Did you know there are more than 7 billion mobile users worldwide, and this figure keeps increasing every year? No wonder brands are working so hard to engage customers digitally. SMS and WhatsApp are powerful tools for businesses, whether for customer support, sales, or marketing purposes. Both have high open rates, which allows companies to deliver messages to their target customers successfully.
In this blog, we’ll explain everything you need to know about SMS vs WhatsApp in business communication. We’ll discuss some of the key differences between the two channels and help you identify which one best suits your business needs.
SMS vs WhatsApp: Core Differences
The below table gives you an overview of the main differences between SMS and WhatsApp in marketing:
| SMS Marketing | WhatsApp Marketing | |
|---|---|---|
| Features | Text, MMS, Basic Delivery Report | Texts, Multimedia content, Templates, Read Receipts |
| Adaptability | Understands different ways customers ask questions | Can only respond to specific keywords |
| Word Limits | 160 characters per message | 4096 characters per message |
| Cost | Usually charged per message or bundle of messages sent | Free or conversation-based pricing |
| Delivery | Uses mobile’s messaging app, no internet needed | Needs internet connectivity |
| Automation | Limited options to automate | Automated replies and chatbot messages |
| Engagement | Typically, one-way communication with limited interaction | More interactive, personalized, and conversational with real-time engagement |
| Open Rates | High open rates of up to 98% | High open rates of upto 99% |
SMS vs WhatsApp: Engagement & Customer Experience
When it comes to customer interaction, SMS and WhatsApp provide unique user experiences. Let’s explore these differences further:
SMS: Broad Reach with High Open Rates
- Universal Accessibility: SMS provides connectivity to all mobile users independent of their device type or internet connectivity.
- Impressive Open Rates: SMS messaging achieves open rates of about 98%, which guarantees that messages reach their audience.
- Quick Response Times: The typical response time from SMS recipients is 90 seconds, which enables immediate communication between parties.
WhatsApp: Increased Engagement with Interactive Features
- Rich Media Sharing: WhatsApp allows multimedia messages, such as images, videos, and documents, to improve customer communication experiences. However, sending and receiving messages require internet access.
- Interactive Tools: Quick-reply buttons and chat automation features enhance communication efficiency.
- High Open Rates: WhatsApp messages have open rates of 98%, and personalized content manages up to 98% open rates.
- Mass Adoption: WhatsApp has one of the largest?user groups, with over 2 billion active users worldwide.
Choosing SMS vs. WhatsApp as a communication channel depends on your business needs and target audience. SMS is an excellent option for companies needing a better reach to deliver urgent messages. WhatsApp delivers enhanced interaction tools and a more engaging customer experience when you want to establish personal connections. Knowing your audience’s preferences and communication habits will help you make informed choices.
The easiest way to choose SMS vs WhatsApp is based on your brand's needs.
- SMS is perfect for flash sales and time-sensitive offers. It stands out for immediate action because of its unmatched speed and simplicity.
- WhatsApp is perfect for customer support and conversational marketing. It delivers immediate communication while maintaining personal interaction.
SMS vs WhatsApp: Engagement & Customer Experience
When it comes to customer interaction, SMS and WhatsApp provide unique user experiences. Let’s explore these differences further:
SMS: Broad Reach with High Open Rates
- Universal Accessibility: SMS provides connectivity to all mobile users independent of their device type or internet connectivity.
- Impressive Open Rates: SMS messaging achieves open rates of about 98%, which guarantees that messages reach their audience.
- Quick Response Times: The typical response time from SMS recipients is 90 seconds, which enables immediate communication between parties.
WhatsApp: Increased Engagement with Interactive Features
- Rich Media Sharing: WhatsApp allows multimedia messages, such as images, videos, and documents, to improve customer communication experiences. However, sending and receiving messages require internet access.
- Interactive Tools: Quick-reply buttons and chat automation features enhance communication efficiency.
- High Open Rates: WhatsApp messages have open rates of 98%, and personalized content manages up to 98% open rates.
- Mass Adoption: WhatsApp has one of the largest?user groups, with over 2 billion active users worldwide.
Choosing SMS vs. WhatsApp as a communication channel depends on your business needs and target audience. SMS is an excellent option for companies needing a better reach to deliver urgent messages. WhatsApp delivers enhanced interaction tools and a more engaging customer experience when you want to establish personal connections. Knowing your audience’s preferences and communication habits will help you make informed choices.
