An EZ Guide to Text Marketing Metrics
As with any marketing program, it is essential that you continually track your text marketing campaign using your metrics. This informs you not just of the success of a particular message or the trajectory of a long-running campaign, but it also highlights areas that are weak.
Know the right metrics to review for your texting campaign.
When you build the foundation of your campaign, it is important to choose which metrics to review to monitor whether or not you are reaching your goal <
|Opt-in Rate||Number of subscribers; program growth|
|Opt-out Rate||Number of people leaving the program; churn rate|
|Delivery Rate||Number of active subscribers|
|Open Rate||Number of subscribers who read the message|
|Conversion Rate||Number who completed a certain action|
|Redemption Rate||Specific type of conversion; number of coupons redeemed|
|Cost Effectiveness||Cost per customer; cost of sending text divided by redemption or conversion rate|
Opt In and Opt Out Rates
The most important text marketing metrics to review as you start your program is your opt-in and opt-out rates. These provide you with an invaluable key to the initial success of your campaign - especially your promotional efforts.
As your campaign continues, these rates also provide invaluable insight into your campaign. If your opt-in rate starts to plateau, then you might need to shake some things up in your promotional efforts to bring in more subscribers. You might also need to provide better value to entice people to join. If your opt-out rate all of a sudden increases, or if you see a steady increase over time, then something probably went wrong.
Delivery and Open Rate
Closely related are two other metrics at which to look: your delivery and open rates. The delivery rate informs you how many texts were actually delivered to the numbers on your subscriber list. There are several reasons for messages to not be delivered, including the number no longer being in service. You want to have a high delivery rate, as this means that you have a clean list with mostly active subscribers. If you notice that your delivery rate is low, it might be time to clean up your list.
You want to send messages that people actually open and read.
Your open rate is the number of people that actually read your text messages. In general, text messages have an amazing 98 percent open rate. However, for multiple reasons, your program might not achieve quite as high of an average open rate.
By closely monitoring your open rate, you will be able to see how engaged your subscribers are. It also informs you about whether or not certain messages are not as interesting to subscribers as others.
You want to focus on having a strong hook at the beginning of your texts so that people open them, rather than simply reading the first few lines on their home screens or ignoring the text altogether.
An important metric to continually monitor is your conversion rate. This might actually include several different measurements, such as:
- Click through rate
- Redemption rate
- Subscription rate
This informs you how successful your message was in motivating people to take action. It also is a measurement of the engagement of your SMS marketing campaign. Text message marketing has a much higher engagement rate, including conversion rates and click-through rates, than other channels, including email. It also plays a valuable role in determining your return on investment, since you will know how many of your customers actually end up performing the action you wanted, which ultimately will be to become a customer.
If you send out a fair number of coupons through text, then your redemption rate will tell you whether or not customers feel that your offer was a good deal. You can compare coupon types with the redemption rate to see to which one customers better respond. Then, you can focus on sending out more coupons that way.
The last metric to look at with your text marketing campaign is the cost per customer. This helps you to determine whether or not it is a cost-effective solution for you, as well as whether or not you are receiving a strong return on your investment. To determine this, you first need to know the cost per SMS sent. Then, you divide this number by your redemption or conversion rate. Then, you can decide how much it costs per redemption to see whether or not you made money or lost it.
When you first start your campaign, you might find that you end up losing a bit of money, despite SMS marketing being a cost-effective marketing solution. However, once you build a solid foundation, you will find that it quickly becomes a way to market that is very cost effective.
By concentrating on these five metrics, you will have a solid understanding of your program. From here, you will know what areas to tweak for a stronger, better campaign that helps you to achieve your business goals.
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