Text Messaging in Business: How Companies Use SMS to Communicate Better

Email inboxes fill up fast, and it’s easy for messages to get buried. Calls from unsaved numbers often end up in voicemail because people are cautious about picking up. It’s not that customers don’t want to hear from you — they’re just selective about what interrupts their day.

That’s why business texting helps. Text messages appear where customers are already paying attention, without demanding too much of them. And they’re quick, clear, and easy to respond to. In fact, a recent Gartner report revealed that 82% of customers want updates from brands by text, but only 44% of organizations mention using text messaging in business. That gap is a missed opportunity.

In this guide, we break down how business text messaging actually works, the types of platforms that support it, and practical tips to help you use it well. That way, you can reach customers in a way that feels natural and gets results.

What Is Business Text Messaging?

Business text messaging is when a company uses Short Message Service (SMS) or Multimedia Messaging Service (MMS) to talk with customers directly, in real time. It’s built for quick exchanges (confirmations, reminders, updates, and fast answers) without the delay of email or the commitment of a phone call.

SMS has been around for decades, and while newer messaging apps offer way more features, the simplicity of SMS is what makes it effective for businesses: plain text, minimal friction, and messages that almost always get read within minutes. 

It essentially fills the space between slower channels (like email) and more complex ones (like AI chatbots), giving customers a straightforward way to reach a business and get a response fast. 

Types of text messages

While SMS and MMS are the most popular, there are other message types you can use to connect with your customers. Here’s an overview of the most common ones: 

• SMS: Plain text messages limited to 160 characters that work on any mobile device. SMS is the most widely compatible format and delivers simple, direct communication without requiring internet connectivity or special apps.
• MMS: Messages that can include images, videos, audio files, and longer text. MMS allows businesses to send richer content like product photos, promotional videos, or GIFs.
• Rich Communication Services (RCS): A modern messaging protocol that combines SMS capabilities with app-like features such as carousels and interactive buttons. RCS offers an enhanced experience similar to messaging apps while working through the receiver’s default messaging app.
• WhatsApp: A popular messaging platform with over 2 billion users worldwide that enables businesses to send text, images, documents, and interactive messages through the WhatsApp Business API. 

The Evolution of Business Text Messaging

When SMS first entered business communication, it was mainly used for one-way alerts like delivery notices, reminders, and verification codes. It was simple and didn’t ask much of businesses or customers. 

But as mobile engagement grew, customer behavior started to change. People were constantly on their phones, and that shift created an opening for businesses. If customers were already comfortable with texting, why not let them text you back? Mobile carriers enabled two-way messaging at scale, and soon enough, businesses started experimenting with it for support and sales, not just notifications.

The final piece was integration. Early text messaging tools were disconnected, and they didn’t talk to CRMs, support desks, or marketing platforms, so using them meant managing one more inbox. 

That changed when platforms began treating SMS as part of the same system that handled email, chat, and phone. Unified customer experience platforms, like Nextiva, connected texting to email, chat, phone, and the CRM, so businesses could manage all their conversations in one place instead of juggling separate systems. 

Benefits of Text Messaging for Businesses

Text messaging consistently outperforms email and phone calls in both speed and engagement. In fact, one out of three consumers in Attentive’s 2025 report said joining a brand’s SMS list actually made them switch brands and buy.

Here are three ways text messaging can help businesses:

Unmatched open and response rates

One of the strongest reasons to include SMS in your communication mix is how reliably customers see and act on it. Sender reports that 85% of smartphone users prefer texting over email or voice calls.

That immediacy makes SMS ideal for updates that need fast attention, like confirming an appointment, approving a service change, responding to a limited-time offer, or addressing an urgent issue before it escalates.

Improved customer engagement

SMS also boosts engagement because it creates a natural, low-effort way for customers to stay in touch. A text shows up directly on their screen, but it doesn’t interrupt like a call or get buried like an email. 

💬 This is also why SMS works so well for quick input like text-to-vote polls. When customers read messages right away, they’re far more likely to respond to simple prompts that only take a few seconds.

The key here is personalization that goes beyond using their name, like referencing their last interaction or sending something relevant to their journey. These small touches can turn one-time buyers into repeat customers without feeling pushy. 

Increased cost savings

SMS also costs less to run. Sending texts is a lot cheaper than making outbound calls, especially at scale. It also doesn’t require the design, production, or automation overhead that comes with email campaigns or the tech setup and maintenance costs of live chat widgets.

