Once you’re up and running with a few solid campaigns under your belt, how can you grow the return you’re getting from your business SMS marketing?
Firstly, you have to establish what success looks like for your campaign. The most essential step here is to decide which of the two key ROI metrics are right for your campaign.
By measuring your conversion rate, you can better understand which offers or incentives engaged people and encouraged them to take action.
For example, this may be how many people downloaded a menu, called to book an appointment or redeemed an offer in store.
Your conversion rate can be calculated using the formula below.
Cost per conversion
Tracking how much you’ve spent for each active redemption, conversion, call or response will help you work out the total monetary return per campaign. It will also help you assess how SMS performs compared to your other channels such as email, letters and social media.
Calculate this by taking the number of goals that were achieved (i.e. the number of appointments booked, the number of items sold, the number of coupons used etc) and divide it by the cost of each delivered text message. The formula, for guidance, looks like this:
Growing your ROI
Now you’re totally confident in measuring your ROI, let’s look at some methods you can employ to grow your return.
Boosting response rates
With SMS messages boasting an exceptional open rate of 98%, the potential for engaging customers is significantly higher than with other marketing channels. However, to grow your return, you must encourage recipients to engage with your content. Techniques such as personalising content, offering SMS exclusive discounts, and compelling call-to-action phrases can all help you get more responses out of your audience.
Improving the customer experience
By carefully planning out what would be useful to your customers at each stage of the customer journey, you can ensure that useful, relevant content is offered at the right time. This precise approach is well worth the time and effort it takes to research as the cumulative effects of each message hitting its mark can leave customers feeling well-communicated to, and satisfied with your service.
In the long-run, using business SMS to supplement each stage of your customer experience can improve the lifetime value of the customer – the total revenue a customer generates over their entire relationship with your business. A good experience with minimal confusion can increase customer loyalty and keep them coming back!
Embrace automation to effectively maximise your ROI with business SMS. Automation ensures targeted messages are delivered at optimal times, resulting in higher engagement and conversions. Combining with personalisation enables the creation of customised SMS content that resonates with your recipients, significantly increasing the likelihood of a positive response.
Tracking & testing
Measuring ROI requires constantly tracking and analysing your SMS campaigns. Monitor key metrics such as open rates, click-through rates, conversion rates, and customer engagement. And constantly compare them to your benchmarks. These insights will help you to identify areas of improvement, optimise your messaging strategies, and see which audiences are engaging with what content.
Additionally, having a regularly scheduled plan for A/B testing can be invaluable when comparing different SMS variants and determining the most successful approaches for your campaigns. Customer expectations are constantly evolving and ensuring you’re always doing your own research is a great way to ensure you’re getting the best return on your SMS marketing.
Try SMS for free today
Business SMS is already one of the highest-return channels to conduct marketing activities. By adopting these techniques to help grow your return even further, SMS can be a potent tool for driving conversions. Unlock your free Text Marketer trial now and see how much higher your marketing return can be with SMS.