---
title: SMS Strategy and Economics — RGM Training
url: https://realgrowthmatters.com/training/sms-marketing/sms-strategy-and-economics/
updated: 2026-06-10
source_html: https://realgrowthmatters.com/training/sms-marketing/sms-strategy-and-economics/
---

[Home](../../../index.html) › [Training](../../index.html) › [SMS Marketing](../index.html) › SMS Strategy and Economics

RGM° · Training

# SMS Strategy and Economics

Highest-engagement channel. Economics, use cases, vs email, tools, strategy.

### What you will learn

1. [Why SMS is the highest-engagement channel](#why)
2. [SMS economics](#economics)
3. [Use cases](#use-cases)
4. [Integration with email](#integration)
5. [Tools](#tools)
6. [Strategy](#strategy)
7. [Advanced](#advanced)
8. [Mistakes](#mistakes)
9. [Checklist](#checklist)

## 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.

## Tools

- 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

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Part of the [SMS Marketing](../index.html) series.