How Business Text Messaging Works

Business text messaging isn’t complicated, but it does require a few key steps to set up properly. Here’s how it works:

1. Choose a number: You’ll need a dedicated number for sending texts. This could be:
   • Short codes (5–6 digits): These are best for high-volume marketing or alerts. You get fast delivery and high throughput, but it is expensive and not ideal for personal conversations.
   • Toll-free numbers (e.g., 1-800 numbers): These are best for two-way customer support, as it feels trustworthy.
   • 10DLC: These are standard local phone numbers that are officially registered with carriers for business texting. 10DLC is built for both two-way conversations and higher messaging volume.
2. Select a platform: Use a business texting platform that gives you shared inboxes, routing, automation, delivery checks, and compliance monitoring.
3. Compose your message: Write your text message. Keep it clear, direct, and relevant to the recipient.
4. Create automated flows: Set up triggers for common messages — like appointment reminders, order confirmations, or follow-ups — so they send automatically.
5. Send: Hit send manually or let automation handle it based on the rules you’ve set.

A platform like Nextiva streamlines the entire process by bringing texting, phone, email, and chat into one unified system. It also connects directly to your CRM and the rest of your tech stack, so customer context travels with each interaction. 

Business Texting vs. Other Communication Channels

Email, phone calls, and live chat each serve a purpose. Email is great for detailed information or formal communication. Phone calls and VoIP work well when a situation is complex or sensitive, and you need real-time clarity. Live chat is helpful when someone is already on your website and needs quick support.

But each comes with limitations:

• Emails often sit in crowded inboxes and get lost or ignored. 
• Phone calls require both people to be available at the same time, and many go straight to voicemail. 
• Live chat only works when a customer is on your site, and they have to stay there until the conversation is done.

This is where SMS stands out. Text messages reach customers instantly, on a device they check throughout the day, without requiring them to stop what they’re doing. It avoids the delays of email, the missed calls, and the session-based limits of live chat.

Channel	Best For	Drawbacks	Why SMS Beats It
Email	Detailed info, formal messages, attachments	Slow responses, easy to ignore, inbox overload	SMS is seen immediately and gets faster replies
Phone Calls	Complex or sensitive conversations	Requires availability, high call avoidance, and voicemail	SMS lets customers respond on their own time and actually engage
Live Chat	Real-time support while browsing	Only works when users stay on the website	SMS continues the conversation after they leave the site

Key Applications of Text Messaging in Business

Businesses use texting for four main purposes: marketing, customer support, reminders, and employee communication. These work because SMS speeds up the moments when timing and quick action matter most.

Marketing campaigns and promotions

SMS gives marketers a direct channel for launches, offers, and time-sensitive updates. This is especially true with retail brands, which can use SMS to announce flash sales, exclusive early access to collections, or personalized birthday discounts that drive almost-instant foot traffic or online orders.

Sephora, for example, uses text messages to announce product launches — like Selena Gomez’s new fragrance release — and to drive app downloads by sending limited-time incentives such as “Get 10% off when you install the app.” 

And if you’re planning to use SMS for marketing campaigns, then, according to Validity, 41% of customers require at least a 10% discount to sign up for SMS communications.

Customer service and support

Support teams use SMS to handle straightforward requests like order questions, billing clarifications, and status updates. This eliminates the need to pull customers into long phone calls or back-and-forth email threads. 

For example, a customer can text “Where’s my order?” and get a tracking link immediately. Or a service provider might confirm an installation window, and the customer can reply “yes” to lock it in.

Appointment reminders and confirmations

Businesses in healthcare, home services, salons, and professional services rely on SMS to keep schedules on track. Automated reminders confirm appointments, prompt rescheduling when needed, and reduce last-minute cancellations. 

When connected to scheduling or CRM tools, these messages automatically update the calendar, so teams don’t waste time on manual follow-up. A dental office might send “Your cleaning is tomorrow at 10 a.m. Reply C to confirm or R to reschedule,” cutting no-shows without tying up front desk staff on reminder calls.

Internal team communication

Texting helps companies reach employees quickly with updates that can’t sit in an inbox, like shift changes, policy updates, safety notices, or benefits enrollment deadlines. SMS works particularly well for workplace comms when the message needs to reach people who aren’t at a desk.

