10 Ways to Maximize Your SMS Marketing ROI in 2024

Ways to Maximize Your SMS Marketing ROI

Do you track your SMS marketing ROI?

If youโ€™re just sending text messages to some people without analyzing the performance of your SMS marketing campaign, youโ€™re wasting your time and money.

In this blog post, weโ€™re going to explain why you need to measure your performance when running an SMS marketing campaign and how to increase the ROI of your campaigns.

What Is ROI & How Do You Calculate SMS Marketing ROI?

First, letโ€™s define what SMS marketing ROI is.

Return on Investment (ROI) is a measure of profitability for each business effort, and marketing is no exception.

ROI tells you how much return youโ€™re getting from your investment and this way, you understand if youโ€™re performing well.

The SMS marketing ROI has a simple formula:

ROI = (Total Revenue Generated โ€“ Cost of SMS Campaign)โ€‹/(Cost of SMS Campaign)*100

Using this formula, you can evaluate how effectively your SMS campaigns generate revenue compared to the costs.

Of course, sometimes you might face difficulties when calculating the ROI of SMS marketing.

The reason is that tracking the revenue sources is easy and you need advanced analytics tools to track the performance of your campaigns to understand the result of each one.

10 Ways to Maximize the ROI of SMS Marketing Campaigns

Now, letโ€™s review 10 top tips for increasing the ROI of your text message campaigns.

1. Personalize Messages for Higher Engagement

Although your goal is to sell a product/service, you should appear too promotional. In fact, you have to personalize your message and make recipients feel like youโ€™re one of their friends, not just a seller.

There are several ways to personalize your messages. Here are some examples:

  • Use the recipientโ€™s first name to create a friendly, engaging tone.
  • Send personalized offers based on each personโ€™s data.
  • Recommend products based on past purchases.
  • Follow-up messages to see if the customer is satisfied.

Take a look at the following SMS template to see how a personalized message is:

Message

Hi, Janet! ๐ŸŽ‰ Since you loved our Hair Color, we thought you might like a Coloring Brush with 20% off just for you! ๐Ÿ˜ŠReply STOP to unsubscribe.
SMS template to see how a personalized message is

Personalization is a crucial factor in higher engagement rates and customer trust.

Thanks to advanced data analytics tools, you can now easily customize text messages according to each customerโ€™s data.

2. Make Messages Interactive

Nowadays, people like to be heard so you should send just some texts. One good way to make people engage with your messages is to use interactive items like:

  • Polls
  • Quizzes
  • Clickable links

These elements make your customersโ€™ experience more enjoyable. You can also use these items to encourage recipients to take immediate action.

Of course, when your subscribers see you asking their opinions using polls and other methods, they feel theyโ€™re part of your brand story. This loyalty leads to higher SMS marketing ROI.

Here is an example of using interactive messages to get higher SMS marketing ROI:

Message

Hi, Julia! Which new flavor should we launch next? ๐Ÿ“ Strawberry, ๐Ÿซ Chocolate, or ๐Ÿ‹ Lemon! Enjoy 10% off after voting! bit.ly/10VOTE, Reply STOP to opt-out.
SMS marketing ROI

3. Incorporate Rich Media Content

Thanks to advancements in smartphones, you can now include rich media, such as:

  • Images 
  • GIFs
  • Videos
  • Emojis

Rich media makes your SMS more attractive and therefore, your recipients will likely engage with it. 

This is especially effective when it comes to youngsters and teenagers because they like visually appealing experiences. 

This drives higher click-through rates, leading to higher ROI for your SMS marketing campaign. 

Here is a template of a rich-media SMS:

Message

Hi, [First Name]! ๐ŸŒŸ Check out our NEW collection! Hereโ€™s a sneak peek of our latest arrivals ๐Ÿ‘‰ [Image Link]. Shop now and get 15% off your first purchase with code NEW15! Limited-time only โฐ

You just need to fill this message with your business details including link to an image.

4. Implement Two-Way SMS Marketing

One-sided messaging is outdated. You have to give your customers a say and two-way SMS is the best method to do that.

Tools like WP SMS allow customers to reply and this creates a conversation rather than a monologue advertisement.

Here are what customers can do using this feature:

  • Canceling the WooCommerce Order
  • Getting the information from the order
  • Reordering in WooCommerce
  • Opt-In to SMS Newsletter
  • Cancel Subscription (Opt-Out) in SMS Newsletter

When you offer such services, youโ€™ll gain the trust of your recipients and this will lead to increasing the SMS campaign ROI.

5. Use AI to Reach Higher Efficiency

Artificial Intelligence (AI) is transforming all aspects of our lives and businesses. SMS marketing can benefit from AI and reach higher ROI.

Here are some examples of using AI-powered techs in SMS marketing:

  • Abandoned Cart Reminder: You can use AI to prioritize the abandoned cart reminders and automate the process. Here is an example:

Message

Hi, Sara! We noticed you left some items in your cart. Complete your purchase today and enjoy 10% off with code SAVE10!
abandoned cart reminders
  • Personalized Product Recommendations: How do you suggest new products to previous customers? AI can do that in the best way. here is an SMS template of this kind:

Message

Hi, Jack! Based on your recent purchases, we thought youโ€™d love our new collection of [Product Category]. Shop now and enjoy free shipping!
Personalized Product Recommendations

Overall, AI can greatly help with laser-targeting and automation in SMS marketing. Using AI, you can analyze customer behavior patterns. This also allows your brand to send messages with relevant content at optimal times.

As a result, you can reduce the cost of your campaigns, which means a higher SMS marketing ROI.

