Analytics

The txtsignal Guide to Text Message Marketing

txtsignal has a suite of insights available for you to keep track of your success in growing your SMS marketing list, what you’re sending, and how successful your message is.

In addition, you can track your SMS marketing in Google Analytics to measure engagement and track business success as it relates to your own goals.

Four of the most common metrics used to measure SMS success are list growth, churn rate, redemption rate, and cost per redemption.

List Growth

Every business and every organization is different, so there’s no standard number that can tell you, “you’ve done it, you have enough subscribers!”

However, the number of customers who have opted in to receive your messages – and the rate at which the number is growing – is a key indicator of how well you’re doing at marketing and incentivizing your SMS list.

In txtsignal insights, you can see the total number of contacts, how many opted in at certain time periods by day, week, and month, as well as how many of your contacts unsubscribed at what points.

When you take a look at your growth metrics, you can find a few important insights. For example, when you started putting your call to action at tables, did your list growth jump? What about when you changed your initial offer?

At the same time, you can see if there are times when you had a lot of subscribers opt out from your list. Find out what happened, either in your campaign or with your business, that might have caused that dropoff.

Churn Rate

Churn rate is the rate at which subscribers choose to unsubscribe from your list. It can also be known as unsubscribe rate or opt-out rate.

This is calculated on a per-message basis. For a specific message you send, divide the number of unsubscribes within the next 24 hours by the total number of contacts the message was delivered to.

For example, if you send a message to 6,200 contacts, and in the following day you see 24 contacts opt out, your churn rate for that message is 24/6,200, giving you 0.0038, or 0.38%.

You can naturally expect some churn – contacts may move out of your service area, or may simply no longer be interested in what you offer.

However, if you’re routinely seeing high churn rates, take a look at your campaigns. It may be an indicator that you’re sending offers that aren’t relevant, or are sending too many messages.

Redemption Rate

Redemption rate is the rate at which people who receive a text message offer from you actually redeem that offer.
This is easy to calculate, as long as you have a standard way for keeping track of redemptions. This will change from business to business, but it may involve simply counting the number of in-person redemptions, or using your website to see how many times a discount code was used.

Then, calculate the same way you calculate churn rate – number of contacts who redeemed a specific offer divided by the number of contacts who received it!

For example, if you send a message to 6,200 contacts, and get 800 redemptions in your store, your redemption rate is around a healthy 13%!

Cost per Redemption

This is an important indicator that tells you how much it costs, on average, for you to bring in new or returning business via SMS.

Here, you have two important data sets. The first is the number of redemptions you tracked for a given period of time.

The second is cost – the cost of the your SMS marketing plan, as well as the cost of lost revenue from a sale or discount if that was your offer – say, the 20% off.

Take your cost number and divide it by the number of redemptions, and you have your cost per redemption!
The next step is to calculate your ROI, which means gathering data on all the revenue from those redemptions that you would have otherwise missed out on.