WhatsApp vs. SMS: Choosing the best channel for your business

Mobile messaging has become a must-have for businesses that want to connect with their customers. It’s not just about sending quick updates anymore; it’s about building relationships and driving sales. 

Did you know that 71% of adults are more likely to buy from a company they can easily message? That’s a big deal. It shows that being reachable through messaging isn’t just a nice perk; it’s key to boosting sales and keeping customers coming back. If you ignore this trend, you might miss out on a lot of potential customers.

With so many messaging platforms out there, how do you pick the right one? Two popular choices are SMS and WhatsApp, and both have their own pros and cons. It’s important to think about what fits your needs best. Let’s explore both SMS and WhatsApp to determine which one could help you engage your customers more effectively.

What is SMS?

Short Message Service (SMS) is a text messaging service you can use to send short messages between mobile phones. It’s part of the communication systems used by most phones and mobile devices.

Key characteristics of SMS:

• Broad device compatibility: SMS works on any mobile device, from basic feature phones to the latest smartphones, which makes it very versatile
• No internet required: You don’t need an internet connection to send or receive an SMS message since it uses cellular networks
• Network support: SMS works on all cellular networks, so you can count on it to send messages almost anywhere

Overall, SMS is an easy and reliable way to communicate, which is why you can use it to connect with a wide range of people.

What is WhatsApp?

WhatsApp, owned by Meta, is a popular messaging app used by 2.5 billion people around the world each month. Users typically spend around 33 minutes a day chatting on the platform, making it a major part of daily communication.

Key characteristics of WhatsApp:

• Internet connectivity: Sending and receiving WhatsApp messages requires an internet connection. You don’t have to pay for SMS or international network charges.
• Rich conversations: WhatsApp supports rich media, allowing two-way conversations, and the ability to send pictures, videos, audio messages, documents, emojis, and format text, making conversations more engaging.
• Security: WhatsApp takes user privacy seriously by using end-to-end encryption. This means that messages can only be read by the sender and the recipient, helping to keep your information safe.

With its many features and strong security, WhatsApp is a great tool to connect with your customers effectively.

Key advantages of SMS

There are many advantages of SMS marketing, making it a great channel to communicate with your audience. Let’s delve into the key benefits:

Universal global reach and accessibility

SMS works on every mobile phone, even the most basic ones. It doesn’t need an internet connection, so you can reach people no matter where they are, even if they have limited internet access. This makes SMS perfect for reaching a diverse audience or operating in areas with varying levels of technology.

High delivery rates

90% of SMS messages are read within three minutes of being received. Since people check their phones all the time, SMS messages are seen quickly, making them ideal for urgent updates and time-sensitive promotions.

Strong response rates

SMS marketing also boasts strong response rates, with an average click-through rate of about 45%. This is much higher than the average click-through rate for emails, which is around 6%. This shows that people are more likely to engage with businesses through SMS, making it a powerful tool for driving immediate actions, like responding to offers, confirming appointments, or sending urgent notifications.

Consumer preferences

By using SMS, you can reach your customers on their preferred communication channel, creating an instant connection. This is especially important for delivering promotional offers and important updates, ensuring that customers get the information they need in a timely and convenient way.

Key advantages of WhatsApp

WhatsApp is an excellent marketing tool that can enhance your customer relationships. Let’s explore the key advantages that make WhatsApp an outstanding choice for engaging with customers.

Interactive two-way conversations

WhatsApp transforms the way you can interact with your customers with real-time, two-way conversations. You can offer personalized support, promptly address queries, and build strong relationships. It’s all about creating meaningful interactions that keep customers satisfied and loyal.

Enhanced mobile marketing with rich media

WhatsApp allows you to inject creativity into your messages with rich media. You can send images, PDFs, headers, emojis, and more—making your messages visually impactful and engaging. This flexibility is a game changer for running effective mobile marketing campaigns that truly resonate and help you stand out from the competition.

Global platform 

With over 2.5 billion active users, WhatsApp opens the door to an incredible customer base around the world. If your business operates internationally, WhatsApp offers a streamlined way to connect without the hassle of navigating local regulations. One setup lets you reach customers in almost 180 countries, making it a major time-saver. 

However, it’s essential to remember that user preferences and permissions vary across countries and regions. While WhatsApp is dominant in many parts of the world, its usage varies in other regions.

End-to-end encryption

Privacy is paramount, and WhatsApp has you covered with end-to-end encryption. All conversations between businesses and customers are secure, and sensitive information stays protected. When paired with platforms like Dotdigital, you get extra peace of mind with solid security measures in place.

High open and click-through rates

When it comes to engagement, WhatsApp shines bright. Dotdigital customers see open rates soaring above 90% and click-through rates between 40% and 70%. These impressive stats show WhatsApp’s ability to grab attention and drive action, making it an invaluable asset for marketing and customer engagement.

