When launching SMS marketing campaigns, every business should have a clear idea about how they are performing. One of the best ways to measure the effectiveness of such campaigns is to check their ROI ( Return on Investment). Here we’ll throw a light on SMS marketing ROI in detail.
Defining SMS Marketing ROI
It denotes financial metrics that can denote the effectiveness of your campaign. It presents the return that comes from the SMS marketing efforts calculating the costs of running that campaign.
We can see the results of SMS marketing ROI in percentage form that denotes the dollar businesses earned for every spend dollar on the marketing campaigns. Here positive ROI denotes the profitability of businesses and the negative means costs spent on the campaigns are higher than the spent amount.
The formula for calculating the ROI is:
SMS Marketing ROI
[(Sales – Marketing Cost) / Marketing Cost] × 100
Let’s say your business generated $2,000 in monthly sales from your promotional texts, and you spent $150. Here’s how you’d calculate the ROI of that month’s SMS marketing campaign:
1850%= [($2000-$150)/100] x 100
Tricks to Maximize Your SMS Marketing Campaigns ROI
The ROI of SMS marketing campaigns can vary due to several factors. However, by using the text messaging best practices, enhancing ROI becomes significantly more achievable. Discover the proven strategies that can help you get the most out of your efforts.
Opt for Personalization
Personalization of SMS is one of the most potent ways to make your text appealing to individual recipients. So, to increase your ROI, go after this trick and ensure an increased ROI.
Track and Analyze Key Metrics
Understanding why your campaign’s ROI fluctuates requires tracking and analyzing additional metrics beyond just sales. These metrics give an idea about the areas that need improvement.
- Deliverability Rate
It refers to the percentage of text messages that successfully reach your contacts. Partnering with a reliable SMS platform that registers your phone number correctly can help improve delivery rates and prevent carrier filtering.
- Click-Through Rate
This one is used for denoting how many recipients click on the embedded links in your messages. A higher click-through rate means that your content and CTA resonate with your target audience. The more clicks you get, the higher the chances of driving purchases.
- Conversion Rate
This metric tracks the number of users who take the desired action, such as making a purchase, booking a service, or scheduling a demo. High conversion rates signal that your campaigns are effective and aligned with customer expectations.
- Reply Rate
Monitoring reply rates can help you understand if your SMS marketing campaigns are effective. Replies indicate interest and offer opportunities for further interaction with your audience.
- Unsubscribe Rate
This metric shows you how many people opt out of receiving your SMS marketing texts. A high unsubscribe rate warrants a review of your content, timing, and CTAs to understand why recipients are disengaging.
By analyzing these metrics, you can gain deeper insights and make data-driven adjustments to improve your campaign performance.
Proper Contact List Management
The success of such campaigns hugely depends on the contact list management. A well-maintained list makes sure that your messages reach the right audience, improving engagement and reducing costs. Here are some best practices for managing your SMS subscriber list:
- Get Regular Update Tags and Segmentation
Group your contacts based on demographics, behavior, or preferences to send targeted messages.
- Eliminate Unsubscribed Contacts
Ensure that your list only includes recipients who have opted in to receive messages.
- Remove Unengaged Contacts
Remove inactive subscribers who haven’t engaged with your messages in a while. This helps you focus on an active audience and reduces costs.
Proper list management saves money and improves campaign effectiveness by targeting recipients who are genuinely interested in your offers.
Choose the Right Timing
Sending messages at the right time ensures higher engagement and conversions. For example, a lunch restaurant might send promotional texts just before lunchtime, while an e-commerce business might reach out in the morning when customers are more likely to browse.
To determine the optimal timing for your business, test different send times, observe competitors, and analyze your audience’s behavior. Understanding when your audience is most likely to engage can improve metrics like ROI and conversion rates.
Choose the Right SMS Platform
The SMS platform you select plays a vital role in determining the ROI of your campaigns. The right platform should offer a balance of cost-effectiveness, features, and support. Check these key facts before making a selection.
- Pricing Structure
Evaluate the cost per message, registration fees, and any additional charges.
- Features and Integrations
Ensure the platform supports essential functionalities like automation, segmentation, user-friendly inbox, analytics, etc.
- Reliability and Support
Partner with a provider that offers robust customer support and ensures high deliverability rates.
Get Started with the Right SMS Marketing Solution Provider
Boost your business ROI with RevText’s powerful SMS marketing campaigns, designed to streamline communication and drive engagement. Manage messages effortlessly with a user-friendly inbox, track success in real-time with the performance dashboard, and create impactful campaigns with ease. Add a personal touch using voice memos, GIFs, emojis, and images, or keep it concise with built-in link shortening. Automate workflows with Zapier integration, unlimited keywords, and sequences while organizing contacts with unlimited tags. Save time using message templates, expand your team seamlessly, and never miss a call with call forwarding.
