Top 4 SMS Marketing KPIs You Need to Track

Yootelco Tech

25 Jul 2022 — 5 min read

SMS marketing is becoming an increasingly popular platform for marketers. The ability to send a text message instead of having to call someone or email them can be incredibly convenient for your customers and it can improve engagement on other channels as well.

Want to grow your SMS marketing presence?

With the right set of trackable KPIs, you can easily measure and determine what's working with your campaign — and what isn't. There are many SMS marketing KPIs to use, but in this article, we are going to investigate the four that have been tested time and time again to deliver the most accurate and actionable data for your campaigns.

If you're considering using SMS for marketing purposes but aren't sure what to measure, this article will help. Let's dive in!

Experience With SMS Marketing

Even though SMS marketing has been around for a while, businesses are just starting to use it in their marketing strategy as they start to realize its full potential.

When you reach out to your customers with a text message, you can strengthen your relationship with them. By marketing to your customers where they are most active, you have a better chance of keeping their attention.

But, how do you get on the right track in communicating with your customers?

Give your customers a variety of options when it comes to communication. Some may prefer discounts, while others may look for order confirmation or shipping updates. Try using social testing (A/B testing) to see what works best for your target audience. And don't forget to measure your campaign's performance with KPIs.

What Are SMS KPIs?

Key performance indicators (KPIs) are metrics that measure your business performance. They can be used to identify problems and opportunities and to track progress towards goals. But what about SMS KPIs?

SMS is one of the most effective channels for engagement and sales, delivering a high response rate and low cost per lead. It’s also a great way to test new products and services.

However, SMS can be a little tricky to measure because it’s not like other digital marketing channels in which you can track engagement with numbers like impressions, clicks, or views.

There are two main ways you can calculate your SMS marketing KPIs: manually or automatically. You can use manual calculation methods if you have a small number of messages sent each month, but if you're sending lots of messages regularly, an automatic calculation is recommended because it's much easier and faster. Here are 4 key SMS KPIs that you should be tracking.

Click-Through Rate

A click-through rate is the number of people who have clicked on a link in your message out of the total number of people who have seen it.

For example, if you send out a message with a link to your landing page, and 200 people click on that link, your CTR is 10%. This means that for every 100 messages you send out, 10 people click through to your website.

The CTR is an indicator of how effective your marketing campaign was. If your CTR is low, it means that fewer people are clicking on your links than you would like them to do. If it’s high, then more people are interested in what you have to offer and are willing to visit your website by clicking on a link.

It is calculated so:

CTR = (Total Clicks/Total Impressions) x 100

There are several ways to improve your SMS click-through rate:

Use a creative, compelling subject line
Personalize the message to your audience
Make sure it’s relevant and timely
Use compelling content that is relevant to the recipient — not just a generic message about your business or product
If you’re using an SMS provider, make sure you have a reliable connection that can handle large volumes of messages at once (for example, if you send out an alert for a flash sale)
Use a clear call to action

Conversion Rate

Conversion rates tell you how many of the people who clicked on a link from your text message purchased from your store.

The way it is calculated:

CR = (Number of orders/Number of unique visitors) x 100

On average, conversion rates are highest when you're using email marketing and SMS marketing.

The main factors that determine the conversion rate of an SMS campaign are:

What is the objective of your campaign?
How many times will recipients receive your messages?
How often will they receive them?

If you want to improve your conversion rate, try to:

Link leads directly to your offer
Know your audience's needs and interests
Create landing pages specific to mobile devices
Send coupons and offers via text message
Create an effective welcome message on your webpage

Return on Investment

Returns on investment (ROI) is a term that all businesses use to measure the success of their marketing campaigns. It’s easy to understand: The return is the profit made from an investment.

In the business world, ROI is typically calculated by dividing the profit made from an investment by the cost of making that investment.

ROI = (Profit/Investment) x 100

For example, if you spend $100 on a marketing campaign and make $500 in profit, your ROI would be 500% ($500 / $100). If you spent $200 and made $300 in profit, your ROI would be only 150% ($300 / $200).

The higher your ROI is, the better your campaign works at bringing in new customers and increasing sales.

Here are some tips to improve the ROI of SMS marketing:

Personalize your messages based on customer engagement data
Analyze your best-performing messages
Use automation technologies to keep costs down
Increase the number of people who opt-in for your SMS marketing list
Integrate your SMS program with other marketing channels
Track everything

Average Order Value

The average order value is an important metric to measure the success of your SMS marketing campaign. In other words, it is the average amount spent by customers who responded to your offer or discount. The average order value will tell you how much profit you stand to gain from each subscriber of your SMS marketing campaign.

An average order value can be calculated by dividing the total revenue by the number of orders. For example, if you sell a single product that costs $100, and have 100 customers who have purchased this product, then the average order value would be $100/100 = $1 per order.

If you want to calculate the average order value for multiple products, then you need to divide the total revenue by the number of orders for each product. For example, if you are selling three products - X, Y, and Z - then the calculation would be:

Total Revenue / (Number of orders for X + Number of orders for Y + Number of orders for Z)

If you're running an SMS marketing campaign, it's important to know how much your customers typically spend, so you can set realistic goals and expectations.

Here are some ways to increase your AOV:

Offer discounts and promotions based on customer behavior
Create bundles and packages with different price points
Provide incentives for referrals and reviews
Use upselling and cross-selling strategies
Send targeted messages at specific times

Measure Your SMS Marketing Performance with Yootelco

SMS marketing is a great way to reach your customers. It’s also a great way to measure the success of your campaigns among your customers.

But what if you want to track more than just open rates and click-throughs? What if you want to know how many people are engaging with the content you send?

That’s where Yootelco comes in.

Yootelco is a messaging platform that will help you measure all the different types of engagement in your SMS marketing campaigns. It lets you see how many people opened your messages, how many clicked through to your website, and more. It also gives you the ability to create segmented groups based on their responses, so you can tailor each campaign specifically for different segments of your audience.

Want to start a successful SMS marketing strategy? - Contact us today!