SMS use cases

Next, let’s take a look at some real-world examples of SMS in action.

Appointment and reservation reminders  

Missed appointments and forgotten reservations can lead to significant revenue loss and operational disruptions for your business. That’s where SMS reminders step in, offering a reliable and effective solution. By sending timely text message reminders, you can significantly reduce no-shows and ensure customers keep their commitments.

Shipment tracking and order status updates 

Customers now expect real-time visibility into the status of their orders. SMS provides a direct and efficient channel to deliver important shipment tracking and order status updates. 

By using SMS, you can notify customers about key milestones, such as order confirmation, shipment dispatch, and estimated delivery times. This not only enhances customer satisfaction by providing peace of mind but also significantly reduces the need for customers to contact your customer service teams for routine inquiries.

Promotions and sale alerts 

SMS is perfect for delivering time-sensitive promotional offers and sale alerts directly to customers’ pockets. The immediacy of SMS ensures your message is seen almost instantly, making it ideal for driving quick sales and creating a sense of urgency. 

You can send limited-time discount codes, flash sale notifications, or exclusive deals to segmented customer lists, maximizing engagement and conversion rates. Personalizing these offers based on customer purchase history or preferences further enhances effectiveness.

Event notifications

SMS is perfect for delivering timely event notifications, whether it’s a webinar, workshop, a local sale, or a community gathering. With its high open rates, you can ensure attendees receive critical details like location, time, and any last-minute changes. A quick, concise text message can make the difference between a packed house and empty seats.

WhatsApp use cases

WhatsApp’s unique features make it a powerful messaging tool; let’s explore how with some examples.

Marketing campaigns

Multimedia promotions

WhatsApp is a game-changer for promotions with its rich media capabilities. You can showcase products using images and videos, design interactive campaigns, and tell stories through multimedia messages to grab attention and boost engagement. This creates a dynamic experience that goes beyond plain text marketing.

Customer support

Real-time assistance

Give your customers instant support through a dedicated WhatsApp channel. They get immediate answers to their queries, and you can set up automated responses for common questions, providing 24/7 support.  Your service will feel immediate and accessible, boosting customer satisfaction and loyalty.

Personalized support

Take your customer service up a notch by assigning dedicated support agents to high-value customers via WhatsApp. Use customer data to offer tailored solutions and personalized recommendations, creating a more intimate and effective support experience, demonstrating your commitment to individual needs, building stronger relationships, and fostering loyalty.

Transactional messages

Order confirmations

Improve the post-purchase experience by sending detailed order summaries through WhatsApp. Include product images, delivery estimates, and a breakdown of the order. Offer QR codes for instant tracking, so customers can easily monitor their shipment’s progress. This ensures transparency and convenience, reducing anxiety and building trust.

Shipping notifications

Keep customers informed with real-time shipping updates and estimated delivery times via WhatsApp. Allow them to modify delivery instructions through the app, giving them flexibility and control. This proactive communication reduces inquiries and enhances satisfaction.

Appointment reminders

Make appointment management easy by sending interactive reminders through WhatsApp. Include options to confirm, reschedule, or cancel appointments directly within the message. Provide last-minute updates or changes via WhatsApp, ensuring clear communication. This reduces no-shows and enhances convenience.

Product updates and launches

New product announcements

Create excitement for new product launches with engaging teaser campaigns on WhatsApp. Use multimedia messages to showcase sneak peeks, behind-the-scenes content, and countdowns. Offer exclusive pre-order opportunities and early access to WhatsApp subscribers, rewarding their loyalty and creating a sense of exclusivity. This builds buzz and drives initial sales.

Product usage tips

Help your customers get the most out of your products by sharing regular tips, tricks, and best practices on WhatsApp. Create how-to videos and tutorials for complex products, providing comprehensive support and enhancing understanding. This proactive approach increases satisfaction, reduces support inquiries, and maximizes product value.

Feedback and surveys

Customer satisfaction surveys

Collect valuable feedback by conducting quick, interactive surveys on WhatsApp. Capture post-purchase or post-support experiences while they’re fresh in customers’ minds. 

Use WhatsApp’s poll feature for easy feedback collection, making it simple for customers to share their opinions. This direct method enhances engagement and provides actionable data for improvement.

Choosing when to use WhatsApp vs. SMS

An effective communication strategy blends WhatsApp and SMS to maximize impact throughout the customer journey. While both platforms are mobile-centric, they offer unique advantages that complement each other, enhancing engagement at every stage.

Let’s explore how to strategically use both channels at different stages of the customer journey.

1. Awareness and discovery

This is where customers first notice your brand or products. SMS works well here because it’s fast and direct, cutting through the clutter to grab attention.

