Calculating the ROI ( Return On Investment ) of SMS campaigns is essential to understand the performance of your company’s business. In fact, even small and medium-sized businesses can take advantage of SMS marketing ROI to measure existing SMS campaigns, optimize subsequent ones and evaluate their effectiveness.
What are the objectives you can aim for when calculating SMS marketing ROI?
Depending on what you want to achieve, there will be different metrics to take into account and different ways to bulk email marketing services calculate ROI . In this list we suggest some of the objectives you can set for your SMS marketing campaigns :
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- Increase online sales: Take into account the sales volume and offer a discount code. This way you can measure the traffic gained through SMS campaigns;
- increase in-store sales: to attract customers, offer a discount coupon via SMS to encourage them to buy. Then check the effectiveness of the campaign and measure your ROI. If you want to know how to write SMS to increase sales during the sales period, read our post ;
- advertise a specific product: analyze sales before sending the message, send the SMS campaign and analyze them again later. You will be able to calculate the success of your strategy;
- wake up sleeping customers: send a promotional code to the laziest customers and test its effectiveness. It will be the best tool to understand how many have returned to buy from you;
- increase calls to your sales team: measure the value of calls received by your sales team before and after sending SMS and then simply calculate the difference. Again, you can offer a discount code and ask customers to mention it while you are on the phone with them;
Assign a value to your goals
If you used a discount code in your SMS campaign, you can calculate the sales volume from the promotion and the revenue generated. This will give you a complete picture of the performance and allow you to make an accurate evaluation of the strategy. In other cases, you will need to calculate the pre- and post-SMS campaign difference on general sales or on a specific product .
For missed appointments, however, a different calculation is needed. In this case, it will be enough:
- calculate the opportunity cost starting from the average receipt
- multiply it by the number of missed appointments before and after the SMS campaign
For example, if your average bill is €40 and you have 15 missed appointments per month, the cost of these missed opportunities is €600. If after you start sending appointment reminder texts, your missed appointments decrease to 5, you will have avoided a loss of €400.
Calculate the ROI of SMS campaigns
Once you have given a value to the objectives, it will finally be possible to calculate the ROI.
Let’s start with how much we have how to create unique landing pages invested. From the Accounting section of your account you can check the amount of the last order. If you have spent only a part of the SMS credit, calculate the total starting from the price of the single SMS. Let’s take two examples to understand better:
Improving campaign ROI is easy with SMS marketing ROI strategies
Thanks to its high read rates (94%), SMS is a solution with a fairly high ROI, but there is always room for improvement. Here are some actions to immediately increase the ROI of your SMS campaign:
- Do an A/B test: divide the SMS sending list and predict a different text for each. By measuring the results obtained by each of the two groups you will immediately know which text is preferred by your target;
- Use Landing Pages : These are small web pages that you can create with Esendex to integrate with your turkey data SMS content. They are simple to create and by inserting text, images or forms you will make your campaigns much more engaging ;
- Update contact lists in Address Book: check that all the numbers in your lists are valid and still active. To understand which numbers to delete, make a comparison between the various campaigns sent, it will be very useful to improve the performance of your sendings .