Currently, there are over 39% of businesses using SMS marketing for promotional purposes. Owing to the various benefits the channel has to offer, the number is only growing by the day, resulting in an increased competition for consumer attention.
That’s exactly why eCommerce businesses can no longer treat SMS as just another channel for promotions and need to start focusing on data to reach their customers at the right time and with the right message to get the desired action.
This reliance on data makes tracking the right metrics very important. But what KPIs should be measuring to optimize your SMS marketing campaigns for conversions?
In this blog, we’re going to share the most important eCommerce SMS marketing KPIs you need to know about.
Aware of SMS marketing KPIs and want to set up a campaign today? Book a demo on Recart today.
Similar to other marketing platforms and campaigns, the performance of SMS campaigns can also be measured in different ways. There are many metrics you can track but here are the most important SMS KPIs that we think need to be on your performance report.
The very first SMS KPI you need to look into is your subscriber list size. This number is as upfront and simple as the name, but is indicative of just how many online shoppers trust your brand enough to share their mobile numbers for receiving updates.
List size = Total number of phone numbers/ subscriber details in your list.
With Recart, we know how important keeping a watch on your list size is at all times, as it hampers just how many people you’d be able to reach through a campaign. This is why the analytics dashboard upfront shares your list size, so you can start focusing on tactics that get visitors to subscribe more.
This SMS KPI is a measure of how fast your phone subscriber list is growing. Your list growth rate can be measured on a weekly, monthly or yearly basis, and a positive number is indicative of steady growth in the number of consumers who trust your brand to share personal contact information.
List growth rate = (subscribers at end of a time period - subscribers at the start of the period) / subscribers at the start of the time period
Recart’s analytics dashboard makes it easy to calculate your list growth rate. You can easily select a time range for which you want to analyze the growth and use the above formula for calculations.
Since there is no way to measure the open rate on SMS marketing campaigns accurately, we recommend measuring the response rate. This metric is a measure of how many subscribers in your SMS list have taken an action after receiving a text marketing message. Measuring this SMS KPI can help you understand the best type of campaigns and formats you should be using to engage subscribers.
Response rate = Offers redeemed/ Total offers delivered
The above formula may vary based on what you’re sending in an SMS marketing campaign. For instance, if you’re requesting feedback, offers get replaced by the number of successful submissions you have received. Recart’s analytics dashboard presents the response rate for each type of SMS marketing automation so that you can benchmark your campaigns better.
If you’re promoting links in your SMS campaigns, it is important to note how many subscribers actually click them. Click through rate (CTR) is basically a measure of how many people out of those you sent a message to, found the offer appealing enough to click through to the site to know more.
Click-through rate = (total clicks/ total impressions) x 100
Recart’s analytics dashboard presents the CTR on every message you send in a workflow or SMS marketing automation. This helps you understand at which point a consumer is ready to know more about your offer, and visit your website for the same.
Simply driving traffic to your store from SMS marketing campaigns is not enough. You also need to see how many of these SMS subscribers are actually converting - making a purchase from you. The conversion rate is an SMS KPI that measures the same!
Conversion rate = (number of orders/ number of unique visitors) x 100
We know how crucial this SMS KPI is and hence measure the conversion rate for every message you send on SMS. Whether it is a one-off campaign or an automation, the analytics dashboard presents a CTR to help you optimize messages to make them more actionable.
In correlation with the above SMS KPI, we believe that calculating the average order value is an indicator of your SMS list’s purchase intent and purchase power. This gives you an idea of how much revenue you can generate through the list and the frequency at which you will need to run campaigns for a desired number.
Average order value = Total revenue/ number of orders
Recart helps make it easy to track average order value by continually keeping a watch on the CTR of each message. It tracks those metrics in real-time to be able to take an average for a desired period of time.
Similar to list growth/ opt-in, it’s also important to keep a close watch on how many people opt-out of your list. This metric is an indicator of how valuable a consumer finds your messages, offers or products to be, over a period of time, and can also be used to calculate the customer lifetime value.
Attrition rate = [(subscribers at the end of a period - subscribers at the start)/ subscribers at the start of the time period] x 100
Recart analytics keep a close eye on this metric, recording the opt-outs after every campaign you run. This helps you optimize your campaigns for better personalization and context to reduce attrition.
The one SMS KPI that rules all the metrics for a channel is the return you get on the investment you make to run campaigns. It is the one indicator that lets you benchmark SMS against other channels to see if it makes for a profitable marketing platform for your business.
Return on investment = (profit/ investment) x 100
You can keep an eye on your SMS marketing ROI on the main dashboard of Recart analytics. We keep this number up, front and center so that you’re able to evaluate efforts for better resource allocation. Brands like Her Juice have been able to generate 49x ROI from SMS in just 3 months; read more about it here.
Think about all the marketing and advertising campaigns you run and how you gauge their success. Measuring KPIs is a way to know if your efforts and resources are paying off, and the same holds true for SMS marketing.
Most marketers consider SMS marketing to be a one-off promotional activity. But with workflows and automations, the channel requires more attention to detail to succeed. That’s where KPIs come into play, giving insights on what works and what doesn’t.
With an SMS marketing app like Recart, measuring the main KPIs of SMS marketing isn’t difficult. The analytics dashboard collects all the data from your marketing campaigns, collating insights onto one dashboard.
The analytics dashboard is designed in such a way that you’re instantly able to recognize which aspects of your campaign need work, and which your customers respond to the best.
Ready to get data on your side to run powerful SMS marketing campaigns? Book a demo of Recart today.
Want to explore the best SMS marketing platforms for eCommerce first? Head over to our next chapter here.
One of the biggest indicators of SMS marketing success is the amount of traffic your store receives after running a campaign. This represents that the message copy, offer and call to action appealed to the consumer enough to get them to your site to know more about the campaign. Although, there are many other ways of measuring SMS marketing success based on your business goals, including deliverability rate of your campaign - which means you have a good SMS list, number of message responses, and more.
SMS KPIs (key performance indicators) simply refer to the performance metrics of text message marketing campaigns. It is a quantifiable measure of the performance of your SMS marketing campaigns over time for a specific objective. They help you identify your strengths and weaknesses, set better targets and milestones, and optimize campaigns for better results.
Revenue per subscriber is one of the most important SMS metrics to track. It is the total amount of revenue earned during a period of time from your SMS list, divided by the number of subscribers you have on the list at that moment. This metric not only helps you see if SMS marketing is a profitable channel for your business, but is also indicative of the quality of your SMS list.
Want to learn more about ecommerce SMS marketing before getting started? Head over to our next lesson on how to run consistent text marketing campaigns with automation.Book a Demo