If you’re an online store running a flash sale, send an SMS like:

While SMS establishes the initial contact, WhatsApp can follow up with richer, more engaging content. After sending an SMS, use WhatsApp to send a follow up showcasing your flash sale collection or a poll to see which items your customers like best, sparking further interest.

You can then send a WhatsApp message like:

2. Consideration and engagement

At this point, customers are digging into their options—researching, comparing, and seeking answers. They want solid information and a sense of trust before committing. This is where timely updates and personal interaction can make a difference.

Start with SMS for quick, focused messages that keep them on track. It’s ideal for time-sensitive nudges or confirmations. 

Then, switch to WhatsApp to deepen the connection. It’s perfect for two-way conversations—answering questions, sharing specifics, or offering tailored support. You could send:

It’s direct, personal, and opens the door for two-way communication.

3. Purchase and conversion

This is the tipping point—where customers commit and complete their purchase. The focus here is on making the transaction easy, keeping the process smooth, and delivering updates they need right away.

SMS is great for delivering quick, essential updates about the transaction. Order confirmations, payment receipts, and shipping alerts sent this way ensure customers have the info they need right at their fingertips.

WhatsApp streamlines event entry by delivering digital tickets with QR codes directly to attendees. No more searching for printed tickets. 

It’s also a handy channel for sending e-receipts and tracking info after the sale.

You can also use WhatsApp at this stage to reinforce the sale with a quick follow-up, like confirming details or offering support for next steps. It keeps the interaction alive and builds confidence in their decision.

4. Post-purchase and retention

The sale’s done, but the goal now is to keep customers coming back.

If you have a customer loyalty program, you can keep your customers informed about loyalty program benefits, points balance, and exclusive offers through SMS. This keeps them engaged and encourages repeat purchases.

WhatsApp is perfect for gathering immediate feedback from customers. Quick surveys or satisfaction ratings can help you understand their experience and identify areas for improvement.

You can also use WhatsApp at this stage to keep the conversation going with regular updates, product tips, and engaging content. Share how-to videos, tutorials, and behind-the-scenes looks to keep customers interested and involved.

Choose Dotdigital for WhatsApp and SMS

Selecting the right platform for WhatsApp and SMS is important for maximizing your communication strategy. It’s not just about finding a tool that handles both; it’s about choosing a solution that empowers you to create engaging, personalized, and high-performing campaigns. Here’s what to look for, and why Dotdigital stands out:

Native integration

• Our platform seamlessly integrates WhatsApp and SMS, ensuring fluid communication and data flow
• Dotdigital eliminates the need for complex integrations and prevents data silos, providing a unified customer view

Convert more

• Capture attention and drive conversions with rich media like pictures and PDFs, coupled with compelling call-to-actions within WhatsApp
• Dotdigital’s WhatsApp users consistently experience impressive results, with typical open rates exceeding 90% and click-through rates ranging from 40-70%

Advanced automation and personalization

• Dotdigital’s automation tools empower you to create multi-channel customer journeys, including WhatsApp and SMS
• Trigger SMS alerts based on WhatsApp interactions, or initiate personalized WhatsApp sequences following SMS engagement
• Deliver the right message at the right time, every time, through sophisticated automation across both channels

Global reach and compliance

• You can reach your customers wherever they are with Dotdigital’s global WhatsApp and SMS capabilities
• Enjoy peace of mind with stringent compliance with regulations like GDPR and TCPA
• Deliver your messages with confidence, knowing you’re adhering to international standards

Exceptional support

• Dotdigital’s dedicated support team provides expert guidance and resources to help you maximize the potential of WhatsApp and SMS
• From onboarding to ongoing optimization, we’re committed to your success

Work smarter

• Save time by managing WhatsApp, email, SMS, web, and all your other channels in one platform
• Improve your marketing efforts and gain a full view of your customer engagements

By choosing Dotdigital, you’re not just selecting a WhatsApp and SMS platform; you’re partnering with a company that’s committed to your success. Dotdigital provides the tools, expertise, and support you need to create integrated cross-channel campaigns that drive results.

Start using both WhatsApp and SMS today

It’s clear that mobile messaging is a critical channel for connection, engagement, and driving sales. Your customers use SMS and WhatsApp daily, and they expect the same level of interaction with your business.

You have the opportunity to meet your customers where they are. By using SMS for its immediacy and reach, along with WhatsApp for its rich, interactive features, you can develop a mobile messaging strategy that truly resonates.

Don’t let your business fall behind. Take the initiative to explore how SMS and WhatsApp can work together to strengthen your customer relationships, enhance engagement, and drive sales.

The future of customer communication is mobile-first. Are you ready to lead the way? Now is the time to take action and use both SMS and WhatsApp for your business.