How Do You Track the ROI of Your SMS Campaigns?
Whether you have been using SMS for your
marketing campaigns or you just started, the only way to determine how
successful they are is by measuring their return on investment (ROI).
Analyzing the performance of your SMS
campaigns can help you understand what consumers respond to best, decide where
to allocate more resources, and what to drop.
Before enlisting the help of a bulk SMS provider, you should have an
idea of the objectives you’re looking to achieve. A few of what you should aim
for include:
·
Drive sales and revenue
·
Generate more leads
·
Attract more customers claiming
an offer
·
Increase the number of
leads
·
Encourage downloads for a
specific asset
·
Increase the number of
subscribers
·
Increase traffic
·
Collect customer information
and feedback
You can only say your campaign has been
successful when you achieve these goals. But where do you begin?
The most accessible place to get started is
with your contact database. Double-check your contact list and ensure that you
have accurate recipient numbers. An updated record guarantees a high
deliverability rate.
SMS delivery rate is calculated as follows:
Number of
Delivered / Total sent x 100 = Delivery rate.
If your calculation outputs a low result, a
data audit must be considered before scheduling the next campaign.
Improving your delivery rate will also lead
to an increase in the open rates for your SMS campaign. Once you get the hang
of this, the next thing to do is track its performance.
1. Click-throughs
If your goal is to increase traffic to your website for consumers to fill out a
form, subscribe to an event, make a purchase, or claim an offer, you can easily
use click-throughs to measure the performance.
Of course, you would have to include a URL
as a call to action in your SMS. The URL should redirect the customer to a
specific page, and within the ‘analytics’ section of the message box, you can
check the number of people who clicked on the link.
You can also establish the number of times
the link was clicked. This qualifies as a brilliant tactic for any follow-up
campaigns or reminders.
2. Sales
If you want to track sales and revenue, there is a way you can easily measure
this – by including a UTM code in your URL.
The UTM simply adds a little extra
information at the end of your link, which you can customize to align with your
business’s tracking mode, such as Google Analytics.
You can use UTM codes to track precise web
traffic and conversions, identify campaigns performing poorly, and track both
online and offline campaigns.
This way, you can measure the success of
your campaign vs your ad spending.
3. Conversions
Conversions usually relate to your
objectives. Measuring conversions are calculated as follows:
Conversions =
Number of people who took action / Number of recipients x 100
Measuring monetary value is as simple as
comparing the cost of your campaign spend to the number of goals achieved. This
could include the number of appointments made, items sold, offers claimed, and
used coupons. The result (conversions) is your ROI.
Other things to measure include the opt-out
and attrition rates and the number of messages received alongside your target.
These KPIs should help you measure your ROI effectively.
Getting the ROI Percentage
Although these KPIs are instrumental in
measuring SMS campaign ROI, they don’t give you a specific number to report. As
such, you should subtract your SMS campaign spend from the total amount earned,
then divide again by the total amount spent on the campaigns to calculate the
ROI.
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Africa, we care about your SMS marketing strategies, and ad spend. That is
why we give you reasonable offers, tips, and advice to get you started or move
you to the next level of growth. Whatever you need to achieve a good return on
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