SMS Marketing vs. Email Marketing: Which One’s Better for Your Business?

Have you ever been in a dilemma between SMS marketing vs email marketing?

In this blog post, we will compare SMS and email as two effective marketing channels.

No matter if you’re managing a startup or a small online shop, you’d better know the pros and cons of marketing through SMS and email to be able to choose the best one.

Also, we’ll explain why it’s better to use SMS and email together to maximize the ROI. 

Comparing SMS Marketing vs. Email Marketing

Let’s compare some stats and specifics of SMS marketing and email marketing:

#1 Open Rates and Engagement: SMS Wins

Open and engagement rates are key factors in determining the effectiveness of a marketing campaign. 

These figures tell you how many recipients open your ads and how many of them engage with your message.

The higher the open and engagement rate, the better. 

SMS marketing is king when it comes to open rates. It’s estimated that SMS marketing campaigns have an average open rate of 98%, which is perfect!

On the contrary, email open rates are significantly lower. On average, people open around 25% of emails.

So, it’s obvious that the open rate of messages is higher than emails and therefore the engagement of people with your SMS campaign will be higher than emails.

#2 Cost and ROI: Email Wins

The most important factor in marketing campaigns is the cost and the profit you can bring to your business (ROI.) 

It’s obvious that sending text messages costs you because SMS providers will charge you for each SMS sent. Also, SMS marketing platforms might charge you depending on the features you use.

On the other hand, you don’t need to pay anything for sending emails. Of course, designing the email template and managing email campaigns might need some money but overall, the cost of email marketing is less than SMS marketing.

The ROI of SMS marketing channels depends on many factors, especially the industries. By average, SMS has an average ROI of $5-$10 for every $1 spent, which is lower than that of email, $35. It should be noted that the most important factor in determining the ROI is your effort.

#3 Message Length and Content: Email Wins

As you know, SMS has a limitation of 160 characters. If you exceed this limit, you have to pay for another SMS.

On the other hand, you don’t have this limit and this is a great difference. The reason is that you have the luxury of including everything you want from pictures, videos, and an explanation.

So emails are usually more attractive and informational compared to text messages. In SMS marketing, you need to be concise and clear.

#4 Fast Result: SMS Wins

More than 90% of text messages are read within 3 minutes after receiving but emails might take days to be read.

This makes SMS much better for campaigns where timing is important. For example, if you want to use a channel for the following purposes, you’d better use SMS rather than email:

• Last-minute reminders: SMS is great for reminding recipients of appointments, meetings, or flights. SMS is best to deliver urgent reminders quickly and effectively.

• Time-sensitive promotions: If you have a limited-time offer or flash sales, SMS is your best choice. 

• Confirmations: SMS is best for instant confirmation of user actions on your website or online shop. For example, you can send confirmation for appointments, order updates, and shipping status.

• Fast two-way communication: SMS lets you have direct and immediate communication with customers.

#5 Personalization and Targeting: Email Wins

Although SMS is more intimate in nature, email has more advanced features for personalizing your campaigns and targeting customers.

SMS has limited features for segmentation compared to email due to some specific reasons like data collection, message length, and personalization capabilities.

In fact, email gives you more space for mentioning the details that are specific to the customer. On the other hand, you’re limited to SMS, and therefore, you can’t bring those details. Therefore, email is a better tool for laser targeting, segmentation, and personalization.

#6 Audience Preferences: SMS Wins

Although people have various attitudes towards various channels, SMS is the most popular communication tool.

There are few people who avoid reading text messages, but many people don’t use email. This makes SMS a better channel for reaching out to new customers and generating leads.

Of course, it depends on the type of product you want to sell and the personality of your target audience.

For example, educated people usually use email in their daily routines but other people, especially youngsters don’t use email.

So try to understand your audience and then choose between SMS marketing vs email marketing.

#7 Compliance and Legal Considerations: Email Wins

You have to comply with many regulations and laws like GDPR when it comes to SMS marketing. Email marketing, on the other hand, doesn’t need any compliance.

So email marketing is simpler in this regard and makes your tasks easier. For example, you have to get consent from your recipients before running your SMS marketing campaign.

Also, you have to consider an opt-out option in your messages to allow customers to unsubscribe.

Although email marketers include an unsubscription option in their emails, it’s more difficult to include it in a short SMS.