Best Text Messaging Services for BusinessesMessaging Features: SMS vs WhatsApp
SMS is a simple text messaging service that lets you send and receive messages on your mobile phone (for both iOS and Android). WhatsApp enables you to send messages and multimedia like images, audio messages, video messages, files, and documents. This gives businesses much more flexibility in how they communicate with their customers. Let’s talk about these features in detail for each:
1. Rich Media Support
SMS has the disadvantage of supporting only text messages and links within 160 characters. This makes it a great tool for sending quick alerts or reminders more than anything else. WhatsApp allows smart representation through the use of images, videos, documents (up to 2GB), voice notes, and more. This is perfect for product demos, brochures, or personalized content.
WhatsApp
- Send interactive catalogs or appointment reminders with visuals
- High-res images, PDFs, videos and more
SMS
- Text-based messages only.
- Short links, e.g., "Track your order - [link]."
2. Automation & Chatbots
SMS automation is limited to auto-replies or keyword-triggered responses (like “Text OFFER to 12345”). WhatsApp goes much further with AI-enhanced bots that handle various questions, process orders, or even deal with complaints 24/7.
WhatsApp
- Chatbots for FAQs, payments, booking confirmations, and more.
- Integration with tools to schedule text messages easily.
SMS
- Simple auto-replies like “Thanks for your inquiry! We’ll respond shortly."
- Limited to predefined keywords.
3. Two-Way Communication & Interactivity
SMS allows a basic conversation that is not very engaging. WhatsApp, on the other hand, lets you have personalized, real-time conversations with your customers. This is possible with WhatsApp’s quick-reply buttons, surveys, and in-chat menus.
WhatsApp
- No buttons to use within the messages.
- Useful for offers and polls (for example, "Rate us 1-5 stars").
SMS
- Engaging, clickable buttons ( "Track Order" or "Contact Support," etc.).
- Interactive lists for bookings or feedback.
4. Security & End-to-End Encryption
SMS messages are unencrypted, making them vulnerable to interception. All WhatsApp chats, however, are secured with end-to-end encryption, which allows only the sender and recipient to read the messages.
WhatsApp
- Messages, calls, and files are encrypted with bank-grade encryption.
- Trusted for secure transactions like payment links or account updates.
SMS
- Encryption is not available
- Relies on carrier security protocols
Related: It’s always a good idea to schedule text messages for customers. This can greatly enhance communication efficiency, provided businesses follow best practices to ensure optimal impact. Read our blog for expert tips on how to schedule text messages effectively.
Looking to enhance your business communication?
ControlHippo helps you use SMS and WhatsApp with smart automation, ensuring faster responses and better engagement.
Limitations: SMS VS WhatsApp
Though SMS and WhatsApp are powerful communication tools, businesses have to deal with a number of inherent limitations. From regulatory hurdles to technical constraints, understanding these challenges allows for compliant and effective messaging. Here is a detailed breakdown of those challenges:
1. Regulatory Restrictions & Compliance
Governments and platforms enforce strict rules to protect user privacy and prevent spam. Ignoring these can lead to fines, blocked accounts, or reputational damage.
SMS Compliance
TCPA (US): According to the TCPA, promotional texts must have explicit opt-in consent before they can be sent. Violators could face penalties of 500 to 1,500 per message.
GDPR (EU): Users should be explicitly told how their data is used under GDPR and able to opt-out anytime. Fines for non-compliance can be around 4% of revenue. CASL for Canada, TRAI guidelines for India, and LGPD for Brazil each demand similar consent and transparency requirements.
WhatsApp Compliance
GDPR Data Storage: This requires that businesses encrypt stored messages with prior consent to collect user data.
WhatsApp Commerce Policy: Promotional bulk messaging, e.g., unsolicited offers, is banned. Business accounts are restricted from sending templated messages without approval.
2. Length & Formatting Constraints
When talking about SMS vs WhatsApp, it’s important to consider the length and format constraints. While SMS texts are short and sweet, WhatsApp supports richer formats. Find out about their limits below:
For SMS
- Word limit: 160 letters, and if you go over, your message gets split, increasing costs.
- No pictures, videos, hyperlinks, or formatting options
For WhatsApp
- Word limit: 1,000 characters with emojis, links, and multimedia
- Formatting options in bold, italics, and strikethrough
3. Delivery Reliability & Spam Filtering
Message delivery is not guaranteed through either platform. Issues like connectivity, carrier filters, and spam algorithms can impact both SMS and WhatsApp. Let’s delve deeper:
SMS Delivery Risks
- Carrier Filtering: Telecom providers block messages flagged as spam based on keywords (e.g., “free,” “credit”).