6. Segment Your Audience Effectively

We talked about personalization, now letโ€™s learn about segmentation and the way it can increase your SMS marketing ROI.

You need to segment customers into various groups based on factors such as behavior, demographics, or purchasing habits.

This way, you can send ads to the more relevant group and get higher engagement rates and ROI. 

Segmentation helps you send targeted messages, like reminders for abandoned cart items, loyalty rewards, or event notifications.

For example, if you have a fashion store, you can segment your audience based on gender. Take a look at the following SMS samples to learn how:

Example 1: Women

If you have a segment for women, you can offer specific clothes to them and increase your chances of selling your products.

Message

๐Ÿ‘— New season, new looks! Explore our fall dresses, blouses, and more collections with a 20% discount. Valid till Nov 15!
SMS segmentation to reach higher SMS marketing ROI

Example 2: Men

Similarly, you can offer clothes relevant to men and attract them to your store:

Message

๐Ÿงฅ Gear up for winter! Check out our latest coats, jackets, and sweaters with a 20% discount for the season. Shop now!
SMS esgment

7. Use Automation for Timely and Relevant Campaigns

One of the greatest opportunities to reach out to customers is events like birthdays, purchase anniversaries, or reminders of abandoned carts.

Of course, even small businesses canโ€™t manage to send all of these messages manually. Thanks to advanced SMS tools like WP SMS, you can use automation to ensure that your SMS campaigns are sent at the right time. 

Automation tools can save you time and energy and reduce your costs, which means a higher SMS marketing ROI.

Example 1: Appointment Reminder

Reminders are among the best uses of automation tools and have a great impact on your campaignโ€™s efficiency:

Message

Hi Olivia, this is a reminder of your appointment with Dr. Sally at 15:00. Please reply YES to confirm or NO to reschedule.
appointment reminders

Example 2: Birthday Reward

Birthday messages are also another application of automation and can gain the trust of your customers and strengthen your partnership with them:

Message

Happy Birthday, Charlotte! ๐ŸŽ‚ Celebrate with a special gift from us: 20% off your next order. Use code BDAY20 by the end of the month. Enjoy!
automated message for birthday

8. Integrate SMS with Other Marketing Channels

Although SMS is an effective means of marketing, you canโ€™t solely rely on it to reach the best result.

For maximum impact, you should combine SMS marketing with other channels like social media, website, and email to make an omnichannel strategy.

For example, when you install WP SMS on your WordPress website, you can easily integrate your marketing into your websiteโ€™s strategies. These two can help each other, leading to a more efficient campaign.

Take a look at the following example of a combined marketing strategy:

  • SMS:

Message

Hi, Jack! Check out our winter favorites to keep you cozy. Shop now and get 15% off your seasonal essentials!
SMS and other channels
  • Email:

Message

Your Winter Shopping Guide is Here! Discover our recommended products for the season and get inspired. Plus, enjoy 15% off with code WINTER15.
email integrated with SMS mareting ROI
  • Social Media:

Message

Looking for winter essentials? ๐Ÿงฃ Check out our latest arrivals perfect for the chilly season! Tap the link in our bio to shop.
social media integrated with SMS marketing ROI
  • Website: Now, you have to feature a winter collection banner on your websiteโ€™s homepage. Also, itโ€™s good to link to product pages to direct visitors where they can make the purchase. Finally, add an option to sign up for SMS and email and encourage them by offering exclusive seasonal discounts.

9. Offer Exclusive Promotions and Discounts

Customers love VIP offers. SMS is an ideal channel to create such a sense. For example, when you send special offers to a customer, he/she thinks that theyโ€™re special and part of your story.

So theyโ€™re highly likely to accept your offer and become more loyal to your brand. As a result, sending discounts or promo codes through SMS encourages customers to take immediate action. Of course, this will lead to higher ROI for your SMS marketing campaigns. 

Here is an example of a VIP SMS:

Message

Hi, James! As a valued VIP member, weโ€™re giving you early access to our Summer Sale! Enjoy 30% off sitewide with code VIPSUMMER.
VIP SMS

10. Use A/B Testing to Optimize Messages

A/B testing (also known as split testing) helps you determine the best format for your text messages.

You can consider variables like the wording, timing, or type of offer to see what version brings higher SMS marketing ROI.

Here is an example of an SMS A/B test:

  • Version A (Urgency)

Message

โšก Limited Time Only! Take 20% off our new fall collection, today only! Use code FALL20. Shop now!
SMS A/B test
  • Version B (No Urgency)

Message

Explore our new fall collection and get 20% off your purchase! Use code FALL20. Available now!
split SMS test

In this test, you can see if adding urgency (a short time frame) to the SMS message results in more conversions.

Using regular testing and optimization, you can easily reach success in your campaigns.

Final Thoughts

SMS marketing is one of the easiest and most effective means of reaching out to potential customers and boosting sales. 

Of course, the competition is so fierce that you canโ€™t send some text messages and stay for more customers in your store. 

You need to constantly track your performance, analyze your weaknesses and strengths, and optimize your campaigns. 

One of the most important matters in this regard is the SMS marketing ROI. 

You must know how much youโ€™re earning for each dollar spent. 

Then, you have to work on details to reduce the costs and increase the earnings. We reviewed several ways to do that.

FAQs

What is SMS marketing ROI?

ROI is the return on investment your company receives. So the SMS marketing ROI is what you earn from all of your text message marketing activities.

How profitable is SMS marketing?

SMS marketing is an effective marketing channel. You can expect a conversion rate of 40% and a CTR of between 15-25%.

What is the average SMS ROI?

It depends on many factors, including the industry, location, and the audience. You can expect about $5 for every $1 spent on SMS, which is a great result.