E-commerce brands are constantly looking for the most effective ways to optimize their customer acquisition strategies. One of the most debated topics in recent years has been whether brands should prioritize collecting email addresses or phone numbers (for SMS marketing) in their popup forms. SMS platforms are often vocal advocates for collecting phone numbers first, but is that truly the most effective approach? The results from our recent test with an 8-figure e-commerce brand suggest otherwise, and the data might surprise you.

Breaking Down the Test: SMS-First vs. Email-First
To answer this question, we ran a 60-day test for a client, comparing the performance of two popup strategies:
SMS-First: The popup form asked for phone numbers before email addresses.
Email-First: The popup form prioritized email collection over phone numbers.
The results? Staggering. Here’s what we found:
Subscriber Acquisition
Email Subscribers Gained:
SMS-First: 4,000
Email-First: 13,360 (234% increase)
SMS Subscribers Gained:
SMS-First: 6,782
Email-First: 6,764 (virtually identical)
Total New Subscribers:
SMS-First: 10,782
Email-First: 20,124 (86.64% increase)
Conversion Rates
Email Conversion Rate:
SMS-First: 3.77%
Email-First: 11.84% (213.90% increase)
SMS Conversion Rate:
SMS-First: 6.39%
Email-First: 5.99% (6.27% decrease)
Revenue Impact
Email Welcome Series Revenue:
SMS-First: $32,541.99
Email-First: $80,698.83 (147.98% increase)
SMS Welcome Series Revenue:
SMS-First: $10,067.50
Email-First: $5,520.58 (45.16% decrease)
Combined Revenue:
SMS-First: $42,609.49
Email-First: $86,219.41 (102.35% increase)
Key Takeaways
Email-First Strategy Drives Higher Overall Revenue
While SMS-first generated more immediate SMS revenue, the email-first approach far outperformed in total combined revenue, delivering a 102.35% increase. This highlights the long-term potential of building a robust email subscriber base.
Email-First Doesn't Sacrifice SMS Subscribers
Contrary to what some might expect, prioritizing email collection didn’t significantly impact SMS subscriber growth. The total number of SMS signups was nearly identical in both approaches
Conversion Rates Matter
An email-first strategy delivered a 213.90% higher email conversion rate. This underscores the importance of capturing email addresses, which often lead to higher purchase intent and better engagement.
Don’t Stop at Popup Conversion Rates
Most brands stop their analysis at the popup conversion rate—a critical mistake. The real insights come from following subscribers through the customer journey to see how they convert and contribute to revenue over time.
Why Testing Matters
It’s essential to note that these findings are not universal. Your results may vary based on factors like audience demographics, product offerings, and price points. However, this test demonstrates why it’s critical to challenge conventional wisdom and test "best practices" for yourself. Relying solely on recommendations from SMS platforms or other external sources could leave substantial revenue on the table.
What This Means for Your Business
The data is clear: an email-first approach can significantly boost your subscriber base and revenue. But more importantly, this experiment highlights the importance of understanding how your acquisition strategy impacts the entire customer journey. By focusing on what your customers prefer—and analyzing the data—you can make more informed decisions that align with your goals.
If you’re looking to optimize your retention marketing channels, there’s never been a better time to take action. At Dispatch, we specialize in crafting data-driven email and SMS strategies tailored to your brand’s unique needs. From subscriber acquisition to flow optimization, we’ll help you unlock the full potential of your retention channels.
Ready to Double Your Retention Revenue?
Let’s turn your customer acquisition strategy into a powerful revenue driver. Contact us today to schedule a consultation and learn how we can help you achieve similar results.
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