For example:

• HR using SMS during annual enrollment to remind employees of cut-off dates or plan changes
• Retailers texting store managers about inventory issues or schedule adjustments
• Hospitals sending staff alerts about emergency protocols

SMS is also critical during natural disasters or emergencies when other communication channels go down. Texts often get through even when internet or phone service is spotty, making it one of the most reliable ways to coordinate response teams, check in on employee safety, or send evacuation instructions.

Did you know SMS works differently depending on where your customers are? Klaviyo found that regions differ in their preferences for SMS marketing. This means region matters as much as industry and use case. North Americans prefer SMS most: 30% say it’s their top channel, compared to 24% globally. They’re open to multiple messages per week but prefer transactional content over promotions. Europeans show the highest brand loyalty: 61% are loyal to three or more brands, and 23% have bought via text 4–5 times in 2023. APAC consumers prioritize discounts and customization: 66% say a discount would increase their likelihood of subscribing. They prefer fewer messages, and 40% say receiving identical messages across channels feels repetitive.

SMS Compliance and Legal Requirements

Business texting is regulated to protect consumers from spam and unwanted messages. Compliance isn’t optional, and violations can lead to fines ranging from $500 to $1,500 per message, as well as lawsuits and carrier blockages. 

The specific rules vary by region, but most regulations share a common foundation: you need explicit consent before texting customers, and you must make it easy for them to opt out. Here are the key regulations businesses need to follow:

• Telephone Consumer Protection Act (USA): TCPA requires express written consent before sending marketing or promotional texts. Messages must include a clear opt-out method (like “Reply STOP”), and texts can only be sent between 8 a.m. and 9 p.m. in the recipient’s local time zone.
• CAN-SPAM Act (USA): This act primarily covers email but also applies to SMS in certain contexts. It requires accurate sender identification, clear opt-out instructions, and prohibits misleading content.
• General Data Protection Regulation (Europe): GDPR mandates explicit consent for marketing communications, transparency about data usage, and the right for users to access, correct, or delete their data. 

🤔 Did you know? Federal TCPA penalties are $500–$1,500 per message, but state laws like Texas can add additional penalties on top — in Texas’s case, up to $5,000 per violation. So businesses face layered compliance risks: federal fines, state fines, and potential lawsuits.

Transactional messages, like order confirmations or appointment reminders, have fewer restrictions than promotional texts, but they still require opt-out options. 

Here’s where a compliance-first communication platform like Nextiva helps. It tracks consent at the customer level using dedicated records that document what type of communication each person has agreed to — such as full opt-in, SMS opt-out, or complete Do Not Call status. 

Each record also includes how and when consent was given, creating an audit-ready history that’s essential during reviews or disputes.

Best Business Texting Platforms

Choosing the right texting platform depends on your business size, goals, and tech setup. A smaller team might prioritize ease of use and prebuilt workflows, while a large enterprise might value custom APIs and full integration. 

Here are three strong options, each with its strengths and ideal use case.

1. Nextiva

Best for: Small and mid-sized businesses that want simple, reliable business texting built directly into their customer experience platform.

Nextiva handles SMS as part of its unified communication platform, so teams can send and receive business texts from the same system they use for calls, chat, and customer management. There’s no coding or setup complexity, and text messaging works out of the box through the Nextiva app on desktop, mobile, or browser. You also get a business phone number starting at just $15 per month. 

And because Nextiva is built as an all-in-one platform, texting is part of a connected customer conversation experience. Businesses can upload contacts, respond from a shared inbox, and switch between phone, chat, and SMS without losing context. 

And our customers notice the difference. Many businesses on G2 call out how simple Nextiva is to set up and how reliably everything works,  especially when they’re juggling calls, chats, and texts in one place. 

The best part is that Nextiva guides users through getting their text messaging fully compliant with 10DLC carrier requirements. 

Nextiva’s key features

• Unified inbox: Combines SMS with phone, chat, and customer data so every interaction stays in one place.
• Rich messaging: Supports photos, media, and emojis for clearer, more personal communication.
• Contact syncing: Integrates with Google and Outlook to keep customer information and history current across devices.
• Consent tracking: Logs how and when each customer opted in, creating a clear audit trail for compliance.
• Automated opt-outs: Processes “STOP” requests instantly and syncs preferences across contact lists and CRM.
• SMS workflows: Triggers texts for reminders, follow-ups, and status updates based on customer actions, scheduling rules, or CRM events.

2. Twilio

Best for: Developers, mature tech teams, and organizations that want complete control and customization of their messaging infrastructure.

