Email vs SMS: Which Channel Drives More Revenue?

“Consumer behavior shifts fast, but fundamentals stay the same: your message must reach the right person at the right time, on the right channel.” — Harvard Business Review

As someone who has spent years optimizing retention channels for ecommerce brands, I’m asked the same question constantly: “Email vs SMS — which channel actually drives more revenue?”

And the truth is more nuanced than most marketers admit. While everyone wants a simple winner, I’ve learned through hundreds of campaigns across multiple industries that successful retention is not about choosing between Email vs SMS. It’s about understanding the strengths of each channel and orchestrating them in a way that maximizes customer lifetime value.

Throughout this article, I’ll break down what I’ve tested, what consistently works, what to avoid, and which channel wins in profitability, ROI, customer experience, and scalability. I’ll also give you frameworks and real examples from my work with ecommerce brands.

Why the Email vs SMS Debate Exists

Before we compare Email vs SMS in revenue performance, it’s important to understand why the debate is so active today.

Ecommerce brands face:

• Higher acquisition costs
• Declining attribution accuracy
• Increasing competition
• Shorter consumer attention spans

Because retention is one of the few controllable growth levers, deciding between Email vs SMS becomes a strategic decision, not a tactical one.

If you misunderstand the nature of Email vs SMS, you will misallocate your marketing budget.

Email vs SMS: A Data-Driven Overview

Both channels have strengths. Both convert. Both can produce immediate revenue.

But they are fundamentally different tools.

Here’s a simplified comparison:

This is the first important insight in the Email vs SMS debate:

Email is a volume and relationship channel; SMS is a precision and urgency channel.

See the Ultimate SMS Marketing Guide here.

Revenue Breakdown: Email vs SMS

Now let’s talk money — because ultimately, revenue is what brands care about.

Email Revenue

In my experience, email consistently provides 25–45% of total store revenue for well-optimized ecommerce brands.

That’s because automated flows — welcome, abandoned checkout, browse abandonment, post-purchase, replenishment — do heavy lifting quietly and consistently.

This is where Email vs SMS often surprises founders:
Email usually wins in total revenue contribution.

Why?

• larger list
• fewer limitations
• lower cost
• more storytelling opportunity
• more automations

SMS Revenue

SMS doesn’t generate the same volume of revenue as email, but it generates faster revenue.

Brands see:

• extremely high CTR
• fast conversion windows
• high AOV for urgency-driven offers

When comparing Email vs SMS for speed, SMS wins every single time.

Customer Experience: Email vs SMS

A mistake I often see is brands treating SMS like email. That’s when subscribers churn.

Here is how I explain the difference:

Email is a conversation.

You can educate, nurture, inspire, and entertain.

SMS is an interruption.

It needs to earn its right to interrupt.

This is why in the Email vs SMS comparison, SMS must be used sparingly — otherwise it becomes intrusive and expensive.

Cost Efficiency: Email vs SMS

This is one of the clearest distinctions when analyzing Email vs SMS.

Email

• extremely cost-efficient
• low marginal cost per message
• scalable

SMS

• costs accumulate extremely fast
• large lists — large monthly bills
• mistakes are expensive

So in the context of Email vs SMS for profitability, email wins decisively.

Conversion Intent: Email vs SMS

The intent associated with each channel matters more than most marketers realize.

Email Intent

People check email when they have time, curiosity, or interest.
This makes email ideal for:

• storytelling
• product education
• community building
• content
• announcements

SMS Intent

SMS is checked instantly — because the psychology is different.
This makes SMS ideal for:

• flash sales
• reminders
• shipping updates
• back-in-stock alerts
• low-inventory notices
• VIP drops

This leads to one conclusion:
In the Email vs SMS analysis, email nurtures; SMS converts.

But without nurturing, conversions collapse.
So once again, there is no “either/or”.

Case study: apparel brand SMS feedback 

A US apparel brand I recently worked with told me:

“We thought SMS would replace email for us. Instead, once we paused email, our SMS conversion rate dropped by half. Turns out SMS only works because email warms people up.”

This is one of the most common patterns I see when brands test Email vs SMS in isolation.

Email vs SMS in Automated Flows

To illustrate how both channels work together, here’s a comparison of where each channel performs best inside flows:

Notice the pattern?
In every major lifecycle flow, email plays the primary role.

This is why, when comparing Email vs SMS for lifecycle revenue, email remains the backbone of retention.

Email vs SMS: Mistakes to Avoid

Mistake #1: Using SMS too often

This leads to unsubscribes, complaints, and wasted budget.

Mistake #2: Using SMS without segmentation

Do not send SMS to cold or new subscribers. It destroys trust.

Mistake #3: Pausing email to “try SMS”

This will make both channels underperform.

Mistake #4: Not testing Email vs SMS inside individual flows

Every audience is different. This is why testing is important.

How to perform A/B testing accurately? Check out a complete guide. 

Mistake #5: Sending the same message on both channels

Redundant communication always loses.

The Final Verdict: Email vs SMS

Here’s my honest conclusion, based on years of experimentation:

If your goal is maximum total revenue — Email wins.

If your goal is immediate, time-sensitive revenue — SMS wins.

If your goal is long-term profitability — Email wins.

If your goal is conversion velocity — SMS wins.

But the real power is in omnichannel orchestration, not in choosing sides.

Looking for more insights on omnichannel strategy? Check out our related article. 

Brands that use both Email vs SMS thoughtfully always outperform brands that rely on just one channel.

Conclusion

If you’re building or optimizing your retention ecosystem, stop thinking of Email vs SMS as competitors.

Think of them as teammates with different strengths.

Email builds trust.
SMS accelerates demand.
Together they create predictable, profitable, scalable growth.

If you want help evaluating your Email vs SMS mix, refining segmentation, or building high-performing flows, contact us for a consultation.

FAQ: Email vs SMS

Does SMS replace email?

No. SMS enhances email — it does not replace it.

Is SMS worth the cost?

Yes, when used strategically. No, when blasted to everyone.

How often should I send SMS?

Generally 2–4 times per month unless urgency justifies more.

Do customers prefer Email vs SMS?

They prefer email for everyday communication and SMS for urgent or exclusive updates.