When running SMS campaigns, it’s important to track how they are performing. To do this, there are many key metrics that marketers should be aware of to ensure each campaign is getting the desired results. Gathering and analyzing data from your campaign metrics will allow you to make changes where needed.
What is SMS Marketing?
Text messaging is a common and popular way to send messages. Business text messaging is commonly used as opt-in marketing. This type of marketing allows businesses to reach their potential customers by sending them marketing messages via SMS. It’s different from social media marketing in that it requires the recipients to subscribe.
SMS Marketing Metrics to Measure
1. Click-Through Rate
The click-through rate is a measure of how many people who received your message have taken action after clicking on a link. This is important because it shows that your campaign is focused on getting the subscribers to take action. It can tell you if your message is relevant to them or if they are not taking action. Ensuring a good click-through rate is the first step in improving your campaigns.
2. Delivery Rate
The delivery rate is the percentage of messages that were sent to a subscriber’s inbox. It’s easy to waste money sending to numbers that are not good, such as Voice over Internet Protocol (VoIP) numbers or landlines. If your software provider doesn’t have the necessary tools to handle these types of calls, you’ll most likely end up with a waste of money and usage limits.
3. Reply Rate
The reply rate is a measure of how engaged your subscribers are and how effective your message is. It can also help you determine if your message is being received well. If the goal of your SMS campaign is to get responses from recipients, it’s important to measure your response rate.
The response rate is the percentage of individuals who respond to your text messages. It’s important to measure this aspect of a campaign to ensure that the message is getting through.
4. Unsubscribe Rate
The number of people who unsubscribed from your campaign is known as the unsubscribe rate. This occurs when a recipient gives you a response to either “UNSUBSCRIBE” or “STOP.” People unsubscribe from your list due to various reasons. Some of these can include not finding your messages valuable, subscribers not recognizing your business, or being sent too many messages. When businesses send too many messages to their lists, subscribers will consider it “spamming” and will unsubscribe.
5. Conversion Rate
The conversion rate of SMS messages is the percentage of people who opened the message and took the desired action with it. The key factor that affects a campaign’s conversion rate is the actions taken after a person clicks on a link in your message. For instance, if a customer is planning on making a purchase, you want to make sure that your website is optimized for that activity.
6. Acquisition Cost
The cost of acquiring a new customer is the amount of money that you spend to acquire a new client. If you don’t target the right audience, you might end up spending a lot of money on the wrong message. Knowing this, you can use this information to improve your campaigns and boost sales.
7. Campaign ROI
Return on investment (ROI) is a measure of how well a marketing campaign is performing. Measuring the ROI for SMS messaging campaigns is similar to measuring the ROI for other types of campaigns. Unfortunately, it’s not always accurate to measure the effectiveness of a campaign until at least a year from when the campaign started.
8. List the Growth Rate
The growth rate of your list is the percentage of people who have signed up for your marketing efforts over time. Without a steady increase in this number, you might not be able to reach your goals. As an SMS marketer, it is important to maintain a consistent campaign when trying to grow your list.
It can take a while to set up and measure various metrics related to a marketing campaign. However, it’s important to take a logical approach to improve the effectiveness of your efforts. After you have set up a set of metrics, it’s easy to track and record your progress.