Email and SMS marketing are two strategies that give businesses direct communication with their customers. But which one is more effective? These two marketing methods are often compared because they both have high ROI potential. Statistics show that more people open and click on SMS messages than email marketing campaigns. Between 50 and 85% of all emails sent are automatically considered spam by many providers. It contrasts the delivery rates for SMS messages, where only a tiny fraction are deemed spam or spam-like.
The open rate for SMS marketing is also higher than email, with 98% of all messages being opened, compared to 20-30% of emails. SMS marketing is more likely to reach the intended recipient and has a higher chance of getting read. However, it does not necessarily mean that email marketing should no longer be used in marketing efforts. Most businesses adopt a multi-channel approach to maximize customer outreach and interest. Thus, let us learn more about these two marketing strategies to find out which will deliver the best results for your business.
What is SMS Marketing?
SMS marketing is the practice of sending promotional messages via text message. SMS marketing is a method for businesses to communicate via text messages. SMS marketing informs your target audience about sales and campaign announcements through text messages. You have complete control over who gets the text message in SMS marketing.
Similar to email marketing, there is an opt-in requirement in SMS marketing for contacts to subscribe. It makes communication more personal and engaging. The business owner usually determines the frequency of SMS messages.
Some SMS marketing examples include discount offers, personalized promotions, surveys, and remarketing. Consumers are becoming more comfortable communicating with businesses via their mobile phones. In many situations, they want to be able to contact firms through text messaging or social media.
What is Email Marketing?
Email marketing is sending commercial messages to a group of people via email. Email marketing nurtures leads, increases brand awareness, builds customer loyalty, and makes sales. It is one of the most commonly used marketing strategies because it is cost-effective and has a high ROI potential.
Email marketing can be used to promote content, special offers, deals, and coupons. Email marketing is permission-based, and businesses must have prior consent from contacts before emailing them.
Email marketing has been around for a long time and is considered one of the most effective marketing channels. Despite the rise of social media and other communication channels, email marketing is still going strong.
What Factors to Consider when using SMS and Email Marketing?
There are five essential factors to consider when using SMS and Email marketing. These factors are cost, customization, deliverability, click-through rate, and open rate. Businesses must study and plan their email and SMS marketing metrics to adjust their strategies and efficiently address the needs of their customers.
1. Cost
The cost to send and run an SMS marketing campaign will vary depending on the country of origin, geographic location of the audiences, length of messages, and the number of messages per day. A good amount to expect is $0.01-$0.02 per message. On average, it is more expensive than an email marketing delivery.
Email marketing is the most cost-effective method of reaching a large audience with non-time-sensitive content. It is because most email service providers offer free plans for small businesses with limited contacts. Also, there are no fees charged by the network carriers to send or receive an email.
2. Customization
Customization is essential in SMS marketing to ensure the message is relevant to the recipient. The downside of SMS marketing is its limited customization options because of the character limit. Although, some platforms allow you to use dynamic fields to personalize your messages further.
Email is a clear winner here for its personalization options. With HTML or text-only email, you can include attachments, hyperlinks, images, and videos. Email marketing also allows for more customization of messages to connect with your audience on a deeper level, from the colors used to the type of copy to the use of images, gifs, or video.
Email and text marketing should both be used in your bigger marketing plan. The most important takeaway is to balance the costs and benefits since both programs are time and money investments that must be handled with care and accuracy.
Use email marketing to develop relationships while communicating complex information, and use text message marketing for fast updates and reminders that need immediate action.
3. Deliverability
SMS marketing builds a list of only those customers who have chosen to opt-in, making it more exclusive. In contrast, lists are often more extensive with email marketing, and emails are sent out more frequently. Emails are more likely to be placed in the spam folder, lowering your reputation and distancing yourself from your customers. With statistics like 49% of all emails being marked as spam, you already have to work much harder to get your message into potential customers’ inboxes. In addition, someone working in an office receives, on average, 120 emails daily- more than the 67 texts millennials reported receiving daily.
You are more likely to see text messages than any other marketing type because SMSs are sent only when necessary. Receivers are bound to open and read the message from senders they trust. It gives your message a competitive advantage and increases the chance your target audience will see it.
