When it comes to cutting-edge marketing strategies, SMS marketing is the new frontier. Thanks to SMS marketing, businesses can instantly deliver timely messages directly to customers' phones, boosting conversion rates and making sales that otherwise may not have happened.
As with any type of marketing, a strong strategy can make the difference between SMS campaigns that convert and those that lead to a barrage of opt-outs. Read on to learn how to increase your SMS marketing conversion rate for your most powerful SMS marketing campaigns yet.
How to calculate conversion rate
Your SMS conversion rate shows you how many people took action after receiving your text. To calculate it, divide the number of conversions by the total number of SMS marketing messages delivered, then multiply it by 100 to get the percentage. The formula is:
SMS conversion rate = (Number of conversions ÷ Number of SMS marketing messages delivered) × 100
For example, if you send 1,000 texts and 150 people make a purchase, your conversion rate is 15%. That calculation looks like this: (150 ÷ 1,000) × 100 = 15%.
What’s considered a good SMS conversion rate?
SMS conversion rate can vary dramatically based on industry. Based on a study by SimpleTexting, the average conversion rates based on industry are:
- Commercial services: 21-30%
- Construction: 21-30%
- Consumer services: 11-20%
- eCommerce and retail: 11-20%
- Education: 21-30%
- Finance: 21-30%
- Healthcare: 21-30%
- Hospitality: 11-20%
- Human Resources: 11-20%
- Insurance: 31-40%
- Legal: 21-30%
- Non-profit: 21-30%
- Real estate: 11-20%
- Manufacturing: 21-30%
- Technology: 31-40%
- Travel: 21-30%
With SimpleTexting’s Mailchimp integration, you can seamlessly sync contacts, share data across platforms, and run coordinated SMS and email campaigns, all from one place.
Key factors that affect SMS conversion rates
Industry benchmarks can be useful information, but your SMS marketing strategy has much more influence on conversion rates than your industry. Read on to learn some of the key factors that affect conversion rates—regardless of industry.
Timing and frequency of messages
The first big question when it comes to your SMS marketing is when to send the marketing messages: both time of day and frequency. Sending a message at the right moment can mean the difference between converting a customer and driving them to opt out of SMS messaging.
When scheduling your SMS messaging, think about the following:
- Day of the week: Depending on your product or service, the day you send messages can make a big difference. A text from a SaaS business that offers tools to optimize a customer's workday may resonate on a busy Monday morning, whereas a text promoting a sale on clothing may do better on Thursdays, Fridays, or over the weekend.
- Time of day: It's best to avoid times your customer may be unavailable, like morning and evening rush hour or Friday and Saturday evenings. If targeting wide geographic regions, remember to adjust for time zones, too.
- Frequency: It can be difficult to find the right balance between sending too many messages and too few. A good rule of thumb is to limit your SMS marketing to 1-2 messages per week, unless in a big promotion or flash sale.
Personalization and segmentation
When used incorrectly, SMS marketing can feel intrusive. No customer wants to be spammed with generic messages that don't meet their needs.
Personalize text messages whenever possible using merge tags. Also, use segmentation to separate customers by buyer persona, purchase behavior, LTV, or other characteristics to enable more tailored messages.end conversational messages with strong CTAs.
For the best possible conversion rate, send impactful and well-written text messages with relevant and timely information and strong, clear CTAs.
Compliance and trust signals
Compliance is essential when it comes to SMS marketing conversion rates. According to the Telephone Consumer Protection Act, businesses need explicit consent to use SMS marketing and must provide a clear way to opt out.
Message content and CTA strength
While email marketing is an excellent tool for storytelling and conveying complex, multilayered messages, SMS marketing is best when used to send conversational messages with strong CTAs. For the best possible conversion rate, send impactful and well-written text messages with relevant and timely information and strong, clear CTAs.
Compliance and trust signals
Compliance is essential when it comes to SMS marketing conversion rates. According to the Telephone Consumer Protection Act, businesses need explicit consent to use SMS marketing and must provide a clear way to opt out.
By following these rules, you can show your customer that their privacy is of the utmost importance to you. Proving your business to be respectful and responsible with your customers' telephone numbers helps customers build trust in you, which they can extend to your products and services.
How to improve your SMS conversion rate
Looking for higher conversion rates for your SMS marketing? Consider these factors to boost your SMS marketing conversion rate and improve your ROI.
