How to customize text alerts by contact on iOS
Knowing who sent you a text message before even looking at your phone is extremely convenient, especially if you are the type who receives many SMS messages daily. One way to know who is on the other end of that SMS you just received, is to customize the text alert, based on a contact, on your iPhone. It is a simple process to set up, but one that is easy to miss if you aren't paying attention.
While this capability has been around for those in the jailbreak community from early on, it's a fairly new feature having been introduced in iOS 4.2.