Hi John,
The advantage of the sleep mode is that the part can automatically switch to a lower ODR and another mode (usually Low Power) when inactivity is detected. The lowest current consumption is achieved when (S)MODS = 0b11 (Low Power mode) and when the sample rate is set to 1.56 Hz. Once activity (e.g. motion/transient) is detected, the accelerometer automatically switches back to the original data rate of the application and provides an activity interrupt that can be used to wake up the host processor. In the sleep mode both analog and digital blocks are still enabled.
Regards,
Tomas
PS: If my answer helps to solve your question, please mark it as "Correct". Thank you.