The main aims in business are all about those numbers: customers, costs and profits. There is nowhere that this rings truer than in The Apprentice. Keeping costs minimal and profits high is advice which echoes each year within the hit business series – even though precious few of the contestants ever seem to get this right.
At Text Marketer, we often get asked what sort of response rates and returns you can expect from an SMS campaign.
With many variables that can determine response rate, this can be a tough question to answer, however our always low pricing keeps costs to a minimum, which – if everything else performs well – can provide high profit margins that would give even Lord Sugar a run for his money.
Your data quality, opening lines, calls to action, products and timing of texts can all determine the response and returns your business gets.
Here we take a look at average outcomes from a £200 spend on your mobile marketing campaign.
As the UK’s lowest costing SMS provider, we can offer 5,400 credits for a price of £199 – bargain!
With research from Frost & Sullivan showing that 98% of all text messages sent are read, this means that of the 5,400 you could send at this price, 5,292 are likely to be read if your data is of good quality.
Average response rates according to Cellit market research stand at almost 23.3% for correctly implemented SMS services with strong calls to actions, this mean that out of 5,400 texts sent for your campaign you should expect a response of at least 1,258 of your customers.
Driving traffic online
With our SMS APIs and Web SMS services you can also put to use our URL link shortener (included in this price) to direct consumers to your website or product. With just one text message Research from Textboard and Mailchimp shows that when URLs are used in texts 19% of customers will click through to the website from a text compared with just 4.2% from an e-mail. This means that the more exciting you make your message the more successful clicks will be.
Numbers and response rates sound great but in terms of Returns on your Investment – what does this mean for Alan-Sugar-levels of performance?
Take a look at this example text for promoting winter bedding:
The above research shows that 1,258 customers should visit the store or click online.
Even if Just 5% (62 people) of these were to make a purchase with an average spend of £50 the return would stand at a very attractive £3,145 – a profit of £2,945.**
Providing you with one of the UK’s best, most powerful and lowest priced SMS platforms on the market, Text Marketer can help you start sending business boosting text messages in just minutes.
** The not-so-small-print: all statistics provided here work to averages and assumes high quality data, while we can’t always guarantee the response rates above, we have the tools, platforms and advice that have helped many local and national businesses with their SMS campaigns since 1999.