Introduction
As a Nigerian business owner, you've likely wondered: "Should I use SMS or WhatsApp Business for customer communication?" Both channels are powerful, but they serve different purposes and excel in different scenarios.
This comprehensive guide compares SMS and WhatsApp Business across multiple dimensions—delivery rates, costs, features, reach, and use cases—to help you make the right choice for your business. Spoiler alert: the best strategy often involves using both channels strategically.
Quick Answer
SMS is better for time-sensitive, guaranteed delivery, and reaching all phone users. WhatsApp Business is better for rich media, two-way conversations, and engaging younger audiences. Most successful businesses use both.
SMS vs WhatsApp: Quick Comparison Table
| Feature |
SMS |
WhatsApp Business |
| Delivery Rate |
98-99% (guaranteed) |
70-85% (requires internet) |
| Reach |
All mobile users |
WhatsApp users only (~80M in Nigeria) |
| Cost per Message |
₦5-7 |
₦10-15 (session-based) |
| Character Limit |
160 chars (1 page) |
65,536 chars |
| Rich Media |
Text only |
Images, videos, PDFs, buttons |
| Two-Way Communication |
Limited (STOP keyword) |
Full conversations |
| Read Receipts |
Delivery reports only |
Sent, delivered, read, replied |
| Setup Complexity |
Very simple |
Moderate (requires API approval) |
| Best For |
Alerts, OTPs, urgent notices |
Customer support, rich engagement |
Detailed Comparison: SMS vs WhatsApp Business
1. Delivery Rate & Reliability
SMS: The Reliability Champion
SMS operates on the cellular network infrastructure, not the internet. This gives it exceptional reliability:
- 98-99% Delivery Rate - Messages reach recipients even in areas with poor internet
- Store and Forward - If phone is off, message delivers when it's back on
- No App Required - Works on every mobile phone, from basic feature phones to smartphones
- Network Independent - Works across all networks (MTN, Glo, Airtel, 9mobile)
- Instant Delivery - Typically delivered within seconds
✓ SMS Wins For:
Critical, time-sensitive messages like OTPs, transaction alerts, appointment reminders, and emergency notifications where guaranteed delivery is essential.
WhatsApp Business: The Internet-Dependent Challenger
WhatsApp requires internet connectivity, which affects its reliability:
- 70-85% Delivery Rate - Depends on recipient having active internet
- Internet Required - WiFi or mobile data must be enabled
- App Must Be Installed - Recipient needs WhatsApp installed and active
- Account Status Matters - Blocked or deleted accounts won't receive messages
- 24-Hour Window - Can only message customers who contacted you first (unless using paid templates)
WhatsApp Limitation
You can only initiate conversations with customers using pre-approved message templates. Free-form messages are only allowed within 24 hours of customer contact.
2. Reach & Audience Coverage
SMS: Universal Reach
SMS reaches every mobile phone user in Nigeria:
- 200+ Million Phone Users - Every Nigerian with a mobile phone
- All Demographics - Young and old, urban and rural
- All Devices - Smartphones and feature phones alike
- No Registration - Works with just a phone number
- Rural Penetration - Reaches areas with limited smartphone adoption
WhatsApp Business: Smartphone Users Only
WhatsApp has impressive reach but is limited to smartphone users:
- ~80 Million Users in Nigeria - Significant but not universal
- Younger Demographic - Primarily ages 18-45
- Urban Bias - Higher adoption in cities than rural areas
- Smartphone Required - Excludes feature phone users
- Active Users Only - Some people have dormant WhatsApp accounts
Key Insight
If your target audience includes older demographics, rural areas, or lower-income segments, SMS provides significantly better reach than WhatsApp.
