Imagine turning a simple text into a sale in just 90 seconds. That’s the power of SMS lead generation.
For e-commerce owners, the struggle is real—emails get buried in cluttered inboxes, cold calls go unanswered, and ad costs keep climbing. The result? Lost leads, low engagement, and slower growth.
But with SMS for generating leads, you can flip the script. You are now relying on high engagement and a personal channel, such as SMS.
This article will show you how to use text messages to generate leads. You’ll learn
- 4 proven steps to generate high-converting SMS leads
- Top 5 SMS lead generating apps
- How to create lead-generating campaigns
- Lead generation text message templates
Create personalized WhatsApp campaigns that your customers love effortlessly with Retainful’s cross-channel automation workflows.
What is SMS lead generation?
SMS lead generation is a marketing strategy where businesses use SMS to capture, engage, nurture, and convert leads.
It involves getting people to opt in, sending them targeted text messages, and moving them through your sales/marketing funnel.
Related Reading: E-commerce SMS Marketing Guide: Setup, Strategy & Templates
Why SMS outperforms email and cold calls?
Here are the top 4 reasons why SMS outperforms email and cold calls:
1. Superior open and read rates
- SMS has a 98% open rate, compared to only 20%–40% for email open rate.
- 90% of texts are read within 3 minutes, while emails take an average of 90 minutes to be opened.
- Cold calls often go unanswered or to voicemail, whereas SMS lands directly on the recipient’s phone.
2. Unmatched speed and engagement
- Average SMS response time is 90 seconds, versus 90 minutes or more for email.
- Automated SMS messages achieve a 45% response rate, compared to just 6% for email.
- Texting enables quick, two-way conversations that feel more personal and engaging than long email chains.
3. Texts are More Cost-Effective for Lead Generation
- Sending SMS is cheaper and delivers a higher ROI compared to traditional cold calling or email campaigns.
- With high open and response rates, businesses spend less to reach more and nurture qualified leads.
4. Cutting Through Noise and Friction
- Email fatigue: Inboxes are overcrowded, but SMS inboxes are cleaner and more personal.
- No spam folders: Unlike email, SMS messages almost always land directly in the main message thread.
- Less intrusive than calls: Cold calls disrupt people’s day, while SMS lets leads respond at their convenience.
- Efficiency and scale: A sales rep can manage multiple SMS conversations at once, unlike one-on-one cold calls.
Related reading: Marketer's Guide to Improve SMS Deliverability by 95%
Create SMS Automation with Retainful’s pre-built templates and workflows. Use Retainful to Reach Millions with Direct Messaging
How to get SMS leads? (in 4 steps)
Acquiring SMS leads generally follows a path focused on compliance, value, and engagement.
Here are 4 key steps to get SMS leads:
- Using lead magnets to increase opt-ins.
- Generating leads with keywords and campaigns.
- Segmentation for instant connections and nurturing.
- Leveraging two-way text for higher conversions
Step 1: Using lead magnets to increase opt-ins
The first step is establishing the value exchange. You must offer a compelling incentive for a prospect to share their phone number and agree to receive text messages (opt-in). This incentive is your lead magnet.
Action: Offer something exclusive, immediate, and valuable.
What to offer:
- A percentage-off discount code for a first purchase
- Free e-book
- Entry into a high-value contest,
- Early access to a sale or new product.
Compliance note: Always ensure your sign-up process is TCPA compliant, clearly stating that the user is agreeing to receive recurring promotional texts.
Step 2: Generating leads with keywords and campaigns
This is the execution phase where you turn your incentive into an actionable campaign to collect phone numbers.
- Action: Use a short code or a dedicated number and a memorable keyword to make the opt-in process fast and mobile-friendly.
- Campaign promotion: Promote your CTA ("Text DEALS to 55555") across all channels: website pop-ups, social media ads, in-store signage, and email newsletters.
- Automation: Set up an immediate, automated welcome text that delivers the lead magnet and confirms their successful opt-in.
Step 3: Segmentation for instant connections and nurturing
Once a lead has opted in, you must segment and begin sending relevant content to move them toward a purchase.
- Action: Immediately segment your new leads based on the source of the opt-in (e.g., website lead magnet) or their stated interests.
- Personalization: Use their name and context to make the messages feel personal and timely, rather than generic and spammy.
- Nurturing: Use automated drip campaigns to send a series of relevant messages over time.
Step 4: Leveraging two-way text for higher conversions
Encourage leads to reply to your messages to ask questions, confirm interest, or provide feedback.
This turns a one-sided campaign into a two-way dialogue, which is essential for sales-focused leads.
Follow-up: Establish a system for your sales or customer service team to respond promptly to customer inquiries. An immediate human response drastically increases the likelihood of converting that lead into a customer.
5 Must-have SMS lead generation apps
We’ve explored hundreds of SMS apps to identify the best options for lead generation.
Moreover, we reviewed their feedback and ratings from trusted sources like Trustpilot and G2.
