SMS Beats Email Marketing

Shaan Puri shares insights about the effectiveness of SMS marketing compared to email, particularly in the context of giveaway businesses. He emphasizes the dramatic difference in engagement rates and explains why SMS works particularly well for certain business models.

• SMS Marketing Superiority:

  • SMS achieves 80% open rates vs email's 8% open rate
  • Represents a 10x better engagement rate than email

• Why SMS Works Well for Giveaways:

  • Immediate engagement potential
  • People can quickly act when they're idle
  • Perfect for impulse-driven actions like contest entries

• Real-World Application:

  • Example given of car giveaways:
    • People on bus/mobile can instantly enter
    • Low friction to participate
    • Captures attention during downtime

• Business Value:

  • 300,000 SMS subscribers described as "baller"
  • High engagement rate makes list extremely valuable
  • Particularly effective for time-sensitive offers or promotions

The key takeaway is that SMS marketing, while potentially more intrusive, offers significantly higher engagement rates than traditional email marketing, making it particularly valuable for businesses requiring immediate user action.