In a world where traditional online marketing is losing its grip to low engagement and rising costs, SMS (short message service) marketing is a powerful remedy for businesses. With open rates as high as 90%, SMS offers a convenient, low-cost, and low-risk marketing channel.
This article will look at the metrics businesses should track in their SMS marketing campaigns, offering a roadmap to optimise engagement and ROI.
The Superiority of SMS Marketing
SMS marketing’s superiority lies in its directness and high engagement rates. In an age where consumers are bombarded with digital content, emails often end up in spam folders and online ads are simply ignored.
SMS, on the other hand, can provide brief and targeted messages that are a direct line to customers, ensuring that messages are not only delivered, but seen.
Key SMS Marketing Metrics to Track
SMS marketing is a powerful tool, and it’s important to know when and how it works for each business.
Delivery Rate
Delivery rate is the percentage of messages successfully delivered to recipients. A high delivery rate indicates an up-to-date contact list and effective targeting.
Open Rate
SMS open rates are remarkably high compared to emails, but it’s still important to track this metric to gauge the impact messaging.
Click-Through Rate (CTR)
For SMS messages containing links, CTR is a critical metric. It indicates how many recipients are engaging with the content and taking action.
Conversion Rate
The conversion rate measures the percentage of recipients who completed a desired action, such as making a purchase or signing up for a service. This is one of the most direct measures of a campaign’s effectiveness.
Opt-Out Rate
Monitoring how many people unsubscribe from an SMS service is helpful data when it comes to fine-tuning content. A high opt-out rate could indicate that content is not resonating with consumers or that messages are sent too frequently.
Response Rate
Especially important for interactive campaigns, this metric tracks how many recipients respond to a call-to-action.
Cost Per Conversion
This metric helps companies see the financial effectiveness of an SMS campaign. It’s calculated by dividing the total campaign cost by the number of conversions.
Integrating SMS Marketing with CRM and Other Channels
SMS is powerful, but it can’t do everything alone. Businesses with high messaging volumes typically have a CRM system in place. Integrating SMS marketing with CRM allows for more personalised and, thus, effective communication. Integrating SMS with other marketing channels, such as email, also ensures a cohesive approach to customer engagement.
The Role of Timing in SMS Marketing
Timing is everything in SMS marketing. Messages must be sent at specific times if businesses want to maximise engagement.
This is especially true for companies that rely on delivery updates, notifying clients of changing event details, or urgent alerts. Customer service messages become much more effective when they can happen in real time.
SMS for Internal Communication
While the primary focus of SMS marketing is customer engagement, it’s also a powerful tool for internal communication. Quick updates, emergency alerts, and event reminders are a snap with SMS, making team members feel more valued and helping save valuable company time.
Measuring Success
SMS marketing is a potent tool for businesses looking to break through the clutter of traditional online marketing. By tracking the right metrics, businesses can fine-tune their strategies and ensure that their messages not only reach their customers, but resonate with them
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Sources:
- https://www.forbes.com/sites/forbesagencycouncil/2022/03/25/4-reasons-why-sms-is-the-future-of-e-commerce/?sh=1f855f528da0