Measuring SMS Campaign ROI
TL;DR:
- SMS ROI is calculated by comparing response metrics (clicks, replies, purchases) against campaign costs
- Key metrics to track include click-through rates, reply rates, and conversion numbers
- Improve ROI by testing message timing, cleaning your contact lists, and refining your offers
- Quality beats quantity – fewer targeted messages often outperform mass blasts
- Use A/B testing to identify which message versions drive the best results
SMS marketing can deliver impressive returns when you track the right metrics and optimise based on real data. The key is measuring what matters and making adjustments based on what your audience actually responds to.
Understanding SMS ROI Calculation
ROI for SMS campaigns boils down to a simple comparison: what you earned versus what you spent. Track how many people click your links, reply to messages, or make purchases after receiving your texts. Then measure that against your campaign costs.
Most SMS platforms provide these metrics automatically. You'll see breakdowns of delivery rates, open rates, click-throughs, and conversions without having to crunch numbers manually.
The calculation itself is straightforward: (Revenue generated – Campaign cost) / Campaign cost × 100 = ROI percentage.
Strategies to Boost Your SMS ROI
Refine Your Offers
Your promotional offer often makes or breaks campaign performance. Test different discount percentages, limited-time deals, or exclusive member perks to see what resonates. Sometimes a smaller discount with urgency ("24 hours only") outperforms a larger discount without a deadline.
Consider segmenting your audience and tailoring offers to different groups. First-time customers might respond to welcome discounts, while loyal customers prefer early access to new products.
Test Message Timing
When you send matters as much as what you send. Most businesses default to standard business hours, but your audience might be more responsive at different times.
Try sending the same message at different times of day or week. Track response rates for morning versus evening sends, or weekday versus weekend campaigns. You might discover your audience checks messages during lunch breaks or weekend mornings.
Keep Your List Clean
A cluttered contact list hurts your ROI by inflating costs while reducing engagement rates. Remove contacts who haven't engaged in months, have opted out, or consistently don't respond.
Regular list maintenance also improves your sender reputation with mobile carriers, which can affect message deliverability. Clean lists mean better delivery rates and more accurate performance data.
Focus on Quality Over Quantity
Bombarding subscribers with daily messages often backfires. Message fatigue leads to opt-outs and ignored texts, both of which damage your ROI.
Instead, send fewer messages but make each one count. Use customer behaviour data to determine when someone is most likely to buy, then time your messages accordingly. A well-timed message to someone who's been browsing your website often outperforms a generic blast to your entire list.
Use A/B Testing
Test different versions of your messages to see what works best. Try different subject lines, call-to-action phrases, or message lengths. Even small changes can significantly impact click-through and conversion rates.
Test one element at a time so you can identify what specifically drives better performance. Once you know what resonates, apply those insights to future campaigns.
FAQs
How do I track SMS campaign ROI?
Most SMS platforms provide analytics showing delivery rates, click-throughs, replies, and conversions. Compare these metrics against your campaign costs to calculate ROI. Look for platforms that offer detailed breakdowns rather than basic delivery reports.
What's a good ROI for SMS marketing?
SMS typically delivers higher ROI than email or social media, often 20-40% or higher for well-targeted campaigns. However, your specific ROI depends on your industry, offer quality, and list targeting.
How often should I send SMS campaigns?
Quality beats frequency. Most successful businesses send 1-4 messages per month rather than weekly blasts. Monitor your opt-out rates and engagement metrics to find the right balance for your audience.
Should I segment my SMS list?
Yes, segmented campaigns typically perform better than mass sends. Group subscribers by purchase history, location, or engagement level, then tailor messages to each segment.
Jargon Buster
ROI (Return on Investment) – A measure of campaign profitability, calculated as revenue generated minus costs, divided by costs
Click-through Rate (CTR) – The percentage of message recipients who clicked on links in your SMS
Conversion Rate – The percentage of recipients who completed a desired action (purchase, sign-up, etc.) after receiving your message
List Segmentation – Dividing your contact list into smaller groups based on shared characteristics or behaviours
Wrap-up
Measuring and improving SMS ROI comes down to tracking the right metrics and making data-driven adjustments. Focus on what your audience responds to rather than following generic best practices. Regular testing and list maintenance will help you squeeze better performance from every campaign.
The most successful SMS marketers send fewer, more targeted messages rather than frequent mass blasts. Your subscribers will appreciate the relevance, and your ROI will reflect the improved approach.
Learn about QuickSMS https://www.quicksms.com/