Customer Data Collection: SMS vs Email for Shopify Stores
Z
Zack Saadioui
1/16/2025
Customer Data Collection: SMS vs Email for Shopify Stores
As online retailers continue to adapt in our digitized world, the methods of collecting customer data are evolving. The debate between SMS & email for data collection, customer engagement, & marketing remains a hot topic. This blog takes a deep dive into the pros & cons of each channel for Shopify store owners, exploring how they can optimize CUSTOMER DATA COLLECTION to improve their marketing strategies.
Understanding Customer Data
Before we dive into the specifics of SMS & email, it’s essential to understand what customer data actually is. Customer data includes a variety of information that businesses collect to gain insights into their customers’ preferences, behavior, & habits. By harnessing this data effectively, businesses can tailor their marketing efforts to resonate with their audience. You can collect various types of data, including:
First-party data: Information you collect directly from users (like order history, browsing patterns, etc.). This type of data is considered the most reliable & valuable as it's collected with customer consent.
Zero-party data: This is data that customers intentionally & proactively share with a brand. It includes preferences, interests, & personal details given directly by them. This is often collected through surveys or preference centers.
Third-party data: Information that’s gathered by another entity for commercial purposes. This includes demographic data, trends, & consumer behavior gleaned from various platforms (which is becoming less reliable due to privacy changes).
The Role of SMS in Customer Data Collection
SMS marketing has taken the eCommerce world by storm—due to its immediacy & high engagement rates. It allows businesses to reach customers directly on their mobile devices, enabling instant communication & action. Here’s why SMS can be a powerful tool for customer data collection:
1. Higher Engagement Levels
Did you know that SMS messages have an open rate of about 98% compared to just 20% for emails? People tend to read text messages almost immediately after receiving them, & seldom ignore them. This makes SMS an effective tool for communication & information-sharing, encouraging customer responses that can enhance your data collection.
2. Direct Permission
To send SMS, customers must provide explicit consent, ensuring that you're collecting only qualified leads. With the regulations like the Telephone Consumer Protection Act (TCPA) in place, text message marketing not only helps businesses but also secures customers' trust that their data is safe with you.
3. Quick Responses
SMS enables immediate feedback from customers, allowing store owners to quickly gather data through polls, surveys, & feedback forms via text. Just a quick text asking customers to rate their experience can yield beneficial insights you can use to improve your services.
4. Dynamic Personalization
SMS allows for personalizing messages based on previous interactions, location, & customer behavior. Segmenting your audience for personalized messages can significantly enhance your communications—leading to higher conversion rates.
5. Increased Promotions & Discount Codes
Using SMS can enhance opportunities for sending personalized offers & promotional codes based on shopping patterns & behavior. For instance, re-engaging customers who have abandoned their carts with special offers can help recover lost sales.
The Role of Email in Customer Data Collection
Email marketing remains a cornerstone of digital marketing strategies for many businesses. Although SMS is gaining ground, emails still account for a significant share of communication strategies in terms of data collection & customer communication:
1. Rich Content Delivery
Emails allow for rich multimedia content, including images, videos, links, & detailed information that SMS can’t accommodate due to character limitations. This makes it ideal for creating detailed newsletters, promotions, and product launches.
2. Segmentation Capabilities
Developing segmented lists is easier with email, as you can categorize subscribers based on their purchasing behavior, demographics, or interests. This allows Shopify store owners to send targeted emails that drive engagement and conversions. Segmenting emails ensures that customers receive relevant information, increasing the likelihood of interaction.
3. A/B Testing
Email platforms have built-in features that allow you to conduct A/B tests on various components (subjects, content, layouts). This means you can fine-tune your campaigns based on real data to discover what resonates best with your audience, improving overall effectiveness.
4. Transactional Communication
Emails are often favored for transactional messages, ensuring customers are informed about their order status, shipping updates, & more. This data can be analyzed to improve overall customer satisfaction.
5. Loyalty Building
Emails can build deeper relationships by providing customers with personalized content such as tailored recommendations, birthday discounts, & loyalty program updates. Engaging content fosters a sense of community and encourages continued interactions.
SMS vs. Email: Which is Better for Customer Data Collection?
1. Engagement Rates
While SMS possesses a higher immediate open rate, emails can ensure deeper engagement with richer content.
SMS open rates: 98%
Email open rates: 20%
2. Cost-Efficiency
Both SMS & emails have persuasively low costs. However, email marketing can offer more cost-effective scaling options depending on the service used.
3. Customer Preference
Some customers prefer receiving updates via text—especially younger demographics. However, for detailed communications, emails might be the go-to choice.
4. Legal Compliance
SMS marketing must adhere to stringent regulations, ensuring that you have permission & are following the rules, while email marketing can allow for more flexible options but still must comply with privacy laws like the GDPR & CAN-SPAM Act.
5. Insights & Analytics
Both methods offer analytical insights into customer behaviors. However, email analytics can be more in-depth, allowing for robust review of data based on opened clicks, conversions, & more.
Best Practices for SMS & Email Customer Data Collection
To optimize your data collection efforts, it's essential to follow certain best practices. Incorporate them into your strategy for maximum effectiveness:
SMS Best Practices:
Request Explicit Consent: Always ask for customers' consent before sending messages.
Keep Messages Concise: Use clear, short messaging that gets to the point.
Include CTAs: Ensure every message tells customers what action you want them to take.
Offer Value: Send exclusive offers or discount codes to improve engagement.
Email Best Practices:
Personalize Communications: Use customer names & tailor content based on previous purchases.
Segment Your List: Build targeted lists to send specific content to relevant customers.
Test & Optimize: Use A/B testing to improve open and engagement rates.
Follow Up: Regularly check in with customers & follow up with personalized suggestions or feedback requests.
Arsturn: Enhancing Customer Engagement with Chatbots
Both SMS & email can significantly enhance your marketing & customer relationship strategies. However, why stop there? By integrating chatbots into your communication strategy with Arsturn, you can further enhance customer engagement & streamline your data collection process.
Customizable Solutions: With Arsturn’s no-code platform, you can create a chatbot tailored to your brand identity easily.
Automation: Automate routine communications and data collection through chatbots, saving precious time.
Data Analytics: Gain insights through chatbot interactions & refine your marketing strategies based on real-time customer feedback.
Leverage the power of Arsturn to elevate your customer engagement further & create personalized experiences that resonate!
Conclusion: Choosing the Best Option
The choice between SMS & email ultimately rests on your business needs & customer preferences. They both have strengths that can significantly boost your customer data collection efforts. By combining these methods & integrating technologies such as chatbots from Arsturn, you can create a comprehensive strategy that meets your customers' needs while optimizing your data collection efforts. So, which will you choose to enhance your Shopify store's success?