SMS vs Email Marketing: Which Strategy Drives More Results in 2024?

SMS marketing (text message marketing) and email marketing are both powerful channels for reaching customers, but they have distinct characteristics:

While both channels can be effective, SMS marketing generally yields a higher ROI for dealerships. The immediacy and high open rates of text messages make them ideal for driving urgent actions like appointment scheduling, service reminders, and limited-time promotions.

Studies have shown the average ROI for SMS campaigns is $71 for every $1 spent, compared to $36 for every $1 spent on email marketing. [3] However, it’s important to tailor your strategy and messaging to each channel for optimal results.

Integrating SMS and email marketing creates a powerful, multi-channel strategy. Here’s how to blend them seamlessly:

• Use SMS for time-sensitive communication: Appointment confirmations, service reminders, flash sale announcements, and limited-time offers are perfect for SMS.
• Leverage email for longer-form content: Send monthly newsletters with valuable car care tips, highlight new vehicle models, showcase upcoming events, and promote ongoing service specials.
• Integrate opt-in opportunities: Give customers the option to subscribe to SMS updates during online form submissions, at service check-in, or through email sign-up forms.
• Segment your audience: Not all customers want the same type of communication. Allow customers to choose their preferred channels and tailor your messaging accordingly.
• Use SMS to drive email sign-ups: Send a text message offering an exclusive incentive for signing up for your email newsletter.

Successful SMS campaigns require a thoughtful approach that prioritizes customer preferences and delivers value:

• Obtain Consent: Always get explicit permission from customers before sending them text messages. This is not only an ethical practice but also legally required in many jurisdictions.
• Offer Incentives: Motivate customers to opt in to your SMS list by providing a compelling reason, such as exclusive discounts, early access to promotions, or free service upgrades.
• Keep It Concise and Actionable: With limited character space, get straight to the point. Use clear, concise language and include a strong call to action.
• Timing is Everything: Send messages at appropriate times. Avoid late nights or early mornings when customers may be asleep.
• Personalize Whenever Possible: Use the customer’s name and reference their past purchases or service history for a more engaging experience.
• Provide a Clear Opt-Out Option: Always include instructions for how customers can unsubscribe from your SMS list.
• Track Your Results: Monitor key metrics like open rates, click-through rates, and conversions to assess your campaign effectiveness and make adjustments as needed.

Stand out in a crowded inbox by following these proven email marketing best practices:

• Craft Compelling Subject Lines: Your subject line is the first (and sometimes only) impression. Keep it concise, attention-grabbing, and benefit-driven. Consider using emojis to stand out.
• Personalize the Experience: Address the recipient by name and segment your list to tailor content based on customer preferences or demographics.
• Keep It Concise and Scannable: Respect your reader’s time. Use short paragraphs, bullet points, and bold text to highlight key information.
• Include a Clear Call to Action: Tell your readers what you want them to do. Whether it’s visiting your website, scheduling a test drive, or taking advantage of a service special, make it easy for them to take the next step.
• Optimize for Mobile Devices: Ensure your emails look great on all screens. More and more people are reading emails on their smartphones, so responsiveness is crucial.
• Test and Analyze: Experiment with different subject lines, layouts, and calls to action. Use A/B testing to determine which elements resonate best with your audience and drive the highest engagement.

Beyond just open rates and clicks, measure the real impact of your campaigns by focusing on:

• Return on Investment (ROI): Compare the revenue generated from each campaign (sales, service appointments, etc.) to the total cost of the campaign (message fees, platform costs, staff time).
• Conversion Rates: Track how many recipients took your desired action (scheduled an appointment, clicked a link, redeemed a coupon).
• Website Traffic: If your campaign includes links to your website, monitor how much traffic you receive from email or SMS sources.
• Customer Engagement: Pay attention to how customers are interacting with your campaigns. Are they replying to your text messages? Are they forwarding your emails to friends? Positive engagement signals success.

The versatility of SMS makes it ideal for a variety of dealership communications, including:

• Welcome Offers: Send a warm welcome message to new customers, offering a special discount or bonus for their first service appointment or purchase.
• Special Promotions: Alert customers to limited-time sales events, flash deals on popular vehicle models, or seasonal service specials.
• Appointment Reminders: Reduce no-shows and improve efficiency by sending timely reminders about upcoming appointments.
• Service Updates: Keep customers informed about the progress of their vehicle service, estimated completion times, or required additional maintenance.
• Feedback Requests: Request feedback after service appointments or vehicle purchases. Short surveys via SMS can provide valuable insights.
• Personalized Recommendations: Use customer data to send targeted offers for vehicles they might be interested in, service packages that align with their needs, or accessory promotions.

Keep your emails out of the spam folder by following these essential practices:

• Clean Your Email List: Regularly remove inactive subscribers or addresses that bounce back.
• Comply with Privacy Laws: Ensure your email practices comply with regulations like CAN-SPAM in the United States and GDPR in Europe.
• Provide a Double Opt-In: Require subscribers to confirm their email address after signing up. This ensures they genuinely want to receive your communications and reduces the likelihood of spam complaints.
• Avoid Spam Trigger Words: Be mindful of words or phrases commonly associated with spam, such as “free,” “guaranteed,” “urgent,” or excessive exclamation points.
• Use a Reputable Email Marketing Platform: Choose a provider that prioritizes deliverability and adheres to industry best practices.
• Monitor Your Sender Reputation: Pay attention to metrics like bounce rates, spam complaints, and unsubscribes. These can indicate problems with your email practices.

While email marketing generally has a lower cost per message compared to SMS, the exact pricing will vary based on your chosen marketing platform, the volume of messages you send, and any additional features you utilize. Here’s a breakdown of potential costs:

• SMS Marketing:
  • Monthly platform fees
  • Cost per message sent (typically a fraction of a cent per message)
  • Potential additional charges for shortcodes or dedicated phone numbers
• Email Marketing:
  • Monthly platform fees
  • Cost often tied to subscriber list size or email volume
  • Potential additional charges for advanced features like automation or segmentation

When considering sms vs email marketing costs, it’s crucial to weigh the potential ROI of each channel. Even though SMS may have a higher cost per message, its higher open rates and engagement often translate to a greater return on investment. Carefully evaluate your budget, target audience, and campaign objectives to determine the most cost-effective strategy for your dealership.

Giving customers control over their communication preferences is essential for respecting their time and ensuring your messages are relevant and welcomed. Implement these strategies to effectively gather customer communication preferences of SMS or email marketing:

• Interactive Prompts: Include an additional question or two when customers log in to their account on your website, make an online purchase, schedule service, or download valuable content. Offer a simple checkbox or dropdown menu allowing them to select their preferred communication channels (email, SMS, both, or none).
• Default Preferences: For new customers, you can set default communication preferences based on similar customer profiles or personas. This ensures you have a starting point for communication while still giving customers the flexibility to adjust their preferences at any time.
• Centralized Preference Center: Provide a dedicated page on your website or within customer accounts where customers can easily view, manage, and update their communication preferences for all channels (email, SMS, phone calls, etc.). This will make choosing SMS vs email marketing a easier decision