One way marketers and businesses are getting closer to customers is through SMS marketing. This type of marketing boasts higher open rates, engagement, and revenues for businesses.
It’s not just that businesses are finding new ways to connect with their customers. According to SimpleTexting’s 2023 SMS marketing survey, 53% of consumers said they wanted to “text a business back via two-way messaging.”
So, unlike unsolicited marketing that jumps in your customers’ faces, SMS is communication your customers want and expect. It’s also a more direct option compared to searching for your website or social media accounts and having to wait for a response.
But what can SMS marketing do for restaurants and the F&B industry as a whole?
In this guide, we’ll explore what text message marketing is, the benefits, the data, and when to use it. We’ll also tackle the best practices for SMS marketing for restaurants so you can start creating SMS campaigns today.
SMS, short for short message service, is a type of messaging used for communication. SMS marketing is used in 4 main ways
For promotions, like special offers, or for restaurants discount dishes or happy hour.
For transactional purposes, like after you make a purchase and a business sends you a payment confirmation.
As reminders, for upcoming events, appointments, or transactional reminders like payment reminders.
For broadcasts and announcements, which may or may not be promotional in nature.
Many businesses think SMS marketing is a thing of the past.
But the data tells a different story.
Who's still using SMS?
Turns out, plenty of people!
And that’s why companies are investing more into it than ever before.
Here’s what the data has to say.
According to research by SimpleTexting, 45% more businesses are using SMS marketing in 2024 compared to 2022.
In addition, 80% of businesses are using text message marketing software to text customers.
Click-through rates (CTR) are among the most important metrics for any marketing campaign. In SMS marketing, businesses report a CTR between 21% and 35%, while opt-out rates are significantly low at 1% to 2%.
SMS marketing also boasts a higher engagement rate compared to other forms of marketing. SimpleTexting’s survey of 1,400 respondents found 81% of consumers checking the SMS notification “within just 5 minutes of receiving [them.]” Meanwhile, nearly 30% of consumers check text messages within “just 60 seconds of receipt.”
Moreover, businesses using text message marketing are attributing 11% to 20% of their revenue to SMS campaigns.
It’s because of these statistics, that more businesses are adding SMS marketing to their broader marketing strategy.
With this much opportunity for engagement and CTR, roughly 70% of companies are increasing their SMS marketing budgets in 2024.
Not sure why you should use SMS marketing for your F&B concept or restaurant chain? Here are 7 benefits of using SMS marketing.
Better reach
Using SMS marketing means casting a wider net and reaching more restaurant guests. It’s also an ‘immediate’ type of communication. It gets you closer to customers and directly in the SMS inbox, making it a notable marketing channel for restaurants.
In some countries, the preferred method of communication is WhatsApp. In others, it’s SMS. In addition, in countries where telecoms can be disrupted, SMS is the way to go.
Data from SimpleTexting’s 2024 report shows 87% of businesses using SMS marketing saying their “digital marketing is successful.”
Higher engagement
Text message marketing has higher open rates and engagement rates compared to other forms of marketing.
SMS messages have a 98% open rate, which is 5 times higher than email open rates. Roughly 90% of people open a text message within 3 minutes, while 85% of smartphone users prefer SMS to emails or calls.
Opportunity for personalization
McKinsey defines personalization as “when seller organizations use data to tailor messages to specific users’ preferences.”
Customers, including restaurant guests, today, crave personalization.
Using personalization marketing, businesses can reduce customer acquisition costs by up to 50% and boost revenues by 5% to 15%. (McKinsey)
Higher sales
SMS marketing combined with personalization can mean a stronger SMS marketing strategy for a restaurant – or any business.
Separate research by McKinsey also shows “personalized experiences drive up both customer loyalty and a company’s gross sales.”
In addition, a 5% increase in loyalty and retention can mean a profit boost of 25% to 95%.
So, creating an SMS marketing strategy for your F&B business can result in higher revenues and sales.
You can use SMS marketing to increase restaurant reservations, make up for last-minute cancellations and more.
Waitlist management
Text message marketing is great for restaurants because it helps them manage waitlists and engage guests while they wait.
Restaurants using reservation and table management software, like Servme, often offer waitlist management. This feature allows walk-in guests to join a waitlist if they arrive at a restaurant and don’t find seats. Similarly, guests making an online booking can join an online waitlist.
Measurable with data and analytics
Another benefit of using SMS marketing in a restaurant is being able to measure analytics. You can measure the data like
Number of SMS messages sent per day, week, or month
Number of responses
Click-through-rate (for links in SMS)
Engagement rate
Cost-effective
SMS marketing is considered a cost-effective communication method. It’s can certainly be less costly than running social media ads. However, they are different methods of communication and should be treated accordingly.
SMS messaging is more instant and elicits a direct response compared to social media marketing where a customer may see the same ad several times before clicking it or taking action.
Higher guest retention
By personalizing guest communications and engaging guests during wait times or ahead of an upcoming booking or dining event, you can build rapport with your guests.
This means longer-term guest relationships and high retention, ultimately resulting in higher revenues and profits for your F&B concept.
High conversion rate
Besides higher engagement, the immediate nature of text message marketing often means a faster response rate and higher conversion rates.
Nearly 91% of companies report higher conversion rates when text message marketing is part of their broader marketing campaigns.
You can use SMS marketing for guest experience management by sending out post-dine-in guest surveys to your guests.
If you’re new to SMS marketing but want to use it for your restaurant, here are some guidelines to consider.