- Global Delivery Rates: Delivery rates vary by region. It is typically 95%+ in the US/EU and around 70% in countries with unstable networks (e.g., parts of Africa).
WhatsApp Delivery Risks
- Internet Dependency: Messages won’t deliver if recipients are offline or lack data/Wi-Fi.
- Spam Detection: WhatsApp’s AI flags accounts sending bulk messages or high-frequency texts, leading to temporary bans.
SMS vs WhatsApp: Pricing Breakdown
SMS usually costs more than WhatsApp. To use SMS, you have to get a number from a telecom carrier. Most of the number types that companies prefer aren’t free. Plus, SMS companies charge for each SMS or a group of messages. The cost is usually higher for SMS numbers that have better delivery rates.
To get access to the WhatsApp API, you can host it yourself or use WhatsApp Cloud API. Hosting it yourself is only available through WhatsApp partners and can mean setup costs, hosting costs, and extra charges for each message.
When you put SMS and WhatsApp side-by-side, WhatsApp is generally cheaper.
WhatsApp charges companies for each 24-hour chat. There are different prices for four kinds of chats:
* User-started chats: When customers message you first.
* Business-started chats: Messages companies send that can be about marketing, updates, or confirming something.
Lastly, since the WhatsApp API doesn’t allow you to read and reply to messages, you need a messaging inbox. If you need a WhatsApp partner with messaging software, think about ControlHippo.
Use Cases: WhatsApp vs SMS for Business Communication
Let’s examine real-world use cases for WhatsApp vs. SMS. This can help you determine how to use both to hit your targets, such as warming up potential customers, fixing problems, or increasing sales.
1. Notifications & Alerts
Timely, concise updates are important to build customer trust. While both channels work, their strengths differ.
SMS has a 98% open rate within 3 minutes, making it great for time-sensitive information. You can send OTPs, reminders, payment confirmations, or security alerts.
WhatsApp is more versatile for businesses since it allows for rich media updates. You can send shipping updates with links, interactive maps, sale reminders, and much more. An example of this could be “XXXX is your OTP for email verification.”
2. Sales & Promotions
You can drive more conversions by choosing the right platform for promotions.
While both SMS and WhatsApp are great channels for sale promotions, here are some use cases:
SMS is great for flash sales (e.g., “LAST CHANCE! 50% off ends tonight. Shop now: [link]).” It can also be used for loyalty rewards, abandoned cart nuggets, and more.
WhatsApp is more interactive, allowing you to share interactive catalogs, personalized offers, launches, and so much more.
3. Customer Support & Engagement
SMS can be used to send Basic FAQs, feedback, or review requests. Here are some examples:
- “Store hours: Mon-Fri, 9 AM–6 PM. Reply HELP for more info.”
- “Rate your experience: 1–5 stars.”
- “How’s your new laptop working? Reply ISSUE for support.”
WhatsApp has many use cases to help provide better customer support and increase engagement. Here are some:
- Multimedia support: Troubleshoot issues with video tutorials or screenshots.
- Chatbots: Resolve billing disputes, track orders, or book appointments via automated flows.
- Proactive engagement: Send how-to guides or warranty updates with PDF attachments.
4. Marketing & Remarketing
Both SMS and WhatsApp can be great tools for marketing your products/services and re-engaging audiences. With SMS, you can send texts about seasonal sales, win-back campaigns, and localized offers.
WhatsApp takes this further with its multimedia support. You can send video testimonials to warm leads, personalized product demos, interactive quizzes, and more.
Choosing Between WhatsApp and SMS: Which One is Right for You?
Ultimately, the choice between SMS and WhatsApp depends on your particular business needs and available budget. You should also consider your interactivity, security, and audience preferences.
Your business’s location also matters. While SMS is used worldwide, WhatsApp can be better if your business is located where it’s popular.
WhatsApp is also more conversational, has rich media support, and has automation capabilities. It is suitable for almost any use case, including inbound and outbound marketing, customer support, and sales. If you decide to use SMS messages, consider tools with a shared SMS inbox so your team can easily manage customer interactions.
With ControlHippo’s omnichannel communication platform, you can easily manage communication with customers across various channels. You can integrate all your social media channels into a single tool and easily manage interactions from a unified dashboard.
Updated : March 20, 2025
Subscribe to our newsletter & never miss our latest news and promotions.
+21K people have already subscribed