In the realm of digital marketing, SMS campaigns have emerged as an impactful tool for connecting businesses with their customers. With high open rates and immediate delivery, SMS marketing campaigns offer a direct line of communication to consumers.
However, the success of these campaigns doesn’t rest solely on the deployment but also on continuous monitoring and optimization. Keeping track of key performance metrics is vital to fine-tune your strategies, make informed decisions, and maximize the return on your marketing investment. Here, we present six key metrics to monitor when executing your SMS marketing campaigns.
List Delivery Rate
Delivery rate is the proportion of messages successfully delivered to your intended recipients out of the total number of messages sent. Text messaging is different from email in that consumers must opt-in to receive text marketing messages so if the phone number used is valid it will be delivered to the recipient. Occasionally it happens that some carriers may not be capable of delivering some links or types of images, but this issue is rare. A good platform will capture any invalid numbers so that your marketing list gets improved as a result. A high delivery rate signifies a well-maintained and accurate contact list.
Regular monitoring of your delivery rate allows you to promptly detect and address such issues, ensuring the overall effectiveness of your SMS campaigns by maintaining the quality of your contact list.
Read Rates for Text Messages
Unlike email, it is technically not possible to track open rates for texts, but given the manner in which text messages are delivered the read rate is over 90%. This is because when a user opens the text function on their phone, they typically see the whole message before they can take any action. In addition, since text marketing messages require consumers to first opt-in based on criteria set forth by the TCPA (Telephone Consumer Protection Act), consumers trust text more so they read almost all text messages in their entirety since they are typically very short. This is another reason to keep SMS messages short, concise and personal in tone whenever possible. In fact, research has shown that consumers estimate that less than 1% of all texts are SPAM. A big difference compared to email where research has shown that consumers estimate 90% of all email received is SPAM making text messaging an especially powerful tool for reaching your audience.
Click-Through Rate (CTR)
CTR refers to the percentage of users who clicked on a link in your text message. This metric provides insights into how effective your message is at prompting the user to take action. A high CTR is indicative of a compelling message and well-targeted audience. Conversely, a low CTR might indicate a disconnect between your content, call to action, or targeting strategy, suggesting a need for adjustment. Designing links that are trackable is valuable for campaigns that aim to drive website traffic or conversions, as it directly impacts these outcomes.
While generating clicks is valuable, the ultimate aim of any marketing campaign is to drive conversions. In the context of SMS marketing, a conversion could be defined as any desired action a customer takes after clicking your link, such as making a purchase, downloading a resource, or filling out a form. By designing your campaigns to track whether a conversion came from an email campaign or a text campaign is important for improving conversion rates. You can assess the overall effectiveness of your SMS campaign in influencing customer behavior and achieving your business objectives by thinking about these elements ahead of time. A low conversion rate, despite a high CTR, could point to issues with your landing page or the alignment between your messaging and offerings, warranting further investigation.
Acquiring subscribers is a key aspect of SMS marketing, but retaining them is equally important. The opt-out rate measures the number of subscribers who choose to unsubscribe or STOP receiving your text messages. An increasing opt-out rate could be indicative of dissatisfaction with your messaging frequency, content, or overall strategy. Regularly monitoring this metric allows you to gauge customer satisfaction and make necessary adjustments to prevent subscriber churn, thereby ensuring a stable and engaged audience for your SMS campaigns. Honoring those opt-out requests are also critical as violations can result in thousands of dollars in fines via the TCPA act. Advanced SMS platforms will automatically detect those opt-outs and even use artificial intelligence to detect and flag replies with negative sentiment to ensure businesses are not in violation of the TCPA act.
Return on Investment (ROI)
Assessing the ROI is the ultimate measure of the success of your SMS marketing campaigns. This metric calculates the profit derived from your campaign relative to its cost. A positive ROI means your campaign is generating more in revenue than it costs to run, signifying profitability. A negative or declining ROI, on the other hand, highlights the need for strategic modifications to enhance campaign performance.
Monitoring and analyzing the right metrics provides invaluable insights into the performance of your SMS marketing campaigns. These metrics help you understand your audience better, make data-driven decisions, and continually optimize your strategies for better results. Remember, the ultimate goal of any campaign is not just to reach your audience, but to resonate with them. Therefore, constant measurement and optimization are essential to ensure your text marketing efforts drive meaningful engagement and desired business outcomes.