SMS marketing is the most personal way to contact your customer. It has a quick reaction time and is the most efficient method of communication. Thanks to its high open rates, SMS marketing increases your brand’s visibility and brings leads into the sales funnel.
The return on investment for text messaging is excellent because it is cheap, simple, and direct. Nowadays, almost everyone has a cell phone, and text messages get to people faster than email or traditional media.
It’s essential to track the effectiveness of an SMS campaign before you can modify it. First, define precisely what you want to achieve with your SMS marketing campaign. Then create metrics for monitoring the operation. For future performance, SMS campaigns must be evaluated and measured.
There are many metrics to measure the success of your SMS marketing campaign. Here is a list of 8 metrics to measure the success of your SMS marketing campaign:
1. List Size
The first step in creating an effective SMS marketing plan is to build up a contact list. The more subscribers you have, the greater your chances are of hitting your target audience.
You should keep track of the number of subscribers to your list as a business owner or marketing manager. This statistic is the total amount of phone numbers linked to your campaign.
The total number of phone numbers in a database does not necessarily equal the number of people reached, as there will undoubtedly be some dormant telephone numbers. But this is the most accurate measure of your subscriber base size.
As your list grows, it offers you a larger sample size to test and adjust your SMS campaigns according to location, budget, and so on.
2. Return Rate (Opt-in Rate)
The rate of response is one of the most important factors when measuring your SMS campaign success. The better your Return Rate, the more leads and sales you generate from your marketing efforts.
This metric shows how many people subscribed to your SMS list by opting-in or through other promotions. It’s vital because it tells you if the incentives were worth it to get people interested in what you are sending them.
It works by calculating the percentage of people who opt-in to a text message and go to a landing page where they may make a purchase, conduct product research, or contact customer care for more information on current offers and discounts. It’s the most foolproof method to determine how many people are reading your messages and interested in learning more about your offers and services.
3. Average Visits Per Guest
Remember that the Return Rate you see is just a percentage of those people who opt-in to your texts and visit your website. The metric for average visits per guest calculates how many times each person visited your site after receiving an SMS notification.
This number can be used to estimate the total number of requests for information or subscriptions to your SMS list.
If you are not getting the expected number of visits from your guests, you can adjust your campaign to increase the number of SMS leads and sales. You may also re-check your list to determine whether the numbers you have with you are still active and working. Make sure that the people who receive your SMS marketing messages are the ones who opted into your operation.
4. Coupon Redemptions
When you track the redemptions in a text marketing campaign, it’s critical to assess your campaign’s success. To generate a percentage of coupon redemptions, track how many coupons were distributed and how many were redeemed. This percent may be used as a goal for your next campaign’s success.
The coupon redemption metric shows the total number of coupons used for discounts, free shipping, and similar offers received by subscribers through an SMS campaign. It indicates how many people who visit your landing page either subscribe to your SMS list or purchase using an SMS coupon.
You may also want to keep track of how soon coupons are redeemed after sending a text and see whether altering the wording or adding more urgency to your expiration date increases redemptions.
Unique promotional codes are a fantastic method to monitor your progress in this area. Here’s what you should consider while choosing a promo code for your text marketing campaign:
- Make your code unique to the specific campaign you’re using it for. Don’t reuse the same code for different offers.
- If you’re promoting the identical offer via numerous marketing channels, make sure to distinguish the code so that you may compare how many redemptions come from your text marketing and how many other ways to get a freebie.
Have lower coupon redemptions? Your offer may not be compelling enough, or you may not have a clear call-to-action in your text message. To figure out what to change, consider these aspects of your offer and the schedule of your text message. However, you don’t want to provide something so vital that the expense of fulfilling it damages your revenue. To determine the size of your offer, you’ll need to calculate average campaign order values.
5. Recovered Revenue from Abandoned Carts
This metric is often overlooked when it comes to monitoring SMS campaign performance. Essentially, you are getting back some of what was initially spent on your list of subscribers through coupons or discounts.
The recovered revenue from abandoned carts shows the total sales generated by sending special coupons and discounts to those who visited your website but did not complete the transaction.
It can be an essential metric for online retailers as it allows you to identify what pushes a customer to make a purchase and which ones do not. It provides valuable insight into the best strategies for successful SMS marketing campaigns.
6. Subscriber Growth and Opt-Out Rate
This metric helps you understand where most of your new subscribers are coming from. You can track how many people have opted in to receive SMS text messages about your business by simply adding up the total number of new opt-ins each month. It is beneficial for companies that use text message marketing as a customer acquisition strategy.
