Cold calling is ineffective 90% of the time, according to The Harvard Business Review, and more recent research shows that less than 2% of cold calls actually result in a meeting, according to HBR. Yet, more and more people are increasingly glued to their smartphones while more communications move online.

Text messages have a 45% response rate, whereas email responses are just 8%, according to CallHub. Automated SMS is reshaping the traditional approach to reaching clients and is revolutionizing how insurance companies and marketers connect with their existing and potential clients.

By implementing automated SMS marketing, businesses can experience improved customer relationships, increased efficiency and better sales outcomes. If you are considering adopting automated SMS marketing to connect with your clients and redefine your insurance and marketing strategies, here are eight ways it could redefine your business:

1) Streamlining insurer-client communication. Automated SMS smooths out insurer-client communication. The traditional approach involves lengthy phone calls and paperwork. However, automated SMS enables quick and direct communication. Policyholders can get updates, reminders and notifications directly to their smartphones. It saves time and makes sure that important information is conveyed instantly.

For example, if one of your client's insurance policies is three months from expiration, an automated SMS can remind them to renew. There will be no lapse and you can use the opportunity to maintain a strong relationship with the client. You can even send customers' claim status updates via SMS, so they don't have to check online portals or make calls to the carrier.

2) Improving consumer engagement. Customer engagement is important in the insurance industry. Through automated SMS, insurers can send personalized messages to their clients regarding birthday wishes, policy maturities or other customized messages based on the client's profile and history. This will strengthen the client relationship by improving loyalty and satisfaction. You can also keep clients engaged and informed by sending clients information about different plans, benefits, updates and coverages.

3) Simplifying the sales procedure. The sales process in the insurance industry can be complex and lengthy. Through automated SMS, agents can automate various steps in the sales funnel. For example, potential customers can send agents questions about their quotes and quickly responding can increase the chance of conversion. Additionally, agents can automate follow-up messages to nurture leads, offer additional information and answer common questions.

4) Enhancing customer service. Automated SMS is also transforming customer service in the insurance industry. Now, customers do not have to wait long to resolve queries thanks to automated responses that can help customers get answers about policy details, coverage information and their payment due dates.

Further, automated SMS can provide timely updates and information to clients in an emergency. When customers get immediate response and assistance, it can help them navigate challenging situations and file claims efficiently. This increases satisfaction even in the event of a claim.

5) Boosting marketing campaigns. With the use of automated SMS, marketing strategies in the insurance industry have become more targeted and efficient. Via traditional methods, such as email, open and response rates are quite low. SMS messaging has a higher open rate than email marketing, with an average of 98% compared to 20%, according to Salesforce. Automated SMS has high open rates by ensuring the message reaches the target audience instantly.

By using automated SMS, agents can create more touchpoints to improve the relationship. However, any messages should be personalized based on the client's behavior and preferences. This will increase the chance of getting a positive response.

6) Cutting down operational costs. With automated SMS, insurance agents can automate routine tasks like payment reminders, reducing the need for manual manpower and paper billings, saving money and time. Automating routine tasks will improve productivity and ensure resources are used effectively.

7) Gathering customer feedback and insights. In the service-based industry, feedback is crucial. Traditionally, agents would need to call customers or meet them in person to collect their feedback. This process is quite time-consuming. With email responses fairly low, automated SMS is a better choice to reach out to clients with a short survey link. The feedback you get will help improve service that meets your client's preferences and expectations.

8) Safeguarding compliance and security. The insurance industry is heavily regulated and compliance is vital. By incorporating a compliance-based automated SMS system and prioritizing security, insurance agents can build trust with their customers by ensuring that their personal data is safe. Besides, automated SMS can keep a record of all communications for regulatory purposes. By adhering to the Telephone Consumer Protection Act (TCPA) and 10-digit long code (10DLC) number compliance and implementing security practices, automated SMS transforms how insurers and marketers connect with their clients.

If you want to stand out from the crowd and achieve better results, embracing this technology is a must. Automated SMS is the future of insurance marketing. The reasons are simple: It's efficient, automated and consumer-centric. Above all, for many customers, text is best.

Philip Portman is the founder and CEO of Textdrip, a business texting platform.