As any good marketing tool should, SimpleTexting is equipped with a variety of tools and metrics created to give you indications of your campaign’s success. To give you an idea of what we believe would be helpful to track, here are the necessary steps to determine SMS marketings top 7 key performance indicators (KPIs).
1. List Size
We’ll begin with one of the most fundamentally obvious KPIs— list size. Of course, the more subscribers you have, the more eyes on your brand messaging. A clear positive indicator of interest. At face value, this metric is the total number of phone numbers subscribed to your campaign.
With SimpleTexting, you can find your list size by navigating to your “Subscribers” tab, and subtracting the invalid and unsubscribed values from your total “Contacts”.
2. List Growth Rate
Knowing how big your list is can be great. However, if you want to take it a step further, evaluate how fast your list is growing. If you’ve performed a recent advertising blitz, such as a promo or ad, you can measure growth rates before and after to judge its success!
Your list growth rate can also be calculated on a weekly, monthly, or yearly basis. A steady growth rate means your campaigns have been successful in gaining new subscribers and retaining existing ones.
3. Attrition Rate
Some customers will inevitably unsubscribe from your text marketing campaigns. Some will do so because they are simply no longer interested in your service, but others will because they find your messages intrusive or the value proposition lacking. Changing the frequency and content of your messages may lower your attrition rate. You need to work to tune the content and frequency until you reach a rate acceptable for you.
4. Response Rate
This metric is the primary measure of effectiveness for an individual broadcast. It’s a measurement of how many subscribers have taken action after receiving a text message. Keeping track of this statistic will let you know what kinds of messages are the most effective. Other factors to consider are timing, message structure, and offer type.
For many businesses, this metric is helpful for checking whether or not someone converted because of a text that was sent. For brick-and-mortar stores for example, you could send a scannable coupon and say “show this text at check out to receive X discount”. Online shops can send a URL with a UTM code or send a discount code like, “Use TEXT at check out to get X% off.”
5. Acquisition Cost Per Subscriber
The Acquisition cost metric is used to measure the cost of acquiring a mobile subscriber. Comparing this cost to the average profit of a subscriber tells you how much you can offer customers to sign up to your list.
6. Return On Investment (ROI)
Traditionally, ROI is used to determine the overall effectiveness of your text marketing, either on a per-campaign basis or over all your campaigns. As long as this metric is in positive territory, your campaigns are successful.
7. Click-Through Rate (CTR)
One of the features native to campaigns is the ability to include a link within your message. When you use our in-app URL shortener with your link, you actually create the opportunity to track who is (and isn’t) clicking on your links. With this info, you can then calculate click-through rate (CTR).
The CTR is a metric you can use to gauge your campaign’s performance. It can give you a clear indication of whether or not the content you’re delivering is relevant to your audience, enough so that they’re willing to interact with it!
Calculating your click-through rate is simple, just requires a little bit of mental math! We’ll break it down in two formulas: Step 1 and Step 2
Simply multiply your final sum by 100, and you’ll have your click-through percentage rate!
Of course, if you don’t want to manually calculate your CTR, with SimpleTexting you can do a little digging through your dashboard to find your rate. Just click on “Analytics”, scroll down to “Detailed Breakdown”, then select the campaign you’re interested in. From there, scroll all the way to the right to find a column called CTR!
Now, take a deep breathe and put away the calculators. You’ll need your free hands to give yourself a pat on the back, because you’ve made it to the end.
We just have a few loose ends to tie up, so stick around for the conclusion where we’ll bring home everything you learned today.
Previously: How Do Businesses Use Text Marketing?
Up Next: Conclusion