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Is SMS becoming obsolete?

Back to InsightsIs SMS becoming obsolete?

Is SMS becoming obsolete?

Key Facts

The Rumor vs. The Reality: Why Business Owners Are Questioning SMS

With apps, email, and social media all competing for attention, it’s easy to wonder whether texting customers still cuts through the noise. Yet every major 2024–2025 dataset shows SMS marketing is not only surviving but growing — especially for service businesses focused on retention and repeat revenue.

SMS adoption has climbed sharply, rising from 45% of businesses in 2022 to 65% in 2024, with 80% now using SMS marketing software and nearly 69% planning to increase budgets this year. Consumers are opting in at record rates — 79% received business texts in 2024, an 11% year-over-year jump — and 91% say they’re interested in hearing from brands via text. Engagement remains unmatched: 90% of SMS messages are read within three minutes, compared to just 23% of emails opened within an hour, and nearly 45% of recipients respond to marketing texts.

For service businesses like those CallMyCustomers works with — HVAC, dental, automotive, and wellness providers — this immediacy translates into real results. SMS drives higher conversion rates (21–30% for most businesses) and delivers exceptional ROI, averaging ~$71 per dollar spent — nearly double email’s return. Unlike promotional blasts, the most effective uses today are relationship-focused: customer satisfaction surveys (41%) and service/support (39%) top the list of business SMS applications.

  • 81.2% of consumers have opted in to at least one brand’s SMS program
  • SMS response rate is 8x higher than email marketing
  • 63% of consumers say businesses that text provide a better overall customer experience

By pairing SMS with email — using each for what it does best — service businesses create a rhythm that feels helpful, not pushy. For CallMyCustomers, this means reactivating past customers with approved, timely messages that fit naturally into the client’s existing workflow, turning familiarity into booked work without adding software or complexity to the owner’s plate.

The Numbers: SMS Adoption and Engagement Are Climbing, Not Falling

The numbers tell a story that contradicts every "SMS is dying" headline: business adoption has surged from 45% in 2022 to 65–80% in 2024, and 69% of businesses plan to increase their SMS budgets this year. Meanwhile, 79% of consumers have opted into business texts — an 11% year-over-year jump — proving the channel isn't just tolerated, it's actively welcomed.

Engagement metrics widen the gap further. SMS open rates hit 98% with 90% of messages read within three minutes, while email lingers at 20–30%. Response rates follow the same pattern: nearly 45% of recipients reply to marketing texts, an 8x advantage over email. For service businesses where timing determines whether a slot gets filled or sits empty, that immediacy translates directly to revenue.

  • Business adoption climbed from 45% (2022) to 65–80% (2024)
  • 79% of consumers opted in — up 11% YoY
  • 98% open rate, 90% read within 3 minutes
  • 69% of businesses increasing SMS spend

This isn't theoretical for teams running reactivation campaigns. At CallMyCustomers, we see the same pattern: a well-timed text to a past customer or an old quote follow-up often gets a reply before the first email in the sequence is even opened. The channel works because it meets people where they already are — 80% of consumers check text notifications within five minutes — and the compliance guardrails (TCPA, 10DLC) keep the inbox clean enough that trust remains high.

Where SMS Actually Makes Money: Reactivation, Reminders, and Repeat Revenue

The businesses quietly making the most money from SMS aren't the ones blasting discount codes — they're the ones using it to reopen conversations with customers they already have. The channel has matured past the "blast promotion" phase, and the numbers show exactly where the revenue lives.

According to 2024 industry data, the top business uses of SMS are now customer satisfaction surveys (41%) and customer service and support (39%) — not promotions. That shift matters. It reflects what consumers actually opt in for: 73% cite appointment and reservation reminders as their top opt-in reason, ahead of sale alerts. People welcome texts that help them, not texts that interrupt them.

This is precisely why reactivation and reminder campaigns outperform one-off blasts. When a past customer gets a timely text — a seasonal service reminder, a renewal notice before a membership lapses, a follow-up on an old quote — it lands as useful, not pushy. And the economics are hard to argue with:

  • SMS delivers roughly $71 in revenue per dollar spent, nearly double email's $36, per channel comparison research.
  • Average conversion rates run 21–30% for most businesses, with 81% of finance and 79% of healthcare companies exceeding 20%.
  • 72% of consumers have purchased after receiving a brand text, and 86% made two or more SMS-driven purchases last year.

Now layer in the reactivation math. Win-back benchmarks show SMS response rates running 8x higher than email, and industry averages consistently find that reactivating an existing customer costs roughly five times less than acquiring a new one. For a business with a dormant list — customers who haven't booked in six or twelve months — that gap is the entire business case.

Klaviyo's analysis of over 3 billion text messages found that automated, targeted flows generate up to 30x more revenue per recipient than one-time campaigns, because timeliness and relevance drive the results. A reminder timed to a service cycle or a renewal window beats a generic promo every time.

This is the logic behind how CallMyCustomers structures its campaigns: seasonal reminders, old-quote follow-ups, and win-back outreach built around a genuine reason to reconnect, with every message approved by the owner before it goes out. It's the same principle the research keeps confirming — SMS earns its ROI as a relationship channel, not a megaphone.

The businesses winning here aren't asking whether SMS is obsolete. They're asking which dormant customers deserve a text this month — and their repeat revenue is answering for them.

