’s get on the same page about what exactly constitutes SMS consent.

Consent is all about eliminating subscriber confusion. Anyone who receives marketing SMS messages should be aware of exactly when, how, and why they signed up to hear from a brand or organization. If subscribers are confused, they’ll opt out — which usually translates to lost revenue.

Smart SMS marketers need to take significant steps to educate the subscriber on precisely what they are getting themselves into when they consent to messaging. 

SMS consent must be explicit and detailed. Subscribers must grant consent to be opted-in to receive SMS messages from a business. As the marketer, you and your team must keep records of how the consent was gained, with message history and time stamps, and store this data securely.

When someone opts in to receive your texts, they must have access to legal documentation including privacy policies. Terms of service should be updated to include:

  • How the subscriber’s mobile number will be stored and used
  • Details on the types of messaging that the subscriber will receive
  • Frequency of messaging and originating senders
  • How to opt-out of messaging and how to get help

Remember, the consumer can revoke consent at any time, and it’s a best practice to include an opt-out opportunity with every message.

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SMS Marketing Laws in the US

In the US, two primary acts control what you can and can’t do with SMS marketing.

  1. The Telephone Consumer Protection Act (TCPA)
  2. The Can-Spam Act

Each of these SMS marketing laws was created to protect the consumer from unwanted solicitation. The TCPA hones in on the consent needed to advertise to consumers via their telephone, including SMS. The Can-Spam Act helps protect consumers from receiving unwanted advertisements. Follow both to lay a solid foundation for respectful, compliant SMS marketing. 

The Telephone Consumer Protection Act (TCPA)

The Telephone Consumer Protection Act (TCPA) is a United States federal law that regulates telemarketing spam. It requires businesses to get expressed written consent from consumers using mobile devices before sending them marketing text messages. 

In order to stay compliant with TCPA, you have to clearly communicate to your potential SMS subscribers that they’re signing up to receive recurring automated text messages. You can’t hide this consent language at the bottom of your sign-up, on a landing page, or on a page that users have to click through to see. It needs to be clearly visible and close to the call to action.

The TCPA also includes other specific rules, such as not sending messages outside of “quiet hours” (9 pm- 8 am) in the recipient’s time zone, and regularly providing instructions for opting out of messages.

How to Get TCPA-Compliant Consent 

As consumers opt into SMS marketing campaigns, there must be clear, conspicuous disclosure of the messages they will receive. They must also agree to receive these messages on their mobile device in order to begin. 

Here are some TCPA-compliant ways to collect SMS marketing opt-ins: 

  • Text a specific keyword: Consumers must text a keyword from their mobile device to join the database.
  • Paper form: Consumers give consent on a paper form that clearly states they agree to receive text messages through their phone number from your business.
  • Online form: An online form must explicitly state that the consumer subscribes to receive text messages through their phone number from your business.
  • Website popups: Consumers can subscribe through a pop-up form on your website that shares the details of your SMS program and provides an opt-in option.

Just like with email marketing opt-in best practices, you’ll provide the best experience and bolster compliance by enabling SMS double opt-in and sending a welcome message to confirm a new subscriber’s enrollment. 

For example, if an ice cream company enrolled a new subscriber, they could automatically send a message stating, “Welcome to Emily’s Ice Cream newsfeed. Reply with a D for delicious to receive weekly notifications about new flavors and other tasty updates.”

Remember, setting clear expectations upfront will help avoid opt-outs later. It’s important to be transparent with your subscribers. Consider sending messages that cover: 

  • A brief description of the type of content to which they’ve subscribed.
  • The average number of messages they should expect to receive in a specific period.
  • A link to your privacy policy in full detail.
  • Instructions on how to opt out from receiving messages (STOP instructions) and how they can get help information (HELP instructions) with a simple link. 

TCPA Exceptions

You should always be careful about the subject matter and how you send your text messages, because marketing messages sent via SMS are regulated differently than other types of messages. That said, there are certain exceptions to the TCPA. 

Examples of TCPA text message exemptions include:

  1. Prior relationships: If you are sending SMS messages to an existing customer, you’ve already established a relationship. This is defined by a consumer requesting information about your business within the past three months or if they’ve used your services within the past 18 months.
  2. Specific types of businesses: You are exempt from requirements if business information is sent on behalf of someone covered under a specific healthcare plan, or your business is a non-profit that doesn’t sell goods or services.
  3. Emergency purposes: If you’re using an automated text message for emergency purposes, it’s exempt from TCPA. 

