WhatsApp vs SMS Marketing: What’s Better?

Boost your sales with TimelinesAI's powerful WhatsApp integration.
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Boost your sales with TimelinesAI powerful WhatsApp integration

On December 3, 1992, a humble “Merry Christmas” text message changed history. Neil Papworth, a 22-year-old engineer, used a personal computer to send his colleague the first-ever SMS text message via the Vodafone network.

Today, humans have come a long way from that first text. Many messaging platforms have emerged, making instant communication a part of our lives. This growing use of smartphones has also transformed mobile marketing.

People spend hours glued to their phones, constantly checking messages and updates. If numbers are to be believed, people check their phones an average of 58 times daily. Also, Kantar’s study found that 66% of people are more willing to make purchases from brands that are accessible through messaging.

It’s no surprise that businesses are catching on to the potential of mobile marketing to reach their target audience in a more personal and engaging way.

Businesses now have two powerful options at their disposal: WhatsApp Marketing and SMS marketing. Both these platforms offer a direct line of communication with users and have near-perfect open rates.

So the question becomes: which messaging platform is right for your business? This blog will break down the key differences between WhatsApp Marketing and SMS marketing and help you craft a mobile marketing strategy that works for your business.

What is WhatsApp Marketing?

WhatsApp began as a straightforward messaging platform in 2009. It was primarily designed for personal communication. Fast forward to today, WhatsApp has become a crucial tool for marketing. With over 3 billion monthly active users, businesses are increasingly using WhatsApp to reach a vast audience where they’re already actively engaged.

WhatsApp marketing is a form of mobile marketing that uses the WhatsApp platform to connect with customers and promote a business.

Here are four major ways businesses use WhatsApp for marketing:

Broadcast Updates and Promotions: Businesses can send updates on new products, special promotions, or exciting events directly to customers’ phones. It’s a great way to create a buzz and drive sales.

Effortless Order Tracking: Keep customers informed with real-time order updates. No more worrying emails or endless calls. WhatsApp lets them know exactly where their package is.

Direct Feedback Channel: Spark a conversation! Use WhatsApp to ask customers for reviews and suggestions directly. It’s a quick and easy way to get valuable insights and improve your products or services.

Customer Care Champion: Provide excellent customer service through WhatsApp. Answer questions, resolve issues, and offer support directly on the platform they already use. It’s convenient and builds trust with your customers.

Advantages of WhatsApp Marketing

WhatsApp marketing comes with a wealth of advantages that make it a compelling choice for businesses. Here’s how these benefits unfold:

Rich Media Support: With WhatsApp, you can send rich media messages packed with images, videos, and even GIFs.  Imagine showcasing your latest product launch with a stunning video or using a funny GIF to grab attention for a new promotion. 

Business-Friendly Features: The WhatsApp Business app offers features specifically designed for companies, like a business profile, automated messages, and quick replies. These features save time and improve the efficiency of customer interactions.

Backup and Security: Security is a major concern these days. Thankfully, WhatsApp uses end-to-end encryption, which means your chats are private and secure. This builds trust with your customers and gives them peace of mind, knowing their conversations are safe.

High Open Rates: WhatsApp messages boast an impressive open rate of 98%, far exceeding traditional email marketing. This means almost all messages are seen, increasing the likelihood of engagement and response.

Source

Customers Prefer WhatsApp: People love using WhatsApp to connect with businesses. Studies show that 70% of people say messaging has positively impacted their perception of a business. Furthermore, 69% of respondents are more likely to purchase from a brand if they can reach out via WhatsApp. The preference for WhatsApp is clear!

Source

Real-Time Communication: Unlike email, WhatsApp allows for instant back-and-forth conversations. You can answer customer questions quickly, resolve issues in real-time, and provide personalized support that keeps them happy.

Global Userbase: With over 3 billion users worldwide, WhatsApp reaches a massive audience across borders and cultures. This opens doors to new markets and helps you connect with potential customers around the globe.

Cost-Effective: Compared to traditional marketing methods, WhatsApp is a budget-friendly option. There are no expensive fees to send messages, and you can reach a large audience with minimal investment.

