SMS marketing campaigns can be incredibly effective, but sending them out to potential leads is just the start of the job. Knowing whether those messages actually lead to customer actions is where the real value lies.
That’s where an SMS Gateway API comes in, allowing you to track conversion rates and measure ROI with precision, giving you the data needed to make smart marketing decisions.
The Basics: Measuring ROI
Return on investment is a relatively simple concept: revenue from an SMS campaign minus the overall cost of the campaign. The total you spend will vary depending on API access and volume SMS costs, as well as any service fees associated with a campaign (e.g. graphic design).
You also want to keep track of the leads you acquire as a result of your SMS campaigns. Your conversion rate can depend on other factors not tied to the efficacy of SMS as a marketing tool, and you should always look to optimise it. Of course, tracking ROI to a specific campaign isn’t quite as easy. We’ll get to that a little later on.
What is an SMS Gateway API?
For business owners who have never come across an SMS Gateway API, it can seem a little confusing at first. But don’t worry, we’re going to guide you through the process; it’s not as complicated as you’d think.
In simple terms: an SMS Gateway API is a set of programmatic commands that allow software applications to send and receive messages via a, well, gateway. Using an SMS gateway is a bit like integrating Stripe’s payment API; your app sends the message, and the provider handles the delivery infrastructure. It means you don’t have to do the heavy lifting to set up an SMS marketing campaign.
For example, it can connect a CRM or marketing platform to telecom networks, giving you the option to bulk send SMS to potential leads right from your dashboard. Easy, right? Well, for most businesses, the easiest thing to do is to sign up to a third-party SMS Gateway API SaaS provider.
Beyond Delivery: Tracking Conversions
The standard provider gives you delivery reports, but that’s not enough. You need to know what happens next. Conversion tracking fills in the gap by linking message delivery to specific customer actions, helping you leverage technology to drive lead generation.
Now, this doesn’t happen completely hands-free. There are several nifty strategies you can use to facilitate effective conversion tracking. First, custom-made landing pages are tied to specific SMS campaigns.
Second, consider using unique coupons for each campaign you run. Because they each have an identifier, you’ll know exactly what campaign they belong to once they’re used. You can also include UTM parameters or shortcodes in each message, often included with your standard subscription, without affecting user experience.
Many SMS Gateway API providers also offer a range of integrated functions, often through a fancy all-in-one dashboard. These show, for example, the
delivery status of each individual SMS, the click-through rates (CTR), tracking of conversion events, and bounce rates (the lower, the better).
How You Can Improve Future Campaigns
SMS marketing campaigns should be part of an iterative process. You should try to learn something from each and every campaign you run, even if it’s a ‘successful’ one – there is always an element that can be improved:
What Time of Day Works Best?
When it comes to marketing, timing is everything. SMS messages may be more effective at a specific time of day or week, for example. It all depends on your target market.
For instance, does your ideal customer work in an office environment, with a long commute into the city, perhaps? Then you may want to time your messages to coincide with the morning/evening commutes.
A/B Testing
Test, test, and test. You want to try different message formats, work on the wording, and the call-to-action (CTA). Don’t assume, always look at data to help determine your next course of action.
A/B testing is a good way of doing this. It simply means having multiple options for your campaign. Here’s an example: in one SMS, you use the phrase “20% off for every single customer!”. In the second, you focus on a personalised deal, perhaps based on a previous purchase or interest. Lean into the strategy that yields the best results, optimising as you go along, especially as AI and automation tools are making campaign testing and personalization more efficient than ever.
Target the Right Consumer
Not every consumer is created equal; some will tend to spend money on your type of product or service, whereas others simply will not, no matter what you do.
Once your campaign has completed its run, analyse the consumers who convert against those who didn’t. Based on this information, you can segment your targets and create personalised campaigns for even higher conversions going forward.
Final Thoughts
Tracking conversions and measuring ROI for your SMS messages isn’t just possible, it’s a must. It helps tighten campaigns, gearing them towards valuable leads. You’ll see exactly what’s working – and what isn’t.