Get consent
In today’s fast-changing privacy scene, it’s imperative you show your customers you care about their privacy. Make sure you get customers’ consent to send them text messages about your latest news, offerings,…etc.
This will ensure guests know you respect their privacy.
Create an SMS marketing strategy
Successful text message marketing begins with a strategy. Create an SMS marketing strategy for your restaurant and outline the top areas or reasons when you will message guests.
Use the list in the next section to outline your strategy. Like your other marketing efforts, create an initial calendar with dates for top events. These can be anything from Mother’s Day SMS to notifications about venue renovations or a new venue.
Consider messaging frequency
Like email, you need to consider the frequency of sending restaurant guests an SMS. You don’t want to end up messaging guests every day. That’s called spam!
Make sure you separate your restaurant’s SMS marketing strategy from guest notifications for confirmed bookings, cancellations, and in-advance payments.
Optimize for best results
Remember that unlike other forms of marketing, SMS is for mobile and comes with a limited character count.
Make sure your text messages are
optimized for a specific campaign
are within the character limit, 160 characters, including spaces (links are shortened)
include a call-to-action or next steps
include a link, when needed, like your reservation widget or send guests to a mobile-optimized landing page
Include a CTA
Depending on the campaign, make sure you add a CTA in your text messages to guests. This will help them take the next step, be it to make an online booking, proceed to paying a reservation fee, or something else.
Automate
SMS marketing for restaurants doesn’t need to be a time-consuming task. Once you set up your strategy and calendar of the main event, use a marketing tool to automate sending text messages to your guests.
You can use Servme’s restaurant reservation software to do so. Servme has a built-in SMS automation feature, allowing you to send text messages to your guests. You can personalize your SMS campaigns with dynamic lists and auto-tags.
A/B test
Part of any marketing strategy is A/B testing. This means seeing the effectiveness–or the lack thereof–of your campaigns. SMS marketing for your restaurant isn’t any different.
Consider A/B testing for
The time of day you send your messages
The day of the week when you message guests (morning, mid-day, evening)
The different variations of your text messages
Whether guests click your links or not
Response rates
Use the information gathered from your A/B testing to optimize and improve your SMS campaigns.
Analyze your results
Finally, the last step in a successful SMS marketing strategy is analyzing the results of your campaigns.
One way to continually improve is to ask guests for their suggestions or recommendations. You can include a question about your text message marketing in your automated guest surveys.
When to use text messaging for your restaurant
As mentioned, there are many ways to use SMS marketing for your F&B concept or group. Here are a few ideas, but feel free to try your own.
New venue opening
Use SMS marketing for your restaurant when you want to unveil the launch of a new branch or venue.
You invite guests to the opening and include a link to your reservation widget so they can make a booking. That way, you have an idea about your seating capacity for the first day.
Add in an extra twist for those attending your launch event, such as a free beverage or dessert.
Waitlist management notifications
Restaurants and bars using text message marketing to manage their online and offline waitlists. It’s easier to notify guests about their position on your waitlist or how long they have to wait.
If you take online reservations and have walk-in guests, text messages, combined with reservation, seating, and waitlist software like Servme, will help you manage your waitlist more efficiently.
Sending out special offers
You can use SMS to notify guests about special offers. Think ‘Happy Hour’ or mid-week special offers like a lunch menu or buy one, get 50% of the second.
Here, SMS helps increase your restaurant’s sales during normally-slow days or times of the day.
You can also couple these special offers with your booking channel integrations. For example, people who make a booking via your website or Instagram account can get 10% off.
If you’re using Servme, you’ll be able to see where guests are coming from through the booking sources page on your dashboard. You can then implement the discount on their final bill.
Special event announcements
SMS is great for sharing special announcements or events. Whether you’re having a band play in-house, a special dining event like Christmas lunch or dinner, or something else, SMS is the way to go.
Special or limited-time menus
Get people excited about your limited-time menus with SMS marketing.
You can include a link to your Halloween menu or any other seasonal menu in your text message to guests. Make sure you include next steps as well.
Do they need to make a booking? How long will this menu be available?
Special birthday offers
As mentioned, SMS marketing offers unique personalization opportunities. One of those is special birthday offers and celebrations.
Make your guests feel extra special by sending them a text message on their birthdays. Add in a special, limited-time offer like a free dessert or 20% off if they come in as part of a group of 4 or more.
If you’re using Servme, you can automate your SMS messaging using auto-tags and dynamic lists in your guest book.
Guest surveys
Last but certainly not least, guest experience management. Use SMS to ask restaurant guests to answer your quick survey.
According to SimpleTexting, customer satisfaction surveys and customer support are the most common reasons businesses use SMS marketing.
With higher open rates, your guests are more likely to respond. Many will be happy to leave a review, especially if you follow up with any notes or recommendations they make.
Countries where email isn’t popular
Let’s face it, email marketing can be great for restaurants. But emails and even restaurant newsletters aren’t very popular. In some countries, email marketing isn’t that popular.
Using SMS marketing can be a game-changer for your restaurant in driving reservations, engagement, and sales.
For example, email newsletters aren’t popular in many countries in the Middle East. Many brands, whether in F&B or other industries, are experimenting with email. But SMS continues to reign supreme.
Let’s not forget that SMS has a higher open rate and response rate compared to email.
Want to see how SMS can boost your restaurant’s revenues? Try it through Servme today!
Nada Sobhi
Marketing
