SMS marketing is one of the most effective ways to reach customers directly and drive sales for business. With its high open rates and quick response times, SMS marketing can help business stay ahead of the competition in an increasingly crowded marketplace. But how to measure the success of SMS campaigns?
1. Calculate the click-through rate
In terms of SMS marketing, click-through rate (CTR) is an important indicator to measure the effectiveness of SMS marketing. This metric indicates how many subscribers clicked on links in SMS messages, relative to the total number of messages sent.
To calculate click-through rate, divide the number of clicks by the total number of messages sent, then multiply by 100. For example, if 1,000 text messages are sent and 50 clicks are received on a link, the click-through rate is 5%.
2. Calculating the opt-out rate
Calculating the opt-out rate is an essential factor in measuring the success of SMS marketing campaign. The opt-out rate refers to the number of subscribers who have requested to stop receiving text messages from business. It’s crucial to monitor this metric as It helps determine whether or not SMS content resonates with audience.
High opt-out rates can be alarming and should prompt a review of SMS marketing strategy. Factors that contribute to high opt-outs include irrelevant messaging, frequency overload, and poor timing.
3. Calculating the conversion rate
Calculating the conversion rate is one of the most important metrics when it comes to measuring SMS marketing ROI. It tells how many subscribers took a desired action, such as making a purchase or signing up for a service, after receiving SMS message. To calculate conversion rate accurately, need to know both the number of subscribers who received SMS message and the number of those who actually converted.
4. Calculating the cost per redeeming subscriber
Calculating the cost per redeeming subscriber is an essential metric for measuring SMS marketing ROI. It gives an idea of how much it costs business to convert a subscriber into a paying customer through SMS campaigns.
5. Calculating the growth rate
One of the best ways to measure SMS marketing ROI is by calculating the growth rate. This metric shows how quickly SMS subscriber list is growing over time, giving an idea of whether or not campaigns are resonating with target audience.
To calculate the growth rate, simply subtract the number of subscribers at the beginning of a given period from those at the end of that same period. Divide this number by the starting amount and multiply by 100 to get a percentage.
Plexins, the free SMS and email marketing platform built for Shopify brands. All features are free, including the lowest SMS and email price, global SMS sending, and service in 210+ countries. Plexins is committed to helping Shopify brands grow their businesses by providing the most affordable and easy-to-use marketing tools available. With Plexins, businesses can send unlimited texts and emails to customers worldwide at low cost.