Although the key concepts behind SMS marketing and email marketing are surprisingly similar, it doesn’t mean that either has a ‘one size fits all’ approach.
Like most things in business, the end goal of almost every digital marketing strategy is to make more than you spend. Even with the most modest of budgets, effective digital marketing offers the chance to reach a global audience with endless opportunities for lead generation.
When done well, digital marketing is easier to monitor than other traditional advertising media, targets specific audiences, and builds your brand’s authority and trust levels amongst consumers. While the means to do so are vast, SMS marketing and email marketing are rapidly gaining traction thanks to their favourable return on investment figures – but what are these concepts, and how do they work?
Comparing SMS Marketing and Email Marketing
In a broader sense, every email we send as a business to a client could technically be classed as a form of email marketing. Specifically, the term is used for an intentionally commercial message sent from a brand or business to an individual or cluster of new and existing customers.
Although email marketing was one of the very first digital marketing strategies used to connect with customers upon the internet’s introduction many brands have shied away from using it, with some digital marketing strategists even declaring the practice as “dead” when compared to newer and flashier marketing techniques.
However, the numbers don’t lie. According to research published by marketing giant Hubspot, tested email marketing generates a notable 28% return on investment. It would seem that email marketing isn’t a form of advertising that’s on its way out after all.
It’s also worth noting that email marketing is one of the most powerful tactics to deploy when it comes to boosting your customer retention rate. As an example, you’re 70% more likely to close an existing customer, as opposed to 5 to 20% for new prospects. Audiences who have purchased from you before are already familiar with your brand, and are also more likely to spend more now that they trust you.
When you’re “pitching” to a potential new client, it takes time and resources. In comparison, doing business with an existing client cuts out a lot of the “selling” as they know what they’re signing up for. In turn, having a solid base of return customers also helps to cut down on expenses, with email marketing being one of the best methods to help get you there.
However, when compared to the success rate of email marketing, there’s a relatively new kid on the digital marketing block that’s giving it a run for its money: SMS marketing.
What’s the Deal with SMS?
While SMS marketing may sound like the golden ticket for advertising, there are also some critical elements in perfecting this highly personal and highly targeted form of communication. Brands are generally limited to just one hundred and sixty characters, so it’s important to make every one of those count.
Although the average Australian checks their phone 7.8 times an hour, SMS marketing still has the stigma of being highly invasive, so it does take a more thoughtful approach in order to get right. In today’s age we also need to consider the likelihood that genuine SMS marketing can be mistaken for a scam, as these are unfortunately becoming more and more common.
In order to provide your customers with a value-add type experience, SMS marketing can be used effectively for order tracking, birthday messages, appointment reminders, and billing and payments communication. It’s not the time for a hard sell, and usually works best with long term and loyal clients who don’t need to be pitched.In order to provide your customers with a value-add type experience, SMS marketing can be used effectively for order tracking, birthday messages, appointment reminders, and billing and payments communication. It’s not the time for a hard sell, and usually works best with long term and loyal clients who don’t need to be pitched.
While there’s a time and a place for both SMS marketing and email marketing in every advertising strategy, both formats do require a careful approach. Brands and businesses legally need to include an ‘opt out’ avenue for a consumer to stop receiving your promotions, and their attention and trust is often incredibly hard to regain once it’s lost.
Although it’s often worth promoting a sale or a discount on your products or services, if you’re constantly in your customer’s inbox, it loses its effect. To avoid being the ‘boy who cried wolf’ and losing your client’s interest, keep these to a minimum and only promote the big ones. Texting or emailing your clients more than once a week may increase the chances of an opt out, so make sure you give them time to breathe. Pay attention to your demographics and learn more about your clients, to ensure that you’re targeting correctly.
Is Email or SMS Marketing More Effective? Is Lifting Weights or Cardio Better for Fitness?
It’s chalk and cheese. Instead, think not about which option to choose, but how you can effectively weave both formats together in your brand’s marketing strategy. While weights and cardio serve different aspects of our physical health, so too do SMS marketing and email marketing campaigns – they simply serve different purposes.
At SOAK Creative, we’re a full-service digital advertising agency, but not as you know it. By combining creativity, strategy and real-world experience, we deliver results that actually mean something. If your brand needs some guidance with navigating the world of SMS marketing and email marketing, get in touch with us today to discuss how we can bring your digital vision to life.
