As many as 63% of consumers prefer SMS conversations from companies and want businesses to interact with them over SMS. As per the recent study and research were done on many consumers, it has been stated that around 75% of consumers want to get notified via SMS for new deals and promotional offers. So, isn't the scope of SMS conversations vast and fruitful? We second on that the scope of SMS conversation is growing by leaps and bounds and many businesses are eager to adopt various SMS services for their venture. But it is equally important to measure its success correctly to analyze its effects on your business. Are you searching for the metrics that would be beneficial for the SMS conversation? Check out the top 6 metrics for a successful SMS conversation.
1. Response Rate
Response rate is an important metric in an SMS conversation, as it indicates the performance of the SMS marketing campaigns or other business-related campaigns. Response rate defines the rate at which consumers acted after receiving the SMS from a service or business. If the response rate is higher, it reflects that the SMS campaign performs well and gives a fair reach to the targeted audience. You should include rich media in your enterprise SMS or bulk SMS service for a better response rate.
Formula: (Total Clicks/Total Number of Delivered SMS) *100
2. Return on Investment (ROI)
Return on Investment or ROI indicates the return on investment of the SMS efforts you have put into several sales or marketing campaigns of the business. The ROI can be easily and precisely calculated by doing an easy calculation.
Formula: (Total Sales – Total Investment)/Total Investment
3. Conversion Rate
Conversion Rate indicates the performance of the SMS marketing campaigns or other business-related SMS campaigns. It defines the rate at which consumers completed the action defined in the SMS, such as coupon redemption, signing up for service, or clicking a link. If the response rate is higher, it reflects that the SMS campaign
Formula: (Total Conversions/Total Number of SMS Sent) *100
4. Unsubscribe Rate
Unsubscribe Rate indicates the performance of your SMS campaign by providing the rate at which people have unsubscribed from your services or SMS campaigns. Ensure that your SMS campaign has a lower unsubscribe rate.
Formula: (Opt-outs During the SMS Campaign/Total Number of Subscribers at the beginning of the SMS Campaign) *100
5. List Growth Rate
List Growth rate defines the augmentation rate in the subscribers in a specific duration or beginning of the SMS campaign.
Formula: (Total Number of New Subscribers - Total Number of Old Subscribers/Total Number of Subscribers at the beginning of the SMS Campaign) *100
6. Delivery Rate
Delivery rate defines the effectiveness of the SMS campaign by determining the quality of the contact in your current database. Lowe delivery rate indicates that the contacts are invalid, not in use, or marked your SMS Gateway API as spam.
Formula: (Total Number of Delivered SMS/Total Number of SMS Sent) *100
SMS conversations are beneficial for businesses from leading developed ones to develop ones. As per the recent surveys done around SMS marketing, the click rate was higher in SMS conversation mode than e-mail or social media. So, change your business's marketing and sales strategy using various SMS services such as bulk SMS service, enterprise SMS, or OTP SMS from a trusted SMS API provider.
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