Customer acquisition costs are climbing, algorithms are unpredictable, and privacy updates are making third-party data less reliable by the day. For small businesses, that means one thing: you need direct, first-party access to your customers. And two of the best channels for that are SMS and email.
Both are powerful. Both are cost-effective. But each has its own strengths depending on how, when, and why you’re using it.
Let’s talk numbers real quick:
- In 2025, 66% of businesses are using SMS marketing software to text their customers, and 81% say AI has improved their SMS campaigns, saving them an average of 4-6 hours a week.
- On the other hand, email is still the go-to for retention. In fact, 80% of small and midsize businesses say email marketing is their most important tool for keeping customers engaged and coming back.
So the question isn’t which one’s better. It’s how to use them right, and when each one makes sense.
SMS vs. Email Marketing Functionality
It’s easy to compare SMS and email by open rates or click-throughs, but to really understand which channel works best (and when), you need to look under the hood. How each one works and the rules that come with it.
How SMS Works Today
SMS marketing has come a long way. It’s no longer just a 160-character blast from a random short code.
Here’s what’s behind the scenes:
- Carrier Gateways: Every text goes through a carrier gateway (think AT&T, Verizon). If your message isn’t formatted right or your number isn’t verified, delivery can get delayed—or worse, blocked.
- Character Limits: A standard SMS is 160 characters. Go beyond that, and it turns into multiple messages or switches to MMS. Short and sharp is the way to go.
- Short Codes vs. Toll-Free:
- Short codes (5-6 digits) are built for high-volume texting and fast delivery. They’re great for big lists and marketing blasts.
- Toll-free numbers (like 888 or 877 numbers) are cheaper and easier to set up, but they’re slower and sometimes have deliverability issues for campaigns with heavy traffic.
- MMS: Need to send images or longer text? MMS lets you do that, but it costs more.
How Email Marketing Works Today
Email gives you more creative freedom, but it comes with its own set of challenges.
- Inbox Placement: Just because you hit “send” doesn’t mean you’re landing in the inbox. Spam filters, sender reputation, and domain authentication (like SPF, DKIM, and DMARC) all affect whether people even see your message.
- HTML & Images: You can do a lot visually (buttons, images, layout design) but too much “fancy” can trip spam filters or get blocked by email clients. Keep it clean and mobile-friendly.
- List Ownership: With email, your list is yours. You can segment it, automate it, and build long-term relationships. Unlike social media, no algorithm controls who sees what.
- Timing & Frequency: Email works better for content-rich updates, newsletters, promos, and educational flows.
Opt-In Rules You Must Know
Before you send anything, know the rules.
- CAN-SPAM (U.S., Email): You must include a clear unsubscribe link, identify yourself, and avoid misleading subject lines.
- TCPA (U.S., SMS): You must get express written consent before texting. That means no texting from a purchase or contact form unless they explicitly agreed to receive texts.
- GDPR (EU): This applies to both email and SMS if you’re reaching EU customers. You need clear, opt-in consent, and people must be able to access, correct, or delete their data on request.
SMS vs. Email Marketing: Performance Benchmarks
When it comes to performance, both SMS and email marketing have serious potential. But they operate differently. What’s “good” for one channel may be weak for the other. If you’re deciding where to invest your time and budget, these benchmarks will give you a quick reality check.
What Do These Numbers Really Mean?
SMS gets seen faster. Texts hit harder and quicker. If you need attention now (flash sale, appointment reminder, time-sensitive promo) SMS wins.
Email is better for depth. It’s cheaper, more flexible, and great for nurturing long-term relationships through newsletters, offers, or drip campaigns.
ROI depends on your use case. Email has a strong average return, but SMS often brings in faster action, especially for high-intent moments.
Cost per send adds up with SMS. You’re paying more for every message, so you need tighter targeting and higher engagement to make it worth it.
Strengths & Limitations
Both email and SMS have their moments. It’s not about picking a winner. It’s about knowing which tool to use, and when.
Email Shines When…
You’re telling a story or sharing updates over time.
You want to share visuals, long-form content, or layered info (menus, newsletters, promos).
You’re using dynamic fields (name, location, behavior-based triggers) and building flows.
You want low cost per thousand sends and plan to send frequently.
SMS Shines When…
You need quick action. For example flash sales, event reminders, and time-sensitive alerts.
You just need a short, sharp message with a clear CTA.
You’re sending quick, personal-feeling messages with names and links.
You’re targeting a high-value moment or audience and need immediate results.
SMS vs Email Marketing – Compliance & Deliverability Checklist
Before you hit send, whether it’s an email or a text, make sure you’re playing by the rules. It’s not just about staying legal (though that matters). It’s also about protecting your sender reputation so your messages actually get delivered.
Double Opt-In vs. Single Opt-In
- Single Opt-In: Someone enters their email or phone number, and boom, they’re on your list.
- Double Opt-In: After signing up, they get a confirmation message (“Click to confirm” or “Reply YES to join”) before they’re fully subscribed.
Quiet Hours & Frequency Caps
Texting someone at 6 a.m. or emailing them five times a day? That’s a fast track to an unsubscribe or worse, a spam report.
- SMS Quiet Hours: Stick to texting between 9 a.m. and 5 p.m. (based on the recipient’s time zone). Anything outside that can be seen as invasive.
- Email Frequency: Start with once a week and let subscribers adjust their preferences. Too frequent = unsubscribe. Too rare = forgotten.
Opt-Out Language That Covers You
Make it crystal clear how people can unsubscribe. This isn’t optional, it’s required by both CAN-SPAM (email) and TCPA (SMS).
- SMS Example: “Reply STOP to unsubscribe.” (Keep it short and always include it in your messages.)
- Email Example: “Click here to unsubscribe” link at the bottom. Make sure it works, doesn’t require a login, and removes them from your list.
Emails and SMS Platform for Small Businesses
Most small business owners don’t have time to juggle five different tools or the budget to pay for them. That’s where Referrizer comes in. With us, there’s no need for an SMS vs email marketing approach.
Referrizer gives you email and SMS marketing in one affordable platform, built specifically for small businesses. No need to jump between apps or overpay for features you don’t need. You get everything in one place, designed to actually save you time and grow your customer base.
But it doesn’t stop there. Along with SMS and email, you also get:
- Loyalty Program: Keep customers coming back with points, perks, and rewards that are easy to manage.
- Reputation Management: Automatically collect reviews, monitor your reputation, and catch negative feedback before it goes public.
- Referral Program: Turn your happy customers into promoters with easy-to-use referral tools.
- AI Assistant: Automate tasks, respond faster, and work smarter without hiring extra help.
- More Smart Tools: From lead capture to CRM features, everything works together seamlessly.
Whether you’re running a local gym, salon, restaurant, or any other small business, Referrizer gives you big-brand marketing power, without the big-brand price tag.
Final Thoughts
SMS and email aren’t competing, they’re complementary. One delivers speed, the other delivers depth. When you use both the right way, you create a communication flow that drives action and builds loyalty.
