Measuring the results of your SMS marketing campaigns is crucial to be able to make informed decisions about your text messaging strategy. For this, you need two key things: (1) having defined your objectives, and (2) measure the key metrics relevant to SMS marketing.
Define your objectives
It’s essential that you figure out what your objectives are. Why? If you don’t know what your objectives are for sending text messages, you’ll never know if the text messages you’re sending are “working”, as you’ll have no definition for “working”.
Different objectives could be:
- Sell products / services
- Drive brand awareness
- Gain customer insight / improve retention
- Drive site traffic
- Generate leads
- Provide service / support
Measure the success of your SMS marketing campaigns
Once you have decided what your objective are, it is time to measure and track the results of your retail SMS marketing campaigns. By doing so, you will be able to identify what is working and what needs improvement.
Here are the top four things to measure:
- List growth: with this measurement, you track how fast your subscribers’ list is growing, and compare this to past activity. How to get the list growth? Subtract the past amount of subscribers from the current amount of subscribers, then divide that by the past amount of subscribers.
- Churn rate: it’s also important to track how many subscribers you are losing, which is called “churn”. You can use this measurement to see which text messages your subscribers don’t like and lead them to unsubscribe. How to get the churn rate? Divide the amount of subscribers that leave your SMS campaign by the total amount of subscribers.
- Redemption rate: the success of your SMS campaign depends on how many subscribers take action because of it. Measuring this helps you understand which types of text messages work and which ones need more attention. How to get the redemption rate? Divide the amount of subscribers that redeem the promotion by the total amount of subscribers.
- Cost per redeeming subscriber: this measurement tells you exactly how much you are paying for each redeeming subscriber within your SMS campaign. How to get the cost per redeeming subscriber? Divide the cost per delivered SMS message by the redemption rate.
These measurements should be done after every SMS campaign to give you the most insights.
The next steps
Define your objectives, collect the data and assess your results. You can then iterate and improve your SMS marketing campaigns over time, doubling down on what is working and stopping the actions that do not bring the results you expect.