In an era where digital rewards programs power everything from cannabis dispensaries to mainstream retail, businesses face a familiar challenge: how to reach customers at the exact moment they are ready to act. Push notifications and SMS both deliver rapid communication, but their performance varies widely when it comes to reward redemption. Understanding the strengths of each helps brands choose the right channel—or blend of channels—to increase engagement and drive consistent return visits.
Reach and Deliverability
SMS holds the historical advantage in raw reach. Text messages do not require Wi-Fi, app installs, or account logins. They simply arrive. This makes SMS highly reliable for time-sensitive incentives such as “20% off today only” or “Double points until midnight.” Deliverability rates hover near 98%, giving it the broadest communication footprint across all customer segments.
Push notifications, however, depend on app usage. Customers must download the brand’s mobile app, enable notifications, and continue opening the app regularly. While the potential audience is smaller, it is also more qualified—consumers who download an app are usually loyal, high-value users. For reward redemption targeting, this creates a more focused and motivated group.
Engagement Rates and User Behavior
Push notifications tend to outperform SMS when measuring rich engagement. They can include images, reward counter previews, badges, countdown timers, and deep links that open directly to the rewards wallet inside the app. This friction-free experience matters. Each additional click traditionally reduces redemption likelihood, so push notifications benefit from their one-tap path.
SMS, by comparison, often relies on external links, which can interrupt flow or create hesitation for cautious consumers. However, SMS still excels when the message is clear, concise, and urgent—“Your reward expires today. Show this code at checkout.”
For many loyalty programs, the strongest engagement emerges when both channels work together: SMS to guarantee receipt, and push to support a visually guided redemption experience.
Cost Efficiency and Scalability
SMS campaigns cost more on a per-message basis, especially when businesses communicate frequently. For large programs with thousands or millions of members, the difference becomes significant.
Push notifications, meanwhile, are virtually free once a brand has its mobile ecosystem in place. For companies with mobile-forward customers—such as tech-savvy cannabis shoppers or entertainment-driven loyalty users—push notifications offer a scalable foundation for reward reminders, point updates, and limited-time promotions.
Personalization Power
Push notifications deliver stronger personalization, backed by app behavior analytics. Brands can trigger messages based on browsing habits, location, past purchases, or reward milestones. For example:
- “You’re just 40 points from your next reward—grab your favorite strain today.”
- “Your saved item is back in stock. Use your reward credit now.”
SMS can be personalized as well but lacks the behavioral depth gained from in-app tracking.
Which Performs Better for Reward Redemption?
If the goal is maximum reach and guaranteed visibility, SMS wins. It ensures nearly every customer sees the message. But if the objective is higher-quality interactions, friction-free redemption, and cost-effective personalization, push notifications consistently outperform.
The most successful reward programs use a hybrid approach: SMS for urgent or universal messaging and push notifications for high-quality engagement that converts regular customers into loyal superfans.