Do you ever find yourself in need of a quick and convenient way to communicate with someone without having to make a phone call or send an email? Well, look no further than text messaging, also known as SMS. SMS has become an incredibly popular communication method due to its speed and efficiency. In this article, we’ll explore the advantages and disadvantages of using SMS, and how it can be a great tool for communication in many situations.

What is SMS?

SMS stands for Short Message Service, and it’s a way to quickly send short messages from one device to another using the cellular phone network. SMS has been around since the early 1990s and has revolutionized how people communicate with each other. Also check out our article: Top Benefits of Bulk SMS Marketing Every Marketer Needs to Know.

Advantages of SMS

1. Very High Open and Engagement Rates

The most compelling reason to use SMS is that your messages are almost guaranteed to be read.

• Near-Perfect Open Rates: With open rates hovering around 98%, SMS marketing drastically outperforms email marketing’s average of 20-30%.
• High Readership: The vast majority of text messages are read within minutes of being received, ensuring your message lands with impact.
• High Response Rates: This personal and immediate channel naturally leads to higher click-through and response rates compared to other digital platforms.

2. Immediacy and Speed

When your message is time-sensitive, no channel is faster than SMS.

• Instant Delivery: Messages are delivered to a recipient’s phone almost instantly.
• Quick Consumption: The short format is perfect for time-sensitive promotions, flash sales, event reminders, and urgent updates because it can be read and understood in seconds.
• Rapid Action: This immediacy prompts quick action, driving immediate traffic to your website or physical store.

3. Superior Deliverability

SMS has a technical advantage in actually reaching your audience.

• Bypasses Aggressive Spam Filters: Unlike email, where even legitimate marketing can be sent to junk folders, SMS messages are delivered directly to the primary inbox, ensuring they are seen.

4. Less Inbox Competition

The SMS inbox is a far less crowded space than other digital channels.

• Uncluttered Space: Your message doesn’t have to fight for attention against hundreds of other emails or an endless social media feed. This lower competition means your brand stands out.

5. Free from Algorithms

You are in complete control of your communication.

• Direct-to-Audience Channel: There are no social media or search engine algorithms dictating who sees your content. When you send a text, it goes directly to your subscriber.
• Owned and Controlled Asset: Your SMS subscriber list is a valuable business asset that you own, creating a stable and reliable line of communication that isn’t dependent on the whims of third-party platforms.

6. Great ROI and Lower True Cost

When you consider the total resources required, SMS is incredibly efficient.

• Low Overhead: The “real cost” of an email campaign involves significant time and labour for design, copywriting, proofing, and approvals. An SMS campaign’s workflow is dramatically simpler and faster, requiring far fewer resources.
• More Predictable Spend Than Paid Ads: Paid ad costs are volatile. A single click can cost anywhere from $1 to over $20, depending on the industry. SMS offers a low, fixed cost per message (often just a few cents) sent to an already engaged subscriber.
• High Direct ROI: This combination of low overhead and high engagement leads to a powerful return on investment, often outperforming other channels.

7. Universal Reach: Smart Phone or Dumb Phone

It doesn’t matter whether your subscribers have the latest smartphone or a basic model from the 1990s—they will receive your SMS message. This makes it one of the most accessible communication technologies available.

8. Personalisation and Customer Relationship Building

SMS is an inherently personal channel that allows for highly targeted messaging.

• Direct and Personal Touch: Addressing customers by name and sending offers based on their purchase history makes them feel valued and strengthens brand loyalty.
• Two-Way Communication: SMS allows for conversational marketing, where customers can reply with questions or feedback, fostering a more interactive relationship.

9. Easy to Track and Analyse

Modern SMS platforms provide robust analytics.

• Trackable Metrics: You can easily monitor delivery rates, open rates, click-through rates, and unsubscribe rates to measure the success of your campaigns.
• Campaign Optimisation: This data allows you to understand what resonates with your audience, enabling you to refine future campaigns for better performance.

The Disadvantages of SMS

1. Character Limitation

The brevity of SMS is both a strength and a weakness.

• 160-Character Limit: This requires messages to be concise and can make it challenging to convey complex information. While longer messages are possible, they cost more to send.
• Difficulty with Detail: The format is unsuitable for long-form content. Marketers must be creative to get their message and call-to-action across effectively.

2. Lower Tolerance For High-Frequency Messaging

You cannot communicate with the same frequency as email.

• Promotional SMS: Sending promotional texts too often (e.g., daily) will quickly annoy subscribers. A good rule of thumb is to limit promotional campaigns to once a week or less, unless your audience has explicitly agreed to more frequent updates.
• Transactional Texts Are Fine: Non-promotional messages like order confirmations, shipping updates, or appointment reminders are generally well-received and expected.

3. Strict Compliance and Legal Regulations

SMS marketing is a permission-based activity governed by strict laws.

• Explicit Consent Required: In Australia, the Spam Act 2003 requires businesses to have express permission before sending marketing texts.
• Clear Opt-Out Mechanism: Every message must include a clear and easy way for the recipient to unsubscribe (e.g., “Reply STOP”).
• Legal Penalties: Failure to comply can result in significant fines.

4. Must Build a Subscriber List

You cannot simply buy a list of phone numbers.

• Requires Opt-In: A successful strategy relies on building a list of subscribers who have willingly opted in to receive your messages. This takes time and a clear value proposition.

5. Limited Media and Formatting

Standard SMS is a text-only format.

• No Visuals: You cannot include images, videos, or rich formatting. While MMS (Multimedia Messaging Service) allows for this, it is more expensive and not as universally supported.
• Plain Text Only: The lack of formatting options can make it difficult for your message to stand out visually.

6. Cost Per Message

Unlike email, there is typically a per-message fee.

• Scaling Costs: While individual messages are inexpensive, the costs can add up quickly as your subscriber list and campaign frequency grow.
• Budgeting is Key: Businesses need to carefully budget for their SMS activities and ensure the ROI justifies the expenditure.

Comparison of SMS with Other Forms of Communication

SMS is just one of many communication options available to businesses and individuals. Here’s a comparison of SMS with other forms of communication:

• Email: While email is great for sending longer messages and attachments, it’s not as immediate or reliable as SMS. Emails can also be buried in crowded inboxes, whereas texts are more likely to be read promptly.
• Phone calls: Phone calls allow for a more personal connection and are better for complex or emotional conversations. However, they’re not always convenient, and there’s a risk of voicemail tag or missed calls.
• Social media: Social media platforms offer messaging features that can be similar to SMS, but they may not be as reliable or secure. Additionally, social media messaging may be subject to platform-specific regulations or restrictions.

Alternatives to SMS

Instant messaging apps like WhatsApp and WeChat offer real-time communication via text messages or audio/video calls, as well as other features like group chats, GIFs, stickers, and file sharing. Some social media networks like Facebook Messenger also allow for quick messaging without having to open an app. These platforms offer more secure communication methods than standard texting by offering end-to-end encryption for all their communications. Depending on your needs and preferences, various alternatives may better suit your lifestyle than conventional SMS.

Conclusion

In conclusion, SMS technology can be a great tool for communication in many situations. It’s fast, easy to use, and generally reliable. However, it’s important to be aware of its limitations and cost considerations. Security risks are a major concern with SMS, and privacy must be taken into account when sharing information via text message. While SMS is convenient, other forms of communication may be more appropriate depending on the situation. By understanding the advantages and disadvantages of SMS, businesses and individuals can make informed decisions about when and how to use it effectively.