For Australian SMEs looking to win back customers who haven’t engaged for a while, choosing the right reactivation channel is crucial. The debate often centres on email versus SMS. While both have their place, our analysis suggests SMS will likely deliver superior results for lapsed customers, particularly moving into 2026.
Here’s why. Australian consumers are experiencing increasing ‘inbox fatigue’. Email open rates have been steadily declining, and getting cut through with promotional material is harder than ever. People are simply overwhelmed. SMS, on the other hand, boasts significantly higher open rates – often exceeding 90% – because it lands directly on a mobile device and demands immediate attention. This immediacy is vital when trying to re-engage someone who’s already drifted away.
However, it’s not a simple case of ‘SMS always wins’. Consider these key insights:
- Attention Spans: SMS is best for concise, urgent messages. Think special offers, reminders, or a quick ‘we miss you’ message with a link. Email allows for more detailed storytelling and relationship building, but that’s less effective with someone already lapsed.
- Deliverability: While email deliverability is a constant challenge (spam filters, full inboxes), SMS deliverability is generally very high in Australia. This means your message is far more likely to be seen.
- Personalisation: Both channels benefit from personalisation. But SMS allows for dynamic content insertion – like a customer’s name or a specific product they viewed – in a very direct way.
- Segmentation is Key: Don’t treat all lapsed customers the same. Segment based on purchase history, engagement level, and reason for lapsing (if known). This allows you to tailor your message – and channel choice – for maximum impact.
Looking ahead to 2027, we anticipate the trend towards mobile-first communication will only strengthen. While email will remain important for ongoing customer communication, SMS will be the more effective tool for actively *re*engaging those who’ve become inactive. A blended approach – using SMS to initially grab attention and then following up with a more detailed email – can also be highly effective.
Ultimately, the best approach is to test both channels with a small segment of your lapsed customer base. Track open rates, click-through rates, and conversion rates to determine which performs better for *your* specific audience. This data-driven approach will ensure you’re investing your marketing budget where it will deliver the highest return.