How Reliable Is The Roi For Most Business Sms Services?

Emma Brown
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As market competition grows, companies are eagerly exploring the most efficient—and cost-effective—ways to engage with customers and boost conversions. And while there’s nothing wrong with innovation, new marketing channels won’t necessarily provide that rapid return on investment (ROI) that your business needs. In this environment, SMS marketing services are an increasingly popular choice, thanks to their sound revenue-generating credentials.

Mobile phones are everywhere, and text messaging remains the surest way of reaching users. According to a Statista survey, 42% of text messages are opened and read—that’s against 32% of commercial emails and 31% of promotional messages from messaging apps.

SMS services can be an extremely reliable marketing channel for businesses, as well as providing a personalized experience to customers. Additionally, SMS messages are short, to the point, and ideal for sharing information and delivering concise updates or calls to action.

Here, we’ll take a more in-depth look at SMS marketing as a revenue-driving tool for businesses. This includes info on how to calculate the ROI of an SMS campaign, and best practices for maximizing that return.

Are Text Messages Still Reliable?

SMS marketing services are a trusted tool for connecting businesses with their customers. Including email marketing, it’s one of the top two most popular online communication channels for marketers. While both methods have their pros and cons, text marketing has some unique advantages to offer businesses.

Text marketing offers immediate, customized messages that lead to high open rates, making it an ideal way to connect with customers. The majority of recipients read SMS messages within minutes of receiving them. This ensures that marketing information is delivered—and read—in a timely manner.

Compared with other messaging channels, such as email or cold calling, SMS provides a more direct and personal route. For instance, emails may be filtered into spam folders or simply ignored, while cold calling can be intrusive—and often ineffective. Text marketing, on the other hand, is a less time-consuming and more open communication method.

Although chat messaging may offer a more interactive experience, it often requires users to download additional apps. This can pose a significant entry barrier for some customers. SMS, however, is accessible to all mobile users. Thus, SMS marketing can be a highly efficient tool for reaching a wide audience quickly and easily.

Furthermore, SMS campaigns can be highly targeted and personalized, allowing businesses to send specific messages to specific customer groups. This personalization and targeted messaging can help to increase engagement and customer conversions.

Calculating SMS Marketing ROI

To measure the success of your SMS marketing strategy, you’ll need to calculate the ROI. Revenue generated vs. cost of implementing the campaign are the two crucial factors here.

Let’s say you run an SMS promotion offering a 10% discount on your products or services. By multiplying the number of customers who make a purchase using that discount code by the average purchase price, you can calculate the revenue generated by the campaign.

Your expenses will include the cost of creating the message, SMS service provider charges, plus other associated costs—such as a copywriting or a third-party service provider. Once you know the total cost of the campaign, subtract it from the proceeds to determine the net profit.

By calculating the ROI of SMS marketing services, you can determine the cost-effectiveness of your campaign—and make informed decisions about how to allocate your marketing budget in the future.

How to Maximize ROI on Your SMS Marketing Campaigns

Need key guidelines for maximizing the impact of your SMS marketing strategy? Have a look at our top tips:

  • Keep messages clear, compelling, and relevant. SMS messages have a limited character count, so they need to be concise and to the point. Moreover, the information must be relevant to your audience and communicate a clear value proposition.
  • Personalize messages. Personalizing a message means that more recipients are likely to open and engage with the text. Use information such as the recipient's name, location, or previous purchase history to customize your message.
  • Include a clear call-to-action. SMS messages should have a clear call-to-action (CTA) that prompts the recipient to take a desired action, such as making a purchase or visiting your website.
  • Provide a compelling offer or incentive. To encourage engagement and increase conversions, offer a special deal, discount, or incentive to your SMS recipients.
  • Timing is crucial. Send your SMS messages at appropriate times, such as during business hours or in the evening when people are more likely to be relaxed and receptive.
  • Avoid “spamming” recipients. Don’t send too many texts to the same recipient over too short a period of time.

Getting Started

SMS marketing is a reliable—and profitable—communication channel for businesses to engage with customers. However, to achieve the best possible ROI, you’ll need the right software solution to help you effectively connect with customers and execute your strategy.

A partner like Landline Remover can help you optimize a range of text messaging campaigns, while ensuring regulatory compliance. This includes removing landline numbers as well as contacts who have opted out of telemarketing communications. As a result, you won’t waste your marketing budget on texting landlines or registered DNC (do not call) numbers

For an SMS marketing campaign with the best ROI, contact Landline Remover today and start seeing results!