To figure out how fast you’re growing, subtract the number of previous opt-in consumers from your current number of followers and divide it by the total number of old subscribers.
The unsubscribe rate is the proportion of customers who cancel their subscriptions after your campaign. And there are various reasons why people unsubscribe.
- They no longer appreciate your communications.
- You’re sending too many text messages.
- You didn’t receive an opt-in for SMS from the subscriber.
- Your company’s phone number is unknown to the subscriber.
- When a user accepts your message, she might believe it to be deceptive or spam.
It isn’t easy to know why a high unsubscribing rate is occurring. It might indicate anything from poor product/service quality to incorrect marketing messages, among other things. Or it could be due to:
- You’re sending out too many texts that don’t connect with your list.
- You’re sending out strange messages on odd dates and times
- You never set the subscriber’s expectations from the start because it is generally a one-time thing.
If your opt-out rate for campaigns continues to climb, evaluate your messaging cadence, vary the send times, and inform new and current customers who opt-in about your SMS policy.
While it may appear beneficial to cut client expectations of your communications to boost first subscriber rates, you could lose out in the end.
It’s important to remember that there is always the risk of losing subscribers, so tracking this metric will allow you to monitor opt-out rates. Measure how many subscribers have opted out of your list and compare these numbers with those coming in. This can help you understand whether or not SMS marketing works for your company’s strategy.
7. Delivery Rate
The delivery rate is the number of messages sent to your subscribers divided by the total number of messages that you are expected to send. If your campaign includes several SMS, then this metric would do best if grouped, so it represents how many texts in the entire campaign were delivered successfully.
Texts successfully reach their intended recipients if they have a high deliverability rate. A low deliverability rate could indicate a variety of issues, including:
- Carrier failures
- Incorrect data or numbers
- The network quality of the SMS Gateway is not good
- Filters against spam
Tracking your delivery rate might help you get a deeper understanding of the quality of your database. If your delivery rate is low, you may clean your list by deleting invalid contacts to ensure that your communications reach a receptive audience. It will boost overall SMS metrics and improve sender reputation, not to mention money!
8. Customer Acquisition Cost
As with most marketing channels, SMS marketing requires an investment to see returns. By tracking the costs associated with your campaign’s strategy, you can better quantify how much it costs to acquire a customer. You can determine these metrics by doing simple math: divide the total costs of the promotion by the total number of new customers.
Money is spent on acquisition, but the cost is also measured in time lost. You are losing money if you’re paying for click-throughs or conversions to your website because clicks aren’t always converting into sales. So SMS marketing must be profitable if it’s expected to last longer than a few months.
Acquisition costs might be a bit confusing. You could be targeting the wrong audience, which adds to acquisition expenses. Maybe you’re not segmenting your lists correctly, leaving your users without appropriate communications.
When you know your CAC, it can help you fine-tune and improve your marketing efforts. Something must change if the figures aren’t producing what you want.
How to Track SMS Campaign?
You can use several standards to track or compare your campaigns over time. Knowing how to benchmark your mobile marketing campaign will give you a more accurate performance data valuation. You can quickly analyze these figures and develop better strategies without exhausting your marketing budget.
Here are some ways for you to track your SMS campaign:
1. Make a strategy for measuring.
Setting goals and metrics before establishing a tracking plan is wise, whether on a weekly, monthly, or per campaign basis. You may check your progress against established standards at any moment to look for trends in a specific customer group, product, or other variables that might influence campaign success.
2. Make a list of objectives and select metrics.
Once you’ve decided on a measurement strategy, make a list of your SMS marketing campaign’s objectives. Setting goals helps you link metrics to corporate goals, allowing you to see what you’re doing well and where improvement is needed.
Most firms use SMS to promote their products, yet it may also be used for a variety of other goals, such as:
- Increasing brand recognition
- For information and entertainment
- Increasing the number of visitors to your website
- Leads are created.
Once you’ve decided on objectives, it’s time to choose appropriate metrics so you can see how close you are to achieving them.
3. Multi-copy campaigns
If you’ve already run campaigns, add the metrics listed above to a spreadsheet and link it to a data visualization tool like Databox. You may then evaluate your SMS campaigns’ delivery, interaction, and conversion rates to see what they are. This information may be used to establish standards against which future operations can be compared.
4. Create averages
After you’ve collected all of your data, calculate the campaign averages. Add up the values for each metric and divide that total by the number of campaigns sent during that period.
