Which is better?
…And what is the difference?
Marketers and business owners are starting to look at SMS as an addition to their marketing toolkit but if SMS is only as good as email marketing then what’s the point?
Email and SMS are inbound marketing channels i.e., requiring people to opt in and become subscribers.
Email and SMS marketing are used primarily to send promotions, updates, and content.
While they are very similar in function they differ in execution which I’ll expand upon in this article.
The goal of this article is to draw a clear comparison between SMS marketing vs. Email marketing so you can see whether to include SMS to boost your marketing efforts.
Let’s start with what SMS marketing actually is…
What is SMS Marketing?
SMS marketing, also known as text message marketing, is a direct marketing strategy that involves sending promotional content, alerts, and other communications to customers via text messages on their mobile devices.
This method leverages the widespread use of smartphones to reach customers quickly and efficiently.
How SMS Marketing Works
SMS marketing typically involves the following steps:
- Obtaining customer consent to receive text messages
- Creating concise, engaging messages (limited to 160 characters)
- Sending messages to opted-in subscribers
- Tracking engagement and response rates
Types of SMS Marketing Messages
Common types of SMS marketing messages include:
- Promotional offers and discounts
- Event reminders
- Order confirmations and shipping updates
- Customer service notifications
- Polls and surveys
Pros and Cons of SMS Marketing
Pros
- High open rates (98% average)
- Quick delivery and response times
- Direct and personal communication
- No internet connection required
- High engagement levels
Cons
- Character limit (160 characters per message)
- Potential for being perceived as intrusive
- Higher cost per message compared to email
- Limited multimedia capabilities
- Strict regulations and compliance requirements
What is Email Marketing?
Email marketing is a form of digital marketing that involves sending commercial messages to a group of people via email. It’s a versatile tool used for building relationships with customers, promoting products or services, and driving sales.
How Email Marketing Works
The email marketing campaigns process typically includes:
- Building an email list of subscribers
- Creating engaging email content
- Designing visually appealing email templates
- Sending emails to subscribers
- Analyzing campaign performance through various metrics
Types of Email Marketing Messages
Common types of email campaigns include:
- Newsletters
- Promotional emails
- Transactional emails (e.g., order confirmations, receipts)
- Welcome emails
- Abandoned cart reminders
- Product updates and announcements
Pros And Cons of Email Marketing
Pros
- Cost-effective for large volumes
- Ability to send detailed, long-form content
- Extensive customization and personalization options
- Easy to track and measure performance
- Can include rich media (images, videos, etc.)
Cons
- Lower open rates compared to SMS
- Potential for emails to be marked as spam
- Requires more time and resources to create compelling content
- Oversaturation of users’ inboxes
- Deliverability issues due to spam filters
Key Differences Between SMS and Email Marketing
Message Length and Format
SMS messages are limited to 160 characters, forcing marketers to be concise and direct. Email, on the other hand, allows for longer, more detailed content with no strict character limit. Emails can also include rich media such as images, videos, and interactive elements.
Delivery Speed and Open Rates
SMS messages are typically delivered and read within minutes, with an average open rate of 98%. Emails have a slower delivery and open rate, with an average open rate of 20-30%. It takes an average of 90 minutes for someone to respond to an email, compared to 90 seconds for an SMS.
Cost
SMS marketing generally costs more per message than email marketing. SMS messages can cost between $0.05 to $0.08 per message.
Email marketing costs can range from $5 to $1,000 per month depending on the size of your subscriber list and the features of your email marketing platform not inicluding the time it takes to build a campaign (writing copy, graphics, coding, proofing and testing, etc.)
Personalization Capabilities
While both channels allow for personalization, email marketing offers more extensive options. Emails can be highly customized with dynamic content, personalized product recommendations, and segmented campaigns based on user behavior and preferences.
Analytics and Tracking
Both SMS and email marketing offer analytics and tracking capabilities. However, email marketing platforms typically provide more comprehensive analytics, including open rates, click-through rates, conversion rates, and detailed user behavior tracking.
Regulatory Requirements for SMS and Email Marketing in Australia
Both SMS and email marketing in Australia are subject to specific regulations to protect consumers and ensure ethical marketing practices. The key legislation governing these channels is the Spam Act 2003.
Additional Considerations
- Privacy Act 1988: This act governs how personal information is collected, used, and disclosed. Marketers must ensure compliance with Australian Privacy Principles.
- Do Not Call Register Act 2006: While primarily for telemarketing, it can apply to SMS marketing if the messages are sent to numbers on the register.
- Australian Consumer Law: This overarching legislation protects consumers from misleading or deceptive conduct in all forms of marketing.
