Is SMS marketing expensive? It is true that SMS is not completely free to send, but when you look at the benefits and prices of SMS as a whole, it becomes a very viable and cost-effective channel. One might ask, why would you miss out on this powerful channel?
SMS is a personalised channel that reaches your target audience effectively. More and more businesses have discovered SMS and up to 75% of customers are willing to receive SMS messages from businesses*. And customers are not only willing to receive SMS, they want to interact with businesses via SMS. For example, it is easier and quicker to confirm a booking or respond to a survey directly via SMS than to go to a website to respond. No wonder then that 60% of customers prefer to reply directly to an SMS rather than go through a link to a website*.
Profitability can be determined through measurement
Like other marketing and communication activities, SMS marketing can be measured. By defining key performance indicators (KPIs), you can measure how effectively your objectives were met, as well as the return on investment (ROI). But what is worth measuring when you're doing SMS marketing? Depending on your business objectives, there are different things you can track. Here are some tips on what you can take into account when you want to know the return on investment of your SMS marketing.
Producing content is cheap
Marketing campaigns often involve the production of images, videos, texts and graphic materials. For SMS campaigns, the production of texts is sufficient, so there is no need to invest money in the production of the content itself.
Messages are sure to get through
How many messages were successfully delivered is one of the first and clearest metrics for measuring the effectiveness of campaigns. A high number of undelivered messages may indicate that something is wrong with your technical settings or your recipient list. Text message delivery rates for working subscriptions are approaching 100%. What other channel can you use to reach your target audience so effectively?
Tip: In Quriiri you can see in clear reports how many messages have been sent, what percentage of messages have been delivered to the phone, how many people have answered which question, what the answers are and the numerical values also presented graphically.
Responding to messages
A common metric used in marketing is the click-through rate (CTR). By tracking the click-through rates of links in text messages, you can get an idea of how people are interacting with your messages. By creating custom tracking URLs for your SMS campaigns, you can track click-through rates for SMS messages.
Response rates for SMS messages are often very high, up to 68% for Quriiri customers. You can easily monitor the response rates and calculate the response rates for your SMS campaigns.
The conversion rate allows you to track the percentage of recipients who took the action you want them to take; such as responded, registered or purchased. You can calculate the conversion rate by dividing the number of users who completed a particular action by the total number of recipients of the campaign.
Every such result can be considered a profit, so the higher your percentage, the better your return on investment. You can improve your conversion rate by regularly eliminating bad campaigns and developing campaigns that work better.
The exit rate is an indicator of performance
Even if your SMS campaigns are highly effective, you cannot avoid churn. It's worth tracking churn, because it gives you an indication of how messages are being responded to. Churn is usually a sign that your content is not resonating with your audience - it's too frequent, doesn't offer a clear benefit or is too general.
How much does SMS marketing generate?
For a concrete figure on the profitability of SMS marketing, calculate the return on investment (ROI). Subtract the total amount you spend on your SMS campaigns from the total amount you earn and then divide again by the amount you spend on SMS campaigns:
Return - investment = ROI on SMS marketing
Text marketing ROI / investment) X 100 = Text marketing ROI percentage
The way you determine your revenue will vary depending on the purpose for which you use SMS marketing.
What companies often appreciate about SMS is that they are sure to reach their target audience, so that important and useful messages are sure to get through. From a total benefit perspective, SMS prices are relatively inexpensive.
Would you like to learn more about SMS marketing? Contact us or try for free weekly.
Source: * Tech Jury
