In today’s hyper-connected world, businesses have more ways than ever to reach their customers. Email, social media, apps, and in-store promotions all play their part. But when it comes to immediacy, personalization, and high engagement rates, one channel consistently stands out: SMS marketing.
For small and medium-sized businesses, SMS is no longer just a “nice-to-have.” It’s a critical piece of the customer engagement puzzle—one that drives loyalty, repeat purchases, and long-term growth. At Kangaroo Rewards, we’ve seen firsthand how SMS marketing transforms loyalty programs into powerful engines of revenue.
In this blog, we’ll explore why SMS marketing is such a game-changer, how it strengthens customer loyalty, and the best practices you can adopt to make it work for your business.
Why SMS Marketing Matters Today
Let’s start with the numbers:
-98% open rate – SMS messages are almost always read, often within minutes of being received. Compare that to email’s average open rate of 20–25%, and the difference is clear.
-90% read within 3 minutes – Customers see SMS as a priority communication channel, not just background noise.
-Conversion rates as high as 45% – Text message campaigns can outperform other channels when it comes to driving sales and redemptions.
Unlike email, which can get buried in cluttered inboxes, or social posts, which depend on algorithms, SMS goes straight to the customer’s hand. It’s direct, personal, and effective.
For businesses that rely on repeat customers—restaurants, salons, gyms, retail shops, and more—SMS isn’t just about promotions. It’s about building a stronger relationship, keeping your brand top-of-mind, and delivering value at the right time.
SMS as a Loyalty Driver
A loyalty program alone can encourage customers to come back. But pairing it with SMS marketing? That’s where the magic happens.
Here’s how SMS enhances loyalty programs powered by Kangaroo Rewards:
Instant Rewards Notifications
Customers love immediate gratification. Sending a quick text when they earn points or unlock a new reward keeps them excited and motivated to engage. For example:
“Congrats, Sarah! You just earned 50 points at Bella’s Boutique. You’re only 20 points away from $10 off your next purchase!”
That real-time communication reinforces positive behavior and makes the loyalty program feel alive.
Personalized Promotions
Generic “blast” promotions don’t cut it anymore. With Kangaroo’s segmentation tools, businesses can target customers based on preferences, purchase history, or loyalty tier. Imagine sending:
“Hey James, since you love our organic smoothies, enjoy 20% off your next one this week only!”
This kind of personalization deepens customer connections and increases redemption rates.
Re-Engagement Campaigns
Every business has customers who drift away. SMS is one of the most effective ways to bring them back. A simple message like:
“We miss you at Glow Spa! Come back this week and enjoy 200 bonus points on your next visit.”
Not only reminds them of your brand but also gives them a reason to return.
Tiered Loyalty Updates
If your program includes tiers (Silver, Gold, Platinum), SMS makes advancement exciting. Imagine receiving:
“You’re just one purchase away from Gold Status! Unlock exclusive perks on your next visit.”
It turns the loyalty journey into a motivating game.
The Benefits of SMS Marketing for Customer Engagement
Beyond loyalty, SMS marketing boosts overall engagement in ways other channels can’t match.
Immediacy and Timeliness
Need to promote a flash sale, announce a last-minute event, or notify customers about a new product? SMS ensures your message is seen almost instantly.
Two-Way Communication
Unlike static channels, SMS allows for interaction. With Kangaroo Rewards, you can enable replies for things like appointment confirmations, survey feedback, or referral invitations.
Increased Reach
Not every customer checks email regularly, and not all follow you on social media. But nearly everyone checks their text messages daily.
Cost-Effective Engagement
Compared to traditional advertising or even social ads, SMS marketing delivers a higher ROI for a lower cost—especially when integrated with an existing loyalty program.
SMS in Action: Use Cases Across Industries
Here’s how different businesses use SMS with Kangaroo Rewards to drive results:
-Restaurants & Cafés – Share daily specials, send order-ready notifications, or reward frequent diners with bonus points.
