August 15, 2024

SMS KPIs: measure your communication strategy properly

Despite the popularity of social media and messengers, texting still remains a strong tool for communication with customers. According to statistics, 70% of clients think that SMS is a good way for brands to attract their attention.

However, messaging strategy algorithm is rather advanced and divided into several stages. During each of them your approach should work properly — otherwise the entire campaign may become a failure.

Today we will discuss how to analyze and adjust your SMS marketing benchmarks for efficient messaging!

SMS messaging KPIs

Key Performance Indicators (KPIs) are specific metrics used to analyze the efficiency of your text messaging. They highlight how well SMS strategy works in regards to clients’ attraction, conversion, etc.

What Key Performance Indicators to measure while conducting SMS campaigns? The main ones are introduced below!

Delivery rate

SMS delivery rate determines the level of SMS delivered. It may be low when it’s weak connection, outdated customer’s base, anti-spam programms or switched off / an avia mode on subscriber’s phone.

How to improve the indicator:

• check the cell coverage
• update the client base via HLR check-up
• send SMS on service providers platforms to avoid spam filters and other problems

Open rate

SMS open rate shows how many people open the SMS after receiving it. Shortly, it is the level of customers’ engagement with your brand.The rate is insufficient when you wrongly determined and segmented the target audience, chose wrong messaging time or frequency.

How to improve the indicator:

• work out customer’s profile
• segment your target audience
• message at appropriate time and with proper frequency

Click-through rate

SMS click-through rate (CTR) determines the number of recipients who showed interest in your offer and clicked the link. Wrong, impersonal content, no clear call-to-action are main mistakes leading to low CTR.

How to improve CTR:

• message in relevance with customers’ interests
• add exact info where the link leads and check them
• the links should not raise doubts from security point of view

Conversion rate

SMS conversion rate demonstrates how many recipients performed necessary action: purchase, registration, subscription, etc. In case your conversion rate is not satisfactory, there is something that prevents your client from undertaking a target step — unappealing text, complicated procedures, bad previous experience with your brand.

How to improve conversion:

• the links should lead directly to what you offer
• optimize the path to the final deal — the purchase procedure needs to be simple and quick
• ensure constant product availability — once facing the absence, users unwillingly return

Unsubscribe rate

SMS unsubscribe rate shows the number of clients who rejected your messaging. If more than 0,5% of your customers opts out, it means that they do not intend to receive at all or do not want to get it from you if you try to sell too obviously, share not relevant content, message too often, etc.

How to minimize the number of opt-outs:

• share the content interesting to your customers with adequate pauses between messages
• do not demonstrate the focus only on you and your company interests
• alternate selling and valuable messaging

Return of Investment

ROI is Return of Investment, the final and key performance indicator. The main intention of any brand is to return the investments it makes. The costs include communication platform services, landings and other resources,. If your expenses are not paid back, your messages do not “earn” or the budget is not optimized.

How to improve ROI:

• review your financial budget
• implement maximum automations
• work with reliable communication services provider to choose cost efficient solution

Even well-developed intuition is hardly a reliable weapon when it comes to business. Whereas clearly verified data-driven decisions are a powerful tool leading to brand prosperity.

In addition to the above, there are general recommendations that influence the productivity of SMS campaigns. Let’s have a detailed look at them!

A short guide: how to track and optimize SMS campaigns

1. Make sure the legitimacy of text messaging — collect permissions, implement opt out possibility.

2. Personalize communication — everyone wants to receive notes addressed directly to them and get offers in line to their interests.

3. Call and invite your audience to undertake a certain action — they must not walk around wondering what you want.

4. Conduct test runs of the messaging — theory without practice is dead, that’s why try the chosen solution, evaluate the result and finally decide if it performs properly.

5. Carefully choose the communication services provider — you need to measure its experience, cost-efficiency, the level of customization, ability to integrate the tool with existing instruments and software.

Follow the recommendations below to turn your SMS marketing solution a success on any and every step! To establish advanced clients’ communication, please, complete the form on our website.