Twilio handles SMS through its global Messaging API. Basically, it provides the building blocks — APIs, SDKs, and carrier connections — so you can create your own workflows. You can route messages across channels like SMS, WhatsApp, and RCS, automate responses, and connect everything to your apps or CRM.

The trade-off is that Twilio doesn’t set any of this up for you. You’ll need to build, configure, and maintain the entire SMS experience yourself. So while customers appreciate its API-level integrations, others also complain about the complex configuration process and inadequate support that further delays setup.

Twilio’s key features

• Programmable Messaging API: Lets businesses build custom SMS workflows for alerts, marketing, and two-way conversations.
• Flexible integrations: SDKs connect SMS directly to apps, CRMs, and backend systems.
• Global delivery: Real-time routing and carrier network optimize message delivery across 180+ countries.
• Fraud protection: The Fraud Guard and Traffic Optimization Engine monitor and prevent SMS pumping, delivery failures, and queue errors.

3. Podium

Best for: Physical service businesses like salons and clinics that want text messaging tied to review management and lead generation.

Podium stands out for its AI Employee, which is a conversational AI that handles customer texts instantly, 24/7, while maintaining a natural, human tone. It responds to common questions, books appointments, sends links or updates, and hands off to your team when needed. 

For businesses that rely on fast replies to win leads — like home services, automotive, dental, and retail — AI-driven SMS support like Podium can reduce missed opportunities and keep response times consistently low. 

Its feedback and review management features are also a particular favorite with businesses. But this all-in-one approach also means limited features in other modules, such as chat, messaging, and reporting.

Podium’s key features

• AI Employee: Responds to customers 24/7, handling common questions and tasks automatically.
• Unified inbox: Brings SMS, web chat, and social messages into one place for faster team responses.
• Text-based payments: Lets customers pay securely through a link sent via SMS.
• Review management: Collects and manages reviews across Google, Facebook, and other platforms.
• Automations: Handles reminders, follow-ups, and lead capture to reduce manual messaging.

Choosing the Right Business Texting Platform

When evaluating platforms, focus on the features that directly impact how your team works and how well you can serve customers. Here’s what matters most:

• Automation: The platform should let you trigger messages based on customer actions, scheduling rules, or CRM events, enabling you to send appointment reminders, follow-ups, and order updates without manual effort.
• Analytics: You need visibility into delivery rates, response times, and engagement so you know what’s working and what’s not.
• Scalability: The platform should handle growth — whether that’s more contacts, higher message volume, or adding team members — without requiring a system overhaul.
• CRM integration: SMS should connect directly to your CRM so customer context, history, and preferences travel with every conversation.
• Compliance: Built-in consent tracking, automated opt-out handling, and audit trails keep you compliant without manual recordkeeping.

Finally, zoom out and look at the bigger picture. An SMS marketing platform, though great, can only go so far on its own. The real impact comes when texting is part of a unified system that brings every interaction together.

According to Nextiva’s 2025 CX Trends Report, 81% of respondents say they could improve CX with unified CX platforms. 

That’s exactly what Nextiva does. Instead of juggling separate tools for text, voice, and email, your team works from a single inbox with shared contact data, conversation history, and consistent workflows. That means faster responses, fewer missed messages, and less time tab (and context) switching.

Best Practices for Implementing Business Text Messaging

The best SMS strategies are built on three principles: respect your customers’ time, stay compliant, and make every message count. That means getting explicit consent before you text, keeping messages clear and concise, timing them appropriately, and avoiding over-communication. 

When done well, texting feels helpful and non-intrusive. When it’s not, it quickly backfires. Validity’s research shows that 58% of consumers opt out — and 28% stop purchasing altogether — when a brand’s messages become irritating.

Ensure compliance and consent

Compliance starts with getting explicit opt-in before sending any marketing or promotional texts. Consent must be clear and documented, not assumed from a past purchase or email signup. 

Here are some tips to stay compliant and keep your lists clean:

• Use double opt-in when possible, where customers confirm their subscription by replying to a text.
• Remove opt-outs immediately and sync those preferences across every system.
• Automate opt-out handling so “STOP” requests are processed instantly.

This ensures you’re only messaging people who actually want to hear from you.