Message Delivery Indicators: With WhatsApp, you can know immediately when your messages are delivered. This feature takes the guesswork out of customer communications.

Disadvantages of WhatsApp Marketing

While WhatsApp marketing offers several benefits, it’s not without its drawbacks. Here’s a look at some potential challenges to consider:

Limited Discoverability: Unlike social media platforms like LinkedIn or Twitter, WhatsApp doesn’t offer a public profile or ways for users to discover you. You’ll have to use other marketing methods to let people know about your WhatsApp presence and get them to join your messaging list.

App Dependency: WhatsApp marketing can only reach users who have the app installed on their smartphones. 

Dependent on Internet Access: WhatsApp’s reach is limited to those who have an active internet connection. This can restrict your ability to connect with people in areas with low networks. 

Risk of Over-Messaging: With the ease of sending messages comes the risk of spamming customers. This can lead to annoyance and potential unsubscription. It’s crucial to strike the right balance in communication frequency.

What is SMS Marketing?

SMS is like a reliable friend who’s always been there. SMS or Short Message Service marketing is when you use text messages to reach customers directly with short, to-the-point messages.

Advantages of SMS Marketing

High Open Rates: SMS messages also come with a good open rate. Reports suggest that about 55% of all text messages are opened and read

Wide Reach: Nearly everyone has a mobile phone these days. SMS doesn’t require smartphones or data. Even the simplest phones can receive texts, allowing you to reach a broader audience.

Instant Delivery: Text messages are sent and received within seconds. This immediacy is perfect for time-sensitive messages, like last-minute deals or urgent updates.

No Internet Reliance: There’s no need for an Internet connection, so you can reach your audience anytime, anywhere. It’s a straightforward way to stay connected with your customers.

Less Competitive Space:  SMS marketing is less crowded compared to other platforms like email or social media. This means you might face less competition for your audience’s attention in their inbox.

Disadvantages of SMS Marketing

Limited Message Size: SMS messages are limited to 160 characters. This forces messages to be brief, which can be challenging when you want to convey more complex information or engage users more deeply.

No Real-Time Interaction: While SMS can be received almost instantly, it doesn’t support real-time two-way interactions like messaging apps do. This makes it less effective for engaging customers in a conversation, and it might not be ideal for complex messages or in-depth communication. 

With a clear understanding of both platforms, let’s now look at how WhatsApp and SMS marketing compare.

WhatsApp vs SMS Marketing: The Showdown

Here’s a side-by-side comparison to help you understand the key differences and considerations between WhatsApp and SMS marketing:

FeatureSMS MarketingWhatsApp Marketing
ChannelText MessagingMessaging App
Cost-EffectivenessTypically charged per message sentFree for basic use (app) or charged per conversation window (business platform)
ReachBroader reach: reaches anyone with a phoneRequires app download 
User EngagementLimited, one-way communicationMore interactive, allows for two-way communication with features like buttons and quick replies
Multimedia CapabilitiesLimitedRich media supported (images, videos, documents, voice notes)
FormattingLimited to 160 charactersFlexible formatting, longer messages possible
Tracking and AnalyticsBasic delivery reportsMore advanced tracking and analytics available through WhatsApp API and other third-party tools
CRM IntegrationPossible with additional integrationsSeamless integrations with TimelinesAI
DeliveryNearly instant and reliableReliant on internet connection
SecurityNot encrypted by defaultEnd-to-end encryption for messages (on WhatsApp)

Beyond the Table: A Deeper Look

Accessibility

When it comes to WhatsApp, users need to have internet access and a smartphone, which can limit reach in regions with poor connectivity. In contrast, SMS can reach any mobile phone, even without internet connectivity, making it universally accessible.

So, when it comes to accessibility, SMS marketing is better than WhatsApp marketing.

User Engagement

WhatsApp is a clear winner when it comes to user engagement. Its capability for two-way communication significantly enhances user engagement and interaction. 

