The benefits of SMS marketing are clear. SMS gets a higher ROI than other channels, is great for conversions, and helps you learn about your customers.
But to get the most out of your SMS campaigns, you need to know how they perform with your customer base. Tracking SMS metrics allows you to hone in on the copy, frequency, and timing that works with your audience. That way, you can optimize your SMS messages for the best results.
In this post, we'll take you through the key SMS marketing metrics you should track, along with some best practices for your SMS marketing efforts.
Key Metrics to track for your SMS campaigns
Here are seven essential SMS metrics that every ecommerce business should track to maximize ROI from their SMS marketing campaign.
1) Delivery rate
The delivery rate measures the number of messages that were successfully delivered to their intended recipients, compared to those that were blocked or failed. A low delivery rate can mean a number of things, such as:
The messages were sent to invalid numbers
The messages were blocked by the carrier or recipient
The receiver is subscribed to a do not disturb service
To improve this metric, clear your list of invalid numbers and inactive subscribers. You'll also want to avoid sending repetitive content to your SMS subscribers because it will trigger spam filters.
Always make sure that you have permission to contact everyone on your list before sending out a text marketing campaign. Check out Emotive's TCPA Compliance Guide for more information.
2) Open rate
The open rate measures the number of people who opened an SMS message compared to those who did not. Calculate the open rate by dividing the number of messages that were opened by the total number of delivered messages. A high open rate can indicate effective copy and timing, while a low open rate may signal that you need to try different tactics or improve your list segmentation.
To boost your SMS open rates, try using shorter subject lines, personalizing content with subscribers' names, and experimenting with different times and days of the week to send messages.
3) Unsubscribe rate
The unsubscribe rate is the number of existing customers who unsubscribed from your text message list over a certain period of time. This can be a useful metric to track if you want to assess how many customers are happy with the texts they're receiving from you.
According to a recent study into SMS marketing, the two top reasons for unsubscribing to an email list are:
Receiving too many messages (73%)
Receiving the same message too many times (69%)
So, to minimize unsubscribe rates, try to only send relevant and valuable content, and avoid sending the same message multiple times.
4) Click-through rate
The click-through rate tracks the number of people who clicked on a link within your text message compared to those who simply opened it. Links in your SMS campaigns might include calls to action, special offers, or product pages. Tracking your click-through rate can help you determine whether your messages are effective at driving customers to take action.
To calculate this metric, divide the number of clicks by the total number of opens. A high click-through rate can indicate that your links and calls to action are clear and enticing, while a low click-through rate may mean that you need to optimize your content or calls to action. To improve your SMS click-through rates, try using shorter link URLs, highlighting important information with bold text or bullet points, and including clear calls to action with your messages.
5) Conversion rate
The conversion rate measures the number of purchases or other conversions that resulted from a text message campaign. To calculate this metric, divide the number of conversions from the SMS campaign by the number of people you sent the campaign to.
A high conversion rate can indicate that your text messages are effectively driving customers to buy from your ecommerce store. To improve this metric, try testing different CTAs, including personalized recommendations and coupons with your messages, or segmenting your list based on purchase history or other buyer behaviors.
6) List growth rate
The list growth rate is the number of new subscribers who joined your text message list over a given period of time. You can calculate this metric by dividing the total number of new subscribers by the total size of your list.
To boost your list growth rate, consider offering incentives for subscribers who share your messages with friends or family or promoting your text message list in other marketing channels like social media or email.
7) Return on investment (ROI)
The return on investment measures the profit and revenue generated by your text message campaigns compared to the costs of sending those messages. To calculate this metric, subtract the total cost of sending texts from the total revenue generated by your SMS program.
A high ROI can indicate that your text messages are driving sales, while a low ROI may mean that you need to experiment with different marketing channels or adjust your message content. To improve your ROI, focus on offering valuable content and promotions that resonate with your target audience, and experiment with different promotional channels like email marketing or social media ads to promote your text message list.
Best practices for SMS marketing campaigns
Best practices for text message marketing campaigns are essential for optimizing performance and maximizing ROI. To ensure success, consider the following when designing your text message campaigns:
Create clear calls to action
Make sure that your calls to action are concise and easy to understand so that readers know exactly what you want them to do. Avoid using jargon or complex language, and consider using personalized recommendations or limited-time offers to increase engagement.
Segment your list
To maximize your results, it is important to segment your list based on factors like purchase history, demographics, or other buyer behaviors. This will help you target the right audience with the most relevant content, increasing the likelihood of customer engagement and conversion.
Optimize your timing
The timing of your messages can have a significant impact on their success. To optimize your timing, consider testing different send times and frequencies to see which best resonates with your audience. You should also make sure to only send texts during waking hours and at times when your audience will be available to respond to them.
Check out the best time to send SMS messages
Comprehensive SMS analytics in the Emotive dashboard
Emotive is an SMS marketing platform designed for ecommerce brands that are ready to grow. When you run your campaigns with Emotive, you have access to digestible results from your metrics so you can learn how to optimize your campaigns. Book a demo today.