Changes Coming to Text Message Marketing for Small Businesses

On the 13th of December, 2023, the Federal Communications Commission (FCC) approved groundbreaking regulations that are set to reshape the way brands communicate with consumers, especially through text message marketing. This decision marks a significant shift in our regulated market that demands a more explicit and consumer-centric approach to marketing. Let’s discuss these changes, what they mean for your business, and the unexpected upside of this change for your business. 

The FCC Decision: “Brand Explicit Consent” 

The FCC’s recent decision revolves around obtaining explicit consent from consumers for auto-dialing or texting. Unlike the previous practices where consumers could provide a blanket consent for multiple brands, the new regulations demand individual consent for each brand or advertiser. This stringent approach aligns with the Telephone Consumer Protection Act‘s (TCPA) provisions, extending its “Do Not Call” (DNC) rules to text messages. Additionally, the common practice of including hyperlinks in TCPA disclosure statements, referencing a long list of marketing partners, is no longer acceptable. 

These regulations are slated for implementation in January 2025, giving businesses a 12-month window to adapt their workflows in the lead generation industry. 

What the New Regulations Mean for Your Business

What does this mean for your business? Is text marketing no longer a viable advertising avenue? 

Far from it, and that’s for two big reasons. Firstly, text message open rates stand at a whopping 99% compared to email’s 30%, so it’s nearly guaranteed that your customers will see your marketing text. Texting is a very personal form of communication compared to email, so customers are much more likely to clear out their text inbox and carefully look over each message as opposed to email, which is historically much busier and more cluttered. 

We’ll be getting into the second reason momentarily, but this new regulation also greatly increases the chances that the recipient of the message will be interested in your marketing, so their buying intent is much higher than it once was. 

The purpose of this ruling is to reduce the amount of spammy contact that customers receive from businesses by ensuring that customers only receive texts that they explicitly consent to. On one hand, this does limit a company’s ability to reach as many customers as possible. On the other hand, this ensures that any customer that receives one of your messages is already interested in the product. This greatly improves the ratio of contacted prospects and prospects that respond positively. 

Strengthen Your Customer Base Rapidly

The FCC’s regulatory changes present challenges for businesses, but they also offer an opportunity for the customer acquisition industry to evolve. With ample time to adjust, businesses can explore novel methods of matching consumers with brands in more meaningful ways. In this transformative period, 1GS emerges as a leader, offering FCC-compliant text and email marketing campaigns powered by the state-of-the-art AI Woosender—technology also trusted by the US military. This tech allows your company to nurture thousands of prospects using highly advanced conversational AI that reads intent, schedules appointments, and never provides inaccurate information. 

Get ahead of the curve, and kickstart your new year by consulting with a 1GS agent today. Establish an FCC-compliant high-volume lead solution in time for Q1, ensuring your business thrives in an era of consumer-focused communication.