3. Cost Comparison
SMS Pricing
- Standard Rate - ₦5.62 - ₦7 per message (160 characters)
- Page Splits - Long messages cost multiple pages (e.g., 300 chars = 2 pages = ₦11-14)
- Volume Discounts - Lower rates for higher volumes
- DND Delivery - Premium routes cost ₦6-8 per message
- Predictable Costs - Pay per message sent, regardless of delivery status
WhatsApp Business API Pricing
- Session-Based Pricing - ₦10-15 per conversation session
- 24-Hour Windows - Multiple messages within 24 hours = one session charge
- Template Messages - Initiating conversations costs more
- Free User-Initiated - Responses within 24 hours are often cheaper
- Setup Costs - API integration and verification fees (typically ₦50,000 - ₦200,000 one-time)
Cost Example: 10,000 Customers
SMS: 10,000 × ₦6 = ₦60,000 (one-time marketing campaign)
WhatsApp: 10,000 × ₦12 = ₦120,000 (template broadcast) + setup costs
However, WhatsApp allows follow-up conversations at no extra cost within the session, making it more cost-effective for ongoing engagement.
4. Features & Capabilities
SMS Features
- Text Only - Plain text messages (up to 1,530 characters in 10 pages)
- Custom Sender ID - Brand name as sender (e.g., "ShopEase")
- Scheduled Sending - Set messages to send at specific times
- Delivery Reports - Know which messages were delivered
- Personalization - Merge fields for names, amounts, etc.
- URL Shortening - Include shortened links (counted in character limit)
WhatsApp Business Features
- Rich Media - Images, videos, PDFs, voice notes, location
- Interactive Buttons - Quick reply buttons, call-to-action buttons
- Product Catalogs - Showcase products with images and prices
- Two-Way Conversations - Full chat functionality
- Read Receipts - See when messages are read
- Automated Responses - Away messages, quick replies, chatbots
- WhatsApp Pay - In-app payments (coming to Nigeria)
- Business Profile - Display business info, hours, location
✓ WhatsApp Wins For:
Rich, engaging customer interactions requiring images, videos, or back-and-forth conversations. Perfect for customer support, product showcases, and relationship building.
5. Engagement & Response Rates
SMS Engagement
- Open Rate - 98% (most SMS are read within 3 minutes)
- Click-Through Rate - 3-5% (for messages with links)
- Response Rate - 5-10% (limited by text-only format)
- Perceived Trust - High trust for transactional messages
- Message Lifespan - Usually read and deleted quickly
WhatsApp Engagement
- Open Rate - 90-95% (among delivered messages)
- Click-Through Rate - 15-25% (buttons boost engagement)
- Response Rate - 20-40% (two-way conversations encourage replies)
- Message Lifespan - Remains in chat history, can be referenced later
- Sharing Potential - Easy to forward messages, images, or offers
Engagement Winner: WhatsApp
WhatsApp's rich media, conversational nature, and interactive features drive significantly higher engagement and response rates compared to text-only SMS.
6. Use Cases & Best Applications
When to Use SMS
SMS Excels At:
- 🔐 OTPs & Authentication - One-time passwords, verification codes
- 💰 Transaction Alerts - Bank notifications, payment confirmations
- 📅 Appointment Reminders - Doctor visits, meetings, deliveries
- 🚨 Emergency Alerts - Urgent notifications, security alerts
- 📊 Order Updates - Shipping confirmations, delivery status
- ⏰ Time-Sensitive Offers - Flash sales, limited-time promotions
- 🗳️ Surveys (Short) - Simple yes/no or quick feedback requests
- 📢 Mass Announcements - School closures, service disruptions
When to Use WhatsApp Business
WhatsApp Excels At:
- 💬 Customer Support - Answering questions, resolving issues
- 🛍️ Product Showcases - Catalog sharing, product images
- 📝 Order Taking - Taking custom orders through conversation
- 🎓 Educational Content - Tutorials, how-to guides with images/videos
- 👥 Community Building - Customer groups, VIP segments
- 🎁 Personalized Offers - Tailored promotions with rich media
- 📋 Long-Form Information - Detailed product info, instructions
- 🤝 Relationship Building - Ongoing customer engagement
SMS vs WhatsApp: The Verdict by Business Type
E-commerce Businesses
Recommended: Both
- SMS For: Order confirmations, shipping updates, delivery notifications, abandoned cart reminders
- WhatsApp For: Product inquiries, catalog sharing, customer support, personalized recommendations