State-Specific “Mini-TCPAs” 

After an April 2021 Supreme Court ruling significantly narrowed the definition of “auto-dialing” software, several states began to enact their own “mini-TCPAs”, or state-specific regulations around telemarketing and SMS marketing. 

These mini-TCPAs may sound adorable, but they’re serious business. Over a dozen states, including Arizona, California, Colorado, Florida, New Jersey, New York, Utah, Washington, and Wisconsin, now have state-specific SMS marketing laws. These can include additional regulations like:

  • More restrictive “quiet hours” windows
  • Stricter requirements for disclosing your business name in every message
  • Broader definitions of automatic telephone dialing systems (ATDS), impacting which messages are subject to regulation
  • Additional fines and criminal penalties

To ensure you stay in SMS compliance across every state where your customers live and receive your text messages, you’ll need to monitor these state-specific laws and adjust your practices accordingly.

A close up of a smartphone shows various icons for messaging apps.
When you send messages for marketing purposes, you need to follow SMS marketing laws & regulations to the letter.
Photo by Adem AY on Unsplash.

CAN-SPAM Act

The CAN-SPAM Act was first passed into law in 2003, and established the US’s first standards around commercial email. It reflects the rules in the TCPA and is the primary text spam law in the US — because even though it was designed before SMS existed, the Federal Communications Commission (FCC) extended the CAN-SPAM regulations to text messages.

Under the CAN-SPAM Act, the FCC regulates commercial text messages sent to mobile devices, making sending unwanted text messages (also known as robotexts) to cell phone numbers illegal. Similar to email (and similar to the standards set in the TCPA), under the CAN-SPAM Act, companies must provide clear information that easily allows consumers to unsubscribe to commercial text messages. And messages must be easily identifiable by the reader as an advertisement.

One caveat to note here: the CAN-SPAM Act applies to commercial messages (advertisements), not to transactional messages. Here’s what those terms mean:

  • Commercial content advertises or promotes a commercial product or service, including content on a website operated for a commercial purpose.
  • Transactional content facilitates an already agreed-upon transaction or updates a customer about an ongoing transaction such as an order confirmation, warranty or safety production information, account balances, employee benefits, or shipping information.

If the message you’re sending is purely commercial, it must comply with the requirements of CAN-SPAM.

Protecting Children With COPPA

Finally, while it’s not specific to SMS messaging, a third piece of US legislation is important for marketers to follow: the Children’s Online Privacy Protection Act (COPPA). This federal law helps parents stay in control over when, what, and how information is collected from their children online. 

COPPA requires website owners to include a clearly written privacy notice on their homepage and anywhere else on their site where user data is collected. Your privacy policy must outline who is collecting and maintaining the information supplied to the website, provide their contact information, explain how the information will be used, and state if it will be made available to third parties. In addition, COPPA requires you to get “verifiable parental consent” before collecting or using personal information from children. Even if parental consent has been granted once, you must seek consent again when you change any part of your privacy policies.

Exceptions to COPPA’s parental consent requirements are allowed when collecting personal contact information to seek consent, protect a child’s safety, or respond to a child’s one-time request (provided that the personal information is deleted immediately afterward).

According to the FTC, “Most companies that run websites directed to children under 13 are aware of their responsibilities under the COPPA Rule. But if you run a site directed to a general audience or operate an ad network, plug-in, or other third-party service used by kid-directed sites, you may have COPPA compliance obligations, too.”You’ll also want to be aware of best practices when using SMS marketing to communicate with parents about things such as kids’ products, as COPPA also applies.

SMS Marketing Regulations in Canada

Canada passed its anti-spam law, Canada Anti-Spam Legislation, known as the CASL, in 2014. The CASL is similar to the TCPA. Under it, businesses that use electronic messages to communicate with consumers must obtain consent, provide identification information, and provide a way to unsubscribe.

Within the CASL, consent falls under two categories; implied and expressed. Implied refers to a consumer providing or disclosing their information to a business, implying consent. Expressed refers to a consumer explicitly agreeing to receive electronic communications from a business, including SMS marketing.

