{"id":1069,"date":"2021-11-09T23:49:00","date_gmt":"2021-11-09T23:49:00","guid":{"rendered":"https:\/\/www.800.com\/blog\/?p=1069"},"modified":"2024-02-22T16:57:43","modified_gmt":"2024-02-22T16:57:43","slug":"sms-marketing-metrics-all-business-owners-need-to-track","status":"publish","type":"post","link":"https:\/\/www.800.com\/blog\/sms-marketing-metrics-all-business-owners-need-to-track\/","title":{"rendered":"SMS Marketing Metrics All Business Owners Need to Track"},"content":{"rendered":"\n<p>Has your business leaped into SMS marketing (<em>also known as text marketing<\/em>)? If so, it\u2019s an exciting step!<\/p>\n\n\n\n<p>Now loyal customers and subscribers can communicate with your brand from the convenience of their phones.<\/p>\n\n\n\n<p>However, if you\u2019re not careful, SMS marketing campaigns can be pretty costly. That is why it\u2019s critical to track specific&nbsp;<a href=\"https:\/\/www.800.com\/blog\/why-you-should-consider-text-message-marketing-for-your-business\/\"><u>text marketing<\/u><\/a>&nbsp;metrics.<\/p>\n\n\n\n<p>Failing to track vital SMS marketing metrics and data points can leave business owners unaware of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How much money they\u2019re spending on text marketing campaigns<\/li>\n\n\n\n<li>How engaged or interested audiences are in your products, services, and brand<\/li>\n\n\n\n<li>What customers want and need from your business<\/li>\n<\/ul>\n\n\n\n<p>Avoid text failures, revenue loss, and upset subscribers by tracking the following SMS marketing metrics.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-delivery-rate\">Delivery Rate<\/h2>\n\n\n\n<p>The delivery rate measures the percentage of texts successfully sent to your audience.<\/p>\n\n\n\n<p>To calculate this, use the following formula:<\/p>\n\n\n\n<p>(Delivered texts \/ Total texts sent) * 100<\/p>\n\n\n\n<p>What\u2019s the point of investing in text marketing if your messages fail to send properly? Tracking the delivery rate helps you understand how many subscribers are successfully receiving your message.<\/p>\n\n\n\n<p>Delivery errors can include inaccurate phone numbers, carrier service outages, and blocked phone numbers. If left unchecked, delivery errors can be expensive!<\/p>\n\n\n\n<p>Naturally, you want a high delivery rate as close to 100% as possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-engagement-rate\">Engagement Rate<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/sproutsocial.com\/glossary\/engagement-rate\/\">engagement rate<\/a> showcases how active your subscribers are. Are they clicking on the links? Are you forwarding your texts to friends? Your engagement rate will tell you!<\/p>\n\n\n\n<p>To calculate engagement rate, use this formula:<\/p>\n\n\n\n<p>(Total Interactions \/ Total Messages) * 100<\/p>\n\n\n\n<p>A low engagement rate can indicate campaign problems such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Irrelevant&nbsp;<a href=\"https:\/\/www.800.com\/blog\/how-to-write-the-perfect-sms-marketing-copy\/\"><u>message copy<\/u><\/a>, media, or campaign goals<\/li>\n\n\n\n<li>Improper audience targeting<\/li>\n\n\n\n<li>Your target audience doesn\u2019t prefer to receive texts<\/li>\n<\/ul>\n\n\n\n<p>Work to improve your engagement rates by paying attention to what your subscribers respond best to.\u00a0<em>Do they want short, sweet, and to-the-point messages?<\/em>\u00a0<em>Would they instead receive exclusive discounts over the latest blog content?<\/em>\u00a0Keep an eye on what\u2019s working and what\u2019s not, along with an accurate engagement rate, to make strategic\u00a0<a href=\"https:\/\/www.800.com\/blog\/what-is-sms-marketing\/\"><u>text marketing<\/u><\/a>\u00a0decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-unsubscribe-rate\">Unsubscribe Rate<\/h2>\n\n\n\n<p>As the title describes, the unsubscribe rate demonstrates the percentage of subscribers who opted out of text marketing messages from your brand.<\/p>\n\n\n\n<p>While you never want people to unsubscribe, it\u2019s bound to happen. You can calculate this metric by using the following formula:<\/p>\n\n\n\n<p>(# of opt-outs \/ # of subscribers at the beginning of a campaign) * 100<\/p>\n\n\n\n<p>If you choose an&nbsp;<a href=\"https:\/\/www.800.com\/blog\/5-creative-uses-for-sms-marketing-other-than-sales\/\"><u>SMS marketing strategy<\/u><\/a>&nbsp;filled with untargeted text blasts and sales-focused copy, you\u2019ll likely experience a high unsubscribe rate.