SMS vs. Push Notifications: Which Is Better for Your Business?

As a business manager, one of your biggest concerns is likely finding the best tool to communicate with your users. Should you rely solely on new tools like push notifications, or is SMS still effective?

You should consider that both tools can be valuable, but each serves specific purposes. SMS delivers messages directly to a customer’s phone, even without an internet connection, while push notifications appear on mobile apps when there is an internet connection. Both have their pros and cons, and choosing the right one depends on your goals, audience, and budget.

In this article, we’ll compare SMS vs. push notifications to help you decide. We will look at factors like open rates, costs, and how well they engage users.

What is SMS?

SMS, or Short Message Service, is the technology behind text messages. When you send an SMS, it goes directly to a person’s phone number, even if they don’t have internet access. This makes SMS a reliable way to reach people quickly, whether they are using a basic phone or a smartphone.

Businesses often rely on SMS for time-sensitive updates, like order confirmations, appointment reminders, or flash sales. Because SMS doesn’t require apps or Wi-Fi, it has a wide reach, nearly everyone with a phone can receive texts. Furthermore, SMS open rates are high, with most people reading texts within minutes of receiving them.

What are Push Notifications?

Push notifications are short messages that popup on a user’s smartphone or device, but only if they have installed your app. Unlike SMS, push notifications require an internet connection to work. They are often used by apps to share updates, news, or personalized alerts.

Push notifications are great for increasing engagement because they are tied to apps people already use. For example, an e-commerce app might send a push notification about a discount, or a fitness app might remind users to log their daily steps. Push notifications can include images, buttons, or links, making them more interactive than basic text messages. However, they only reach users who have your app installed and enabled notifications.

Key Differences Between SMS and Push Notifications

SMS and push notifications might seem similar, but they work very differently. To choose the right tool for your business, it’s important to understand their key differences.

SMS and push notifications vary in effectiveness, engagement, and cost. SMS has higher open rates and works without the internet, making it a reliable option for urgent alerts. Push notifications, on the other hand, are better for app-based user engagement but require an installed app.

Here, we will explore a full comparison of SMS and push notifications.

Open rates

SMS open rate:

• SMS Messages have higher open rates than push notifications.
• Studies show that around 90% of texts are read within minutes. This makes SMS a powerful tool for time-sensitive communication, like flash sales or appointment reminders.
• Since texts go directly to a phone’s inbox, a space people check constantly, businesses can trust that urgent updates won’t be missed.

Push notifications open rate:

• Push notifications have lower open rates.
• While they appear on a user’s screen instantly, they depend on the person having the app open or notifications enabled.
• Many users ignore or swipe away app alerts, especially if they are frequent.
• However, well-timed push notifications (such as a limited-time offer) can still drive action from loyal app users.

Delivery mechanism

SMS delivery mechanism:

• SMS relies on cellular networks, unlike push notifications, which require an internet connection.
• It works on any phone, even without internet access.
• Delivery is almost instant, and messages stay in the inbox until deleted by the user.

This makes SMS accessible to everyone, whether they have a smartphone or not. As a result, we can expect more effective results from a good SMS campaign than from push notifications.

Push notifications delivery mechanism:

• Push notifications require an internet connection and a downloaded app.
• They are delivered through platforms like Firebase or Apple Push Notification Service, which send alerts to users in real time.
• If someone uninstalls the app or disables notifications, the messages will not reach them at all.

Personalization

SMS and push notifications can be personalized using customer data (like users’ name, behaviors, and purchase patterns).

Both SMS and push notifications can be deeply personalized using customer data, such as names, behaviors, and purchase history. Neither is inherently better, both adapt to your audience’s preferences.

The key is how they use the data. SMS personalization often relies on customer profiles stored in your database. However, Push notifications can use app behaviors.

Engagement and Reach

SMS engagement and reach:

• SMS has unmatched reach. It targets anyone with a phone number.
• Almost all businesses or nonprofits often use SMS to connect with diverse audiences, including those without smartphones.

Push notifications engagement and reach:

• Push notifications focus on engagement with existing app users.
• Their reach is smaller but they focus on engagement with app users through interactive features (buttons, images). This interactivity keeps users connected to the app long-term.

Immediacy for Urgent Alerts

SMS immediacy for urgent alerts:

• SMS is effective for urgent alerts because it is nearly guaranteed to reach the recipient. Banks use SMS for fraud alerts, and healthcare providers send vaccine reminders via text.

