As direct messaging channels, WhatsApp and SMS rank second in popularity among customers. You probably know that WhatsApp is especially prevalent in some regions, and you may have heard that SMS messaging prices have nearly doubled over the past few years. But does that mean you should choose between SMS and WhatsApp marketing for your strategy while neglecting the other?
Absolutely not!
In this post, we’ll cover the strengths and weaknesses of each channel, review the most common use cases with real-life examples, and help you decide whether you need SMS, WhatsApp, or both to maximize profits in your cross-channel campaigns.
Let’s jump in!
SMS vs. WhatsApp marketing: what makes each channel stand out
Both SMS and WhatsApp are popular channels for messaging campaigns. Yet, while seemingly similar, the two serve different purposes and shine particularly bright with different audiences.
The differences between SMS and WhatsApp marketing
Now let’s take a look at the specifics.
SMS: your go-to channel for critical communications
Think about the last few text messages you’ve received. Most likely, they were about time-sensitive or important matters.That’s why SMS is especially popular in industries where immediacy and privacy are critical, such as finance or healthcare.
Benefits of SMS marketing
SMS is known for its 98% open rate and rapid engagement with 77% of text messages getting a response within the first 10 minutes.
On the other hand, a single text message can cost between $0.06 to $0.25, making SMS an expensive channel compared to alternatives. That’s why marketers tend to reserve it for promo campaigns with the highest expected ROI and time-sensitive communications.
The main benefit of SMS as a channel is that users will still receive text messages without an internet connection. This makes it perfect for urgent or transactional communications.
What to use SMS marketing for
- Critical and time-sensitive notifications (e.g. to inform a user about the sudden gate change at the airport or to highlight a price drop on some of the stocks in their portfolio);
- One-time passwords (OTPs) and two-factor authentication (e.g. to confirm a user’s identity to proceed with payment or log in to a system);
- Payment reminders (e.g. to notify about an upcoming or ongoing transaction).
WhatsApp: an engaging two-way communication channel
Unlike SMS, WhatsApp is restricted to reaching users with access to an internet connection and the app installed, significantly limiting the user base.
Benefits of WhatsApp marketing
WhatsApp brings multiple benefits to the table. Two major ones are:
- The support of rich media regardless of the recipient’s provider, and
- The ability to have two-way conversations.
WhatsApp makes it easy to reach your customers, as users spend more than 19 hours on the app each month, with 83% interacting with WhatsApp on a daily basis. More importantly, the platform is known for high conversion rates, with 66% of users completing a purchase after communicating with the brand via WhatsApp.
In addition, it is the perfect channel for companies seeking to improve their customer experience. With users’ expectations actively growing when it comes to customer support, the fact that nearly 58% of WhatsApp messages receive a response within the first minutes surely sets the platform apart from competitors.
Regional marketing: is WhatsApp taking over the world?
Another important advantage of WhatsApp is its regional popularity. WhatsApp is recognized as the most popular messaging app in over 100 countries, recognizing over 2.5 billion active users worldwide. It’s the dominant engagement channel in the LATAM and MENA regions, India alone featuring over 500 million users.
A reach like this opens nearly limitless opportunities for businesses operating in those markets. However, it needs to be done right.
For example, it’s important to properly set up your customer segmentation to deliver tailored WhatsApp promotional campaigns. Solutions like Pushwoosh’s advanced audience segmentation can prove invaluable here, allowing you to create more relevant, regional messages.
What to use WhatsApp for
- Visual-heavy promotional communications (e.g. game teasers or product demos);
- Customer support (e.g. real-time conversations with assistants or automated chatbots, personalized product recommendations);
- Two-way conversations (e.g. requesting user feedback or appointment management).
Finally, implementing WhatsApp messages into your marketing strategy doesn’t have to be hard with tools like Pushwoosh! With us, you can set up your automation workflow, create customer segments, personalize messages, and even reply to your customers’ WhatsApp messages directly through Pushwoosh.
The limitations of SMS and WhatsApp marketing
Limitations of SMS marketing
- Limited content capabilities: SMS is restricted to 160 characters for text and very basic multimedia, limiting the type of content that can be sent.
- Higher cost for larger volumes: While SMS is effective for reaching a broad audience quickly, the cost can add up, especially when sending messages to large numbers of people frequently (e.g. during a flash sale).
- No room for advanced interactions: SMS lacks crucial customer engagement features, such as interactive menus or chatbots.
- Regulatory restrictions: SMS marketing is heavily regulated, including strict opt-in requirements and limitations on when messages can be sent.
Limitations of WhatsApp marketing
- Internet dependency: WhatsApp requires both the sender and receiver to have an internet connection, which can limit its reach, particularly in areas with poor connectivity.
- App dependency: Users must have WhatsApp installed, excluding potential customers who prefer not to use this app or do not have the technical means to do so.
