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Analytics12 min read

Measuring SMS Marketing ROI

Track, measure, and prove the success of your SMS campaigns with the right metrics

98%

Average open rate for SMS

$71

Average ROI per $1 spent

45%

Average response rate

Why Measure SMS ROI?

Understanding your SMS marketing ROI helps you justify budget, optimize campaigns, and make data-driven decisions. Unlike email marketing where open rates are declining, SMS consistently delivers measurable results that prove value to stakeholders.

Essential SMS Metrics to Track

Delivery Rate

The percentage of messages successfully delivered. Aim for 95%+ delivery rates.

Formula: (Messages Delivered / Messages Sent) × 100

Click-Through Rate (CTR)

Percentage of recipients who clicked your link. Industry average is 19-36%.

Formula: (Clicks / Messages Delivered) × 100

Conversion Rate

Percentage of recipients who completed your desired action (purchase, signup, etc.).

Formula: (Conversions / Messages Delivered) × 100

Cost Per Conversion

How much you spend to acquire each conversion via SMS.

Formula: Total SMS Cost / Number of Conversions

Revenue Per Message

The average revenue generated per SMS sent.

Formula: Total SMS Revenue / Messages Sent

Calculating SMS Marketing ROI

The basic ROI formula for SMS marketing is:

ROI = ((Revenue from SMS - Cost of SMS) / Cost of SMS) × 100

For example, if you spent $500 on SMS marketing and generated $5,000 in revenue:

ROI = (($5,000 - $500) / $500) × 100 = 900% ROI

Industry Benchmarks

MetricGoodGreatExcellent
Delivery Rate95%97%99%+
Click-Through Rate15%25%35%+
Conversion Rate2%5%10%+
Opt-Out Rate<3%<2%<1%

Tips to Improve Your SMS ROI

1

Segment your audience

Send targeted messages based on behavior, preferences, and purchase history.

2

Optimize send times

Test different times to find when your audience is most responsive.

3

Use clear CTAs

Every message should have one clear action you want recipients to take.

4

A/B test your messages

Continuously test different copy, offers, and formats to improve results.

5

Track attribution properly

Use unique links and promo codes to accurately measure SMS-driven conversions.

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