SMS, push, and in-app messages reach people quickly — and annoy them quickly if misused. Permission and relevance are the strategy.
Learning Objectives
By the end of this chapter, you will be able to:
- Use SMS appropriately for transactional and time-sensitive messages.
- Plan push notification and in-app campaigns with consent and frequency limits.
- Explain app store optimization (ASO).
- Calculate the cost and return of an SMS campaign.
SMS Marketing
- High open rates; best for time-sensitive alerts (OTPs, dispatch, flash offers)
- Keep copy short; include brand name and opt-out path
- Consent first: unsolicited promos damage trust and can violate local/telecom norms
- Frequency caps: SMS is not a daily newsletter channel
A good promotional SMS
HamroShoes: Dashain sale, 20% off all school shoes till Sunday. Shop: hs.np/dashain Reply STOP to opt out.
It names the brand first, states one clear offer and deadline, includes a short link, and offers an opt-out, all within one 160-character message.
Push Notifications
Require an installed app (or web push with permission):
- Re-engage with new content, abandoned actions, or account alerts
- Personalize by behavior; quiet hours matter
- Measure opt-in rate and clear/open rate; prune aggressive campaigns
App-Based Marketing
Inside the app you can run:
- In-app messages and stories
- Loyalty / points programs
- Upsells timed to usage milestones
ASO (app store optimization) — title, screenshots, reviews — matters if acquisition depends on store search.
Choosing the Channel
| Need | Prefer |
|---|---|
| One-time alert to known numbers | SMS |
| Habitual product users | Push / in-app |
| SME without an app | WhatsApp Business + mobile web |
Nepal practice: WhatsApp often outperforms SMS for conversational sales, while SMS remains strong for OTPs and transactional alerts. Do not buy scraped phone lists — start from customers who opted in at checkout or in-store.
Worked Example: SMS Campaign Return
A pizza chain sends a weekend offer by SMS to 20,000 opted-in customers:
| Item | Value |
|---|---|
| Cost per SMS (illustrative) | Rs. 0.60 |
| Total cost | 20,000 × 0.60 = Rs. 12,000 |
| Customers who order with the code | 300 (1.5%) |
| Average order | Rs. 1,200 |
| Revenue | Rs. 360,000 |
| Gross profit at 35% margin | Rs. 126,000 |
| Return on SMS cost | (126,000 − 12,000) ÷ 12,000 ≈ 950% |
The return looks excellent, but the chain also tracks opt-out rate. If 2% of recipients opt out after each campaign, the list shrinks quickly, so frequency is limited to two promotional messages a month.
Case study: SMS for dispatch, WhatsApp for sales
A pharmacy delivery startup used SMS only for “rider is 10 minutes away” (transactional). Promotions moved to opt-in WhatsApp. Complaint volume dropped versus earlier promo SMS blasts bought from a broker list — a trust and compliance win.
Summary
SMS, push notifications, and in-app messages reach people instantly but must be permission-based and relevant. SMS suits transactional alerts and short, time-sensitive offers with brand name, clear offer, link, and opt-out. Push and in-app messages suit habitual app users and need personalization, quiet hours, and frequency caps. ASO helps apps get found in stores. In Nepal, WhatsApp often wins for conversational sales, while SMS stays strong for OTPs and alerts; campaign returns must be balanced against opt-out rates.
Key Takeaways
- Consent and relevance are the strategy for direct mobile channels.
- SMS: short, branded, one offer, a link, and an opt-out.
- Push and in-app messages work for frequent app users; respect quiet hours.
- Track opt-out rates as well as revenue.
Discussion Questions
- Which promotional SMS messages do you find useful, and which annoying? Why?
- Why did the pharmacy startup separate transactional SMS from promotional WhatsApp messages?
- How should an app decide how many push notifications to send each week?
Exam-Style Questions
Short answer
- Give two appropriate uses of SMS marketing.
- What is a push notification?
- What is app store optimization (ASO)?
- Why is consent important in SMS marketing?
Long answer
- Compare SMS, push notifications, in-app messages, and WhatsApp as mobile marketing channels, and explain when each should be used.
- An SMS campaign is sent to 15,000 customers at Rs. 0.50 per SMS. 1% place orders averaging Rs. 1,500 at a 30% margin. Calculate the cost, revenue, gross profit, and return on SMS cost.
