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How to measure your SMS marketing effectively

With a view rate of 98%, SMS marketing is a great way to get your message in front of customers. However, visibility is not enough: you also need to measure your return on investment (ROI) by checking your conversion rates.Time sensitive offerings are an ideal format for testing engagement with your audience, as the results can be collated and benefits realised in a short time frame. Before we look at measuring campaign success, it’s worth briefly examining SMS marketing strategies.

Easily employed SMS marketing strategies

Entertainment venues such as bars, nightclubs, and restaurants were among the first business types to adopt SMS texting as a form of marketing. They employed bulk texts to inform customers about band appearances and drinks promotions, and to pre-sell tickets.

SMS lends itself perfectly to spur-of-the-moment promotions and time sensitive announcements. Messages can be sent quickly to get the word out – results of connection with a mobile audience can be immediately assessed. Many high street and online retailers use this strategy to boost business during quit periods.

Service professionals who operate in appointment driven environments use SMS texts to confirm appointment details and send reminders beforehand. The result of this type of informative SMS messaging sis a marked decrease in the occurrence of missed appointments. The cost of missed appointments is reduced and the selling opportunity increased.

SMS marketing can also be used to direct customers to specific URL’s and social media sites, with effectiveness measured by click rates, followers gained, and ‘likes’ on social media platforms.

3 questions to ask before creating an SMS marketing strategy

If you want to create an SMS marketing strategy personalised for your business, consider these three questions:

  • What customer engagement principles can you apply to your business?
  • Could you use SMS to reduce wastage of time and resource?
  • How can you use SMS to further engage your audience, and drive them to your other promotional and social media platforms?

5 Methods of assessing your SMS marketing campaign success

  • Delivery Rate

    The percentage of messages that have been delivered from those sent. A low rate may mean your list needs to be revised, with those numbers no longer ‘live’ removed.

  • Open Rate

    This measures how many of your SMS messages are opened after they have been received. At 98%, SMS compares favourably with rates between 20% and 30% for emails and Twitter campaigns.

  • Click Through Rate

    Once a message has been opened, the click through rate measures the percentage of subscribers who follow a link to another location (eg URL) to read more about your product, service, or special offer. The higher this rate, the better your message is being received.

  • Opt-Out Rate

    This is the percentage of people who unsubscribe after receiving your SMS. A high rate could indicate poor audience targeting or poor SMS message content.

  • Conversion Rate

    This is the percentage of subscribers who then take action, such as making a purchase or signing up to further services.

SMS texts are highly visible, and around 50% are opened within 3 minutes of being received. By combining the above measurements, you will be able to establish the effectiveness of your SMS marketing campaign. You’ll have a basis to calculate your ROI, and model future campaigns accordingly.