General SMS Best Practices To Remain Compliant

If you want to dive deeper into best practices for SMS compliance in the US, the Cellular Telecommunications Industry Association (CTIA) has done a lot of heavy lifting. The CTIA developed guidelines with key industry stakeholders to align with TCPA rules. While their website will be careful to tell you the guidelines are not legally binding, the CTIA’s Messaging Principles and Best Practices provide a great foundation for staying compliant with SMS marketing laws & regulations.

Like the TCPA, the CTIA’s guidelines call for explicit opt-in consent, and caution that privacy details can’t be hidden or buried on the site. Other recommendations include:

  • All messages should convey a clear call to action.
  • Users must understand precisely what they’re signing up to receive.
  • Clearly labeled Terms & Conditions and Privacy Policy links must be displayed in the opt-in message.
  • Once a subscriber joins your SMS program, you must send them a message that includes the description of the recurring program, the message frequency, a disclaimer that message and data rates may apply for each message, and information about getting help or opting out.
  • Subscribers must be able to opt-out at any time by responding with language like: “stop,” “end,” “cancel,” “unsubscribe,” or “quit.”
  • Subscribers should be able to get help by responding with the message “help,” which should automatically respond with the program name and information on getting help.
  • All outgoing text messages must clearly include your business’s name.
  • Content such as (but not limited to) hate speech, certain firearms, and violence cannot be promoted via SMS messaging.
  • Programs must display opt-out instructions at regular intervals in SMS messages.
  • Opt-out information must be clearly displayed in the message or within the Terms & Conditions.

SMS Marketing Regulations in EMEA, APAC, and CSA Regions

Unless you’ve been living under a marketing-free rock for the last ten years, you know it’s important to be aware of global privacy policies. (Thanks, GDPR.)

For most intents and purposes, the US rules on SMS messaging apply throughout most developed nations. But some regions have specific compliance requirements you’ll want to follow if you do business with their residents.

Regulations for SMS Marketing in EMEA

Several nations within Europe, the Middle East, and Africa adhere to additional e-communication rules beyond the scope of US regulation. The following examples will give you food for thought. Always consult with your legal team for specific requirements in each country where you plan to implement SMS marketing.

The European Union’s General Data Protection Regulation (GDPR)

The GDPR requirements govern each member state of the European Union to create more consistent consumer and personal data protection across EU nations. Some of the critical requirements of the GDPR include:

  • Requiring consent of subjects for data collection
  • Making any data collected anonymous to protect privacy
  • Providing data breach notifications
  • Safely handling the transfer of data across borders
  • Requiring companies to appoint a data protection officer to oversee GDPR compliance when applicable

The GDPR mandates a benchmark set of standards for companies that handle EU citizens’ data to safeguard citizens’ personal data processing and collection — including SMS messages. 

You already know this, but make sure to stay in SMS compliance with GDPR. 

The UK’s Privacy and Electronic Communications Regulations (PECR) and Data Protection Act (DPA)

The UK has regulations that support and work with the GDPR, the Privacy and Electronic Communications Regulations (PECR) and the Data Protection Act (DPA). 

The PECR applies to electronic marketing methods including SMS messages, website tracking (such as cookies), security measures, and privacy rights.

The DPA is the UK’s implementation of the GDPR and regulates how businesses can store and use consumers’ personal data. Under this act, personal information must be used “fairly, lawfully and transparently.” Businesses can only use data when appropriate and can’t store the data any longer than deemed necessary.

Australia’s Spam Act & Anti-Spam Regulations

The Australian Communications and Media Authority (ACMA) oversees the regulation of broadcasting, internet, radio communications, and telecommunications — including anti-spam regulations for SMS marketing.

ACMA outlines two types of consent, express (like filling in a form or checking an opt-in box on a website) and inferred (when a recipient has knowingly given you their contact information and has an ongoing relationship with your business). Their online guidelines acknowledge inferred consent, but specify that “inferred consent is not as reliable as getting someone’s express consent”.

In addition to consent, ACMA requires you to:

  • Identify yourself as the sender 
  • Make it easy to unsubscribe
  • Provide contact details

Regulations for SMS Marketing in APAC

In China and the Asian Pacific, country-specific laws govern SMS marketing. For example, China’s Administrative Provisions on Short Message Services, Singapore’s Spam Control Act, and legislation from South Korea’s Communications Commission.

Monitor and confirm your compliance with regulations across each country. For example, Chinese telecommunications networks have strict restrictions around including URLs in messages or marketing for financial products. In Singapore, advertisements must be clearly identified with the letters “ADV” at the beginning of the message. And many APAC countries prohibit religious, political, or gambling-related content in promotional messages.