4. Click-through rate
The click-through rate of an SMS marketing campaign and email marketing campaign has the potential to be high. However, this potential is only realized if you have a well-crafted call to action. Click-through rate of an email is about 4%, indicating that your email was opened and the consumer followed through a link based on your CTA. A solid call to action tells your audience what’s available, while a compelling enough reason to click through will entice them.
Creating a compelling call to action with text message marketing is difficult because you’re restricted to 160 characters. The marketing campaign aims to encourage your audience to take action on your offer. The link is the most significant asset. The customer understands immediately what the CTA means when you use a company link, and they are more likely to follow through.
The use of branded links in text messages has several advantages. First, it improves trust and the likelihood of a click-through because the audience knows where the link will take them. Second, a branded link serves as the clickable CTA. Branded links save you time by allowing you to get your message across more effectively while also keeping your audience’s attention.
5. Open rate
Consumers today are more distracted than ever before. Have you ever watched television while checking your phone or reading work emails while listening to a podcast? As a marketer, you’re always up against the challenge of trying to pique your audience’s interest. Text message marketing has their attention.
Text message marketing campaigns have a higher open rate than email marketing at 98 percent. Furthermore, compared to email marketing, the average person responds to a text message in 90 seconds rather than 90 minutes. Even with everything else going on in the world, text message marketing is a fast way to reach your target audience’s attention.
What are the advantages of SMS Marketing?
SMS marketing has eight significant advantages that prove beneficial for different sectors. The first and most popular benefit of using SMS marketing is its high open rates. SMS continuously tops other marketing methods when it comes to open rates. According to a recent survey, the success rate for SMS open rates is as high as 98 percent compared to 20 percent for emails. When it comes to digital marketing, this kind of exposure is unbeatable. Not to mention how your messages are positioned next to texts from friends and family, giving them an added familiarity.
SMS marketing has robust conversion rates and is more likely to produce results. You might be surprised that SMS campaigns have as high as 45% conversion rates. One of the reasons for this is that text messaging is popular across demographics. When it comes to daily text messages, Americans send and receive an average of 35 messages per day.
Another significant advantage of SMS marketing is its personalization features. Adding the recipient’s name to the message can create a personal touch that builds rapport and trust with your audience. It is an essential aspect of any marketing, as it allows you to connect with your target consumers through groups or 1-on-1 communication.
When you compare SMS marketing with other methods, it is one of the most cost-effective choices. Text messages are an affordable way to reach customers, and plans can be easily tailored to fit a customer’s needs. Each platform has its rates, but texts have an average conversion rate of 25-45%.
SMS marketing is also straightforward to implement. There is no need for coding or design experience needed. If you have an SMS platform, you can start writing your message and send it to all your contacts in just a few minutes. Additionally, you will be communicating with an active audience because the people in your contact already consent to receive messages from your business.
Text marketing also has a lower potential for spam. The CAN-SPAM Act of 2003 establishes rules for commercial email, giving recipients the right to have you stop emailing them, and outlines strict penalties for violations. SMS messages are not included in these regulations as long as you have explicit permission from the recipient.
Lastly, SMS marketing is one of the best complements for other marketing tools and strategies. You can use automation to pair it with email and social media marketing. With marketing platforms, it is also easier to track the analytics and measure your success with SMS marketing.
What are the advantages of Email Marketing?
Email marketing is one of the most popular marketing strategies businesses use worldwide. Emails encourage users to act on it by reading, deleting, or archiving it.
One of the upsides of email marketing is that you deliver a comprehensive message. You can use text, images, videos, and other media types to deliver your message, which is impossible with SMS. This advantage allows you to be creative with your marketing campaign and produce more engaging content.
Email marketing also offers a segmentation feature that lets you send targeted messages to specific groups of people. This advantage is beneficial if you want to personalize your messages and provide relevant content to your target consumers. You can also improve your open and click-through rates by segmenting your audience.
Email marketing is also cost-effective. You can reach a large number of people without spending too much money. Additionally, you can automate your email marketing campaign, saving you time and effort.