Here is an overview of the SMS lead generating apps:
| SMS app | Free Plan | Pricing (Lowest) | Best Feature |
| Retainful | ✅ | $14/mo ($1 worth of SMS & WhatsApp credits) | Omnichannel marketing (SMS + email + WhatsApp) |
| Text Request | ❌ | $59.99/mo | Text from your existing office landline |
| Textline | ❌ | $16/mo (per agent, billed annually) | Collaborative Inbox for team customer service |
| SimpleTexting | ❌ | $29/mo (500 messages) | Unlimited Keywords and access to all features on the lowest-tier plan |
| EZ Texting | ❌ | $20/mo (billed annually) | User-friendly interface and integrated AI-powered tools |
Engage customers and retain them effortlessly with Retainful’s personalized SMS Campaigns
1. Retainful
Retainful is an omnichannel marketing platform that leverages SMS, email, and WhatsApp to recover abandoned carts and bring in repeat customers.
Its SMS functionality is focused on automated targeted campaigns for maximum conversion rates.
TrustPilot rating: 4.8 out of 5.0
G2 rating: 4.5 out of 5.0
Key features:
- Omnichannel marketing: Unifies SMS, Email, and WhatsApp campaign management for omnichannel marketing.
- Automated SMS workflows: You’ll get access to over 10+ pre-built automation workflows.
- Sophisticated contact segmentation: You can have granular segments based on behavior, geography, language, and even demographics.
- Marketing consent and regulations: Retainful is a GDPR-compliant software, designed for e-commerce marketing.
- Free plan: Includes 500 emails/month, 1 automation workflow, and a $1 one-time SMS/WhatsApp credit.
- Starter plan $14/month: 10,000 emails/month, 25 automation workflows, and a $1 free monthly SMS/WhatsApp credit.
- Growth plan $69/month: Unlimited emails, unlimited automations, and a $49 free monthly SMS/WhatsApp credit.
Related Reading: 11 Best SMS Marketing Strategies for 2025
2. Text Request
Text Request enables companies to communicate with customers using their existing office landline, VoIP, or toll-free numbers.
It centralizes one-on-one conversations and mass messaging campaigns.
Trustpilot rating: 4.6 out of 5.0
G2 rating: 4.6 out of 5.0
Key features:
- Landline texting: Text from your current business phone number without changing voice service.
- SMS chat widget: Live chat for your website that automatically converts to SMS if the prospect leaves.
- Payments via SMS: Request and collect secure customer payments through text messages.
- Basic plan: $59.99/month for 1,000 included texts.
- Starter plan: $145/month for 2,500 included texts.
- Corporate plan: $295/month for 6,500 included texts.
- Enterprise plan: $575/month for 20,000 included texts.
- Key add-ons: Features like HIPAA compliance can be added for $50/month.
3. Textline
Textline is a secure, team-oriented business texting solution that focuses on efficient customer service and support.
Trustpilot rating: 4.0 out of 5.0
G2 rating: 4.7 out of 5.0
Key features:
- Unified inbox: Manages conversations from SMS, webchat, and social media in one place.
- Team collaboration: Features like transfers, assignments, and internal private notes for agents.
- HIPAA compatibility: Offers plans with advanced security features to enable HIPAA compliance.
- Limited plan: $16/month per agent (when billed annually).
- Essentials plan: $30/month per agent (monthly billing).
- Pro plan: $50/month per agent (monthly billing).
4. Simple Texting
SimpleTexting is a highly user-friendly SMS marketing platform that offers maximum feature access, including unlimited keywords and segmentation tools.
Trustpilot rating: 4.4 out of 5.0
G2 rating: 4.7 out of 5.0
Key features:
- Unlimited keywords: Create an unlimited number of text-to-join keywords on all plans.
- Full feature access: Includes segmentation, autoresponders, and API on the lowest plan.
- High-functionality mobile app: Manage and run campaigns entirely from your phone.
- Lowest plan (Monthly): $29/month for 500 text credits.
- Mid-tiers
- $49/month for 1,000 credits.
- $79/month for 2,000 credits.
- $229/month for 7,500 credits.
5. EZ Texting
EZ Texting is an SMS marketing service that integrates AI-powered tools to generate automated replies for two-way conversations. It is optimized for mass texting and list growth.
Trustpilot rating: 3.4 out of 5.0
G2 rating: 4.5 out of 5.0
Key features:
- AI compose & AI reply: Generates engaging content and automated responses using artificial intelligence.
- MMS edge: Access to the Shutterstock image library and editing tools for rich MMS campaigns.
- Unlimited tools: Provides unlimited contacts, keywords, and incoming messages on all paid plans.
- Launch plan (Monthly): $25/month for 500 monthly credits.
- Boost plan: $60/month (billed annually) for higher volume capabilities.
- Scale plan: $100/month (billed annually) for high-speed, high-volume sending.
- Enterprise plan: $3000/month for 50,000+ contacts.
How to create SMS lead generation campaigns?
To generate leads from texts, you can use marketing software like Retainful that is specifically designed for e-commerce stores.
If you don't have a Retainful account, create one for free.
