SMS Marketing is one of the oldest and still prevalent ways of marketing your business. Crafting an excellent SMS marketing strategy can go a long way.
Once you have designed your SMS marketing campaign and gotten it started, it is time to see if what you have created is successful.
You need to understand the metrics that you are tracking to see if you are getting the ROI you need to succeed. Also, sending your first SMS campaign may seem stressful, but it gets easier over time. Eventually, you will no longer worry about hitting that scary SEND button. Here is a list of significant KPIs to track and how they impact your SMS Marketing’s ROI.
Click-Through Rate
One of the features native to campaigns is the ability to include a link within your message, by using an in-app URL Shortener on your link. This gives you direct insight into how many people on your list are engaging with your content and are interested in learning more about your brand or your offer.
Opt-outs/ Attrition rate
No SMS campaign is completely devoid of opt-outs/ unsubscribes. There will always be some subscribers who opt out after receiving a marketing text message, regardless of how good your SMS software or campaign is. However, you shouldn’t shrug off an abnormally high opt-out rate. A higher attrition rate can be caused because of multiple reasons like- the customer is no longer interested in your service, or perhaps because he/she finds your messages lacking in the value proposition, or that there’s a lack of personalization, absence of relevant links, or a high sending frequency. More opt-outs mean your campaigns are not resonating with your audience – which can cause a dent in your ROI. Changing the frequency and content of your messages can lower your attrition rate. You can also do A/B testing to work out what content/ message tone works best for your audience. Also, a lower rate suggests your efforts during that time frame are working.
Conversion Rate
This indicates the percentage of visitors who respond to a call to action, which can be any one of the following: a reply, a phone call, a sign-up, a purchase, or simply a visit to the URL you provided in your campaign. Also, the success of any SMS marketing campaign relies heavily on its conversion rate. Every single conversion should be considered a gain, so the higher your rate, the healthier your ROI will be. You can keep it high by regularly eliminating campaigns that perform poorly and building upon the stronger ones.
Growth Rate
The growth rate of your subscriber list is another important metric you should look at when determining success. This growth rate allows you to extend your reach, expand your audience and position yourself better within your industry type. Given that there will always be opt-outs, it’s important to pay attention to growing your subscriber base. From the change in figures, you can tell how fast you are growing your list of subscribers. A steady growth rate means you are acquiring new customers and retaining them consistently.
Tracking your SMS campaign ROI Metrics will allow you to optimize your SMS campaigns and scale up the most successful areas, boosting your ROI even more.
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