Email vs. SMS: Surprising Effectiveness Data for Retailers

What's really working in digital marketing for retailers today? In this eye-opening discussion, we dive into surprising findings from Listrack's annual cross-channel benchmarking report that challenges conventional wisdom about effective marketing tactics.

The data reveals a fascinating paradox: while email marketing volume increased by 43% over the previous year, declining click-through rates suggest consumers are experiencing message fatigue. 

Meanwhile, SMS marketing emerges as an unexpected powerhouse, generating six times the revenue per send compared to email campaigns. This compelling stat transforms what many consider a supplementary channel into a critical marketing tool worth serious investment.

Trigger-based campaigns stand out for their exceptional performance. Shopping cart abandonment emails, welcome messages, and post-purchase communications deliver conversion rates described as "off the charts," regardless of whether they arrive via email or text. 

Equally impressive are the results from loyalty programs, which saw explosive 15X growth in send volume, powered by AI-driven product recommendations that doubled click-through rates compared to the previous year.

Perhaps most surprising is the continued relevance of what some might consider outdated technology. Email and SMS remain marketing mainstays, but their application continues evolving through innovative tactics and improved targeting. 

For anyone in retail—whether you're a marketer, merchant, or play another role—understanding these channels and their effectiveness remains crucial for business success. How is your organization adapting to these shifting trends in digital marketing?

Chapters

• 0:00 Introduction & Marketing Changes
• 0:36 Email Volume vs Effectiveness
• 1:21 SMS Marketing Success Metrics
• 1:49 Trigger Campaigns & Loyalty Programs
• 3:27 Conclusion: Marketing Tactics Evolution

Transcript

Speaker 1: 0:03

Hi everyone. You know, one of the things I've been thinking about as a merchant is the rapid pace of change that my marketing colleagues within the retail community have really been going through, particularly these last few years, and I came across a report from the nice folks at Listrack, and they published their annual cross-channel benchmarking report that talks a lot about some of the best practices and some of the benchmark data that they have within digital marketing, and I found some interesting things and thought I'd share. First of all, one of the things that we merchants tend to hear is that maybe email isn't as productive of a digital marketing tactic as it used to be, and the fact is is that maybe email isn't as productive of a digital marketing tactic as it used to be, and the fact is is that, according to this report, email volume surged last year 43% over the prior year but that, in some cases, email click-through rates were not as productive as they had been, significantly showing that perhaps too many emails are being sent and consumers are not clicking through them. I thought that was interesting. One of the other interesting things, though, is SMS or text messaging. Text promotions are particularly effective, and, in fact, they produce six times the revenue per send of an email according to this report. So that's kind of neat and it feels like SMS is very complimentary or a supplement channel for marketers, not some kind of edge case or something that isn't productive is in fact, very productive.

Speaker 1: 1:49

Now, trigger campaigns, whether they come through email or through text messaging, are particularly productive. Shopping cart abandonment emails, for example, had conversion rates that were up significantly and the revenue per send metrics also really off the charts. Also, welcome messages or post-purchase messages, whether they again come by email or by text, are really really very productive. And then one of the other things I thought was interesting about this report, and that was is that loyalty and personalization are particularly valuable contact methods for marketers.

Speaker 1: 2:35

Loyalty programs saw explosive growth according to this report, and 15X increase in send volume and really high performance because of the impact that AI is having on really high quality, highly productive product recommendations and click through rates on product recommendation modules were up 2x versus the year prior. So that really says that that tactic is really, really productive. The fact is that how marketers engage and produce results through the digital marketing campaigns is a continually evolving story is a continually evolving story but what some people would consider pretty dated technology. Email and SMS text messaging are, in fact, still mainstays of digital marketing, but marketers are making them more effective in the tactics they use every day, and I think, whether you are a marketer, a merchant or you play some other role within the ecosystem of retail, at least having a working understanding of how those tactics are working and how your marketing partners employ them in your business is pretty important stuff, and that's what I've been thinking about. I'm Scott Benedict.