Step 1: Get SMS consent using signup forms and popups
In your Retainful dashboard, select signup forms and choose the Welcome pop-up type.
You can either customize the template or create your own pop-up from scratch.
Step 2: Build the automated welcome workflow
Once a visitor provides their phone number via your opt-in form, you need an immediate automated response to welcome them and confirm their subscription.
Create a new automation workflow:
- Go to Automation in your Retainful dashboard and click Create Workflow.
- Select a template like the Welcome Series or start from scratch.
Add the SMS Block (Welcome & confirmation):
The first action in the workflow should be an SMS block sent immediately or within 1 minute.
Example: "Welcome to [Store Name]! You're in the VIP club. Confirmed to receive texts. Your 15% OFF code: [CODE]. Shop: [Link] Reply STOP to unsubscribe."
Add a follow-up:
- Include a Wait block for 1-2 days.
- Add a second SMS block to follow up with a popular product link, a brand story, or a soft reminder to use the discount if they haven't purchased yet.
Step 3: Launch targeted promotional campaigns
Segment your audience:
In the Segments area, create dynamic segments based on behavior, which is a key part of lead nurturing. For example, you can use the RFM method to segment your list.
- Recency: How recent was the purchase?
- Frequency: How often do they purchase from your store?
- Monetary: What is the monetary value of their purchase?
Step 4: Create behavior-triggered workflows
- Abandoned cart recovery: This is the most powerful SMS campaign. Set a trigger for "Cart is abandoned." The workflow should send an SMS 30-60 minutes after abandonment with a direct recovery link.
- Discount campaigns: Target your "Engaged Leads" segment with a direct, time-sensitive message to drive the first purchase.
- Back-in-stock alerts: Automatically trigger an SMS to leads who previously subscribed to a waitlist for a specific product when its inventory is updated.
Lead generation message templates
To get you started, we’ve created a list of lead generation message templates that you can use to instantly connect with potential customers.
Here are the 4 best lead generation message templates:
- Welcome and opt-in confirmation.
- Promotional and discount alerts.
- Follow-up text after initial message
- Appointment reminders.
1. Welcome and opt-in confirmation
Message to welcome new customers
Welcome to [Store Name]! You're officially in the loop. Get 15% off your first order: [Discount Code]. Shop now: [Link]
Opt-in confirmation
Thanks for subscribing! You'll now receive updates from [Store Name]. Text STOP to unsubscribe. Check out our Bestsellers: [Link]
2. Promotional and discount alerts
Flash sale alert
Flash Sale! Get 30% off everything before midnight tonight. Don't miss out—shop the deal now: [Link]
New product launch
It's here! 🎉 The [Product Name] you've been waiting for just dropped at [Store Name]. Be the first to grab yours: [Link]
3. Follow up text after initial message
Cart abandonment recovery message
Still thinking it over? Your [Product Name] is waiting! We've saved your cart for you. Finish up here: [Link to Cart]
Post purchase check-in
How are you loving your [Product Category]? Reply to this text if you have questions, or browse complementary items here: [Cross-Sell Link]
4. Appointment reminders
Appointment reminder with option to reschedule
Your appointment with [Company Name] is tomorrow, [Date] at [Time]. See details or reschedule here: [Link to Booking/Details]
Join 20,000+ eCommerce stores already using Retainful to grow with omnichannel marketing.
Wrap up!
A simple text message is seen faster, read more often, and responded to quickly than any other channel. So, generating leads from text messages is the most efficient way to expand your customer base.
Here’s what you should take away:
- Start with value and consent: Use lead magnets, opt-ins, and clear rewards to build your SMS list.
- Use the right tools: The apps and platforms you choose will determine how fast you can scale and how personal you can make your messages.
- Make it conversational: Two-way texts, segmentation, and nurturing flows turn cold leads into engaged customers.
- Track and optimize: Monitor open rates, response times, conversion metrics, and iterate your campaigns to keep improving ROI.
Also Read:
- Black Friday Sales: Deal Ideas, Trends & Strategies
- 15 Cart Abandonment SMS Templates to Recover Lost Revenue
- How to Send Automatic Text Messages in 2025 (3 Types + Free Templates)
Frequently Asked Questions
There’s no one-size-fits-all, but most businesses see success with 4–6 texts per month. Sending too many can cause opt-outs, while too few may reduce engagement. Always test frequency and monitor unsubscribe rates.
Buying SMS leads is risky because:
- They often lack real opt-in consent (making them illegal in many regions).
- Lead quality is poor, with outdated or uninterested contacts.
- Messages may be flagged as spam, hurting your brand reputation.
- Legal penalties can reach thousands of dollars per unsolicited text.
Are SMS leads better than email leads?
Yes, in many cases. SMS leads are more responsive because:
- SMS has a 98% open rate vs. 20–40% for emails.
- 90% of texts are read within 3 minutes.
- Response rates are around 45%, compared to ~6% for emails.
Compliance (e.g., TCPA, GDPR, CAN-SPAM) ensures you only text people who gave explicit consent. Without compliance, businesses risk fines, blocked numbers, and damaged brand reputation.