WhatsApp not only allows users to receive information but also to respond in real time. This makes it ideal for nurturing customer relationships and building a more interactive dialogue. Using customer engagement software can further amplify these interactions by tracking responses and automating personalized follow-ups 

On the other hand, while SMS boasts high open rates, it generally only supports sending messages, not receiving them. This can restrict the depth of interaction and engagement with the audience.

Features Beyond Plain Text Messaging

Here’s where WhatsApp truly shines. SMS is restricted to basic text, but WhatsApp lets you share a multimedia buffet: images, videos, and documents to showcase your products or services in a more engaging way.

WhatsApp also provides a series of other interactive messages like WhatsApp Flows and List Messages that allow for structured and interactive conversations.

With WhatsApp, you can also create interactive group chats for brainstorming sessions with colleagues, dedicated customer support channels, or even targeted marketing campaigns.

Safety and Security

Messages exchanged on WhatsApp are secured with end-to-end encryption. This means that only the sender and recipient can read the content of the messages, not even WhatsApp itself. 

This end-to-end encryption offers a higher level of security compared to SMS, which relies on carrier-level security measures that may not be as robust. However, SMS can still be a secure option for specific use cases, particularly when broad reach and simplicity are priorities.

Also Read: Comprehensive Overview of WhatsApp Security

Analytics and Tracking

SMS marketing provides basic delivery reports, but that’s about it. WhatsApp, especially the WhatsApp Business API, offers a goldmine of data. You can track delivery rates, open rates, engagement with links, and even response rates to measure campaign effectiveness and refine your strategy.

Integration with CRM Systems

Both platforms can connect to your CRM, but the process differs. SMS marketing often relies on additional tools or APIs to bridge the gap. 

On the other hand, WhatsApp marketing can be easily integrated with CRM tools using TimelinesAI. This integration helps you  to manage data, segment audiences, and even automate workflows – all within your CRM. 

Personalization Power

With a character limit of 160, the scope of personalization is really low with SMS. In contrast, WhatsApp breaks free from these constraints. It allows you to send rich media content and craft personalized messages using customer data (with their consent, of course). 

WhatsApp also lets you send detailed and engaging product descriptions that you can further enhance using rich media like images, videos, and GIFs.

Pricing and Cost-Effectiveness

SMS pricing depends on a few things. The more messages you send, the more you pay. Rates can also vary by region. Some providers might charge extra for features like scheduling or tracking messages.

WhatsApp offers some free messages. Sending messages to users who have already chatted with you in the past 24 hours is free (great for nurturing existing customers!).

However, for a broader audience, you might need a WhatsApp Business platform, which can involve conversation fees or subscription models.  Remember: Costs depend on how extensively you use the platform, so shop around for the best deal!

Comparing the ROI of both, WhatsApp can offer higher returns due to its rich features that enhance user engagement. However, the cost-effectiveness of SMS cannot be overlooked, especially for campaigns aiming for broad reach with simpler messages. 

Both platforms have their merits, so choose based on what fits your communication needs. Also, track your results and see which platform drives more sales or customer interactions.

Also Read: A Guide to WhatsApp Conversation-Based Pricing

Integrating SMS and WhatsApp Marketing 

Alright, we have compared SMS and WhatsApp marketing head-to-head. SMS shined with its universal reach and sky-high open rates, while WhatsApp stole the show with its rich features and potential for deeper engagement. But what if you could integrate these tools? Sounds good, right?

Broaden Your Reach

Combining WhatsApp and SMS for your marketing efforts can significantly enhance both reach and engagement. Think about it: while WhatsApp lets you engage deeply with customers who have internet access, SMS can catch the eye of those who might not be online or prefer simpler communication. Together, they ensure no part of your audience is left behind.

SMS for Awareness, WhatsApp for Engagement

Use SMS for quick broadcasts about new products, sales, or flash offers. Then, follow up with interested customers on WhatsApp and provide more personalized recommendations.

Using WhatsApp, you can engage more interactively. Send images, videos, or detailed messages that enrich the customer experience and provide more comprehensive information.

Remember: Ensure your messaging is consistent across both platforms. This consistency helps reinforce your message and strengthens your brand’s presence.