That said, continue to follow best SMS practices such as: 

  • Get opt-in consent before sending marketing communications
  • Observe local quiet hours
  • Provide clear opt-out methods
  • Identify your business as the sender of any message

Regulations for SMS Marketing in CSA (Central and South America) 

The regions of Central and South America (CSA) are considered the wild west of SMS with little to no laws or enforcement of standard North American rules and best practices. However, in most CSA countries, the sending of religious or political content is prohibited. Some, like Brazil, do have specific regulations around sending messages outside of local daylight hours.

Be a smart marketer. When sending SMS messages in a region with few compliance regulations, like Latin America, follow the general best practices. Ensure you are protected and providing a positive experience to consumers.

SMS Compliance is Easy with Act-On

To recap, here are the general best practices to follow SMS guidelines:

  • Gain written consent
  • Keep thorough records of consent
  • Observe quiet hours
  • Clearly communicate opt-out and help options
  • Post privacy policies in clear view for the consumer

SMS marketing regulations are designed to protect consumers across the globe and keep them in control of what they are subscribing to. They should also be confident that businesses are using their personal information respectfully and responsibly. So, as a respectful and responsible marketer, we know you want to stay on top of SMS compliance.

That’s where Act-On’s SMS marketing tool comes in. It’s easy to add proper opt-in to your forms and maintain recommended SMS best practices. With the right software, and an ongoing commitment to keep up with local guidelines, you’ll be successful in your SMS compliance. 

Remember, this article is not intended to provide legal advice. Much of the laws surrounding SMS marketing are muddled because of contradictory decisions made on the Federal Courts level. As the laws continue to be defined be sure to consult with your legal team. Always consult with a lawyer before launching your SMS marketing strategy.

For more information on designing and implementing SMS in your overall marketing efforts, check out Act-On’s SMS automation platform. We believe in being compliant with all regulations, understanding your business purpose, and aim to be a strategic partner in creating an effective and safe way to use SMS marketing automation.

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]]> SMS Traffic Types: Marketing vs. Useful Messaging https://act-on.com/learn/blog/sms-traffic-types-marketing-vs-useful-messaging/ Tue, 19 Apr 2022 15:13:00 +0000 https://act-on.com/?p=486140 If you’re using SMS to communicate with prospects and customers, it’s important to know about the two main SMS traffic types: marketing vs. useful messaging. “Marketing messages” are often designed to sell a product or service, while “useful messages” provide crucial information or offer time-sensitive assistance. There are rules and best practices that apply differently to each type of message, and mistakes can be costly. But, if you follow some basics, your company can be confident about using SMS for marketing as well as useful messaging.

SMS Marketing Regulations Are a Good Thing

Following SMS marketing regulations is crucial because compliance to best practices not only keeps your sends legal, but also helps you build trust with your customers. Here are a few things to keep in mind about regulations when crafting your SMS marketing strategy.

  • Make sure you understand the local regulations for SMS marketing in each country where you plan to operate.
  • Follow best practices for opt-in and opt-out messaging, and make it easy for customers to unsubscribe from your messages.
  • Respect customer privacy, and never sell or share their personal information without their permission.
  • Use clear, concise, and accurate messaging in your SMS campaigns.

Following regulations can shape your brand reputation, helping to be seen as a trustworthy and knowledgeable company. Plus, when you contact customers in a way they enjoy, they are more likely to continue the relationship with your business and refer you to others. Be sure to always respect the customer’s ability to give consent, empowering them to make their own purchasing decisions.

Marketing vs. Useful Messaging

The most important rule for SMS marketing is to provide value. If your message does not offer something interesting or important, it will be ignored and deleted by customers inundated with notifications from their smartphones every day.

Marketing SMS 

Marketing messages should never feel like spam. Rather, they should always have a purpose or benefit. This could be anything from a sale or promotion to new product information or an event invitation. Marketing messages should be clear, concise, and accurate. Remember that customers are more likely to take action if they understand the message immediately.

Useful SMS 

On the other hand, “useful messages” are not for the purpose of selling something, or inspiring a conversion. In the context of SMS traffic types, useful messages provide information, offer assistance, or answer crucial customer questions. For example, a company could send out a reminder that their systems will upgrade over the weekend, and provide a link to connect with support for any questions. This type of message would be considered “useful” because it has relevant business value for the recipient. You can think of useful messages as crucial notifications, as opposed to a promotion of any kind. 