Why SMS Works Best as Part of a Mix — And Why Compliance Keeps It Strong

The businesses seeing the best results aren't choosing between SMS and email — they're combining them. Adding an SMS follow-up to a promotional email increases open rates by 20–30%, and integrated campaigns consistently drive higher conversions across industries. Research from TextRequest confirms that 91% of business owners report better conversion rates when SMS is part of the mix, while Klaviyo's analysis of over 3 billion messages shows automated SMS flows generate up to 30x more revenue per recipient than one-off campaigns.

  • Email handles depth, volume, and nurture sequences cost-effectively
  • SMS delivers immediacy — 90% of texts are read within 3 minutes
  • Together they create a rhythm: email introduces, SMS prompts action

Compliance infrastructure is what keeps this channel uncluttered and high-performing. TCPA regulations carry penalties of $500–$1,500 per unsolicited message, and 10DLC registration requires carriers to verify every business and use case before messages reach consumers. The result: SMS opt-out rates sit under 5% for 81% of businesses, with most hovering at 1–2%, while email loses roughly 20% of subscribers annually. TextRequest notes that 66% of people receive fewer than 20 texts per day — a far less saturated environment than the inbox.

Permission-based texting to real customers is the safest, highest-return use of the channel. At CallMyCustomers, every campaign starts with a client's existing customer list — people who already know the business, have opted in, and expect relevant outreach. The owner approves every script and offer before a single message sends, and opt-outs are honored instantly. That discipline keeps deliverability high, complaints near zero, and the channel working as intended: a direct line to customers who actually want to hear from you.

How to Put SMS Back to Work on Your Customer List

Your customer list is quietly sitting on the highest-ROI marketing channel available — and most service businesses never touch it. With SMS delivering roughly $71 back per dollar spent, nearly double email's return, the question isn't whether to text your past customers. It's how to do it without feeling like spam.

Start with segmentation, not blasting. Split your list by recency: customers from the last 30 days, those dormant for 6 months, and anyone past the 12-month mark — the point where most customers have simply forgotten you exist. Old quotes that never became jobs, expiring memberships, and happy customers who could refer each deserve their own message.

Then give every text a genuine reason to exist:

  • Old quote follow-up with a fresh angle — new pricing, a seasonal tie-in, or a simple "still thinking about it?"
  • Renal and membership reminders sent before the lapse, not after
  • Seasonal service prompts timed to your actual work cycle — HVAC tune-ups, dental cleanings, tire swaps
  • Post-job thank-yous with a review request

Keep frequency modest. Research recommends 2–6 messages per month for most businesses, and the data explains why: too-frequent messaging drives 50% of all opt-outs. A reactivation campaign doesn't need volume — it needs a reason that feels useful rather than pushy.

Finally, route replies straight into your booking process. A text that gets a "yes" but no follow-up is wasted effort, and 90% of texts are read within three minutes — so speed matters when someone responds.

This is where a done-for-you model earns its keep. CallMyCustomers starts with a free list review that segments your customers and shows what your list can produce before you spend a dollar. You approve every script and offer; their team runs the texts and calls in one flat plan — no separate software, no per-message line items — and replies flow directly into your booking flow.

Comparing service contracts, that bundled structure is worth noting: many SMS platforms charge $20–$100+ monthly in fees before you send a single text, plus 10DLC registration costs. A flat plan that folds campaign management, texts, and calls together removes the guesswork from budgeting — and puts your dormant list back to work.

Frequently Asked Questions

Is SMS marketing actually dying with all the newer messaging apps out there?
No — the data shows the opposite. Business adoption of SMS climbed from 45% in 2022 to 65–80% in 2024, and 69% of businesses plan to increase their SMS budgets this year. The channel is evolving, not disappearing.
How does SMS ROI compare to email marketing?
SMS delivers roughly $71 back per dollar spent, nearly double email's $36. Response rates are also 8x higher than email, though most businesses see the best results using both channels together rather than choosing one.
Do customers actually want to receive texts from businesses?
Yes — 79% of consumers opted in to business texts in 2024, an 11% year-over-year jump, and 91% say they're interested in hearing from brands via text. The key is relevance: 73% opt in primarily for appointment reminders, not promotions.
Why do SMS messages get better engagement than email?
Texts land directly on a phone with no feed or promotions tab to get buried in. Nearly 45% of recipients respond to marketing texts, and 90% of messages are read within three minutes — versus just 23% of emails opened within an hour.
Isn't texting customers risky from a compliance standpoint?
Compliance rules actually protect the channel. TCPA penalties of $500–$1,500 per unsolicited message and 10DLC carrier registration keep spam low, which is why 81% of businesses see opt-out rates under 5%, with most at 1–2%. Permission-based texting to existing customers — where every message is approved and opt-outs honored instantly — is the safest, highest-return use.
What kind of SMS campaigns actually make money for service businesses?
Relationship-focused campaigns, not discount blasts. The top business uses of SMS are now customer satisfaction surveys (41%) and customer service (39%), and Klaviyo's analysis of 3 billion messages found automated flows generate up to 30x more revenue per recipient than one-off campaigns. That's why reactivation outreach — seasonal reminders, old-quote follow-ups, renewal notices — outperforms generic promotions.

Key Takeaways

{ "title": "Your Dormant List Is Waiting — And It Knows Your Name", "content": "The data is clear: SMS isn't fading — it's maturing into the highest-ROI channel for service businesses that prioritize relationships over blasts. With $71 returned per dollar spent, 90% of messages read in three min

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