Top 8 Metrics to Measure the Performance and ROI of Your SMS Campaign
You must’ve read a lot about how text message marketing can help you better connect with your target audience and boost sales and conversions. Ever wondered how you can actually measure the performance and ROI of your SMS marketing campaign and use those metrics to drive more sales and conversions?
Why it’s Important to Measure the Performance of Your SMS Campaign?
SMS marketing, specifically bulk SMS marketing, have been around for quite some time now. But similar to any other marketing activity, it’s extremely important to gauge the performance of your text message marketing campaign. Regardless of how amazing your SMS campaign may appear you’ll never get an idea whether it’s working effectively or not, unless you measure its progress.
With this in mind, we’ve created a comprehensive list of the top 8 metrics that can help you track the performance and ROI of your text message marketing campaign:
- Click Rate
The click rate basically computes the ratio of opt-in subscribers who initiated an action clicking on the links provided in a text message, taking them to a landing page where they might actually make a purchase, do product research, or get in touch with the customer care to know more about ongoing offers and deals. Click-through rate is a foolproof way to identify how many subscribers are engaging with your messages and interested in knowing more about your offers and services.
There are a number of useful tools and softwares that can help you calculate new clicks from your campaign. Once you know the exact figure, simply divide that by the total number of sent messages and multiply by 100. It’s important to understand that the better the click-through-rate, the higher your return on investment.
- Rate of Conversion
The rate of conversion demonstrates the percentage of subscribers who actually take an action by reacting to your CTA. This could either be in a form of a phone call, a visit to your website, or an actual purchase. In many cases, conversions are strictly believed to be purchase-related though.
By accurately gauging your conversion rate you’ll have a better understanding of your particular products, services, and offers that are successfully maintaining engagement with your target audience. Also, it will help you eliminate or adjust the poor performers and focus on the good performers to bring in more conversions.
In order to evaluate the rate of conversion, simply divide the number of opt-in subscribers that take action by total number of opt-in subscribers listed in your SMS list.
- Opt-Out Rate
Let’s admit it, no text message marketing campaign is free from the risk of opt-outs. No matter how engaging and result-driven your marketing campaign is, there will always be some opt-in users who’ll eventually opt-out due to one reason or the other. It could possibly because of the reason that they simply need to reduce the number of messages they receive or they might not need your brand’s services or products in the future.
Also, it could be a sign of various other problems and flaws in your SMS marketing strategy. For instance, choosing poor timing, targeting random people, bombarding your customers with irrelevant messages are just to name a few.
- Response Rate
This statistic is primarily concerned with the total number of subscribers that have taken action after following the CTA mentioned in your messages. Taking control of this metric will help you determine what specific text message format can drive better results. Apart from that, some other considerable factors influencing response rates include timing, content, and offer type.
- Delivered Percentage
Make sure you keep track of your sent and delivered counts for each text message campaign. If your undeliverable message rate is higher than 3%, you have to reconsider your SMS marketing strategy. Also, if you observe a continuous increase in your undeliverable texts, your SMS campaign strategies may not be adhering to the legal guidelines.
- Opt-In Source
In order to measure the effectiveness of your SMS marketing campaign, make sure you capture each opt-in source separately. Make sure you choose the unique keyword that potential customers can use to opt in your SMS campaign. Also, check your chosen keywords on both Android and iOS to ensure that they aren’t auto-corrected.
- Cost per Retaining Subscriber
Before you consider your text message marketing campaign a success, you have to calculate an individual cost of each lead and determine whether it’s result-driven. Keeping record of your spending per each individual subscriber will help you evaluate your return on investment per campaign.
For this, you have to divide the cost of each text message by the rate of conversion. If your total cost is higher than your campaign, you need to review your campaign strategy and make adjustments to ensure you’re getting enough in return to justify initiating a text blast marketing campaign.
- Growth Rate
The Growth rate is another important factor you must consider while measuring success and performance of your SMS marketing campaign. As the number of opt-in subscriber’s increase, you can enjoy better return on your investment.
To evaluate your Growth rate, simply subtract the number of previous opt-in customers from your present number of subscribers and divide it by the total number of old subscribers.
In conclusion, measuring your SMS campaign statistics will enable you to optimize your campaigns and focus more on the areas increasing your ROI even more.