Comparing SMS vs Email Marketing Metrics
Open Rates
SMS marketing boasts significantly higher open rates compared to email:
- SMS: 98% average open rate
- Email: 20-30% average open rate
Click-Through Rates (CTR)
SMS marketing also tends to have higher click-through rates:
- SMS: 19-36% average CTR
- Email: 2.5-5% average CTR
Conversion Rates
Both channels can drive conversions, but SMS often has a slight edge:
- SMS: 29% average conversion rate
- Email: 15.22% average conversion rate
Return on Investment (ROI)
Both SMS and email marketing can provide excellent ROI:
- SMS: $10 for every $1 spent
- Email: $42 for every $1 spent
While email appears to have a higher ROI, it’s important to consider the higher engagement rates of SMS when evaluating overall effectiveness.
Unsubscribe Rates
Unsubscribe rates can vary depending on factors such as message frequency and relevance:
- SMS: Generally lower unsubscribe rates due to explicit opt-in requirements
- Email: Average unsubscribe rates range from 0.1% to 0.5% per email sent
When to Use SMS Marketing
SMS marketing is particularly effective in the following scenarios:
- Time-sensitive messages: Flash sales, limited-time offers, and urgent updates
- Location-based promotions: Geo-targeted offers for brick-and-mortar businesses
- Customer service communications: Order updates, appointment reminders, and support notifications
- Event reminders: Upcoming event notifications and last-minute changes
- Quick polls and surveys: Gathering immediate feedback from customers
When to Use Email Marketing
Email marketing is more suitable for:
- Detailed product information: In-depth descriptions, feature lists, and comparisons
- Newsletters and company updates: Regular communication with subscribers about news and developments
- Lead nurturing campaigns: Series of emails designed to guide prospects through the sales funnel
- Transactional emails: Order confirmations, receipts, and shipping notifications
- Visual content and multimedia: Sharing images, videos, and interactive elements
Best Practices for SMS Marketing
To maximize the effectiveness of your SMS marketing campaigns:
- Get permission and provide opt-out: Always obtain explicit consent from subscribers and include clear opt-out instructions in every message.
- Keep messages concise: Make the most of the 160-character limit by being clear and direct.
- Time messages appropriately: Send messages during business hours and avoid late-night or early-morning texts.
- Personalize when possible: Use the recipient’s name and tailor content based on their preferences or behavior.
- Include clear call-to-action: Make it easy for recipients to take the desired action with a clear and compelling CTA.
Best Practices for Email Marketing
To improve the performance of your email marketing campaigns:
- Build and maintain quality lists: Focus on growing an engaged subscriber base through ethical list-building practices.
- Craft compelling subject lines: Create subject lines that entice recipients to open your emails.
- Optimize for mobile: Ensure your emails are responsive and easy to read on mobile devices.
- Segment and personalize: Divide your audience into segments and tailor content to their specific interests and needs.
- Test and optimize: Continuously test different elements of your emails (subject lines, content, design) to improve performance.
Integrating SMS and Email Marketing
Rather than choosing between SMS and email marketing, many businesses find success in integrating both channels:
- Using both channels complementarily: Use SMS for urgent, time-sensitive messages and email for more detailed follow-ups.
- Cross-promoting channels: Encourage email subscribers to opt-in for SMS updates and vice versa.
- Unified messaging strategy: Ensure consistent messaging and branding across both channels.
- Syncing data between platforms: Use customer data from both channels to create more targeted and personalized campaigns.
Both SMS and email marketing offer unique advantages and can be powerful tools in a marketer’s arsenal. SMS marketing excels in delivering time-sensitive, concise messages with high open and engagement rates. It’s particularly effective for urgent communications, reminders, and quick promotions.
Email marketing, on the other hand, allows for more detailed and visually rich content. It’s ideal for nurturing leads, sharing in-depth information, and building long-term relationships with customers.
The choice between SMS and email marketing ultimately depends on your specific goals, target audience, and the nature of your message. In many cases, a combination of both channels can provide the best results, allowing you to leverage the strengths of each medium.
To determine the most effective approach for your business, consider the following:
- Your target audience’s preferences and behaviors
- The urgency and complexity of your message
- Your budget and resources
- The type of content you want to share
- Your campaign goals and desired outcomes
Remember that successful marketing is not about choosing one channel over another, but rather about creating a cohesive, multi-channel strategy that engages your audience effectively. By understanding the strengths and limitations of both SMS and email marketing, you can create campaigns that resonate with your audience and drive results.
As with any marketing strategy, it’s crucial to continuously test, measure, and optimize your campaigns. Pay attention to key metrics, gather feedback from your audience, and be willing to adapt your approach based on the results you observe.
By thoughtfully integrating SMS and email marketing into your overall marketing strategy, you can create a powerful, synergistic approach that maximizes engagement, conversions, and customer loyalty.