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Text Message Marketing for Contractors: Compliance and ROI

Pipeline Research Team
Blog

Key Takeaways

  • SMS open rates hit 98% within 3 minutes, compared to 20% for email
  • TCPA violations cost $500-$1,500 per unsolicited text message sent
  • Contractors using SMS for appointment reminders see 38% fewer no-shows
  • Opt-in consent must be documented and stored for at least 4 years

98% of text messages get opened. Most within 3 minutes.

Email hovers around 20%. Direct mail, maybe 4-5%. Social media organic reach has cratered to single digits.

For home service contractors, SMS looks like the obvious answer. And it is, when done correctly. The problem is that “incorrectly” comes with federal fines that start at $500 per message and escalate to $1,500 for willful violations.

One HVAC contractor in Texas learned this the hard way. He scraped phone numbers from a local business directory and sent 2,000 texts promoting a spring tune-up special. The FCC fined him $847,000. He’d been in business for 22 years.

The compliance landscape in 2026

The Telephone Consumer Protection Act (TCPA) regulates every commercial text you send. The rules are strict and enforcement has increased substantially since 2023.

You need prior express written consent before sending any marketing text. Verbal consent doesn’t count. Implied consent doesn’t count. Having someone’s phone number from a previous job doesn’t count.

Written consent means the customer actively opted in through a clear disclosure. The disclosure must explain that they’re agreeing to receive marketing messages, specify what kind of messages they’ll receive, and confirm message and data rates may apply.

A checkbox on your website works, as long as it’s not pre-checked and the language clearly states what they’re signing up for.

The FCC wants to see three things in every opt-in:

The identity of the business sending messages. The types of messages the consumer will receive. A clear statement that consent is not required as a condition of purchase.

Here’s language that works:

“By providing your phone number and checking this box, you agree to receive promotional text messages from [Your Company Name]. Message frequency varies. Message and data rates may apply. Reply STOP to unsubscribe. Consent is not required to purchase services.”

Store these opt-in records. Keep them for at least 4 years. If someone claims they never opted in, you need proof.

The ROI case for SMS

Compliance requirements sound burdensome. They’re worth the effort.

Contractors using SMS report 38% fewer no-shows on scheduled appointments. That’s trucks not rolling to empty houses, techs not waiting in driveways, and schedules not thrown off by cancellations that never came.

Response rates for SMS promotions average 45%, compared to 6% for email. When you text a past customer about a furnace tune-up special, nearly half respond.

The immediacy creates urgency. A homeowner getting a “We have an opening tomorrow at 2pm” text books it on the spot. An email with the same offer sits unread for 3 days.

Building your opt-in list the right way

Every customer touchpoint is an opportunity to collect consent.

When you book a job, ask if they’d like appointment reminders via text. Most will say yes. That’s your first opt-in. Add promotional messaging consent during the same flow and many customers will agree.

Your website contact form should include an SMS opt-in checkbox. Make sure it’s unchecked by default and the language is clear.

Technicians in the field can collect consent too. A simple form on a tablet: “Want to receive exclusive offers and appointment reminders by text?” The customer signs, you have documented consent.

Don’t buy lists. Don’t scrape numbers from directories. Don’t text anyone who didn’t explicitly agree to receive your messages.

Message types that work

Appointment reminders

“Hi [Name], this is [Company]. Just a reminder about your appointment tomorrow at 10am. Reply C to confirm or R to reschedule.”

98% open rate. Dramatic reduction in no-shows. Customers appreciate the reminder and it reduces inbound calls to your office.

Service completion follow-ups

“Thanks for choosing [Company] for your AC repair today. If everything’s working well, we’d appreciate a quick review: [link]. Reply STOP to unsubscribe.”

Timing matters. Send this within 2 hours of job completion. Review response rates drop 86% when you wait more than 24 hours.

Seasonal promotions

“[Name], it’s almost furnace season. Book your tune-up this week and save $30. Call us at [number] or reply YES for a callback. Reply STOP to opt out.”

