SMS Marketing vs Email for Ecommerce Store Owners

In ecommerce, marketing plays a crucial role when it comes to establishing a close relationship with customers. There are many different tools available to online store owners. However, SMS marketing and email marketing are the key ones. The first method is used to send short text messages to mobile phones. The second one allows sending emails to subscribers’ email addresses. At the same time, more than one owner has repeatedly wondered which of these methods is more effective. Both channels are efficient. But their impact and performance indicators are different. To make an intelligent decision, you need to compare these two strategies in detail and understand how each of them can help you grow your business in its own way.

Involvement. Openness

Saving customer time

With the constant and increasingly rapid development of ecommerce technologies, SMS marketing is not losing but gaining even more popularity among business owners. After all, it is thanks to short messages you can quickly convey key information. In particular, this includes information about discounts, special offers, or order updates. Thus, business owners should learn more about ecommerce SMS marketing as an effective method that can have a significant positive impact on the development of their business. It is crucial for online store owners to understand that this approach has its benefits and know them. Text campaigns are convenient and create a personalized experience for customers.

Open rates

They are one of the most important metrics. Research by marketing (including Statista, Campaign Monitor, Mobile Marketing Association) and analytics platforms, along with user behavior studies, has shown that SMS marketing has an open rate of about 98%. At the same time, emails are opened on average 20-30% of the time. We can explain this difference by the nature of communications. Text messages receive almost instant attention. They are usually viewed within 3 minutes of receipt. Emails often go unnoticed in crowded inboxes or are not opened for several hours or even days.

Engagement rate

Customer engagement in SMS vs email marketing is also different. Text messages often elicit a faster response. This is especially noticeable when it comes to limited-time promotions. At the same time, email is more suitable for detailed messages where you need to describe or explain the specifics. This can be information about new products, or long reviews of existing ones when the latter have been improved. It can also be instructions.

Conversion Rate

We will consider this section in detail, looking at the areas of influence and activities of each strategy separately.

Email. The long-term strategies

Email has its own niche. We may define its strength as building long-term relationships with customers through informative content. It can be regular newsletters. With news, recommendations, or personalized offers. All this helps to retain the audience.  This is a great channel for long-term engagement. It allows brands to keep in touch with customers for a long time without imposing themselves.

How does it work

• By using data on previous purchases, customer preferences, and their behavior on the site, brands can send their subscribers offers that best match their interests. This means personalized product recommendations, special discounts, and offers that match their previous shopping experience.
• Another effective way to increase conversions is through abandoned cart emails. When a customer has added a product to the cart but hasn’t completed the purchase. Then the system sends them a reminder email. This approach makes it possible to recover a lost sale. You can also personalize such emails by adding special offers. For example, free shipping or a discount on the next purchase.
• According to various studies, retaining existing customers is cheaper than attracting new ones. So, regular communication via email helps to maintain interest and loyalty. As a result, the CLV (Customer Lifetime Value) increases.

SMS. A driver of fast sales

Conversion rates in ecommerce SMS marketing are usually higher when compared to email. It’s more likely that a customer will immediately click on a link to make a purchase when they receive an offer in text format. This is especially true for exclusive discounts or limited offers.

How does it work

• We have already mentioned that people usually open SMS within 3 minutes of receiving it. This allows brands to boost sales at the moment when the customer is most likely to be ready to make a purchase. Text messages can include such offers, creating an effect of urgency and thus forcing the customer to act without delay.
• SMS is limited by the number of characters. This makes it highly focused on a specific action. Ecommerce business owners can focus on one simple call to action that has a clear and unambiguous message. Such an approach promotes an instant response, as the user is not distracted by unnecessary information.
• SMS marketing for ecommerce can be very effective even with a limited budget. The cost of sending one message is often much lower than the cost of advertising via email or other channels. Thanks to this, even small ecommerce businesses can quickly attract customers.

Which Channel Is Better to Choose

Take a look at the clear separation of the use cases for both strategies to choose the most appropriate one for you or combine them depending on your goals.

When is it better to use SMS

• Quick notifications 
• Exclusive offers with a limited time of validity
• Personalized offers based on geolocation
• Major updates on events and promotions

How to use email better

• Messages that need to be detailed
• Regular updates on products or services
• Sending detailed instructions or guides
• Building long-term customer loyalty
• Personalized recommendations based on purchase history
• Welcome for new subscribers and staged emails

Combining approaches

For many, the best solution is to combine both methods. An email & sms marketing strategy will allow you to achieve different goals. Moreover, to maximize them. In particular, using the strengths of each channel. Text messages will ensure efficiency and immediate interaction. In turn, email provides the depth of cooperation. It will help build long-term relationships with customers.

Trends

Modern customers increasingly value personalization. With the help of email and SMS marketing, you can collect data on user behavior. This allows you to create relevant campaigns. In particular, older audiences are more likely to communicate via email. And the younger generation often prefers quick messages.

Practical Tips for Owners

• Analyze your audience

Research into which channels are most effective for your customers

• Test different strategies

Compare the results of SMS vs. email marketing to find the best approach

• Personalize your messages

Address your customers by name. Make personalized offers. Remind them of previous purchases

• Integrate campaigns

Use both tools to maximize the effectiveness of your marketing efforts

Final Thoughts

SMS marketing and email marketing each have their own benefits. They have also nuances that may seem like challenges or obstacles. Yet, when you combine them skillfully, they will be a powerful tool. The one that can greatly impact sales and customer acquisition. The key to success has been and remains the understanding of your audience. Also, the strategic use of each channel. What is clear is that online retailers should experiment and evaluate the results. Then, adapt their approaches based on the previous evaluation to maximize their marketing ROI.