- Perceived intrusiveness: WhatsApp is a personal messenger app, so using it for marketing communications can sometimes be viewed as intrusive, potentially leading to a negative brand perception.
Combining WhatsApp & SMS for maximum impact
While both SMS and WhatsApp messages can help you elevate your marketing strategy on their own, the true benefits of text communications come through when you learn to leverage both side by side.
Stick to WhatsApp for cost-optimization…
As we’ve established, SMS can get quite costly very quickly. That’s why it’s generally a good idea to set WhatsApp as your preferred messaging channel and reserve SMS for more urgent situations.
To make it work, simply check if the user is reachable via WhatsApp and, if yes, send your message there. For this, you can rely on Pushwoosh’s Customer Journey Builder to design advanced automation workflows featuring both channels and performing reachability checks.
As an outcome, you’ll be more flexible in structuring your communication (e.g. using media like gifs or videos) and will be able to benefit from detailed analytics later.
… But keep SMS as a fallback channel
And if the user is not reachable via WhatsApp for whatever reason—like not having an app installed or missing the internet connection—send an SMS instead!
This is particularly useful for critical updates to minimize negative customer experience.
For example, if your system can’t send the default WhatsApp notification with new flight departure data, it’s best to have an SMS set up as a backup channel to ensure the user doesn’t miss their flight.
Why use SMS and WhatsApp messaging simultaneously
Featuring both WhatsApp and SMS in your marketing strategy allows you to leverage the strengths of each platform while also minimizing the downsides of each in order to grow your outreach and engagement.
Combining the two channels results in:
- Broader reach: by using two channels at once, you cover a wider demographic in terms of geography, age, and wealth.
- Enhanced customer experience: you can tailor your communication strategy based on the message's purpose and desired customer experience.
- Increased engagement: diversifying communications across SMS and WhatsApp can help maintain constant, less intrusive contact with your audience.
- Cost-effectiveness and efficiency: by using both channels, you can optimize your marketing budget based on the type of communication and the expected return on investment.
WhatsApp and SMS marketing best practices: real-life use cases
Here are some examples of how you can leverage WhatsApp and SMS marketing side by side for the best possible outcome across various industries.
1. E-commerce: maximize your sales
Due to high competition in the e-commerce industry, timely personalized communications can really make or break your business. Combining SMS and WhatsApp allows you to leverage both the urgency of SMS for limited-time deals and the rich media capabilities of WhatsApp for improved customer engagement.
- Use SMS to: maximize your reach during time-sensitive promotions by sending urgent flash sale alerts to large audiences and driving immediate sales.
- Use WhatsApp to: showcase products through product catalogs with rich media, send abandoned cart reminders to encourage purchases, and manage customer service conversations for a personalized shopping experience.
2. Delivery: enhance your customer experience
In the delivery industry, real-time communication is crucial for managing customer expectations and handling issues efficiently. With both SMS and WhatsApp you can promptly convey critical information and rely on interactivity at the same time..
- Use SMS to: send delivery ETAs and service disruption alerts directly to customers' phones to keep them informed in real time.
- Use WhatsApp to: allow customers to report issues with deliveries through images and provide real-time support to resolve concerns quickly.
3. Healthcare: streamline patient communications
Healthcare professionals need to ensure that patients are well-informed about their appointments and follow-up care. SMS provides a direct method for last-minute reminders, while WhatsApp allows for more detailed communications and engagement.
- Use SMS to: send last-hour appointment reminders to ensure patients remember their schedules and reduce no-shows.
- Use WhatsApp to: schedule appointment reminders in advance and follow up after the appointment to enhance patient engagement and ensure care continuity.
4. Retail: boost engagement and sales
Retailers can drive immediate traffic to stores or websites during sales and nurture customer loyalty through ongoing engagement. SMS is excellent for quick alerts, and WhatsApp offers a more engaging platform for maintaining customer relationships.
- Use SMS to: Quickly alert customers to urgent flash sales, maximizing the number of customers reached and the immediacy of the response.
- Use WhatsApp to: Share updates on loyalty programs, including new benefits or points status, through interactive messages that enhance customer loyalty and encourage repeat purchases.
SMS vs. WhatsApp marketing: how to choose?
As you can see, the most effective way to tailor your marketing messages is to rely on SMS and WhatsApp channels side by side. Here’s a quick summary to help you decide on the right channel for the right occasion:
- Need to send urgent alerts that can't wait for an internet connection? --> Use SMS for its reliability and speed.
- Want to provide detailed product demonstrations or tutorials? --> Choose WhatsApp for sending videos and rich media.
- Is it important to track message reads and interactions? --> WhatsApp provides read receipts and detailed interaction data.
- Sending both transactional and marketing communications? → Use SMS for straightforward, transactional messages (e.g., payment reminders) and WhatsApp for engaging marketing campaigns.
- Looking to support customers both pre- and post-purchase? → SMS can alert customers about upcoming sales and WhatsApp will be great for post-purchase support and upselling.
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