When it comes to marketing, nothing can be as direct as SMS. A noninvasive mode of communication, sending texts is inexpensive, open-rate are extremely high with 98%, read-rate too are huge with 83% read within 3 minutes of an SMS being delivered and so is the ROI.

You know what ROI is, right? Return on investment, and it is quite high with SMS marketing.

As a business owner, you always look for a good return on whatever marketing strategies you use. So would you just go out there and spend on a marketing strategy that simply wouldn’t stand on your expectations?

We say even if you are seeing small results, don’t indulge in campaigns that simply wouldn’t yield strong results. But how do you see big results and also improve your marketing strategies and technique?

The answer is simple, if you don’t have a proper handle to measure the success of your campaign you wouldn’t know how much ROI your campaign is delivering and also, what changes you need to make for your future marketing campaigns?

ROI In SMS Marketing

Calculating the ROI for your SMS campaign is simple. Pay a little more attention to your data, establish goals for the campaign and formalize the metrics tracked during the campaign.

What Metrics You Ask? Here Goes…

Delivery Rate – The percentage of texts that are actually delivered from those you sent.

Open Rates – This allows you to know how many texts were open.

Response Rate – If the message required a response how did it go?

Offers Used – This is also easy to track, check how many users took advantage of the offer.

Click Rate – Find out how many people have accessed your link.

Opt-Out Rate – The percentage of people who unsubscribed after receiving your SMS.

Conversion Rate – The percentage of subscribers who turned into customers by taking the required action.

Now that you are tracking all the important metrics it’s time for the next step

Set Specific Goals

The success of your SMS marketing depends on your definition of success. For some, success would be conversion, for some monetary gains and for some new opt-ins. Your definition of success could be exactly opposite of my definition of success.

Time To Calculate Your ROI

Add the cost of your campaign plan and if you are using some other platform for ads then add that too. Now with the help of analytics calculate your return on investment to see how successful your SMS marketing campaign is.

And, if you think you could do better and are looking for ways, t**ake a cue from these 4 marketing campaigns that delivered some serious ROI.

TIDE

To promote their new high efficient (HE) laundry detergent, Tide launched a text messaging campaign wherein the consumers got a chance to win a year of Tide HE for free by joining the text messaging campaign.

By subscribing to the campaign, consumers received laundry tips, stain solutions, and special offers sent directly to their mobile phones via SMS.

| | | --- | | The campaign was extremely successful in generating 48,000+ new SMS subscribers. |

TEXAS ROADHOUSE

Within one year of launching their mobile loyalty program, this national steakhouse chain accumulated 60,000+ new subscribers that received location-specific offers and alerts.

They customized the notification experience by offering customers the choice of receiving notifications via email, SMS, or both.

| | | --- | | Texas Roadhouse experienced a 17% redemption rate for the sign-up offer and only 2.3% of the list opted out after the offer was redeemed. |

KIEHL’S

Embracing both SMS marketing and geotagging in one campaign, the high-end beauty chain Kiehl’s saw a dramatic increase in redemption and purchase rates.

Kiehl’s asked interested participants to text a message to their shortcode and then every month for the next six months they sent three location-based text messages.

| | | --- | | During that six-month pilot program, 90% of the customers that received texts made an in-store purchase. |

PIZZA HUT

During a 15 month period, Pizza Hut set up geofence locations within a half-mile radius of each of their 340 Pizza Hut locations.

It simply meant that when their existing customers were within a half-mile of any Pizza Hut location, they would receive an SMS promotion on their mobile phone.

| | | --- | | The SMS campaign was found to be on an average 142% more efficient in increasing incremental sales than other channels. 4.4 times more effective than TV ads and 2.6 times more effective than online ads. |

We’d love to know and share insights with our customers how your SMS marketing campaign delivered some serious ROI. Mail us your campaign details and we’d be happy to publish it here.

Till then, happy messaging 🙂

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