By combining SMS and WhatsApp marketing, you can expand your reach, boost engagement, and ultimately drive more sales.  So, don’t pick a side – play both!

Crafting Effective Marketing Strategies

When you’re setting up your marketing game, there are a few crucial steps to follow. Here’s how you can craft strategies that not only reach but also resonate with your audience:

Rule #1: Permission is Power

Start by collecting contacts who have agreed to receive messages from you. This isn’t just respectful; it’s also required by law. Having consent means your messages are welcome, which improves engagement right from the start. Remember: Spam is a turn-off.

Rule #2: Personalization Pays Off

Personalization can change the entire game. In fact, 62% of customers said a brand will lose their loyalty if they do not deliver a personalized experience. So, tailor your messages to match the preferences and interests of your audience. 

Personalized messages feel more relevant and can significantly boost response rates. Remember, a message that feels personal is more likely to be read and acted upon.

Rule #3: Timing is Everything

Don’t spam people with messages. Experiment with different times of day and days of the week to see when your audience is most receptive.

Rule #4: Test and Refine

Marketing is all about testing and refining. Track your campaigns closely. See which messages get the most opens or clicks. Use this information to improve your future campaigns and maximize your success. Remember:  Data is your friend!

Choosing The Right Platform 

When it comes to picking the right instant messaging platform for your business, both WhatsApp and SMS have their unique strengths. The choice really boils down to what fits best with your business needs.

You can also consider integrating both platforms. This way, you leverage the advantages of each, ensuring comprehensive coverage and engagement across different customer segments.

If you go ahead with WhatsApp Marketing, consider using a tool like TimelinesAI. This platform is designed to help you maximize your use of WhatsApp for business objectives. 

  1. TimelinesAI offers advanced automation and a shared inbox for managing multiple numbers. This can significantly streamline communication and lead to better team collaboration. 
  2. TimelinesAI’s bulk messaging features allow for efficient and large-scale messaging campaigns. 
  3. TimelinesAI provides a ChatGPT-integrated autoresponder. This smart and multi-lingual chatbot can take over answering FAQs anytime, day or night. This instant communication will ensure all your customer queries are answered timely.

Conclusion

While both SMS and WhatsApp marketing offer impressive results, WhatsApp emerges as the stronger contender for businesses seeking deeper customer connections and a more engaging marketing experience.

SMS marketing remains a valuable tool for reaching a broad audience quickly, but for those seeking to cultivate long-term customer relationships and brand loyalty, WhatsApp marketing stands out as the clear choice.  

However, don’t be afraid to experiment with both platforms to see which resonates best with your audience. 

If you need help to scale your WhatsApp marketing efforts, consider TimelinesAI. Book a demo using this link to understand how TimelinesAI can help you enhance your customer communication.

Frequently Asked Questions: FAQs

Q. What is the 24-hour rule on WhatsApp?

A. The 24-hour rule applies to businesses using WhatsApp Business accounts. You can reply to a user message without using a message template for free within 24 hours of their last message. After that window, you can only send messages using approved message templates, which may incur costs.

Q. Is SMS marketing illegal?

A. No, SMS marketing is not illegal, but it must comply with specific regulations such as obtaining explicit consent before sending messages, providing clear opt-out options, and ensuring messages are appropriate and respectful to the recipient. Regulations vary by country, so it’s essential to understand local laws.

Q. Is WhatsApp marketing legal?

A. Yes, WhatsApp marketing is legal, but you must obtain explicit consent from users before adding them to your contact list and sending marketing messages

Q. How can I use WhatsApp marketing without getting banned?

A. Here are some key points to avoid getting banned from WhatsApp marketing:

  • Get consent: Only add users to your contact list who have opted-in to receive messages from you.
  • Avoid spam: Don’t send excessive or irrelevant messages.
  • Use approved templates: After the 24-hour window, use approved message templates for communication.
  • Respect user privacy: Don’t share user information without their consent.
  • Offer clear opt-out options: Make it easy for users to unsubscribe from your messages.
author avatar
Daniel Lev Senior Project Manager
Daniel Lev specializes in project coordination, workflow optimization, and team productivity in SaaS and software services.

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