Everything You Need to Know About SMS Customer Service in 2025

September 24, 2024 (Updated by Sam Pelton) | By Grace Lau
cartoon representation of support rep sending a text message from an office desk to a happy customer

One of the biggest challenges companies face is how to handle customer service.

It is essential to create a relationship with your customers that makes them feel comfortable. You can do this in many ways, but one of the best ways to build rapport with your clients is SMS customer service.

When text messaging first began, it was used primarily for personal use. People texted friends and family to coordinate plans or meet up. Today, however, businesses are starting to use text messages in their customer service messaging.

Texting your customers can be an excellent way to provide them with customer support. Plus, 64% of consumers think businesses should contact them via SMS more often. So you can't afford to lose out on this.

If you're still an SMS novice, however, don't fret. We'll be giving you the 411 on all things SMS customer support, explaining its benefits in creating remarkable customer service and giving you some extra tips that can help you get started. So grab yourself a pen and paper and a lovely hot cuppa, and let's begin!

What Is SMS Customer Service?

You may have already heard of SMS for marketing. But what is SMS for customer service?

With SMS customer service, you use SMS to provide your customers with customer support instead of using emails or calls, so they can text customer service.

Let's say you're a company using customer analytics software. Your client is having trouble getting set up with the software, so they contact you for help. Instead of providing them with customer support via email or phone call, you can send them a text message to walk them through their problem. This allows your customers to get the help they need in a matter of seconds, instead of waiting on hold or sending multiple emails back and forth.

Why Should You Implement SMS Customer Service? | Benefits

1. It's Cost-Effective

Text messages are generally cost-effective to send and receive (when viewed from an ROI standpoint), especially when compared to phone calls. This is a huge benefit for businesses as they can use that money saved on providing better customer service in other areas of the business. Therefore, customer service text messaging allows businesses to focus more on their customers and less on the moneymaking side of things.

2. It's Convenient

One of the great benefits of SMS customer service is that it saves time. While phone calls or using video conference software can often be disruptive to whatever the customer is doing at the moment, text messages can be quickly sent while they’re doing something else. This convenience is often a key reason that customers prefer using text messages in any customer service setting.

3. It's Fast

Customer service messaging is also extremely fast, especially when compared to other methods of communication, such as phone calls or emails. There’s no need for the customer to wait around until someone gets back to them, and you can quickly respond to any questions or issues that your customers may have.

4. It's Personal

When you send text messages, you’re using a medium of communication that’s incredibly personal. This allows your business to build up a rapport with the customer by showing them that they're cared for and valued as an individual, not just another number in the queue.

Let's say you're an eCommerce business specializing in guided selling, and your customer's package doesn't arrive. Instead of sending an automated email, you can send a text to check up on them and make sure they receive their package as soon as possible via SMS customer support.

5. You Can Monitor Your Customers’ Preferences

For most companies with SMS services offered, it’s free to sign up for. This means that businesses can easily monitor customer preferences, allowing them to provide customer service that caters to customers' needs. It may be the case that your customer only knows about 10% of your product or service's uses, so you can send them a text message suggesting they think of other ways it could be used in their day-to-day lives.

Why Should You Implement SMS Customer Service? with the 5 points listed above

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What Businesses Should Use SMS Customer Service?

SMS customer service is becoming more and more common among businesses.

Nearly every business could use SMS generally to answer customer inquiries and help troubleshoot problems.

In addition to that, here are a few businesses that commonly use SMS would include…

Retail and Ecommerce

Retail and ecommerce businesses can use SMS for order confirmations, shipping updates, abandoned cart reminders, and inventory alerts, or to allow customers to text customer service.

Healthcare

Various healthcare providers can send appointment reminders.

Pharmacies can notify patients when prescriptions are ready for pickup.

Financial Services

Banks can send fraud alerts, balance notifications, and payment reminders.

Insurance companies can provide claim status updates and policy renewal reminders

Restaurants

Restaurants can confirm reservations and take-out orders. They can also use SMS to notify people on a waitlist that their table is ready.

Real Estate

Agents can schedule viewings and send property information to potential buyers and to plan showings.

Professional Services

Professional services can send updates and appointment reminders to their clients.

That’s just a sampling of the types of businesses that can use SMS for customer service—the list goes on and extends to virtually every type of business that has customers.

What Are SMS Customer Service Best Practices?

So now that you know just how amazing text messaging is, it's time to talk about some tips on good customer service text messaging.

1. Use a Chatbot

We've already established that customers prefer SMS customer service. So, why not capitalize on this and use a chatbot for the initial stages of customer service? This essentially means using AI to automatically respond to a customer's text.

If your company is already using text messages for marketing purposes (and you're getting their permission to do so), then it's easy to integrate a chatbot into your SMS strategy. This way, the customer can immediately get in touch with a friendly bot that will answer any questions they may have before handing the conversation over to a human.

