Mobile messaging is here to stay. 4.88 billion people around the world own smartphones, and that number’s only going to grow. The ubiquity of smartphones means that there are more options for brands to connect with consumers on channels like SMS, WhatsApp, Viber, Instagram DMs, and more. On WhatsApp alone, there are 2.7 billion active users worldwide, with 175 million using the channel to message businesses a day. One study found that business messages sent via text result in up to a 98% open rate, which also outperforms other channels by up to 400%! It’s clear that consumers are open to interacting with brands via messaging, with open and click-through rates still vastly superior to email.
Better yet, recent technological and platform updates like Apple’s commitment to Rich Communication Services and engaging WhatsApp formats like interactive choice buttons means that ecommerce marketers can showcase products in entirely new ways, driving down-funnel conversions like adds-to-cart and even purchases.
Despite the opportunity, it can be hard to know where to start: Which channel should you invest in? Should you use one tool to manage multiple channels or one tool for each? How do you balance the potential ROI from mobile messaging vs. the structural costs of SMS CPMs?
In this post, we hope to give some guidance on how ecommerce marketers should evaluate WhatsApp and SMS, showcasing the pros and cons of each channel. We’d also be happy to give you personalized guidance on your MM strategy If you book a demo with us.
Is WhatsApp Even a Good Channel To Evaluate?
WhatsApp consumer adoption varies widely across the globe. For example, India has over 535 million people using WhatsApp. Even within Europe, adoption varies from country to country. Denmark has the lowest usage of WhatsApp, while in Switzerland, 95.9% of the population uses the platform. However, even if your business is located within the US (where SMS still dominates), you might serve customers globally or have US customers who like to use WhatsApp. After all, there are 98 million WhatsApp users in the US, with 53% of them utilizing the app at least once a day.
As an ecommerce marketer, you should consider the WhatsApp channel if you have customers who use WhatsApp. Knowing where your customers are is key.
As the most popular global messaging app, WhatsApp stands out with its engaging features that allow brands to connect with customers through their everyday communications. This approach not only feels more direct and personal but also meets customers where they are most comfortable. Many people already use WhatsApp to connect with friends and family, making them more inclined to communicate with brands on the same platform. If you don’t know if you have customers who like WhatsApp, there are ways to easily find out with Bloomreach Engagement:
- Run onsite banners collecting WhatsApp consent and phone numbers and see what kind of volume you get
- Spend some ad budget promoting a discount or coupon with a WhatsApp QR code and see what kind of volume you get
- Simply ask in an email and gather first-party data this way
What If I’m Already Heavily Invested in SMS?
Even if you’ve invested time and resources into SMS, don’t rule out WhatsApp as a channel to explore. As you’ll see below, there are fundamental technological differences between the two channels that make WhatsApp unique. Ultimately, you should try and reach customers on the channel that they prefer.
One of the primary benefits of using a single platform like Bloomreach Engagement is that you can:
- Collect consent for both channels and gather insights on where your customers are engaging the most under a single customer view
- Use historical customer data and predictive Loomi AI to see which channel customers prefer
- Orchestrate among multiple channels while considering the unique strengths of each to complement your strategy
Our recommendation is to start with very clear and specific use cases for WhatsApp by considering the below channel differentiations, having a plan on how to collect consent, and creating a coherent messaging strategy to ensure a seamless customer experience through your scenarios.
Comparing WhatsApp to SMS
Here’s a comprehensive comparison to help you decide which channel suits your marketing needs best:
Message Content
- Character limit: WhatsApp has a much larger character offering per message of 4,096 characters in comparison to SMS with 160 characters. WhatsApp is the clear winner when it comes to sending a message that requires a lot of text and more details, which will eventually save on your cost per message. On the other hand, the simplicity of SMS means there’s less competition for attention, as messages are straightforward and less likely to be cluttered with competitive messaging. This can be beneficial for delivering direct, short, and punchy messages.