-Retail Stores – Announce new arrivals, send birthday rewards, or promote seasonal discounts.
-Health & Wellness – Confirm appointments, remind members of expiring packages, or encourage referrals with SMS-exclusive perks.
-Salons & Spas – Notify clients of available time slots, share personalized product recommendations, or remind them when loyalty rewards are expiring.
Each use case shows how SMS keeps customers engaged beyond the transaction—it nurtures an ongoing relationship.
Best Practices for Effective SMS Marketing
To unlock the full potential of SMS, businesses need to use it wisely. Customers love the immediacy of text messages, but they’ll quickly opt out if messages feel spammy or irrelevant. Here are some best practices to follow:
1. Get Permission
Always use an opt-in approach. Customers should clearly agree to receive messages. Not only is this required by regulations, but it also ensures you’re messaging people who actually want to hear from you.
2. Keep It Short and Clear
SMS has a 160-character limit. The best messages are concise, direct, and action-oriented. Always include a clear call-to-action, like “Show this text for 20% off today!”
3. Personalize Whenever Possible
Use customer names, reference past purchases, and tailor offers to preferences. Personalized texts feel like a helpful reminder, not an ad.
4. Be Timely
Timing is everything. Don’t send messages at odd hours. Instead, aim for when customers are most likely to act—such as just before lunch for a restaurant promo.
5. Balance Frequency
Too many messages can lead to opt-outs. Find the sweet spot that keeps customers engaged without overwhelming them. For many businesses, 2–4 SMS campaigns per month is effective.
6. Track Performance
Use Kangaroo’s analytics tools to measure open rates, redemptions, and ROI. Over time, you’ll see what resonates most with your audience and can refine your approach.
SMS vs. Other Channels: A Loyalty Perspective
To understand SMS’s role, it helps to compare it to other marketing channels:
-Email – Great for longer messages, newsletters, and detailed promotions. Lower open rates compared to SMS.
-Social Media – Excellent for brand awareness and community building, but engagement is dependent on algorithms.
-Push Notifications – Useful for app users but limited to those who’ve installed your app.
-SMS – Cuts through the noise with near-instant delivery and sky-high open rates. Best for urgent, personalized, and loyalty-related communication.
The smartest businesses don’t replace one channel with another. They integrate SMS into their broader marketing strategy, ensuring consistent engagement across multiple touchpoints.
Compliance and Customer Trust
One of the biggest concerns businesses have with SMS is compliance. Text messaging is heavily regulated in many countries, and businesses must respect opt-in/opt-out rules. Kangaroo Rewards simplifies this by:
-Collecting consent during signup.
-Automatically managing opt-outs.
-Storing customer communication preferences.
By respecting customer choices, businesses not only stay compliant but also build trust—an essential ingredient in loyalty.
The Future of SMS Marketing
As technology evolves, SMS is becoming even more powerful. Features like rich media messaging (MMS), links to mobile wallets, and integration with apps are making SMS more dynamic than ever.
At Kangaroo Rewards, we’re constantly innovating to help businesses leverage these new capabilities. Imagine sending not just a text, but a clickable link to a personalized offer page, or a scannable QR code that redeems points instantly.
The future of SMS marketing isn’t just about sending messages—it’s about creating seamless, engaging, and rewarding customer experiences.
Conclusion: SMS Is the Loyalty Multiplier
Customer loyalty doesn’t happen by accident—it’s built through consistent, meaningful engagement. SMS marketing gives businesses a direct line to their customers, delivering value at the right time and in the right way.
When paired with a loyalty program like Kangaroo Rewards, SMS becomes even more powerful. It motivates customers to return, rewards them in real time, and strengthens the emotional connection that turns casual shoppers into loyal advocates.
In a world where customer attention is fragmented across countless channels, SMS cuts through the noise. It’s personal, immediate, and incredibly effective. For businesses serious about engagement and loyalty, SMS marketing isn’t just an option—it’s the key.