Lastly, email marketing is measurable. You can track how many people have opened your email and clicked on the links. This information is valuable as it allows you to determine the effectiveness of your campaign and make necessary changes to improve your results.
Which method is more effective SMS or Email Marketing?
SMS and email marketing are effective methods of communicating with an active audience. Each of these platforms has its advantages and disadvantages. The most important thing is to choose the proper method for your marketing campaign, depending on your goals and target audience.
SMS marketing is much more likely to be opened and interacted with than email campaigns. Research suggests that only 50-85% of emails are considered spam. SMS messages have a fraction of the amount of spammy or spam-like content.
Email marketing can still be beneficial, even if it doesn’t seem like the most exciting option. No rule says you must rely on just one communication channel for your business’s marketing strategy. The most significant benefits are achieved when a company understands when and how to use each variety of contact options.
Which is the most cost-effective marketing method?
SMS marketing is more cost-effective than email marketing. Statistics about SMS show that a company can invest on a monthly or prepaid rate and pay at least 5 cents per message. Email marketing costs range from $9 to $1000 per month, depending on the features, automation, and scalability.
The most cost-effective marketing method will vary depending on the company’s goals, target audience, and budget.
When should you use SMS Marketing?
SMS marketing can be used for various purposes, such as announcements, flash sales, appointment reminders, customer satisfaction surveys, etc. It is best paired with other marketing strategies, such as email and social media marketing.
SMS is all about quickness. Messages are read on average three minutes after being sent. The most effective last-minute responses to sales offers and events that may be advertised using SMS are those that come later in the day. If you’re having a store opening event, send the text early Friday afternoon. Send out an offer for a meal deal at your restaurant several hours before dinnertime if you’re providing one.
SMS messaging can be improved by pinpointing the best time to send a message to an individual based on their past interactions with your messages. This more focused marketing tactic goes beyond geography and demographics. It personalizes your marketing for better results. The best time to send SMS marketing messages is between 8 am and 9 pm. Businesses usually utilize SMS Marketing for promotions, reminders, and updates. Although it can also be used to get feedback from customers, update them on new products or services, or provide them with information.
When should you use Email Marketing?
Email marketing is used to cultivate relationships with potential or current customers. It also promotes content, announcements, sales, or deals. Email marketing can be used to increase brand awareness or to encourage customer loyalty. Businesses use email marketing to send details offers, update customers about new products or services, or get customer feedback. Email marketing is a way to maintain relationships with customers after they have left your site.
The best time to send emails is Tuesdays and Thursdays at 10 am. These hours are when users like to check their emails from desktops and laptops. Users are also more likely to open their emails during these times. If you’re planning on sending promotional content, do so on a Tuesday or a Thursday morning. Send your email mid-week if you’re sending content more focused on engagement.
Can I use both SMS and Email Marketing for advertising?
Yes. Email and SMS marketing are two excellent strategies for businesses aiming for engagement and conversion. Instead of looking at them as separate channels, consider how you can use them together to create a cohesive customer experience. The differences between these two methods can be used to strategically create continuous engagement that builds hype and notify customers about your campaigns and events.
Consider combining email and SMS marketing to increase customer interaction when creating a new marketing campaign. It’s not necessary to send text messages and emails simultaneously. It’s not essential to send text messages and emails simultaneously. Instead, it would be best if you staggered your communications to let each channel perform best.
For example, you can start an email drip campaign explaining the charity your business supports. Then, supplement this strategy with SMS marketing in the days leading to the event. It will remind the customers about the activity and build hype around it. After sending SMS notifications, they may send a follow-up email that discusses other choices. Finally, on the event day, they could send customers a “Can’t wait to see you there!” text to remind them that the big day has arrived.
What is the main difference between SMS and Email Marketing?
A critical distinction between SMS marketing and email marketing is that SMS messages are typically much shorter. SMS messages have a 160-character limit, while email marketing messages can be as long as the sender wishes. This difference in length means that SMS messages must be clear and concise, while email marketing messages can be more detailed.
SMS marketing for short-form content works well to create quick reactions. It includes appointment reminders, flash sale notifications, and event notifications. Email marketing is usually best for long-form content with much information. These include announcements about new products, newsletters, or invitations to events.