Steady and frequent communication with customers is an important component of building a healthy relationship with customers. It tends to lead to better conversion rates and increases customer loyalty among other things. There are various communication channels businesses use for this very purpose, among which the key ones are SMS and email.
SMS and email are the two most preferred channels to communicate information with for businesses, which begs the question which one is better than the other. In order to determine that, let’s discuss their advantages in a little bit more detail.
SMS Marketing Advantages
If you own a mobile device, which you most probably do, every once in a while you may get a promotional text message from a brand, that maybe informs you of new offers, upcoming sales and such. Or maybe you are getting a text message from your bank informing you of a completed transaction.
This is SMS marketing and nowadays it is pretty common among businesses regardless of their scale and popularity. Even though it is not nearly as glamorous of a marketing channel, there is a reason why most companies engage in this form of marketing. Here we will list some of the biggest advantages of SMS marketing that draw big companies towards implementing it:
- SMS marketing is affordable and in most cases borderline cheap. Compared to most forms of marketing, you will not be breaking the bank conducting an SMS marketing campaign. In most cases, it is the perfect tool to use when on budget.
- SMS marketing has worldwide reach which is not limited by physical boundaries. In other words, SMS provides you global access to just about anyone at any time. This means that, in theory, your SMS marketing campaign can reach everyone with a mobile device. And anyone with a mobile device can be a target for your SMS marketing campaign.
- SMS marketing additionally has a staggering 98% open rate and messages are, on average, read within three minutes of being received. It also boasts some of the highest conversion rates among all channels with 20-30%.
Email Marketing Advantages
Email marketing both in concept and functions is similar to SMS marketing. Though not as effective as the letter, email marketing is still a decent channel to communicate information from in its own right. It helps keep your customers informed about your company. Here are a few other advantages of email marketing:
- Email marketing has no costs associated with it. It is a completely free channel. You can invest in specialist software if you want to automate your email marketing if you want to send thousands of emails at the same time. But even then the costs are relatively marginal compared to what you would pay for another marketing channel for exposure. This provides for a good return on investment opportunity considering the low costs and potential earnings.
- With email marketing, you can reach an audience that is already engaged with your brand since they have signed up for your email newsletter or service. This leads to a higher conversion rate since your target demographic has an established interest in your brand.
- Email marketing is also easy to measure. Most email marketing software provides you with analytics that you can use to track your results. This can help in making quick adjustments if and when you make a mistake.
- Moreover, it can create brand awareness like no other. Some customers may find your brand interesting but later forget about it altogether. Fortunately, with email marketing, you can frequently remind them of your company and create brand recognition through occasional emails.
Which One to Choose?
So we get back to the question of which one to choose as a business. Ideally, you should be using both to maximize your results both short-term and long-term. However, if you have to pick one, you have to consider which one suits your business’ needs best and what benefits it brings to the table.
For businesses in the retail industry, we suggest email marketing as that is where people are interested in getting promotional offers through emails. SMS marketing is more ideal for businesses that use communication channels for transactional purposes, like healthcare and banking, since it has a higher response rate thus time-sensitive and important information is more likely to be read.
However, that is not to say any of those marketing channels is exclusive to said industries. On the contrary, they can be utilized in both and, again, it is completely up to preference which one to choose.