Are SMS Traffic Types Regulated Differently?

The regulations for marketing vs. useful messaging vary slightly, so it’s important to be aware of the differences in definitions and the laws that apply to each message your company intends to share.

Regulations around consent for SMS marketing can vary from country to country. For example, in the United States, SMS marketing is considered a form of “telemarketing” and is subject to certain regulations laid out by the Federal Trade Commission (FTC).

The FTC has specific rules about how consumers can opt in and out of receiving SMS messages from businesses, including requirements that companies include certain information in their messages. The main idea is to ensure you’re informing the customer, and setting proper expectations.

Under the guidelines, expressed consent must be obtained before beginning marketing messages, even if you already have consent to send useful messages. For the average company using SMS, this means getting permission from the lead or customer before sending them any type of message, and making sure they can easily unsubscribe.

Useful messages, on the other hand, are not as strictly regulated because they are not promotional in nature. However, they do require consent from the customer prior to sending any messages. When a customer opts in to receive updates on their purchase, or appointment for example, they have provided consent. 

If a company then strays from useful messaging into a promotional message of any kind, they have violated regulations. It’s important to remember that useful messaging applies to one particular event or instance, it is not a blanket consent. Ensuring your business follows these stipulations can help to avoid any punishment or fines for subverting SMS regulations.  

SMS Traffic Types FAQs

How much does it cost to send SMS? 

The cost of SMS for a business depends on the carrier you use and the country to which you are sending messages. Generally, it is less expensive to send text messages than it is to send emails. However, since each carrier has different rates, be sure to check with your provider for accurate pricing information.

Can I send SMS messages to international numbers? 

Yes, you can send SMS messages to international numbers. However, be aware that there may be a cost associated with sending messages to certain countries.

What is the maximum length of an SMS message? 

The maximum length of an SMS message is 160 characters. This includes the sender’s information and the recipient’s information.

Can I send images or videos in an SMS message? 

No, you cannot send images or videos in an SMS message. However, you can include a link to a website where the image or video is located.

Are there any restrictions on the type of content I can send in an SMS message? 

There are no restrictions on the type of content you can send in an SMS message. However, if the recipient does not want to receive messages from your business or organization, it is illegal for them to do so. And, different regulations will apply based on the content of your message (and therefore whether it can be classified as ‘useful’ or ‘marketing.’)

What if I send marketing SMS through one department and useful SMS through another?

Many organizations use useful SMS more on the product and customer service side, and marketing SMS for, well, marketing. It’s helpful to convene an SMS committee, or have someone who can be aware of the movements on both sides, so the company can present a smooth user experience and remain compliant to SMS marketing regulations as well as expectations for useful messaging. 

For more information on designing and implementing SMS in your overall marketing efforts, check out Act-On’s SMS automation platform. We believe in being compliant with all regulations, understanding your business purpose, and aim to be a strategic partner in creating an effective and safe way to use SMS marketing automation.

]]> How Traffic Segregation Affects SMS Marketing https://act-on.com/learn/blog/sms-marketing-traffic-segregation/ Tue, 01 Mar 2022 14:09:00 +0000 https://act-on.com/?p=480053 SMS marketing is booming in popularity, because it’s a direct channel to personal devices all over the world. At the same time, consumers are demanding better experiences and gaining more awareness about the right to data privacy. To combat the potential for SMS spam and fraudulent messaging, mobile network operators (MNOs) use a strict series of traffic segregation strategies. Find out more about how MNOs segregate their traffic and how this can impact your SMS marketing strategy.

What is SMS Traffic Segregation?

Every time an SMS is sent through an MNO, they use traffic segregation strategies to divide these messages based on both their type and urgency. These types include both P2P and A2P messages. When an SMS message exchanges between two mobile subscribers, it’s referred to as P2P SMS and when an SMS message is sent from an application to a mobile subscriber, it’s referred to as we call it A2P SMS.  Powerful filters, machine learning, and monitoring software are all used to review and then screen A2P messages before they’re delivered to the recipient.   

The standard classifications used when segregating A2P messaging includes sorting them into three main categories:

  • One-Time-Passwords (OTP) and other time-sensitive SMS
  • Transactional SMS
  • Promotional SMS

SMS Message Types and Traffic Segregation

Let’s take a closer look at each of these classifications and why MNOs need to prioritize specific SMS over others. 

