Besides social media and email communications, sending SMS is a cost-effective way of reaching your customers and expanding your market. It is essential always to have personal and one on one contact with your consumers. This way, you can remind them of new goods, services, discounts, and other promotions.
But how can you say if your SMS marketing strategy is successful? The answer is by knowing and using your SMS marketing KPIs.
SMS Marketing KPIs, What Is It?
A key performance indicator (KPI) is a benchmark for evaluating a business’s performance. It is one way to show how successfully an organization is achieving its business goals.
To manage your business using KPIs, you need to set goals and track progress towards your business goals. Think of it as a guide or map. It will lead you to your route towards the end of the line, which is your success.
This guide explains how to build and operate a range of KPIs relevant to SMS marketing.
List Growth Rate
The metric is expected to be on the list first. If your subscription list is increasing slowly, it just means you’re doing the right thing.
You can calculate your list rate by weeks, months, or years, depending on your strategy. A steady rate of growth means that you gain fresh customers and retain them over time.
If there is a significant drop, it’s time for you to think of new ways of attracting more people through SMS marketing.
Subscriber List Size
This one is self-explanatory. This number represents the number of phone numbers enrolled in your SMS marketing campaign.
This exact figure is certainly not the complete number of contacts reached because there will be some unresponsive consumers. However, this is the most accurate criterion for determining the number of your subscribers.
Open Rate
Studies show that SMS marketing campaigns have an open rate of 94% to 98%, which means that it is a very useful form of marketing strategy and a perfect way to communicate with your consumers.
In simple terms, it is the number of people that opened your text, which is why this is perfect for businesses who want to get their word out the easiest and the most cost-efficient way possible.
Click-Through Rate
You may monitor the number of people who have read more or taken another step after receiving and reading your SMS. The click-through rate is a strong indicator of the subscriber’s interest. It could mean that they have clicked on your website link, call-to-action, product and services link, registration page, and more.
For your campaign results, track metrics using an analytics tool like Google Analytics. It will allow you to monitor your SMS marketing performance and assess the unique clicks of each link. Remember, you get a better return on investment if you get more clicks.
Opt-In Rate
Of course, you should know how many people have shown interest and ended up joining your subscription list.
It is an important indicator that your marketing strategies are very useful, and you’re doing what is right. Customers and clients can all register for your campaigns by using a particular keyword that you assigned.
For example, if you want them to subscribe, you can ask them to type in SUB and send it to 7344, then they’ll automatically receive instructions to sign up.
Opt-out Rate
The Opt-out rate is a negative metric, but tracking opt-out is as relevant as monitoring opt-in. Customers will still choose to opt-out of your SMS campaigns any time they want, which is pretty natural if they do. But, If the rate is unusually high, then you should consider adjusting your strategy.
It will affect your plans in both good and bad ways. Seeing how many people unsubscribe from your campaigns can discourage you, but it will also make you think about what went wrong and how to fix your approach.
Conversion Rate
Conversion rate lets you know which products or services your customers like and how they react to different offers.
How many people convert promptly is essential to remember. You can also try to identify fluctuations in data, patterns, and trends. You may make your investment in the ones that work well or take a gamble on investing in a dormant one.
You have to take note of the elements which help you succeed in your campaign, and it’s best to stay consistent.
Response Rate
SMS marketing response rate is roughly around 45% and more. This metric is one of the most significant success indicators. It indicates where the subscribers are in the sales process.
The consumer response monitoring data suggests that you are consistently communicating with your customers at the right moments with the perfect approach.
Acquisition Expense Per Subscriber
This is an SMS marketing KPI to monitor how much it will cost you to gain a subscriber. SMS marketing is one of the most cost-effective ways to send out your campaigns, but it’s still better to always monitor the cost, especially if you have a limited allotted budget for your marketing needs.
Return Of Investment
The secret to your growth is ROI. It is determined by splitting the difference between your money earned and spent by your original expenditure. You have to keep it on the positive side to know that your business is doing good. This is a valid indicator for measuring your various marketing strategies’ success since it mainly focuses on your profitability.
Harness The Power Of Your Data
Now that you know more about SMS marketing KPIs, you can now make changes to your results. To help improve engagement and success, Txtra has detailed campaign analytics that track your SMS marketing campaigns’ progress using algorithms, special software, and more.
We can help determine how much traffic boost your website gets every time you send an SMS blast to your subscribers, when the highest conversion rate is, and even see who is unsubscribing. You can start today.
