Share :
Introduction
The conversion rate of your SMS campaignis perhaps the most important of all the SMS KPIs. It enables you to calculate the return on investment of your campaigns, the cost of your campaign per purchase/customer, and also to determine whether your marketing is in line with your objectives. In short, the conversion rate enables you to improve your communication, campaign after campaign, and to have a clear vision of the results of your marketing efforts.
What is the conversion rate?
Sometimes called the transformation rate, the SMS conversion rate corresponds to the number of actions/objectives achieved, divided by the number of contacts who received a message during your campaign. It is therefore expressed as a percentage (by multiplying the result by 100).
The objective is usually to sell, but downloading a PDF can also be a sale, as can filling in a contact form.
Let's take a concrete example: you've run an SMS marketing campaign to encourage your contact base to buy a product using a promotional code. You've sent 1,000 SMS and 100 of your contacts have bought the product using this promotional code: your campaign's conversion rate is 10%. (100/1000 = 0.10 then 0.10×100 = 10)
What is the average SMS conversion rate?
In general, the conversion rate of an SMS campaign is 12%, 2 to 3 times higher than that of an email campaign. As for the RCSSMS 2.0) rate, it beats all records (18% on average)!
Of course, there are as many conversion rates as there are types of objective to be achieved.
If your objective is to download a document, sign up for a newsletter or create an account, your conversion rate will inevitably be higher than that associated with a sales objective.
In the mailing world, 4% is considered a good average. For a white paper download, you can expect a double digit conversion rate. If your goal is to sell a product with a high price tag, a rate of around 1% may be quite satisfactory.
Why calculate the conversion rate?
It's an essential element in optimizing the cost of your communication. What's more, when combined with other key performance indicators (KPI's) such as click-through rateconversion rate can help you improve your communication, sharpen your hooks, refine the way you segment your contact base and, ultimately, boost your sales.
How do I know if my SMS campaign has generated conversions?
As a SaaS SMS sending platform, smsmode©provides a large amount of data (reception rate, click rate on smsmode short links, etc.).©The SMS can be used to track the number of messages sent (e.g. sending errors, responses, unsubscriptions, etc.). But unlike a website, SMS in itself doesn't allow you to track your prospects from message reception to purchase action. Calculating the conversion rate of an SMS campaign can therefore seem complicated.
However, there are a number of techniques you can use to find out whether your SMS campaign has been successful, and there's no need to track your customers' every move. Here are a few scenarios you can use to determine a campaign's conversion rate:
Evaluating the conversion rate of an SMS campaign: for an e-commerce site
- Using a promotional code: include a code in your marketing message. If it's dedicated to your SMS campaign, you'll get instant feedback on the conversion attributed to your action: every purchase made with the code is a conversion triggered by your campaign.
- Integration of a link to a dedicated page or a tracking URL: the link can lead to a landing page created for this purpose, or contain tracking options (source, support...). From this entry point, you can track your customers' behavior in the classic way, right up to a potential conversion.
- Use RCS, the new conversion-accelerating channel : this new type of message offers a double advantage. Firstly, the addition of carousels, buttons and clickable images/links makes your offer more attractive, in terms of both aesthetics and customer experience, and these features also give you the possibility of tracking the customer journey like a tracking URL.
For a physical shop
- Promo code : this method works equally well for e-commerce and offline retailers. Codes presented at checkout by your customers allow you to count the number of conversions achieved by your campaign.
- Incentive text messages : based on the same principle as the promotional code, encourage your customers to present a SMS at the checkout to benefit from a discount. You can then compare the number of SMS sent with the number of discounts granted for this reason.
- The landing-page solution This solution from smsmode© allows you to benefit from the attributes of a website without having to create one. With the landing-page solution, you can integrate e-booking as well as maps, buttons and contact forms. Choose the objectives you want to achieve, then easily calculate your conversion rate at the end of the campaign.
SMS : the No. 1 channel for conversion
Marketing Charts has carried out a comparative study of the conversion rates of the different acquisition channels (note that clicking on a link can also be an objective, and this is surely one of the most achievable, with an average of 30%).
In this study, the average conversion rate for marketing via SMS is 29%.
Measured against similar objectives, the conversion rate of SMS is much higher than that of other digital marketing channels:
- 3.26% for email marketing
- 3.17% for Google ads
- 9.21% for Facebook ads
How to improve the conversion rate of your campaigns SMS
Personalise your message
You probably know that personalization is important. The Marketing Charts study revealed that visitors who viewed three pages of personalized content had a conversion rate twice as high (3.4%) as those who viewed two (1.7%).
While personalizing web content and landing pages can be complicated, sending a personalized SMS is child's play. You can address your customers by their first name, or by their title if you operate in B2B. With smsmode© And the direct mail optioneverything is customizable!
Include a clear call to action (CTA)
Traditional SMS only offer 160 characters, so you need to communicate clearly with your prospects. The call to action must be immediately visible to your recipient. Remember that only the first few words of a text message are visible before the SMS is opened. So it's essential to communicate the subject of the text in the very first sentence. Otherwise, you run the risk of the message being deleted without being read.
Use A/B tests for SMS
This is a well-known technique for sales pages to determine which advertisement or text has generated the most responses.
You can replicate this technique on your SMS campaigns: test different catchphrases, different products, different targets...
You can then keep what works best, or even create marketing automation scenarios or a conversion tunnel, where the achievement of one objective leads to another, with the act of purchase as the ultimate goal. You can also test a small group/segment to detect any problems.
Conclusion
The days when advertising was limited to billboards, newspaper ads or TV commercials are long gone. Marketing has become a major budget item for most companies, and it's only natural to want to know exactly how much your marketing campaign has earned. Calculating the conversion rate of your SMS campaigns will enable you to know your return on investmentbut also to realize that SMS is one of the best channels for converting.
Try out our SMS platform and benefit from 20 free test credits, with no obligation.