SMS Marketing
RGM° · Training
SMS Strategy and Economics
Highest-engagement channel. Economics, use cases, vs email, tools, strategy.
Why SMS
SMS achieves 95%+ open rates within minutes. For DTC ecommerce and lifecycle, SMS often outperforms email on RPR for the same audience. Mature programs treat SMS as a strategic channel, not a checkbox.
Economics
- $0.01–$0.05 per SMS in US (carrier fees + platform).
- Higher cost in international markets.
- RPR (revenue per recipient) 5–15× email typically.
- Lower send volume; higher per-send cost.
- Margin-sensitive for low-AOV brands.
Use cases
- Cart abandonment.
- Promotional flash sales.
- Order updates and shipping (transactional).
- VIP exclusive offers.
- Back-in-stock notifications.
- Welcome series.
- Replenishment reminders.
vs Email
- SMS for urgent / time-sensitive.
- Email for educational / detailed.
- Coordinated: SMS announces; email expands.
- Don't duplicate same content across both.
- Frequency capping across channels.
- Klaviyo SMS (integrated email + SMS).
- Attentive.
- Postscript.
- SimpleTexting.
- EZ Texting.
- Iterable, Braze (enterprise integrated).
Strategy
- Permission-first acquisition.
- Welcome sequence on signup.
- Flow-based automation (cart, browse, etc.).
- Campaign sends for promotions.
- Frequency cap to prevent fatigue.
- Segmentation by behavior.
- VIP tier programs.
Advanced
- SMS + email integrated strategy.
- Frequency capping cross-channel.
- Segmentation by behavior and LTV.
- VIP-only SMS programs.
- Geographic timing optimization.
- A/B testing on copy and timing.
- Compliance discipline (TCPA).
- Cohort LTV by source.
- Annual strategy review.
- Cost per acquired subscriber tracked.
Mistakes
- SMS treated as second channel after email.
- Frequency too high; opt-outs.
- Duplicate content vs email.
- Compliance gaps (TCPA risk).
- Cost per send not monitored.
- Segmentation absent.
- VIP programs missing.
- Cohort LTV not tracked.
- Annual review skipped.
- Welcome sequence absent.
Checklist
- Permission-first acquisition
- Welcome sequence
- Flow-based automation
- Frequency capping cross-channel
- Segmentation by behavior
- VIP tier programs
- Compliance audit ongoing
- Cost per send monitored
- Cohort LTV tracked
- Annual strategy review
Sources and further reading
- Klaviyo SMS benchmarks
- Attentive State of SMS
- Postscript research
- TCPA compliance resources
- RGM Email Lifecycle Marketing series
- Andrew Faris DTC SMS
- Common Thread Collective SMS playbooks
- Mobile Marketing Association SMS guidelines
- Marketing Brew SMS coverage
- SMS Comparison sites
- Twilio SMS research
- Recharge SMS integration
Part of the SMS Marketing series.