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What is SMS Segmentation?

SMS segmentation essentially involves organising your audience into specific groups so you can tailor your message. Each group or “segment” is based on criteria such as demographics, buyer behavior, preferences and other information.

Defining segments enable businesses to send targeted and personalised text messages to their audience, which makes the message more personal and relevant, and therefore more effective.

SMS Segmentation Basics

In essence, SMS segmentation revolves around organising your subscriber base into smaller, targeted segments, each characterised by shared attributes for example:

  • Demographics like age and gender
  • Geography and location
  • Purchase history and cart behaviour
  • Interests and other custom categories

This segmentation empowers you to craft messages personalised for each group, fostering a more intimate connection with your audience and driving increased engagement and conversions.

Why Segment Your Contacts

The benefits of SMS segmentation

Simply put, segmentation allows you to get more results from fewer sends, makes your customers happier and helps maintain your contacts.

Sending targeted text messages to your subscribers through customer segmentation can drastically improve the ROI of your SMS campaigns. According to McKinsey, 76% of consumers are more likely to buy from brands that personalise their messaging (and 71% simply expect personalised communication, full-stop).

71% of Customers Expect Personalized Communication!

Top 3 Reasons For Segmenting SMS Contacts

1. Keep your customers engaged and satisfied

Sending someone an SMS which is irrelevant to them erodes trust in the business can ruin the business-customer relationship. Irrelevant messages lead your customers to question why they are getting these message and makes them more likely to unsubscribe.

On the flip side, a relevant SMS – such as a personalised offer or a timely notification that their shipment is on the way – increases trust, engagement and overall customer happiness.

This is only possible through segmentation.

2. Keep your contact list clean

You don’t want to be trying to send people messages who have given you the wrong contact info, changed their number or who has unsubscribed (opted out) from SMS messages.

In fact, in Australia, if someone unsubscribes it is illegal to send them an SMS.

Creating segments for bounced and unsubscribes, makes it easier to exclude them from SMS campaigns. By not paying for ineffective sends, you are effectively reducing your cost – thus boosting your ROI.

3. Increase your ROI

Ultimately, a business owner or marketer is focused on increasing their return on Investment. A clean contact list with only happy and engaged customers will increase the impact and ROI of your SMS campaigns.

  • Higher Engagement: Relevant Messages resonate more with recipients, resulting in higher open and click-through rates.
  • Leads to Increased Conversions: Whether your objective is sales or appointments rescheduled, messages that cater to your customers means more results at a lower cost
  • and fewer Opt-Outs: Irrelevant messages often lead to unsubscribes. SMS segmentation reduces this risk by ensuring the right messages reach the right people.

Top 5 SMS Segmentation Strategies

Now you know why to use SMS Segmentation, lets explore 5 highly effective strategies and use cases.

1. Target high-value customers with a tailored offer

Who for: Any business that has a large customer base and a limited SMS sending budget


  1. Create a segment for your top customers by frequency and/or purchase value.
  2. Send them an SMS promoting your offer or sale.

Why spend money sending your offer to those less likely to buy? Minimising your send costs boost your overall ROI.

2. Create segments for each state or region

Who for: Any business that has sells different stock or services in different regions


  1. Create a segment for each state, city or region you cover.
  2. Send them an SMS promoting specific content for that region.

This can also be used for different weather. If you know it is freezing in Melbourne, you can promote your warm stock, while in Brisbane you can still push t-shirts.

3. Engage different interests with different content

Who for: Clothing, jewelry, and businesses with significantly different lines and styles


  1. Create separate segments for your male and female customers or those with specific interests.
  2. Send each segment different content introducing your latest lines.

4. Re-engage lapsed customers

Who for: Supermarkets / retailers / businesses that rely on constant purchases


  1. Create a segment for your top customers by frequency who have recently stopped shopping.
  2. Send them an incentive SMS to encourage them to shop again. Alternatively, use it to find out why they stopped shopping with you.

It is always a good idea to learn why customers no longer shop from you. Create a simple survey and direct them to it with your SMS.

5. Grow brand advocates

Who for: Brands relying on high trust such as cosmetics, health products and services


  1. Create a segment for your top customers by frequency and/or purchase value.
  2. Send them an SMS enrolling them in a referral program, or prompt them for a review.

Developing a core of brand advocates is an excellent long-term strategy for growing your business.

SMS Segmentation Closing Thoughts

Segmentation is now critical for business success. The age of mass-marketing the same content to everyone is effectively over. Modern consumers are savvy and expect, personalised and relevant choices.

Fortunately, modern SMS platforms like TopSMS make this easy. And, your customers will reward you for it!

Fed up with complicated SMS systems? We get it!

TopSMS is here to make your life easier.

We stripped away all distractions so you can create and send your SMS campaign in seconds.


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All features are included in our per-message price. Top SMS Credits never expire. And because we charge ZERO fees and have no lock-in contracts, you can use them whenever you like.🙂

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