SMS Marketing is projected to make a comeback this year. Forbes noted in a recent article that “SMS marketing is set to become an integral part of retailers’ omnichannel marketing strategy and this underrated medium will become the next powerful customer engagement tool.” The word “omnichannel” is key in this statement. Remember to think of SMS Marketing as part of a whole rather than the whole itself when making your marketing goals. This will help your SMS Marketing strategy become even more effective as time goes on.
Knowing the right metrics depends solely on your marketing goals. Are you trying to drive traffic and improve loyalty between you and your customers, or are you simply working to increase revenue for your company?
In a Conduent Survey from October 2022, loyalty between customers and brands was a theme. In fact, centering the focus on driving loyalty appeared to improve the other marketing goals as well:
“Human touch is important and can be a differentiator for consumers in customer experience digital channels. Companies win when they strategically leverage data about the end-to-end customer experience to understand the consumer, are knowledgeable and demonstrate empathy – all at the same time.”
- Jeff Weiner, Vice President, General Manager for Customer Experience Management at Conduent
In 2023, put customer loyalty at the center of your marketing strategy rather than on the perimeter. See how it impacts your traffic and ROI over time.
Now, let’s look at the metrics.
The unsubscribe rate refers to the number of people who have opted out of receiving SMS messages from your business. A high unsubscribe rate can indicate that your messages need to be more relevant or that your audience is not interested in receiving them.
While this may not be your favorite KPI, this is essential information for your brand. A high unsubscribe rate may indicate a need for more loyalty between customers and your brand. As you seek to improve the customer experience, keep an eye on this metric.
The click-through rate refers to the number of clicks on a link in your SMS. A high click-through rate indicates that your message is relevant to your audience and that they are taking action.
This metric is a great way to see how your audience engages with your brand. A high click-through rate is an excellent indicator of how customers see your brand.
The opt-in rate refers to the number of people who have opted-in to receive SMS messages from your business. A high opt-in rate indicates that your audience is interested in receiving your messages.
A high click-through rate is great, but the opt-in rate can be a more direct indicator of how your customers feel about your business.
The list growth rate refers to the rate at which the number of subscribers on an SMS marketing list increases over time. A high list growth rate indicates that the campaign is effectively reaching and engaging potential subscribers. In contrast, a low growth rate may indicate a need for adjustments to the campaign strategy.
The conversion rate refers to the number of people who have taken a desired action after receiving your SMS, such as making a purchase or signing up for a newsletter. A high conversion rate indicates that your SMS is effective in driving sales.
As previously mentioned, focusing on brand loyalty can ultimately enhance overall revenue and traffic marketing goals. With this in mind, it is critical to continue to track conversion rates. Over time, it will be interesting to see how brand loyalty correlates with ROI.
At VIA, we don’t just want to “talk the talk.” From Women’s Apparel to Accessories to Hair & Beauty products, we have helped various brands take their SMS Marketing plan to the next level. Ultimately, we understand the importance of the customer experience and are ready to boost your brand loyalty and increase your ROI in the process.
Ready to learn more? Check out our success stories here.
SMS Marketing is making a comeback in 2023 and is expected to be an integral part of omnichannel marketing strategies. When setting marketing goals, put customer loyalty at the center of the strategy. Watch the rest of your marketing goals naturally fall into place.
The 5 key metrics to keep in mind in SMS marketing are unsubscribe rate, click-through rate, opt-in rate, list growth rate, and conversion rate. These metrics provide valuable insights into the effectiveness of an SMS marketing campaign and can help your business make necessary adjustments to its strategy to improve customer engagement and drive sales.
Remember, the relationship between brand loyalty and ROI should also be monitored and analyzed over time.