These work because they’re timely and actionable. Generic “thinking of you” texts don’t drive response.

Emergency capacity alerts

“Heat wave hitting [City] this week. We have 3 same-day AC appointments available tomorrow. Reply YES to book or call [number]. Reply STOP to unsubscribe.”

This leverages urgency around weather events when demand spikes. Customers who booked you before already trust you and many will respond immediately.

What not to do

Sending texts before 8am or after 9pm local time. The TCPA has quiet hours and violating them is an easy way to draw complaints.

Texting customers who opted in for appointment reminders with promotional content. Consent is specific. If they agreed to reminders only, that’s all you can send.

Ignoring STOP requests. When someone texts STOP, you have to stop. Immediately. Sending even one more message after an opt-out is a violation.

Using shortcodes without proper registration. If you’re sending more than a few hundred messages a month, you need to register with carriers. Unregistered messages get filtered as spam and you’ll get flagged.

Making opt-out difficult. Every message must include clear opt-out instructions. “Reply STOP to unsubscribe” is standard. Hiding this or using confusing language creates liability.

Platform options for contractors

You can’t run SMS marketing from your personal phone. You need a platform that handles consent tracking, message logging, and carrier compliance.

For contractors already using a CRM, check if it has SMS capabilities built in. ServiceTitan, Housecall Pro, and Jobber all have varying levels of SMS integration. The benefit is keeping your customer communication in one place.

Standalone options like Podium, Birdeye, and Textedly offer more robust SMS marketing features, including campaign tools, automated sequences, and detailed analytics.

Pricing typically runs $50-200/month depending on message volume. Some charge per-message after a threshold, others offer unlimited plans.

Whatever platform you use, make sure it logs consent, handles opt-outs automatically, and stores records for compliance.

Integrating SMS with your marketing stack

SMS works best as part of a broader follow-up automation strategy, not as a standalone channel.

When a new lead comes in from your website, an immediate text response buys you time while you’re on another job. Speed to lead data shows that responding within 5 minutes increases your odds of booking the job by 21x.

After you complete a job, trigger an automated review request via SMS. Follow up with an email 24 hours later for anyone who didn’t respond.

Seasonal campaigns should hit multiple channels. Text your opted-in list, email your full database, and send postcards to past customers who haven’t opted in to digital.

The contractors seeing the best results treat SMS as one component of a system, not the entire system itself.

Measuring what’s working

Track these metrics monthly:

Opt-in rate from each collection point. If your website form only converts 2% of visitors to SMS subscribers while your tech-in-field collection hits 60%, adjust where you focus.

Delivery rate. If messages aren’t getting through, you may have carrier filtering issues or bad phone numbers in your database.

Response rate by message type. Appointment reminders should hit 80%+ confirmation rates. Promotional messages are lower but should still exceed email.

Conversion rate from SMS campaigns. How many of those furnace tune-up promotions actually turned into booked jobs? Track this by using unique offer codes or dedicated phone numbers.

Opt-out rate. Some attrition is normal. If opt-outs spike after a particular campaign, that message missed the mark.

The bigger picture

SMS is powerful because it’s personal. That same intimacy means misusing it burns goodwill faster than any other channel.

The contractors who win with text marketing treat it with respect. They message customers who want to hear from them, with content that’s actually useful, at a frequency that doesn’t annoy.

Build your list from real consent. Send messages that help more than they sell. Follow compliance rules without shortcuts.

The 98% open rate is real. The $847,000 fines are also real. The difference is how you build your list and what you send.

Most of your competitors won’t put in the effort to do this correctly. They’ll either avoid SMS entirely or cut corners until they get burned.

That’s your advantage. A compliant, well-run SMS program becomes a moat. Your customers hear from you while your competitors stay silent or end up in spam folders.

Start with appointment reminders. Get that system running smoothly. Add review requests. Then layer in promotional campaigns to customers who engaged with your earlier messages.

Every contractor has customers who’d prefer a quick text over a phone call. Meet them where they are and you’ll book more jobs than the contractor still leaving voicemails.