Incentives are becoming more and more popular with opt-in SMS marketing strategies. Why? They give a consumer a valuable reason to join a marketing list.

There’s no law that says companies that use SMS marketing must provide an incentive to those who opt-in, but consumers are coming to expect it, and in the long-term, appreciated incentives will lead to better profits.

The primary impact of an incentive-based program is a steady increase in participants—a larger marketing pool. The larger the audience for your marketing campaign, the more likely you are to see significant returns on your advertising investments.

Outside of the benefits provided to already opted-in customers, great incentives also draw new customers to your store, as you show that you value their business.

If every SMS marketing campaign includes a specific and actionable incentive, there is a greater likelihood of response to that marketing campaign. Consumers don’t want to feel like they are doing you a favor when they are patronizing your company, but they love to feel like you are doing a favor for them. This is why so much mobile advertising is now incentive-based. Instead of simply “getting the word out” about your business, you want to create a reason for customers to come to your store or visit your website. Only an incentive can reliably produce a conversion.

Types of Popular Incentives

Giveaways and sweepstakes, especially those run through social media websites, have great potential for not only motivating existing customers to action, but also drawing in new customers.

Free gifts are another reliable way to gain visibility and collect numbers for an SMS marketing list. Customers will feel adequately rewarded for providing their information with a free appetizer or dessert.

The most immediate reward comes in the form of a “now” deal. For example, offering an immediate discount for signing up at the register is a great way to accrue lots of information in a short amount of time.

There is even the possibility of creating a social-based reward program, where individuals are rewarded based on how many people they bring into the business. In this method, you encourage past customers to return and find a whole new client base.

Mobile and limited-time discounts, designed specifically to drive traffic to your store, is an essential way to find more business. Offers that expire will cause more people to take immediate action, as will coupons that show up right on the mobile device. The mobile user is a more spontaneous and action-based user. Providing that demographic with offers that can be used right now is a great way to pull them in and win their business.

The greatest benefit of incentive-based SMS advertising is the positive relationship it builds between company and customers. That relationship is, in the end, what will keep patrons coming back to a business again and again.