Push notifications immediacy for urgent alerts:

• Push notifications can also be as immediate as SMS but only if the user’s app is active and online. For example, a food delivery app might inform you when your order is nearby. However, if someone’s phone is offline or notifications are off, the alert might arrive too late for urgent situations.

Cost Comparison

SMS cost comparison:

• SMS costs vary by region and volume, typically charging per message sent.
• Large SMS campaigns can be more expensive than push notifications, but the high open rates of SMS often justify the expense.

Push notifications cost comparison:

• Push notifications are cheaper to send than SMS campaigns, but require investment in app development and maintenance.

Pros and Cons of SMS

SMS is a straightforward tool for direct communication, but it has strengths and weaknesses depending on your goals.

SMS pros

• High open rates: Nearly 90% of texts are read within minutes and it makes SMS ideal for urgent updates or promotions.
• Wide reach: Works on all phones, even without internet, ensuring you can connect with almost any customer.
• Reliable delivery: Messages arrive instantly and stay in the inbox until deleted, perfect for time-sensitive alerts.

SMS cons

• Higher costs: Sending bulk SMS can be expensive, especially for large audiences or international campaigns. However, its ROI is higher due to better open and conversion rates.
• Limited features: SMS texts are plain and lack buttons, images, or interactive elements to boost engagement.
• Permission required: You need explicit consent to send messages, and spammy texts can damage trust.

Pros and Cons of Push Notifications

Push notifications are great for app users but come with trade-offs in flexibility and accessibility.

Push Notifications pros

• Cost-effective: Sending alerts is often free after app development, saving money for frequent communication.
• Features: Include images or buttons to drive actions like “Shop Now” or “Read More.”

Push Notifications cons

• Limited reach: Only targets users who have your app installed and enabled notifications.
• Lower open rates: Many users ignore or disable app alerts. This reduces visibility for critical updates.
• Internet dependency: Requires Wi-Fi or mobile data, so messages will not reach offline users.

The Best Use Cases for SMS and Push Notifications in Marketing 

SMS and push notifications are powerful marketing tools, but each is useful for specific purposes. Let’s explore when each works best to engage your audience effectively.

SMS for Marketing

SMS works best when you need to reach customers quickly and reliably. SMS has high open rates, which make it perfect for time-sensitive updates.

For example, retail brands use SMS to send flash sale alerts (“Last chance! 50% off ends tonight!”), while healthcare providers remind patients about appointments (e.g., “Your appointment is tomorrow at 10 AM”).

Delivery services also rely on SMS for real-time shipping updates, like:

and a local bakery might text:

Transactional messages are another key use for SMS. These include order confirmations, payment reminders, or password resets. Since SMS does not require internet, it is ideal for customers in areas with spotty connectivity or those using basic phones. A bank might text, “Your account balance is $1000,” ensuring critical information is not missed.Even small businesses use SMS to send personalized offers, like:

They are also great for personalized updates based on behavior, like reminding someone about items left in their cart (“Your Nike shoes are waiting!”).

Some tools, such as the WordPress plugin WP SMS Pro, offer a variety of features for creating SMS campaigns, including personalization, defining behavior-based messages, and grouping users.

Push Notifications for Marketing

Push notifications are useful when targeting users who already engage with your app. They are also a good tool for personalized messages. Fitness apps use push alerts to encourage daily goals (“You are 2,000 steps away from your target!”), while streaming services notify users about new content matching their tastes.

Push notifications are also effective for re-engagement campaigns. If a user has not opened your app in weeks, a push notification like “We miss you—here’s 15% off!” can reignite interest.

E-commerce apps leverage rich features (images, buttons) to showcase deals (“Shop summer styles →”), and travel apps send location-based tips (“Top-rated cafes near you!”).

However, success depends on users keeping your app installed and notifications enabled.

Conclusion

Choosing between SMS and push notifications depends on your business goals and audience. SMS excels with higher open rates, wider reach, and reliability for urgent updates like appointment reminders or flash sales. It’s a reliable option for businesses targeting customers without smartphones or those needing instant delivery. In addition, SMS is ideal for re-engagement campaigns or behavior-based alerts.

Push notifications, on the other hand, offer cost-effective, personalized engagement for app users and are also suitable for re-engagement campaigns.

However, they work best when used together. Combine SMS for broad, time-sensitive messages with push notifications for app-focused interactions.

Test both to see which best fits your audience’s habits and budget. By understanding their strengths, you can craft a strategy that maximizes customer engagement and drives results.

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