Imagine you're a customer who wants to know about a product's features. You can simply text your question to the bot and, within seconds, receive a detailed reply. Now, imagine that instead of replying by SMS, the bot sends you a video explaining exactly what you need to know. This means that customers will be able to quickly view videos from their mobile phones at no extra cost, improving customer service all around.

2. Talk Like a Human - Not a Robot!

Even when using a chatbot service for SMS customer service, it's important to remember that you are still dealing with real people who are trying to get through their daily lives. These real people want to know that their needs are being met, but they also want to feel like you genuinely care about them.

Your language and tone can make all the difference between customers feeling like their needs are being taken care of or customers feeling like they're talking to a robot. To sound more human in your language, you can:

  • Use a conversational, yet professional tone

  • Avoid jargon

  • Use words like "please" and "thank you."

  • Personalize your SMS by using names!

For example:

Hey [Customer Name], thanks so much for getting in touch with [Company Name]. My name is [Your Name], and I will be helping you out with your query. I'm sorry to hear about the issue you are having. Is there anything else I can help you with today?

3. Make Your Customer Feel Valued

Since texts are much faster than other communication mediums for customer service messaging, SMS allows you to build rapport with your customer quickly. If a customer has any questions or concerns, it can be easy to respond and provide them with the answer they need in a matter of seconds. By doing this, you will show that you value their time and that they’re important to your business.

Let's say you're offering your customers a free email with custom domain name but have received some customer complaints about how this works. You can quickly send a text message to your customers who are having an issue and ask them if they’d prefer for you to send the email directly to their mobile phones. The customer will know that their needs are being met, and they'll feel valued as a result.

4. Be Straight to the Point

A customer's time is valuable, and SMS customer support messages are short enough that you won't waste their time with too much detail. Make sure your customer knows all of the pertinent information because any questions they have could easily be resolved by them searching elsewhere on your website. Also, make sure that you don't waste your customer's time by telling them unnecessary information or providing long customer service messages that they will not read.

Let's say your customers are managing hybrid teams, and you've realized they might need to be more customer-centric. Instead of sending them a long email about your customer service strategy, send them a quick text and suggest that they might like to request customer feedback on their customer-facing roles.

As you text customer service, if your interaction is lengthy and you don’t want to send the whole thing in one go, make sure you include links to relevant parts of your website so that your customer can quickly and easily find the information they need. This way, your customer will not feel like they’re being ignored because you provided them with all of the materials required to solve their issue before ending your customer service via text.

For example, if your company sells a customer engagement system, be sure to add a link so that your customer can learn more about it.

What SMS Customer Service Features Are Available?

SMS platforms and services provide several features that help with implementing SMS customer service in your business.

Some of those features include:

  1. 2-way messaging—you can have access to a live inbox in which you can carry on SMS conversations with customers.
  2. Conversation management—you can assign conversations to different agents so you keep everything organized.
  3. Auto-responses—you can create pre-set messages for common queries or after-hours responses.
  4. AI chatbot—you can set up an AI-powered SMS chatbot that will automatically give intelligent answers to your customers’ questions.
  5. Message templates—you can create “canned response” templates to help your agents save time for recurring questions.
  6. API access—you can program your own SMS integrations with you current services (such as your CRM) so that your SMS experience can be as seamless as possible.
  7. Contact segmentation—you can segment your support contacts into different “groups’ to help you track and organize your database.

How to Choose an SMS Customer Service Platform

So how can you actually choose an SMS customer service platform?

Here are a few tips…

Make Sure It Has the Customer Service Features You’re Looking For

You need a way to go about SMS for customer service that allows you to easily monitor and respond to those customer service inquiries.

If an SMS service doesn’t offer key customer service features such as an inbox, you may want to look elsewhere.

Make Sure It’s User-Friendly for Your Needs

You don’t want a platform that’s difficult for you and your team to implement and use.

So make sure the platform you’re looking into is user-friendly in regard to what you’re wanting to use it for.

Make Sure the Customer Service Is Good

We’ve all been victims of bad customer service—and you don’t want that with a platform you’ll be relying on to deliver service to your own customers.

You want customer service that is helpful, ready to help, and has a reasonable amount of availability.

Make Sure You Test Out the Platform’s Free Trial

Most customer service text messaging services give you a free trial so that you can test out the platform and services.

Take advantage of that free trial so that you can get a feel for how it works.

SMS Use Cases, Examples, and Templates for Customer Service

Here are some use cases, examples, and templates to help you get started with SMS customer service.

Order Confirmations and Updates

Use Case: Inform customers about their order status.

Example:

Your order #12345 has been shipped and will arrive on 7/26. Track here: [link]


Template:

Your order #{ORDER_NUMBER} has been {STATUS}. Expected delivery: {DATE}. Track: {LINK}


Appointment Reminders

Use Case: Reduce no-shows by sending timely reminders.

Example:

Reminder: Your haircut appointment is tomorrow at 2 PM with Sarah. Reply Y to confirm or C to cancel.


