8 Apr 2024
For decades, SMS was the king of text-based customer communications. But today, there's a new sheriff in town: WhatsApp. And it's quickly becoming the preferred channel for businesses to instantly connect with customers.
In this guide, we'll take an in-depth look at how WhatsApp stacks up against traditional SMS marketing. We'll dive into the pros and cons of each channel, explore advanced features, and help you choose the best fit for your business goals.
Whether you're looking to supercharge sales, level up your support, or just meet modern customers where they live, this WhatsApp vs SMS breakdown will give you all the insights you need.
WhatsApp vs SMS: The pros and cons
When it comes to connecting with customers through text, WhatsApp and SMS each have their own advantages and limitations. Let's break down the key pros and cons:
WhatsApp pros
Richer multimedia support: WhatsApp allows you to send images, videos, audio files, PDFs and other media to make messaging more engaging.
Real-time interactions: With features like live chat, and flows, you can have real-time, back-and-forth conversations over WhatsApp rather than disjointed once-off SMS blasts.
Easy broadcast reach: WhatsApp broadcasts allow you to segment your audience and reach them wherever they are. They can also engage by responding directly.
Advanced automation: From scheduled marketing campaigns to chatbots, WhatsApp offers more advanced automation and personalisation capabilities compared to SMS.
Encryption and security: WhatsApp offers end-to-end encryption for messages, ensuring a more secure communication
WhatsApp cons
Internet requirement: Customers need an internet/data connection to access WhatsApp, which could be an issue in low connectivity areas.
Channel opt-in: Just like most channels, recipients must opt-in to receive messages from a business on WhatsApp.
Multimedia limitations: While great for images and videos, WhatsApp has limitations on the size of each file.
Higher costs: The WhatsApp Business API may have higher upfront costs, as businesses are required to work with an authorised WhatsApp Business solution provider to set up their account and integrate it with their existing systems.
SMS pros
No internet required: SMS works over traditional cellular networks and doesn't require a data connection.
Universal compatibility: Any modern mobile device can receive SMS messages out of the box.
SMS cons
Character limitations: Most SMS platforms restrict you to 160 characters, or multimedia messages (MMS) get costly.
Less interactive: Real-time back-and-forth is near impossible over SMS.
Costly for mass messaging: Depending on your SMS provider and message volume, costs can accumulate. For businesses sending frequent messages, SMS might not be the most budget-friendly option.
Lower engagement: Without rich multimedia or interactivity, customers are less likely to fully consume SMS communications.
Security vulnerability: SMS messages are not encrypted by default, which raises security concerns for sensitive information.
Notifications, sales, support and marketing
Notifications and alerts
WhatsApp: Perfect for time-sensitive updates like order confirmations, appointment reminders, or loyalty programme updates. The rich media capabilities can be used for eye-catching visuals and increased engagement. Businesses can easily create different WhatsApp templates, from marketing, to utility and authentication templates.
SMS: While suitable for short, critical updates (e.g., delivery notifications, two-factor authentication codes), SMS lacks the visual appeal and engagement potential of WhatsApp.
Winner: WhatsApp
Sales and conversions
WhatsApp: Create a more personal sales and customer experience with chatbots and live chats. Target specific customer segments with special offers, product launches, or exclusive discounts. WhatsApp’s interactive nature allows for quick inquiries and easy purchasing journeys.
SMS: They can be used for basic sales blasts or flash sales. However, the limited character count and lack of visuals make it less effective for showcasing products or creating a sense of urgency.
Winner: WhatsApp
Customer support
WhatsApp: Convenient for customers and teams because it offers real-time, two-way customer support through chatbots or live agents. Customers can easily send pictures or videos to explain issues, and support teams can use WhatsApp to collaborate - leading to faster resolution times and improved satisfaction.
SMS: Limited to one-way communication, making it unsuitable for in-depth customer support. Customers can't send screenshots, or videos, or have back-and-forth conversations to troubleshoot issues.
Winner: WhatsApp
Marketing and promotions
WhatsApp: Build stronger brand relationships through engaging content like behind-the-scenes glimpses, polls, WhatsApp newsletters or loyalty programmes. The WhatsApp Business API allows for targeted campaigns and advanced analytics for measuring success.
SMS: They can be used for basic brand awareness campaigns like contest announcements or product launches. However, its impersonal nature and limited space make it less effective for building long-term brand loyalty.
Winner: WhatsApp
Numbers don’t lie
When it comes to measuring the impact of messaging channels like WhatsApp and SMS, the numbers speak for themselves.
Open and engagement rates
WhatsApp has a 98% open rate.
Just like WhatsApp, SMS also boasts a 98% open rate.
Customers on WhatsApp show 70% higher engagement compared to SMS.
Businesses have reported up to 40% increase in engagement rates since switching to WhatsApp.
Message delivery
WhatsApp has a 99% delivery rate for messages.
SMS has a 98% delivery rate for messages.
Conversion rates
Businesses using WhatsApp have reported a 156% increase in conversion rates.
SMS has a 45% conversion rate.
WhatsApp vs SMS: Who’s your pick?
The decision between WhatsApp and SMS really depends on your business needs and audience. Want to reach customers anytime, anywhere, with high-converting broadcasts? WhatsApp is a clear winner. Need a fallback for low-connectivity areas? SMS provides a universal solution. Many businesses use both channels together. To get started with WhatsApp, contact Cue for a demo!