One-Time-Passwords (OTP) and Other Time-Sensitive SMS

Strong authentication SMS like OTP helps increase your customers’ security and protect them from identity theft or fraud. These messages include an automatically generated code that users enter to log in to a site or complete a transaction. Other time-sensitive SMS include two-factor authentication when a customer logs on to a site using their regular user ID and password and then receives an additional OTP which adds another layer of security. These messages are time-sensitive, and the codes within them expire after a set period, so they need to be delivered by an MNO as fast as possible.    

Transactional SMS

Most regulatory bodies across different regions allow for delivering a transactional SMS at any time of day. These messages keep your customers up to date regarding the information relating to their orders. This can include order confirmation, delivery notifications, and anything else related to a specific transaction. These differ from marketing SMS, as they are meant to communicate a status on a relationship that was established specifically for that transaction. Companies cannot advertise or convey any marketing through transactional SMS messages. 

Promotional and Marketing SMS

If you’ve got a specific promotion based around one of your products or services, promotional SMS can be used to engage your customers directly. This may involve sending a coupon code, letting customers know about an upcoming event, or launching a new product. Many companies have been successful in their SMS marketing efforts, using these efforts to add to their overall marketing strategy.

With so many people using their phones as their lifelines, communicating with them via SMS is also a great way to remind them of events and webinars they may be interested in or already signed up for, helping to increase webinar engagement. 

It’s important to keep in mind that In specific regions, the delivery of promotional SMS is blocked by an MNO at certain times of day to protect users from being disturbed.

Why Do MNOs Segregate Traffic? 

Different countries and regions have different regulations when it comes to A2P SMS. It’s important that MNOs can identify and then segregate SMS to maintain compliance while also guaranteeing the delivery of your messages. MNO firewalls quickly identify traffic coming through different routes. This allows operators to deliver each message through a specific channel at the optimum time. For example, time-sensitive OTP messages need to be prioritized and delivered within a specific timeframe. 

Regulations in specific European countries like France restrict the delivery of promotional marketing SMS to Monday through Saturday between 8 am and 10 pm. Messages sent outside of these times will be placed in a queue by the MNO and sent the following day. Transactional and OTP messages can be sent at any time, but must be sent via separate connections to be easily segregated. An SMS API can be integrated with minimal effort, allowing companies to automate the process of sending messages to international recipients, ensuring they are delivered at the correct time and compliant with country regulations.    

Most ecommerce companies will send a blend of all three SMS types, but expect individual MNOs to identify the source and type of A2P messaging before these are segregated and delivered according to their type. 

How MNOs Combat Fraudulent SMS 

As more and more companies start using SMS marketing to connect with their customers, the application-to-person messaging (A2P) market has shown exponential growth. Known as grey route traffic, 2.8 trillion A2P SMS messages are sent each year. 

This unprecedented growth unfortunately leaves room for bad actors to take advantage of the situation. Some of this fraudulent activity can include illegal or grey route messaging. SMS text messages that are sent through illegal channels are called grey routed messages. This practice is often less expensive for the sender than sending a normal message. These unauthorized routes can expose the message data, subjecting the receiver to various security risks. These actions have resulted in a significant loss of revenue because of illegal routes used by certain resellers when attempting to send messages. 

As the number of illegal messages grows, the revenue of MNOs can start to drop. This gray-route traffic costs MNOs $21 million per day or $7.7 billion per year. It exploits channels retained by MNOs for delivering person-to-person (P2P) messaging, placing excessive strain on networks, impacting the delivery of genuine P2P messages, and costing MNOs revenue as the MNO cannot correctly apply termination charges.   

In an effort to protect their revenue, many operators have started to deploy two main strategies to control both A2P and P2P SMS traffic within their network. These include:

  • Traffic segregation 
  • Firewalls

Always Use a Proven Platform for SMS

When it comes to keeping your return on investment as high as possible, it can be tempting to turn to unregulated providers of SMS marketing services. Be aware that these may rely on some of the illegal gray-routes we’ve outlined above. This can result in your messages being blocked when they’re run through the traffic segregation systems of individual MNOs. It’s always best to work with a proven platform that understands the regulations behind SMS marketing in addition to having a deep understanding of how MNOs segregate and deliver messages both locally and abroad.

