Businesses rely on numbers to gauge their growth. Without deeper insights into the performance, executives are directionless to make better decisions. And to answer all the crucial questions in your SMS marketing endeavors, you need to monitor SMS Analytics.
The good news is, you don’t require buying complex reporting or business intelligence software. Most SMS marketing tools, like Textmunication’s SAM, are focused on analyzing the results in messaging analytics.
Let’s walk you through 5 vital measures you need to care about in SMS marketing statistics.
5 Text Messaging KPIs You Should Monitor
- Click-Through Rate (CTR)
Click-Through Rate is important to analyze when you’re embedding links in your SMSes. These links can direct your users to your website, the landing page of your new product, or the newsletter subscription link. CTR is the number of clicks received on such links vs. the number of SMSes sent.CTR = (Total Clicks / Total Impressions) in percentage
If you have sent 1000 SMSes with a link and 100 clicks have been registered, your CTR is 10%.
CTR represents the number of customers willing to proceed in their buying journey. To increase your CTR, add visuals in your MMS alongside the link. Use FOMO and show urgency using words like hurry, now, today, last, final, and limited period offer. Make your offers as exciting as possible to encourage users to click on the links.
- Return on Investment (ROI)
Return on Investment is always the leader of SMS marketing analytics in any business. ROI is the profit you make over your investment in an SMS campaign.ROI = (Profit / Investment) in percentage
It’s this ROI that makes SMS marketing less pricey than email campaigns or TV adverts. All thanks to the marginally lower investment, which isn’t only the tool subscription. If you have sent 1000 SMSes with an investment of $100 and your orders are worth $10,000, then:
ROI = 10,000/100% = 10,000%, which is an outstanding figure.
In marketing campaigns, profits are often beyond control. You can only influence them by generating inviting deals and gift vouchers. However, leash your expenses better, which inversely affects your ROI.
Boost your ROI and decrease your investment by sending SMS reminders to abandoned cart owners, offering better benefits to high-ticket customers, and analyzing your popular campaigns. Another profitable idea is to buy the best price SMS marketing bundle from Textmunication.
- Response Rate
Response rate is a great measure to know how many of your customers actually responded to your offers. A higher response rate means more interest and more impressions are on your offer. But remember, this value is not the same as the actual number of users opting for the offer.For instance, you sent 1000 SMSes with your deal. 300 users responded to it, and 200 bought the product using your offer. Then:
Response Rate = Number of Users Responded / Numbers of Offers Made in percentage
= 300 / 1000
= 30%An interesting thing about SMS marketing is that you are nearly sure of the number of offers sent because your customer list is tangible. On the contrary, in other forms of marketing where you need to account for pop-ups and ways that can’t track your users, your response rate is not clear.
- Conversion Rate
Conversion Rate, also known as net response rate, is the actual number of converted customers out of responses received. Now, keep in mind that responses received don’t always mean a positive outcome. Some responses could be of lesser meaning. Some responses could be negative based on circumstances, like opting out.From our previous example:
Conversion Rate = (Number of Orders / Number of Responses (or Number of Unique Visitors)) in percentage
= 200 / 300
= 66.67% - Average Order Value (AOV)
The Average Order Value stands for the average amount of money spent by your users per order.Average Order Value = (Total Revenue / Number of Orders) in percentage
If you have sent 1000 SMSes and 200 orders received worth $10,000, then your AOV here is $10,000/200. Or $50 is your Average Order Value. AOV depends on the products sold. 200 smartphones will give you higher AOV than 200 earplugs. A mix of the 2 would fluctuate your AOV drastically.
An increase in AOV from last time means your store’s growth is positive. To have a better AOV, decide on a minimum order value and offer bonus goodies or free shipping or some sort of alluring deal for the predetermined AOV.
Measure Your SMS-Based Campaigns Growth Now
Other than the mentioned KPIs, you should also eye at opt-out numbers and the growth in your users. Business KPIs are a tangible way to measure your growth in SMS marketing. If you’ve been missing out on them because your vendor doesn’t offer text messaging analytics, just switch to a better service provider.
When you have Textmunication as your SMS marketing partner, all your text marketing KPIs are tracked automatically. You get to see and share them in an appealing dashboard. Analyzing your campaigns is easy with SAM, even for a layperson. Should you want to discuss the opportunities with us, reach out and start a discussion with Textmunication’s sales team.