Craft effective messages

The quality of your messages matters just as much as the channel you use. To get it right, keep each text focused and easy to act on. Here are some business text etiquette tips:

• Keep messages under 160 characters: Longer messages get split into multiple texts, which disrupts readability, increases costs, and risks key information getting cut off.
• Identify your business clearly: Start with your business name so customers immediately know who’s texting them. “Hi, this is [Business Name]” eliminates confusion.
• Include a strong CTA: Tell customers exactly what to do next, like “Reply YES to confirm” or “Tap here to view your order.” 
• Respect timing: Send texts between 9 a.m. and 8 p.m. in the recipient’s time zone unless the update is truly time-sensitive, like an urgent appointment change.
• Use merge tags carefully: Personalization tokens like {FirstName} are great, but test them first. Nothing looks worse than “Hi {FirstName}” showing up in a customer’s inbox.
• Consider segmentation: Not every message needs to go to everyone. Segment by customer type, location, or behavior to send more relevant texts and reduce opt-outs.
• Don’t over-message: One or two texts per week is usually enough. In fact, Klaviyo’s report found that the brands that saw the most ROI with SMS sent at least one text each week. 

Future Trends in Business Text Messaging

The U.S. SMS marketing industry is projected to grow at a CAGR of 20.8% from 2024 to 2030 as more businesses, especially small and mid-sized companies, adopt affordable, scalable texting solutions. 

Some trends shaping the future of business text messaging include AI-driven personalization and visual messaging. MMS and emerging formats like rich communication services (RCS) make it easy to share images, videos, and interactive content without requiring customers to download an app.

So despite competition from WhatsApp and other messaging services, customers still choose SMS. In fact, in Nextiva’s 2025 CX Trends Report, 29% of businesses said they plan to invest more in SMS for customer engagement. 

AI and automation in SMS

AI is making SMS marketing strategies both more relevant and less of a chore. It can determine the best time to send messages, adjust content automatically based on customer behavior, and segment audiences in real time. And with advanced AI models, you can automate further.

For example, a recent McKinsey analysis on AI in marketing highlights how “AI promo propensity models” can predict the likelihood that a customer will act on a specific offer based on their past purchasing and engagement behavior. In practice, that means AI can choose which message, discount, or follow-up to send a customer for maximum results.

AI-powered chat tools handle routine questions instantly, helping customers get what they need without waiting and freeing support teams for more complex requests.

Nextiva, for example, connects SMS automation with your existing systems — voice, email, CRM, and other integrations — so messages trigger automatically when customers take key actions. Its AI layer then analyzes engagement patterns and uses intent and sentiment to decide how to respond, helping you send behavior-driven communications.

The rise of RCS messaging

RCS is another major step in business texting. Unlike standard SMS, RCS supports high-quality images, videos, carousels, branded elements, suggested replies, and read receipts inside the phone’s native messaging app. 

RCS adoption is accelerating, especially since Apple began rolling out RCS with iOS 18 in 2024. And for Android, Google says that in 2025, more than a billion RCS messages were sent every day in the United States alone.

This also makes North America the fastest-growing RCS market, expected to expand from $7.55 billion in 2025 to $18.39 billion by 2030. 

See how text messaging for business drives real results

Texting in business has become one of the most reliable ways to reach customers. And when you combine SMS with automation, AI, and the right business communication platform, it becomes a channel that scales without adding complexity.

And if you’re one of the 29% of businesses looking to invest in business text messaging in 2025 and beyond, we suggest giving Nextiva’s business SMS platform a try. It gives you business-grade SMS with real two-way conversations, built-in compliance tools, automated workflows, and AI-powered SMS responses. 

Plus, every channel — text, voice, email, and chat — works together in one place instead of creating extra work for your team.

FAQs

Is texting acceptable in business?

Yes, texting is widely accepted in business. Customers expect fast, convenient communication, and SMS gives them a direct way to respond without waiting for email or phone calls. As long as messages are relevant, timely, and consent-based, business texting is both appropriate and effective.

What’s the difference between RCS messaging and SMS messaging?

RCS messaging is a richer, more interactive version of text messaging that supports features like images, buttons, branding, read receipts, and longer messages. SMS, on the other hand, is plain text with a 160-character limit and no advanced features.

How can AI help with business text messaging?

AI automates common responses, routes conversations to the right team, personalizes messages based on customer data, and handles routine tasks like appointment reminders and follow-ups. This allows businesses to reply faster and reduce manual work while keeping response time and quality consistent.

What industries benefit most from business text messaging?

Industries that rely on scheduling, service updates, and fast customer communication see the biggest impact. This includes healthcare, retail, real estate, home services, financial services, education, hospitality, and e-commerce.