]]> SMS Marketing, GDPR & Compliance in EMEA https://act-on.com/learn/blog/must-know-regulations-for-sms-marketing-in-emea/ Fri, 03 Dec 2021 22:34:30 +0000 https://act-on.com/?p=479684

There are currently 5.29 billion unique mobile phone users globally, giving businesses an opportunity to reach 68% of the world through SMS marketing. Like email, SMS is regulated with requirements that change depending on the region. Although many countries follow U.S. SMS marketing regulations as a standard, regions like Europe, Middle East and Africa (EMEA for short) have become more assertive in regulating how businesses can market to consumers. Take a look at these must-know regulations for SMS marketing, GDPR and compliance in EMEA.

Why SMS Marketing Regulations are so Important

Following SMS marketing regulations is necessary, because they create a safe advertising environment for businesses and consumers. Telecommunications and privacy regulations are designed to ensure that consumers control how they are being advertised to and if they want to be contacted at all. Any marketer should care about compliance, not only because of the legal implications, but even more importantly, because of high expectations for an amazing customer experience at every touchpoint. 

In EMEA, SMS marketing regulations are designed to give consumers comfort in knowing companies respect their time and right to consent. Your company can get blacklisted from future sending, or even face fines and legal consequences for noncompliance. 

Like email marketing, SMS marketing involves heavy regulation around consent. In EMEA, such guidelines are often stricter than in the United States. No matter where a company is sending SMS globally, there is no faster way to lose subscribers than to send SMS without explicit consent. 

Are you ready to send compliant, valuable SMS marketing messages to your favourite audiences? Check your knowledge with this summary of the most important SMS marketing regulations in EMEA.

SMS Marketing & GDPR in the EU

The General Data Protection Regulation (GDPR) regulates SMS marketing in the European Union (EU), a region with some of the world’s strictest privacy and security regulations. 

Under GDPR, companies must build privacy settings into their digital products and websites – and have them turned on by default. Companies also need to regularly conduct privacy impact assessments, strengthen the way they seek permission to use the data, document the methods by which they use personal data, and improve how they communicate data breaches.

The right to privacy has been a pillar of European business discourse since 1950, slowly progressing with the growth of technology and the Internet. In 1995, the European Data Protection Directive established minimum data privacy and security standards. However, they lacked any considerations for social media, smartphones, or even advanced web technology… because those things didn’t exist yet. The EU recognised the need for modern protections that were not covered, updating the 1995 Directive into the GDPR in 2016. 

The EU’s updated approach to online privacy puts individuals first, believing they should be protected and empowered rather than exploited or ignored. The law focuses on data permission, data access, and data focus, and applies to businesses of all sizes.

Under GDPR, consent requires a positive opt-in, and therefore cannot be obtained by default or pre-ticked boxes. It also gives individuals a method to gain more control over how their data is collected and used, including access or removal. Focused on data privacy, the GDPR requires businesses to justify processing personal data collected from consumers legally.

How Does GDPR Impact Businesses in the EU?

If you are a business operating from or sending SMS messages to the EU, your business is impacted by GDPR. Prior to GDPR, many EU companies lacked transparency on how consumer data was used. However, increased focus on regulatory compliance and SMS marketing best practices has improved consumer experiences. 

Data Permission

Businesses need to ensure they’ve actively sought (and not assumed) permission from prospects and customers. A pre-ticked box that automatically opts people in when they make a purchase won’t cut it anymore. Opt-ins need to be a deliberate choice.

Data Access

As a business, it’s your responsibility to ensure that your users can easily access their data and remove consent for its use. When using email, an unsubscribe link is used to allow customers to opt-out. In SMS marketing, a ‘STOP’ prompt can be used in the same way. 

Data Focus

GDPR requires businesses to show why they are obtaining and processing specific data. This means focusing on the data collected without asking for things outside the scope. Paring down forms is also a best practice in terms of customer experience. Compliance depends on the specific ways you use personal data, as there is often more than one way to comply, so taking responsibility by ascertaining the risks keeps you accountable.

SMS Marketing Regulations in the Middle East

Similar to EU and U.S. markets, mobile device usage in the Middle East has continued to grow to nearly 280 million users at the end of 2020. This has prompted businesses to increase their SMS marketing efforts on a global scale. 

As with any form of marketing, businesses need to be aware of the differences across cultures and governments. For SMS marketing, expectations in the Middle East vary from those in the EU and U.S.