- Multimedia capabilities: For campaigns that rely on visual appeal and creativity, WhatsApp excels with its ability to support rich media, including images, videos, audio clips, and PDFs, which can significantly enhance engagement on your content. SMS, on the other hand, primarily supports plain text, with multimedia messages (MMS) available mainly in the USA. This makes SMS less versatile for delivering visually engaging content globally.
- Engagement and interactions: WhatsApp provides advanced engagement features like “floating” and interactive buttons, quick replies, calling a number, read receipts , choosing values from a list, and more to come, giving marketers valuable insights into recipient interactions. SMS lacks these interactive elements, making it harder to track engagement effectively.
- Content approval: For marketing messages, WhatsApp requires the approval of templates ahead of time from Meta whereas SMS still provides the flexibility to send content without approval as long as it complies with regulations. However, for WhatsApp, if you are answering an incoming message, replies are in free form for text, media, and buttons!
Two-Way Communication
WhatsApp operates on a per 24-hour conversation model, which includes two-way communication, allowing for continuous interaction without additional per-message costs, 24 hours since the last incoming message of a customer. This helps you foster closer connections with your audience, while also helping you save on costs per interaction and gather useful zero-party data. SMS, however, charges per message, and two-way communication will be more expensive, especially for high-volume exchanges.
Setup Complexity and Reach
When it comes to setup, WhatsApp requires a one-time setup and Meta approval — fortunately, this works across all countries since WhatsApp uses data to send messages. SMS setup can be quite complex and varies by country, often involving multiple registrations and compliance steps so there are limitations to sending globally. Despite its limitations, SMS remains highly reliable, capable of reaching all mobile users (including those without internet access or smartphones) without the need to download an app. This makes SMS a robust choice for ensuring message delivery and urgent notifications. WhatsApp depends on the recipient having internet access and the app installed, but its universal setup process is a significant advantage over SMS for scaling in 60 different languages in over 180 countries worldwide, especially for regions where it is seen as the main means of communication. Considering the market you want to send in and what platform they are more likely to engage in is crucial in choosing the right channel!
Here’s a quick summary of the two different channels:
To help you get a more practical view of what each channel can be used for, we’ve highlighted some common use cases.
How To Get Started With WhatsApp
To get set up and running with WhatsApp, follow these steps:
- Open a Facebook Business Account: A prerequisite for starting is having a Facebook Business Account. The FBA admin will get the profiles connected between WhatsApp and the Meta account to validate the WhatsApp Business Account.
- Have a long number: Any phone number that will be used must be owned or leased by the business. Bloomreach can support you with provisioning one.
- Gather consent: You can only contact customers on WhatsApp if they have explicitly provided consent. Start looking for ways to capture consent through QR codes, Facebook and Instagram ad links, weblayers, URLs on your website, etc.
- Find the right use cases and marketing templates: Begin brainstorming what use cases you want to develop for WhatsApp. You can integrate WhatsApp in your overall omnichannel strategy by incorporating it into your running automations, collecting zero-party data, targeting a specific segment base (e.g., champions or recent purchasers), or reactivating your lapsed customers by offering WhatsApp-exclusive discounts. Once you’ve established your use cases, you’ll need to create templates to be approved by Meta, which can include dynamic content, recommendations, and personalization.
Another Option To Consider: RCS
Rich Communication Services (RCS) is also entering the space to be available for IOS, and it combines the best of both worlds. RCS maintains the universal reach of SMS as native messaging on users’ phones, without the need to download an app, and is also enhanced with rich media, interactive elements, and branded messaging. While RCS was already available on Android devices, it’s availability in iOS means that adoption will only grow — as it does, it promises to revolutionize mobile marketing. However, there will always be space to differentiate the three channels, with each one offering unique benefits.
Make Your Mobile Marketing Shine With Bloomreach
If you want to take full advantage of mobile as a channel, you’ll need an all-in-one platform like Bloomreach Engagement. Our solutions are powered by industry-leading AI, so you can easily generate content, send at the optimal time, deliver personalized recommendations, and much more.
We’ve also introduced a wide range of mobile features and updates, including a fully native WhatsApp integration, transactional SMS support, and RCS support on the way. Read more about our latest mobile marketing advancements and see what you can achieve with Bloomreach.