Crafting compelling messages
To boost conversion rate on text messages, focus on writing timely messages that get right to the point and ending with a strong CTA. SMS messages are typically limited to 160 characters, so you'll need to be concise. Include a CTA that tells your recipient exactly what you'd like them to do, like "Shop Now" or "Track Shipment".
For even stronger conversion rates, tailor messages directly to your chosen segment. For example, send existing customers a "Come back" message and encourage customers who haven't yet converted to "Give us a try."
A/B testing different elements
Just like marketing emails, SMS marketing is not a one-and-done strategy. For your highest possible conversion rate, it's vital to run A/B testing.
To do so, start by randomly dividing your audience. Then, choose a single element to test at a time. You may want to test different CTAs, messaging, landing pages, or even the emojis you include in your messages.
By holding all other elements consistent only changing your test element, you can identify which variation drives the highest conversion rate, then incorporate that into your strategy.
A/B testing is an ongoing process. With each SMS blast, test a different element to constantly refine to the highest conversion rate possible.
Targeting the right audience
It's also imperative to pair the right audience with the right message. A customer who regularly utilizes your services should be spoken to differently than a customer who has only gone through a free trial. Segment your audiences and target your messages accordingly.
Optimizing landing pages and follow-through experiences
A text message is only the first step in the conversion process. What happens after the customer clicks on your link is just as important. In addition to A/B testing the text message itself, text elements on your landing page or other follow-through experiences.
No matter how strong your text message is, if it's paired with an ineffective landing page, it's unlikely to convert.
How to track and analyze SMS performance
Once you've developed your SMS marketing strategy, it's important to track its performance. Read on to learn how to monitor and interpret the efficacy of your text message marketing campaigns.
Setting realistic goals and KPIs
Key performance indicators when it comes to your marketing campaigns include:
- Delivery rate: What percentage of text messages successfully delivered to customers?
- Open rate: What percentage of customers opened and read your text message?
- Click-through rate: What percentage of customers clicked on the link in your text message?
- Conversion rate: What percentage of customers who clicked on the link converted (purchased, signed up, etc)?
- List growth rate: In addition to tracking your business growth, it's a good idea to track how quickly your SMS list grows.
First, establish a baseline average for all these metrics. Then, set realistic goals for your new strategy. While doubling your conversion rate in 6 months may sound like a great goal, it's unlikely you'll achieve it. Set goals for incremental improvement over reasonable timelines.
Interpreting your conversion data
As you begin to collect data, it's also important to learn how to interpret it correctly. It's great to identify an increase in conversion rate, but even better if you can understand what drove the increase.
Looking at your KPIs can be a good place to start. A higher-than-average click through rate, for instance, may suggest that a particularly powerful message led to your boost in conversion rate.
Best practices for high-performing SMS campaigns
The difference between an SMS campaign that fails and one that drives real results often comes down to execution. Following these proven best practices helps you maximize SMS campaign performance without overwhelming your audience:
- Using automation to send messages at the right moment: It's crucial to get message timing right. Automated messages triggered by customer behavior work because they arrive when interest is highest. Set up welcome texts for new subscribers, abandoned cart reminders, or post-purchase follow-ups to reach customers when they're most likely to respond.
- Aligning SMS with email and other marketing channels: Your SMS strategy works best when it complements your other marketing efforts. Coordinate timing across channels so customers receive a cohesive experience rather than conflicting messages on their mobile phones.
- Optimizing message length and format: People read quickly on mobile, so keep your texts short and scannable. Get to the point in the first sentence, including one clear call to action, and use line breaks to make longer messages easier to digest.
- Leveraging mobile-friendly landing pages: The customer journey doesn't end with the text. Make sure any linked pages load fast and look good on mobile devices, with large buttons and simple forms that are easy to complete on a small screen.
Making the most of your SMS marketing strategy
A strong SMS marketing strategy can take your conversion rate from average to industry-leading. For the best possible results, segment your audience, send tailored, concise messages with powerful CTAs, and get in the habit of tracking, analyzing, and refining your strategy.
Ready to get more out of your SMS campaigns? Mailchimp is the leading SMS marketing tool that businesses love. Learn how you can start drafting powerful text messages that drive real results.
Key Takeaways
- Factors like timing and frequency, personalization, message, and CTA can have dramatic impacts on your SMS marketing conversion rate.
- A/B testing elements like message, CTA, and landing page can improve conversion rate on SMS message campaigns.
- Refine and improve your marketing strategy by tracking and analyzing key metrics like delivery rates, click-through rates, and conversion data to understand what's working and where there's room for improvement.