In the Middle East, regulations are based heavily on moral and personal values, including political, religious, and cultural views. Marketing efforts that may prove successful in other markets can easily fail in MEA because the regulations are so dynamic.

There is a large focus on the intent of messaging, identifying factors within the message, and time constraints on when messages can be delivered.

SMS Marketing in United Arab Emirates (UAE)

As with the majority of middle eastern countries, the UAE has established a considerably rigorous SMS marketing regulation system. It’s important for companies to be aware of these rules, as they imply added compliance to EU and U.S. regulations.

The major SMS regulations in UAE include:

  • Registration and activation of the from address (sender ID)
  • An opt-out message that must comply with the regulations set by the TRA
  • SMS messages can only be delivered between 7 AM and 9 PM according to UAE standard time
  • SMS character lengths must adhere to: first message 160, second message 306, third message 459, fourth message 612 characters

When implementing a global SMS marketing campaign, it’s crucial always to be aware of the time differences across regions to ensure compliance with the regulations listed above.

Role of the TRA in Regulating SMS Marketing in the Middle East

The Telecommunications Regulatory Authority (TRA) was established to oversee the telecommunication sector in the UAE, including SMS marketing. The TRA carries out the following activities in the UAE:

  • Monitoring activities in the telecom sector
  • Approving telecom equipment
  • Overseeing the telecommunications sector and licensees
  • Issuing the required authorisations to use spectrum frequency and wireless equipment
  • Issuing regulations and policies governing the importation, use, and dealing of telecommunications equipment

The TRA focuses on protecting consumers by creating a safe and secure environment for any SMS-related practice in the UAE. It regulates the length, type, content, and delivery of all SMS messages.

Messaging Types

When designing an SMS message, there are two categories it can fall into: transactional and promotional. Transactional messages do not require any prior consent, as they are only sent after a relationship has been established. These types of messages include shipping notifications and appointment reminders. Promotional messages are just that, promotional. To be compliant, they must include the sender, type of campaign, and content type.

Forbidden Messaging Content

In the UAE, forbidden SMS marketing content includes information about mobile gambling, illicit language, adult themes, political speech, and religious topics. 

SMS Marketing Regulations in South Africa

Like much of the world, South Africa has a strict regulatory environment for SMS marketing efforts.

The Electronic Communications and Transactions Act (ECTA), along with the Consumer Protection Act (CPA) and the Protection of Personal Information Act (POPIA), work together to regulate electronic marketing, including SMS messaging, in South Africa. In conjunction, these laws help define how consumers give consent and how they can opt-out from receiving marketing messages when they’d like.

In South Africa, the general SMS guidelines include:

  • Get opt-in consent from users before sending any communication to them.
  • Only communicate during an end user’s daytime hours unless it is urgent.
  • SMS campaigns should support HELP/STOP messages, and similar messages, in the end-user’s local language.
  • Do not contact end-users on do-not-call or do-not-disturb registries.

POPIA and the Regulation of Direct Marketing

The Protection of Personal Information Act (POPIA) was designed to protect consumers from harm by protecting their personal information—including identity theft, stolen funds, and privacy protection. 

POPIA has outlined conditions for personal information to be lawfully collected and processed in South Africa. These include:

  • Accountability – The responsible party takes full responsibility for how personal information is processed.
  • Processing Limitation – The processing of personal information is limited to the consent of the consumer or allowed by law.
  • Purpose Specification – The purpose for why personal information is required must be identified.
  • Further Processing Limitation – Restrictions on the further distribution of personal information to anyone else or for any other purpose.
  • Information Quality – Businesses must ensure that personal information remains correct and up to date.
  • Openness- The responsible party must inform the consumer if there is a breach of their information, including what information was obtained and where it’s stored.
  • Security Safeguards – Businesses must put physical and digital security measures to protect personal information in place.
  • Data Subject Participation – Consumers must have access to and control over their personal information.

Put Customer Experience First for Compliant, Successful SMS

Awareness of the customer experience is the starting point for effective and compliant SMS marketing, no matter the geography or culture. Getting a clear opt-in, and sending appropriate content at the right time are best practices that will add to a great experience with your brand. At the same time it helps your business remain compliant with regulations. 

*Please note that this article is not intended to provide legal advice.  Be sure to consult with your legal team for compliance within your SMS marketing efforts.

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