SMS vs Email Marketing for Local Business: Which Gets More Customers Back?

May 18, 2026·Nataliia· 14 min read All posts

You're working hard to get customers in the door, but do you know which marketing channel is best for getting them to come back? As a local business owner, you're likely using both email and SMS marketing - but which one is more effective? A recent study found that 75% of small businesses use email marketing, while only 22% use SMS marketing.

75↑

Email Marketing Users

Percentage of small businesses

22↑

SMS Marketing Users

Percentage of small businesses

40→

Email Open Rates

Average open rate

60↑

SMS Open Rates

Average open rate

Understanding Your Options: Email Marketing

Email marketing has been a staple for local businesses for years. It's cost-effective, easy to set up, and allows you to reach a large audience. But, with average open rates ranging from 15% to 25%, it's clear that not all email subscribers are created equal.

To get the most out of email marketing, focus on:

Building a strong email list with opt-in subscribers
Creating engaging content that resonates with your audience
Segmenting your list to target specific groups

Pro Tip

Want expert help? DataLatte's email & SMS marketing service is built specifically for local small businesses.

The Power of SMS Marketing

SMS marketing, on the other hand, offers a more personal and immediate way to connect with customers. With open rates as high as 98%, it's no wonder that SMS marketing is becoming increasingly popular among local businesses. However, it's essential to use SMS marketing strategically, as over-messaging can lead to customer fatigue.

Pro Tip

When building your SMS list, make sure to clearly communicate the frequency and type of messages subscribers can expect to receive.

Comparing Email and SMS: Which is More Effective?

So, which channel is more effective for getting customers back? The answer depends on your business goals and audience. However, here's a general breakdown:

Email marketing is ideal for:
- Nurturing leads and building relationships
- Sharing detailed content, such as newsletters or promotions
- Targeting specific segments of your audience
SMS marketing is ideal for:
- Sending time-sensitive offers or reminders
- Providing exclusive deals or promotions
- Encouraging immediate action

Data-Driven Insights: A Closer Look

Let's take a closer look at some data. A recent study found that:

Average Response Rates by Channel

12%

SMSBest

35%

Social Media

Influencer Marketing

20%

Source: MarketingSherpa

As you can see, SMS marketing outperforms email marketing in terms of response rates. However, it's essential to consider the context and goals of your marketing efforts.

Real-World Examples and Best Practices

Here are a few examples of local businesses using email and SMS marketing effectively:

A coffee shop in Portland uses email marketing to promote new menu items and loyalty rewards, while using SMS to send exclusive deals and reminders about limited-time offers.
A salon in New York City uses SMS marketing to send appointment reminders and special promotions to loyal clients.

Real Example

A pet groomer in Los Angeles used SMS marketing to send reminders about upcoming appointments, resulting in a 25% increase in show-up rates.

DataLatte's Take: A Balanced Approach

At DataLatte, we recommend using a balanced approach that incorporates both email and SMS marketing. By leveraging the strengths of each channel, you can create a powerful marketing strategy that drives results.

DataLatte Take

Our recommendation is to use email marketing for nurturing leads and building relationships, while using SMS marketing for time-sensitive offers and reminders.

Frequently Asked Questions

Q: Do I really need both email and SMS, or can I pick one?

You can pick one. Many businesses do fine with just email, especially if they're in a service category where customers book weeks in advance. But I'll tell you what I tell every client: if you're only doing email, you're leaving money on the table. SMS has a 90%+ open rate within three minutes. Email has maybe 20% within three hours. They serve different purposes. Email builds the relationship, SMS drives the immediate action. Together, they work better than either one alone.

Q: Won't SMS annoy my customers? I hate getting marketing texts myself.

You hate getting bad marketing texts. Everyone hates those. But you know what people don't hate? Getting a text that says "Your dog's haircut is done, here's a photo" or "Free coffee if you come in the next hour." That's utility, not spam. The difference is relevance and timing. If you're sending generic blasts to everyone, yes, your customers will hate it. If you're sending specific, timely, valuable messages, they'll appreciate it. I've never had a client lose customers from well-executed SMS. I've had multiple clients lose customers from bad email.

Q: What's the actual cost difference between email and SMS?

Email is basically free if you're using a platform like Mailchimp or Constant Contact on a small list. You're paying $20-50/month for the software. SMS costs money per message — typically $0.01 to $0.03 per text depending on volume and provider. For a list of 500 people, sending one SMS per week runs about $20-40 per month. That's not nothing, but compare it to the return: if one out of every 100 texts brings in a $50 customer, you're making money. The real cost isn't the SMS fees — it's the time you waste sending bad messages.

Q: How do I get people to actually sign up for SMS without being pushy?

The best method I've seen: make the offer specific and immediate. "Text COFFEE to 555-1234 and get a free latte on your next visit." That's it. No contest. No newsletter. One clear value exchange. Put that sign-up call on your receipt, your store window, your checkout page. For email, offer something similar but longer-lasting: "Sign up for our email list and get a free guide to [something relevant]." A coffee shop could offer a "Brewing Guide for French Press." A salon could offer a "Summer Hair Care Checklist." The key is that the incentive is directly useful, not a generic coupon.

Q: What email or SMS platform should I use for a small local business?

For email, Mailchimp is fine for most small businesses. The free tier handles up to 500 contacts. Constant Contact is also solid and has slightly better customer support. For SMS, I've had good results with SimpleTexting and TextMagic. Both are straightforward, no hidden fees. Square has built-in SMS if you're already using them for payments. Booksy has it for salons. The tool matters less than how you use it. I've seen businesses do amazing things with ugly platforms and terrible things with beautiful ones. Pick something simple and start sending.

Q: Is it true that email is dying? Should I just focus on social media?

Email is not dying. That myth has been around since 2010. Email marketing still generates $36 for every $1 spent, according to the Data & Marketing Association. Social media is important for awareness, but you don't own your social audience. Instagram changes its algorithm, your reach drops. TikTok gets banned in certain markets, your followers disappear. Email and SMS are the only channels where you actually own the relationship. If someone unsubscribes from your email, that's fine — they weren't going to buy anyway. If Instagram decides to show your posts to fewer people, you have no recourse. Build your owned channels first. Social media is the amplifier, not the foundation.

I've been doing this long enough to know that most local business owners don't need another marketing theory. They need someone who will look at their actual data, tell them what's working and what's wasting money, and help them fix it.

The uncomfortable truth about SMS vs email is that neither channel is magic. A well-timed text to the right person beats a perfect email to the wrong one every time. And a terrible text to a loyal customer can undo months of goodwill in three seconds.

I've seen the same pattern at three different clients across three different industries: the businesses that win are the ones that treat every message like it's going to someone they actually know. Because it is.

If you're tired of generic advice and want someone to look at your actual numbers, I do that. You can book a free consultation and we'll talk through what's happening with your current campaigns. No templates. No fluff. Just real answers based on what's actually working for businesses like yours.

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Nataliia

Local marketing strategist with 10+ years at global agencies — OMD, Dentsu, GroupM, and BBDO. Now helping small businesses get the same data-driven edge. Based in Europe, working with clients in the US, UK, Australia, and beyond.

About Nataliia