Updated: 18 hours ago
When using text message marketing, there are several key metrics you should monitor to determine the success of your SMS campaigns. What you see should guide you in shaping the best overall text message marketing strategy.
Database Growth Rate
This metric tells you how quickly your database is growing. We suggest calculating this rate weekly, monthly, and quarterly to see your growth.
If you’re promoting your text club correctly, your list should grow steadily even if you are not running a giveaway or contest.
When kicking off a text program, we strongly recommend holding a giveaway. Giveaways have shown to be the most effective way to boost growth of your text subscriber list. Let your customers know upfront the benefits of being a part of your text club. To ensure you have a steady growth rate, promote your text club everywhere— your website, social media, in-store, print collateral, window signage, and at check-out (both online checkout and at in-store checkout counter).
AGE Texting offers multiple methods to collect text subscribers:
Keywords to texting number
Opt-in Link (attach to banner ads or share on social media)
Digital scratch-off campaigns
Upload list of phone numbers but you must have confirmation they provided their consent to receive text messages from you
Retaining subscribers is incredibly important, so make sure the messages you are sending are relevant and timely. Offer your loyal customers and text subscribers exclusive deals.
How to Calculate Growth Rate?
[Subscribers at end of time period- subscribers at the beginning] / [Subscribers at the beginning of the time period]
Make sure you keep track of how many phone numbers you have opted into your list.
If you see the number of contacts decreasing quickly, review your message history and determine if timing, unattractive offers, quality of photo or GIF (if MMS), or message setup might have influenced the loss of subscribers. Also, keep in mind that you want to send text messages to consumers who are genuinely interested in your products and services.
Attrition Rate (Opt-Out Rate)
Keeping your text message content valuable for your subscribers and changing the frequency can help reduce the opt-out rate. Unsubscribes are inevitable as people are no longer interested in your text service in general or find them irrelevant. However, if you're losing a substantial number of subscribers, it's time to evaluate your text messaging strategy.
If your business offers multiple products that might not appeal to the same audience, consider creating subgroups.
How do subgroups work? Let’s say your store offers hunting gear as well as home décor and clothing. You might consider segmenting your text subscribers into three groups. Then when you have a special on home décor, you can send that specific message exclusively to the home décor group.
How to Calculate Attrition Rate
[Opt-outs during the month] / [Original number of subscribers at the beginning of the month]
Click-Through Rate (CTR)
Statistics report that 98% of people open a text message. You should always include a link in your message. This invites your subscribers to further engage with your business—whether to shop your website, learn more about your business, watch a video—plus, you have a metric to monitor the success of your SMS campaign.
To see the number of clicks on your text messages, you must use AGE Texting's built-in Bitly tool to shorten your URL. The average SMS CTR is 19%, but AGE Texting customers have seen as high as 45.7% CTR.
You should also be utilizing Google Analytics and their custom URL builder.
How to Calculate CTR:
[Number of Clicks] / [Total Text Messages Sent] x 100
This metric tells you how many subscribers took action as a result of your text message. Did they redeem your promotion? Take a survey? Sign up for your newsletter? Register for your webinar? Monitoring this metric guides you in message types, timing, and offers that are most successful.
How to Calculate Response Rate:
[Number of Offers Redeemed or requests completed]/ [Total Text Messages Sent] x 100
Return on Investment (ROI)
This is the total order amount your text campaign’s subscribers have made as a result of your text blast minus the amount you spent on the text blast. For example—let’s say you’re a small boutique. You held a BOGO sale on dresses exclusively for your text subscribers. You made $2,000 as a result of that promotion. Now, subtract the cost of the text blast. Your ROI is the difference between what you make and your investment in that specific SMS campaign.
How to calculate Response Rate:
[Total dollars made as a result of a text promotion-total cost of text blast]
Make note of the metrics outlined above. Be mindful of what messages and offers drive the most engagement and maintain that strategy—but be creative and have some fun!