So email wins the competition in terms of difficulty and regulation compliance.

What Stats Say about SMS vs Email Marketing

Last but not least, it’s good to compare SMS marketing vs email marketing considering their stats.

As you see, email marketing is more prevalent among businesses, especially large ones. Of course, they use it for reminders and order updates but SMS campaigns are less popular than email marketing.

Pros and Cons of SMS Marketing

Now, let’s summarize the pros and cons of SMS marketing to see if it works for your business:

Pros of SMS Marketing

• High Open Rates: Nearly all of your recipients read your text messages.
• Immediate Delivery: SMS is perfect for urgent communication because of its immediate delivery.
• Higher Engagement: SMS generally has higher engagement rates, especially for immediate offers and time-sensitive promotions.
• Direct and Intimate: People usually like SMS because of its intimate nature. You can directly convey your message without an introduction and other extra explanations.

Cons of SMS Marketing

• Character Limit: The 160-character limit is a challenge for complex messages.
• Intrusiveness: Some consumers might get annoyed by SMS marketing, especially if you send your SMS untimely.
• Higher Costs: Sending each SMS puts a burden on your resources.
• Regulatory Issues: SMS marketing needs compliance with local and international communication laws.

Pros and Cons of Email Marketing

Here is also a summary of the advantages and disadvantages of email marketing:

Pros of Email Marketing

• Cost-Effective: Email marketing is generally affordable, particularly for large campaigns.
• Content Flexibility: Email is suitable for longer messages, multimedia, and more detailed information.
• Widely Accepted: Email is considered a standard business communication channel.

Cons of Email Marketing

• Spam Filters: Many emails end up in spam folders.
• Slower Response Time: Email is not as immediate as SMS.
• Overcrowded Inbox: As you know, there are so many businesses that use email marketing. Therefore, it can be hard to stand out in a crowded inbox.

Which One Is Better for Your Business SMS Marketing or Email Marketing?

Let’s see which of these marketing channels is suitable for your business:

Factors to Consider

Here are the factors you have to consider before choosing between email marketing vs SMS marketing:

#1 Customer Behavior and Preferences

You have to understand your audience and recognize what they want. For example, younger audiences may prefer SMS for fast updates. Also, older or professional customers might respond better to formal emails.

#2 Content Type

SMS is better for instant engagement, but email is good for long-form content and visuals. So determine the type of content that is suitable for your product/service before starting the marketing campaign.

#3 Budget

Email marketing is usually affordable, especially for large businesses. SMS marketing might cost you a lot if you use advanced features like automated messaging.

#4 Campaign Objectives

For time-sensitive promotions SMS works better. However, for long-term strategies, educational content, and detailed promotions, email is stronger.

When to Choose SMS?

SMS is best for urgent, time-sensitive campaigns, and therefore, it’s suitable for the following businesses:

• Retail and e-commerce businesses.
• Hospitality and service-based industries.
• Companies offering time-sensitive deals or events.

When to Choose Email?

Email is best for newsletters, educational campaigns, and long-term partnerships. Therefore, email marketing is good for:

• B2B companies.
• Businesses that rely on longer sales cycles or educational content.
• Companies focused on nurturing leads and retaining customers.

Combining SMS and Email for Maximum Impact

The best approach is to integrate your marketing strategies to maximize the results. Here are the benefits of using email and SMS together:

• Higher Engagement Rates: Multi-channel campaigns that combine SMS and email can achieve 3x higher engagement.

• Increased Retention: A combined strategy can prevent unsubscription and increase your brand loyalty.

• Better Targeting: You can cover all types of audiences on various channels and get better results.

• Enhanced Customer Experience: You can talk to each customer using the channel he/she likes. This makes them feel comfortable when working with your brand.

Of course, you need to have a strong marketing strategy to make the most of these two channels.

Try to have a unique tone and style on both channels so that customers remember you. Also, try to talk to them like a friend, not a seller because many people will be annoyed soon by promotional messages.

Conclusion

Choosing the right channel for marketing your product/service and staying connected with your customers might be difficult. Many businesses, especially startups and small businesses think that with the rise of social media, the era of SMS and email has risen. But that’s not correct. You can still take advantage of these two marketing channels to boost your sales. Of course, you have to know them in detail to be able to use them properly. Consider the different uses we mentioned in the article and if you need more info about text message marketing, don’t hesitate to contact us.

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