&nbsp;<em>Always think about who you\u2019re texting, what you plan to send to them, and why.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conversion-rate\">Conversion Rate<\/h2>\n\n\n\n<p>The conversion rate tracks the percentage of subscribers who completed the desired action, such as clicking on a link or starting a conversation.<\/p>\n\n\n\n<p>This metric can get tracked by using this calculation:<\/p>\n\n\n\n<p>(# of conversions \/ # of messages sent) * 100<\/p>\n\n\n\n<p>Ultimately, this is the most vital SMS marketing metric to track. After all, if you\u2019re not trying to get subscribers to make a purchase, click a link, or start a conversation, why are you investing in text marketing platforms?<\/p>\n\n\n\n<p>As you craft each&nbsp;<a href=\"https:\/\/www.800.com\/blog\/how-to-use-text-marketing-101-quick-tips-to-follow-and-strategies-to-use\/\"><u>text campaign<\/u><\/a>, review the conversion rates\u2014as well as engagement and unsubscribe rates\u2014of previous campaigns. Think about what you can do differently this time to improve this metric!<\/p>\n\n\n\n<p><em>Studies have shown that text marketing campaigns experience a 30-35% conversion rate on average.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-return-on-investment-roi\">Return On Investment (ROI)<\/h2>\n\n\n\n<p>Return on investment (ROI) tracks how much return your text marketing campaign generated compared to the initial investment.<\/p>\n\n\n\n<p>To calculate ROI, use this formula:<\/p>\n\n\n\n<p>(Total sales generated from text campaigns &#8211; total $ spent on text marketing) \/ total $ spent on marketing<\/p>\n\n\n\n<p>Using this calculation, you can determine if you\u2019re generating a return or operating at a loss. If you find yourself losing money on\u00a0<a href=\"https:\/\/www.800.com\/blog\/text-message-templates-for-small-businesses\/\"><u>text marketing<\/u><\/a>, think about what tactics you can use to increase subscribers or optimize conversions from your campaigns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-customer-acquisition-cost-cac\">Customer Acquisition Cost (CAC)<\/h2>\n\n\n\n<p>The customer acquisition cost metric tracks how much it costs to attain each new customer through your text marketing efforts.<\/p>\n\n\n\n<p>Ideally, this number is on the low end, helping to maximize your return on investment.<\/p>\n\n\n\n<p>Customer acquisition cost gets calculated by dividing the campaign expenses by the number of new customers.<\/p>\n\n\n\n<p>Understanding how much it costs to acquire each customer will help you make strategic decisions related to your overall SMS marketing campaign.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-opt-in-source\">Opt-In Source<\/h2>\n\n\n\n<p>Not all SMS marketing metrics are quantitative!<\/p>\n\n\n\n<p>Tracking the opt-in source of each new subscriber helps businesses understand which marketing efforts perform best in convincing customers or website visitors to subscribe to&nbsp;<a href=\"https:\/\/www.800.com\/blog\/does-text-marketing-work\/\"><u>text marketing messages<\/u><\/a>&nbsp;from your business.<\/p>\n\n\n\n<p>Common opt-in sources include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Email newsletters<\/li>\n\n\n\n<li>Company websites<\/li>\n\n\n\n<li>Point-of-sale systems<\/li>\n\n\n\n<li>Social media posts<\/li>\n<\/ul>\n\n\n\n<p>Keep an eye on which avenue works best for gaining new subscribers. Then, dedicate a portion of your budget to these channels.<\/p>\n\n\n\n<p>If you\u2019re implementing an SMS marketing strategy for your business, make sure these metrics are part of your reports!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Has your business leaped into SMS marketing (also known as text marketing)? If so, it\u2019s an exciting step! Now loyal customers and subscribers can communicate with your brand from the&#8230;<\/p>\n","protected":false},"author":2,"featured_media":1070,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-1069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sms-marketing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SMS Marketing Metrics Business Owners Need to Track :) 800.com<\/title>\n<meta name=\"description\" content=\"If you\u2019re implementing an SMS marketing strategy for your business, make sure these metrics are part of your reports :) 800.com\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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