Template:

Reminder: Your {SERVICE} is on {DATE} at {TIME} with {STAFF}. Reply Y to confirm or C to cancel.


Problem Resolution

Use Case: Address customer issues quickly.

Example:

We're sorry about the delay. Your refund of $50.00 has been processed and will appear in 3-5 business days.


Template:

We apologize for {ISSUE}. Your {RESOLUTION} has been processed and will {NEXT_STEPS}.


Product Support

Use Case: Provide quick answers to product-related questions.

Example:

To reset your device, hold the power button for 10 seconds. Let me know if you’re still having troubles after trying that!


Template:

To {SOLUTION}, follow these steps: {INSTRUCTIONS}. Let me know if you’re still having troubles after trying that!


Proactive Service Updates

Use Case: Inform customers about service interruptions or changes.

Example:

FYI: Scheduled maintenance on 7/25 from 2-4 AM may affect your service. We apologize for any inconvenience.


Template:

{EVENT_TYPE} on {DATE} from {TIME} may affect your {SERVICE}. We apologize for any inconvenience.


Account Notifications

Use Case: Alert customers about important account activities.

Example:

Unusual login detected on your account from New York. If this wasn't you, reply LOCK to secure your account.


Template:

{ALERT_TYPE} detected on your account from {LOCATION}. If this wasn't you, reply {KEYWORD} to {ACTION}.


Personalized Promotional Offers

Use Case: Send personalized offers based on customer history.

Example:

Exclusive for you: 20% off your next purchase. Use code LOYAL20 at checkout. Offer expires in 48 hours.


Template:

{OFFER_TYPE} for you: {DISCOUNT} off your next {PRODUCT/SERVICE}. Use code {CODE} at checkout. Expires in {TIME}.


Reservation Confirmations

Use Case: Confirm bookings and provide essential details.

Example:

Your table for 4 is confirmed for 8 PM tonight at La Trattoria. Can't make it? Cancel without charge up to 2 hours before.


Template:

Your {RESERVATION_TYPE} for {NUMBER} is confirmed for {TIME} at {LOCATION}. Cancellation policy: {POLICY}


Payment Reminders

Use Case: Gently remind customers about upcoming or overdue payments.

Example:

Friendly reminder: Your invoice #INV-2024 for $150 is due on 7/30. Pay easily online: [link]


Template:

{REMINDER_TYPE}: Your invoice #{INVOICE_NUMBER} for {AMOUNT} is due on {DATE}. Pay here: {PAYMENT_LINK}


Product Restocking Notifications

Use Case: Inform customers when an out-of-stock item is available.

Example:

Good news! The red sweater you wanted is back in stock. Shop now before it's gone: [link]


Template:

Good news! The {PRODUCT} you {INTEREST_TYPE} is now {AVAILABILITY}. {CALL_TO_ACTION}: {LINK}


Satisfaction Follow-ups

Use Case: Check in with customers after resolving an issue or after they made a purchase.

Example:

We hope your recent issue was resolved to your satisfaction. How did we do? Rate our service: [link]


Template:

We hope your recent {ISSUE_TYPE} was resolved satisfactorily. How did we do? Rate our service: {SURVEY_LINK}

Why Is Customer Service Important?

Now let's cover why it's important to focus on your customer service. It’s not just a nice addition to the company. It’s integral to continuing business and creating client loyalty.

Customer service can help give some insight into how you can improve internal processes and discover what your customers want from your brand.

If you're still not convinced, here are some numbers to help you see why it’s so crucial:

  • It's 5-25x more expensive to invest in new customers rather than retain old ones - Invesp.

  • 63% of consumers expect businesses to know their unique needs and expectations, while 76% of B2B buyers expect the same thing - Salesforce Research

  • Nearly three out of five consumers report that good customer service is key to feeling loyalty toward a brand - Zendesk.

  • Only one in five consumers will forgive a bad experience with a company whose customer service they rate as "very poor." However, if they rated the customer service as "very good", 80% of customers would stick with the company after a mistake - Qualtrics XM Institute)

What Is Conversational Messaging?

Conversational messaging is the term used to explain the new system of messaging that is taking over and replacing previous forms of communication. There are many different forms in which conversational messaging is used. These include:

Time to Get Started with SMS Customer Service

So there you have our complete guide to SMS for customer service, including its benefits and some great tips to get you started.

SMS is proving to be really useful for customer service, and the more you use it, the better your customers will feel about your company. If you can get ahead of what your competition is doing, then you will be able to truly lead in this area.

Good luck and happy texting!

--

Bios:

Grace Lau - Former Director of Growth Content, Dialpad

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At the time of writing, Grace Lau was the Director of Growth Content at Dialpad. She has over 10 years of experience in content writing and strategy. Grace Lau also published articles for domains such as UpCity and Powermat.

Sam Pelton - Content Director, Mobile Text Alerts

Sam Pelton headshot

Sam Pelton has been with the SMS platform Mobile Text Alerts for 10 years. He currently works as Content Director, specializing in blog articles and email content.

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