Financial Services (Banks, Fintechs)
Recommended: SMS Primary, WhatsApp Secondary
- SMS For: Transaction alerts, OTPs, fraud alerts, account notifications (regulatory requirement)
- WhatsApp For: Customer service, loan applications, document submission
Healthcare (Hospitals, Clinics)
Recommended: Both
- SMS For: Appointment reminders, lab results ready, prescription refill alerts
- WhatsApp For: Telemedicine consultations, health tips, appointment scheduling conversations
Schools & Educational Institutions
Recommended: SMS Primary
- SMS For: Emergency announcements, exam schedules, fee reminders, result notifications (reaches all parents)
- WhatsApp For: Parent-teacher communication, sharing assignments, class updates
Real Estate
Recommended: WhatsApp Primary, SMS Secondary
- SMS For: Open house alerts, quick property updates, viewing reminders
- WhatsApp For: Property photos/videos, virtual tours, client inquiries, document sharing
Restaurants & Food Delivery
Recommended: Both
- SMS For: Order confirmations, delivery status, table reservations
- WhatsApp For: Menu sharing, custom orders, customer feedback, loyalty programs
Churches & Religious Organizations
Recommended: SMS Primary
- SMS For: Service times, event announcements, birthday wishes, tithes reminders (reaches all members)
- WhatsApp For: Prayer requests, small group communication, sharing sermon notes
The Multi-Channel Strategy: Using Both Together
The most effective approach is using SMS and WhatsApp together, leveraging each channel's strengths:
Strategy 1: Critical + Engagement
- SMS: Send critical, time-sensitive notifications (OTPs, confirmations)
- WhatsApp: Follow up with rich details, images, or ongoing support
Example: Send order confirmation via SMS ("Your order #12345 has been confirmed"). Then send WhatsApp message with product images, tracking link, and estimated delivery details.
Strategy 2: Broad Reach + Targeted Engagement
- SMS: Broadcast to entire customer base (universal reach)
- WhatsApp: Engage interested respondents with rich media and conversations
Example: Send flash sale SMS to all customers. When they click the link, offer WhatsApp support for questions and personalized assistance.
Strategy 3: Acquisition + Retention
- SMS: Customer acquisition campaigns (reaches everyone)
- WhatsApp: Customer retention and loyalty (deeper engagement)
Example: Use SMS for first-time customer promotions. Move high-value customers to WhatsApp for VIP treatment, exclusive offers, and personalized service.
Choosing Your Channel: Decision Framework
Ask Yourself These Questions:
1. Is delivery absolutely critical?
If YES → Use SMS (guaranteed delivery)
2. Do you need to include images or videos?
If YES → Use WhatsApp (rich media support)
3. Are you reaching older or rural demographics?
If YES → Use SMS (universal reach)
4. Do you need two-way conversations?
If YES → Use WhatsApp (full chat functionality)
5. Is this a regulatory/compliance message?
If YES → Use SMS (required by CBN for financial services)
6. Do you have budget for setup and integration?
If NO → Start with SMS (easier setup)
7. Is engagement more important than reach?
If YES → Use WhatsApp (higher engagement rates)
Common Misconceptions
Myth 1: "WhatsApp is free, so it's always cheaper"
Reality: WhatsApp Business app is free for small-scale use, but the WhatsApp Business API (required for bulk messaging and automation) has significant costs: API fees, integration costs, and per-conversation charges. For simple one-way broadcasts, SMS is often more cost-effective.
Myth 2: "SMS is outdated and nobody reads them"
Reality: SMS has a 98% open rate—higher than email (20%) and comparable to WhatsApp (90-95%). People still read SMS, especially for important notifications. The key is sending relevant, timely messages, not spam.
Myth 3: "WhatsApp reaches more people in Nigeria"
Reality: While 80 million Nigerians use WhatsApp, 200+ million have mobile phones capable of receiving SMS. SMS has 2.5x the reach of WhatsApp, especially important in rural areas and among older demographics.
Myth 4: "I can send unlimited WhatsApp messages for free"
Reality: WhatsApp Business API has strict limits and costs. You can only initiate conversations using pre-approved templates (which cost money), and you're limited to the 24-hour messaging window for free-form replies. Bulk messaging requires the paid API.
