Each campaign’s ROI will be different, but we may estimate an average ROI by comparing the averages of previous campaigns. Our SMS marketing initiatives have an average ROI of roughly 500%. Customers that execute a clever text marketing campaign linked to an offer or bargain can anticipate generating around five times their investment.
How to Calculate a Text Marketing ROI
You must be aware of your investment and return in order to calculate the ROI of text marketing.
- Your Investment: What is the price of running a campaign?
- Your Return: How much money was made during the campaign?
When you are aware of your investment and revenue, you can quickly calculate the ROI of SMS marketing by doing the following:
Return – Investment = Text Marketing ROI
The ROI percentage of your SMS marketing campaign can be calculated from here.
Text Marketing ROI Percentage = (Text Marketing ROI / Investment) X 100.
Depending on how you manage your text marketing campaign, there are different ways you might calculate your return. To make it simple for you to determine the ROI of your SMS marketing campaign, we advise adding a special offer or promotion. You can determine how many individuals used the offer in the restaurant, for instance, if it included a discount for supper for two for $30. You can do this to check how much money the campaign brought in.
Text marketing expenditures can also differ. The price to send a marketing text message varies depending on the seller, but it typically costs between $0.01 and $0.05 each SMS.
Your database’s setup and management may incur additional charges. You might need to invest resources, for instance, in gathering client contact information and including users in your database. To encourage individuals to sign up for your SMS marketing campaign, you might need to invest in digital advertising. Since your investment will be lower after you have a list, you will be able to generate a larger return on your investment.
To fully understand the ROI of SMS marketing, take into account all of your expenses while estimating your investment.