An Overview on SMS Marketing Conversion Rate
SMS marketing conversion rate is probably the most important thing for you to keep in mind at the moment of investing in text messaging for promotional use. By knowing this, you can understand how much profit you’re making from SMS marketing; costs per purchase/customer, and how text messaging is contributing to your company’s overall growth.
In this article, we’ll go over the basics of SMS marketing conversion rate and the metrics you need to pay attention to in order to measure your SMS marketing campaign success.
Do you have any particular question about this topic? If you don’t find it in this article, we invite you to call or text 1-888-707-3030. One of our experts will be glad to provide an answer to you.
What is SMS Marketing Conversion Rate?
Conversion Rate is the number of targets obtained divided by the number of contacts that actually received a message from your campaigns. Conversion rate is expressed as a percentage; multiplying the result by 100.
At the same time, it’s good to remember that ‘conversion’ is not only a sale (although it’s usually what marketers focus on the most). A conversion can also be a form submission, a phone call; watches on a video, and any other desired objective we want to measure and improve.
How good (or not) your conversion rate will be will greatly depend on your objectives. Downloading a document is not the same as creating an account or clicking on a landing page. One thing is sure: SMS marketing conversion rate is usually 2 or 3 times higher than any other lead generation channel like email, social media, or even Google ads.
SMS Conversion Rate Metrics You Need to Know
Even though SMS marketing conversion rate will depend on your objectives, there are certain metrics and KPIs (Key Performance Indicators) that will also determine your campaign’s success:
Just like it was hinted at in some lines above, clicks are among the most common objectives in any marketing campaign; so CTR is an equally common KPI; which measures how many subscribers clicked the URL you shared.
Click-through rates vary depending on each business and the nature of the offering behind it. CTRs are also affected by factors like seasonality, pricing, or even the platform in which the conversion was generated.
These are directly related to CTRs. Having high open rates but low CTRs, for example, can be an indicator that your call to action may not be appealing to your contacts. Open rates in SMS marketing are usually difficult to track or measure because of the limitations most texting platforms have.
Luckily, Trumpia’s intelligent texting software features a comprehensive tracking tool that solves that limitation and allows two ways to obtain data from the links you add to your text messages:
- Click-Through Tracking: you can track whether or not your contacts have clicked a link you sent via text.
- Site and Event Tracking: which allows you to know if they’ve visited a web page or performed a specific action on your site.
Check how to insert hyperlinks and track their click-through statistics here:
Subscriber List Growth Rate
As you know, people need to opt-in your SMS marketing lists. So if your initial list of subscribers increases in time, that means more people are willingly signing in. And that can only indicate one thing: more people are finding your campaigns useful.
The opposite of the previous metric! Opt-out rate (AKA ‘Attrition Rate’) measures how fast your subscribers decide to leave your list during a certain time period. Even though this is not a very happy KPI, it’s definitely useful to know if you need to refine the messages you’re sending, or if the frequency in the delivery is actually overwhelming your clients.
Conversion Rate and Attributed Revenue
Click-through and open rates are great, but only if they generate revenue. For that matter, you can measure SMS send conversion rate (how many recipients made an order) or SMS traffic conversion rate (how many click-throughs actually turned in a purchase). This distinction is why we call this PKI ‘attributed’.
SMS Marketing ROI
Return of investment measures how many dollars of revenue you’re receiving per dollar spent. So in this case, it’s necessary to do some math. Let’s go over the following example:
If an average order is worth $15, and you sold 100 through SMS marketing, your revenue was $1,500. Using Trumpia’s Medium Enterprise Plan (or any other above it), the cost of sending your SMS campaign — at $0.01 per text would be $50.
So the ROI would be $1,500 /$50 = $30 of revenue per dollar spent.
Use the Most Intelligent Texting Software in the Industry
As we explained in one section of this article, Trumpia’ s intelligent texting software was created to do what other similar platforms completely ignore. If you start a 14-day trial, you’ll get:
- All Premium Plan Features
- 100 SMS & 100 Email Credits
- 1 Automated Workflow
- 2 Data Sets
Start using the ultimate SMS marketing tool at no cost and see the difference for yourself! Do you have any questions? Call or text 1-888-707-3030 to chat with one of our experts.