Myth 5: "SMS can only send boring text messages"
Reality: While SMS is text-only, it's highly effective for its use cases. Plus, you can include shortened URLs to rich landing pages, combine SMS with MMS (multimedia messaging), or use SMS as the first touchpoint in a multi-channel campaign.
Implementation Tips
Getting Started with SMS
- Choose a Reliable Provider - Select a provider with good delivery rates and network coverage (like BulkSMS Nigeria)
- Register Your Sender ID - Get your brand name approved as sender ID
- Build Your Contact List - Collect phone numbers with proper consent
- Craft Concise Messages - Keep messages under 160 characters when possible
- Test Before Sending - Send test messages to verify delivery
- Monitor Delivery Reports - Track which messages were delivered successfully
- Respect Opt-Outs - Honor STOP requests immediately
Getting Started with WhatsApp Business
- WhatsApp Business App - Start with the free app for small-scale messaging
- Upgrade to API - When ready for automation, apply for WhatsApp Business API access
- Get Verified - Apply for the green checkmark badge (builds trust)
- Set Up Templates - Create and submit message templates for approval
- Integrate with CRM - Connect WhatsApp to your customer database
- Train Your Team - Ensure staff can handle incoming conversations professionally
- Monitor Response Times - WhatsApp shows your average response time to customers
Cost Optimization Strategies
Optimizing SMS Costs
- Keep Messages Short - Stay under 160 characters to avoid page splits
- Avoid Special Characters - Unicode characters reduce character limit to 70 per page
- Buy in Bulk - Volume discounts reduce per-message costs
- Clean Your List - Remove invalid numbers to avoid wasting credits
- Time Campaigns Wisely - Some providers offer off-peak discounts
- Use Standard Routes - Reserve premium DND routes for critical segments
Optimizing WhatsApp Costs
- Leverage 24-Hour Windows - Send multiple messages within one session
- Encourage Customer-Initiated Contact - Responses are cheaper than templates
- Use Quick Replies - Pre-defined responses reduce conversation length
- Automate When Possible - Chatbots handle common queries without human cost
- Template Optimization - Create versatile templates that work for multiple scenarios
Future Trends
SMS Evolution
- RCS (Rich Communication Services) - Next-gen SMS with rich media support coming to Nigeria
- Enhanced Analytics - Better tracking and attribution for SMS campaigns
- AI Personalization - Dynamic content insertion based on customer data
- 5G Integration - Faster delivery and enhanced capabilities
WhatsApp Business Evolution
- WhatsApp Pay - In-app payments coming to Nigeria (game-changer for e-commerce)
- Enhanced Commerce - Improved shopping features and checkout flows
- AI Chatbots - More sophisticated automated responses
- Video Calls - Business video calling for consultations and support
- Premium Features - Additional business tools and analytics
Final Recommendation
Don't choose between SMS and WhatsApp—use both strategically.
The Optimal Multi-Channel Approach:
📱
Use SMS For:
Critical alerts, OTPs, transaction notifications, appointment reminders, and reaching your entire customer base including older and rural demographics.
💬
Use WhatsApp For:
Customer support, product catalogs, rich marketing campaigns, building relationships, and engaging tech-savvy urban audiences with two-way conversations.
🎯
Use Both Together:
SMS for reach and reliability + WhatsApp for depth and engagement = Maximum business impact and customer satisfaction.
Ready to Get Started?
Whether you choose SMS, WhatsApp, or both, the key is starting with a solid strategy aligned with your business goals and customer preferences.
Start with SMS if: You need reliable delivery, universal reach, and quick setup with minimal complexity.
Start with WhatsApp if: You have the resources for API integration, want rich media capabilities, and target primarily urban smartphone users.
Use both if: You want to maximize reach AND engagement, serving different customer needs through the most appropriate channel.
Start Your SMS Marketing Today
Join thousands of Nigerian businesses using BulkSMS Nigeria for reliable, affordable, and compliant SMS marketing. Get 50 free SMS credits when you sign up.