Here’s an example: if you send three campaigns with a 35%, 26%, and 39% interaction rate, respectively, your average interaction rate would be (35 + 26 + 39) / 3, or 33.33%.
5. Look for trends in your data.
Knowing your metrics is critical. It allows you to use your data to figure out what people respond (or don’t respond) to, allowing you to focus more on what works. To identify trends, consider the following questions:
- What are the most effective types of advertising?
- What kinds of messages are encouraging people to make a purchase?
- What do my delivery charges imply?
For example, if you’re wondering what call to action (CTA) performs the best, look at campaigns with a high conversion rate or interaction rate first. Whatever you discover will provide you with fresh campaign ideas for your next campaign.
What Tools do You Need to Track and Calculate the Metrics of Your SMS Campaign?
For years, SMS marketing campaigns have been notorious for providing little to no actionable data. Fortunately, SMS marketing platforms allow businesses to gather data relevant to their SMS campaign and its overall performance.
There are a few critical metrics to watch when utilizing SMS marketing because they are relevant to your company’s goals.
Some of the Best SMS Marketing tools that you can use to track and calculate the metrics of your SMS campaign include:
- Marketing Automation or Marketing Analytics Software – With marketing automation or analytics software, you can follow the critical metrics to your SMS campaign. Marketing Automation tools track specific information through user activity, while marketing analytics tools observe trends in customer behavior by correlating user data with sales metrics over time.
- SMS Marketing Platforms – SMS marketing platforms build and send promotional text messages. These may include SMS tools, APIs, or software that help businesses track analytics data about their SMS campaigns. It provides for the location of the user receiving the message and other relevant metrics.
- Self-Service SMS Marketing Platforms – Many self-service SMS marketing platforms allow businesses to host their text message campaigns with the help of customizable APIs. Users can quickly send out bulk messages, which is vital for small businesses that may not have the resources to implement expensive marketing software.
How do Companies Create Successful SMS Campaigns to Meet the Success Metrics?
Many companies have succeeded in their SMS marketing efforts. How did they do it? Let us take a look at some of their SMS marketing best practices that you can copy and use for your text marketing success.
Some key factors to consider when it comes to measuring the success of your SMS marketing campaign include:
Make the most of your email marketing efforts by adding tags to new subscribers and segmenting them according to their interests, behaviors, or how they joined your list. You may utilize this data to deliver subscribers more relevant offers and messages that result in clicks. It’s critical to keep an eye on their behavior. Paying attention to what they respond to (as well as what they ignore) can help you improve your SMS campaign and deliver better goods and services to your consumers.
2. Call-to-action (CTA)
A powerful call-to-action is key to producing clicks and conversions in any marketing campaign. But which one should you use? While your CTA is only a few words long, it must provide value, get attention, and create urgency.
The time you send a text might impact response and click-through rates. For example, if you offer a free pizza special at 9:30 AM, but you send the text at 9:36 AM, you’ll see that the engagement rate is significantly lower. Various factors determine timing, and it’s critical to test and track what times your communications are most likely to be read to increase SMS effectiveness.
Send tempting offers that entice people to take action, and test several deals to see how they impact click-through rates and conversions. Some examples are “bonus upgrade” or “free products.” Consider surveying your subscriber to find out what they like so you can make more substantial offers. The more relevant your offer, the better results you’ll get. Set up and start polling clients today with a text message marketing template.
What are the Benefits of Knowing SMS Marketing Glossary such as Success Metrics?
Knowing and understanding the SMS marketing glossary makes it easier for you to measure and plan out your strategies. Additionally, it allows you to set goals for your campaign and track your progress. It can help you improve your marketing efforts over time so that SMS becomes an even more effective tool in the future.
Measuring success helps businesses have a better idea of what they need to do to generate sales, acquire customers, grow their subscriber base, and much more. Understanding SMS marketing glossary helps you create better strategies that are more likely to be effective for your company, which can help you boost profits.
Here are some of the best advantages of understanding and using a marketing glossary for your SMS campaign.
- Increases the likelihood of success
- Increases revenue and profits
- Provides more relevant offers to consumers
- Helps identify strengths and weaknesses in your SMS strategy
- Allows you to create better marketing campaigns moving forward
- Keeps you up-to-date on the latest terminology and trends related to your industry.
As you can see, providing your business with the tools to measure success is crucial for SMS marketing. Knowing these metrics will help you better understand what needs improvement and show you where your strengths lie. It’s one of the most critical steps in driving engagement and increasing sales through mobile marketing.