Key performance indicators (KPIs) for SMS marketing assist you in tracking the effectiveness of your campaigns, comprehending their results, and optimizing them. Utilizing best practices to use your data and measuring the appropriate KPIs are essential if you want your SMS gateway to yield a return on investment (ROI).
How is the effectiveness of SMS compared to other channels?
Remember that your SMS KPIs shouldn’t be isolated entities. Rather, they ought to enhance the objectives that you have set for your other channels (such as push, loyalty, and email). If, for instance, your business uses SMS to send bulk sms as a loyalty channel and email as an acquisition channel, consider how you may define distinct KPIs that represent the customer lifetime.
It’s possible for some of these measurements to overlap: It is advisable to do an analysis of the lift that SMS adds to your mix and determine whether or not the additional touchpoint results in more revenue from digital channels. Another option is to examine the growth of your whole audience, which includes the number of email and SMS subscribers.
Which SMS success indicators ought to be monitored?
To ensure that you’re concentrating on high-impact projects and improvements, your KPIs should be aligned with the objectives of your organization. As an illustration: If the goal of your brand is to attract new clients, you should track:
- Monthly rise in subscribers (MoM)
- The total income generated by the conversion rates of SMS messages (CVRs)
However, your stats may appear slightly different if your goal is to boost retention and loyalty:
- Total quantity of active subscribers
- Value of an average order (AOV)
- Rate of reaction to messages
- The quantity of subscribers who have made several purchases
Key SMS Metrics
Let’s now explore some of the KPIs that you may use to assess the overall and detailed performance of your program.
List Expansion
The long-term effectiveness of your SMS program mostly depends on growing your list. Increased subscriber count can help you cultivate brand evangelists and increase sales. Another useful metric for tracking the success of your client acquisition and retention campaigns is list growth. It’s not enough to merely get new subscribers. Keeping the people you already have engaged is your goal.
Why is that relevant? This statistic will assist you in assessing the effectiveness of your whole list expansion plan, including the sign-up unit incentives that are generating conversions and the opt-in locations for your subscribers. If the growth of your list slows down, it might mean that customers are opting out of your program at a faster rate, that your incentives aren’t drawing in new members, or that you should introduce additional sign-up unit kinds (including spin-to-win pop-ups and social landing pages).
Delivery Charge
The number of SMS messages that are successfully received by the recipients on their devices divided by the total number of messages sent is known as the delivery rate. Most often, a percentage is used to indicate it.
Why It Matters: The Delivery Rate provides you with a preliminary idea of your campaign’s reach. Your audience cannot interact or convert if your communications are not getting through to them.
How to Increase It: Ensure that the phone numbers on your list of contacts are current and legitimate by keeping it organized and tidy. This will increase your delivery rate. Think about collaborating with a trustworthy SMS supplier that has a strong track record of delivery.
Accessible Rate
The percentage of receivers that open your SMS message out of all sent messages is known as the open rate.
Reasons for Its Significance: A high open rate shows that people are seeing your message. It’s the initial move toward conversion and engagement.
Personalized messages should be created and sent at the best moments when your audience is most likely to be receptive. These are some tips for increasing open rates.
Rate of Click-Through (CTR)
The percentage of receivers that clicked a link in your SMS message divided by the total number of messages delivered is known as the click-through rate.
Relevance of CTR in SMS Marketing: CTR is a crucial measure of message engagement. When your content has a high click-through rate (CTR), it indicates that readers are engaged and motivated to act.
Techniques for Improving CTR: Make sure your linked information is helpful and pertinent to the user, keep your communications succinct and clear, and include a compelling call-to-action.
ROI, or return on investment
ROI calculates how profitable your SMS marketing efforts are. It is computed by deducting the campaign’s expenses from the money it brings in, then dividing the outcome by the campaign’s cost.
Why Monitoring ROI Is Essential: ROI enables you to assess if the funds you’re using for your SMS marketing initiatives are producing a healthy profit.
Ways to Increase ROI: Increasing conversion rates in your campaigns, audience segmentation for more focused messaging, and experimentation with various offers and messaging to see what works best are some ways to increase