Metrics & KPIs for SMS: What to Track & How to Improve

metrics & kpis for sms

SMS marketing has become one of the most effective tools for brands. Messages land directly in the customer’s hand, and most people read them within minutes. But sending texts is not enough. To succeed, businesses must measure results. That’s where metrics and KPIs (key performance indicators) come in.

Tracking SMS performance shows you what works and what needs improvement. It prevents wasted spending and reveals opportunities to increase engagement and sales. Without measurement, you are only guessing. With it, you gain a roadmap to grow smarter.

This guide breaks down the essential SMS marketing metrics and KPIs. You’ll learn how to track them, why they matter, and how to improve your campaigns based on data.

Why Metrics Matter in SMS Marketing

Data drives decisions. When you know how customers respond, you can adjust tone, timing, or offers. Metrics also prove return on investment (ROI). That’s important when you need to justify budget or expand campaigns.

Moreover, SMS is personal. People only give their numbers to brands they trust. If your messages miss the mark, unsubscribes will rise. Monitoring KPIs helps you stay relevant and respectful.

Key SMS Marketing Metrics to Track

Let’s look at the most important metrics and KPIs for SMS campaigns.

1. Delivery Rate

Delivery rate shows the percentage of messages that reached a recipient’s phone. If you send 1,000 texts and 950 arrive, your delivery rate is 95%.

A low delivery rate could mean invalid numbers, carrier filtering, or technical issues. To improve it, keep your contact list updated and follow compliance rules.

2. Open Rate

Open rate is the percentage of people who read your message. Unlike email, SMS open rates are extremely high, often above 90%. That’s one reason SMS stands out in digital marketing.

Still, not all messages get opened. Factors like timing, sender ID, and first-line wording matter. Always write clear, engaging openers and send texts at convenient times.

3. Click-Through Rate (CTR)

CTR measures how many people clicked a link in your text. This is critical when promoting a product, event, or survey. For example, if 200 people click a link out of 1,000 messages, the CTR is 20%.

Improving CTR requires strong calls to action. Use urgency, clarity, and value. Instead of “Check this link,” say “Claim your 20% discount today.” Short but compelling language wins.

4. Conversion Rate

Conversion rate goes one step further. It shows how many people took the desired action after clicking. That could be making a purchase, signing up, or booking an appointment.

Tracking conversions often requires connecting SMS with analytics tools or CRM systems. High conversions signal that your campaign resonates. Low numbers mean the landing page, offer, or timing may need work.

5. Opt-Out Rate

Opt-out rate shows how many people unsubscribe after receiving a text. If this number climbs, it’s a red flag. Customers may find your content irrelevant, too frequent, or intrusive.

To lower opt-outs, send valuable messages. Respect frequency and always allow easy opt-out options. A smaller, engaged list beats a larger, annoyed one.

6. Response Rate

For two-way campaigns, response rate is key. It measures how many people reply to your texts. Strong response rates indicate good engagement and trust.

To increase responses, ask clear questions. Keep surveys short. Use conversational tones instead of robotic scripts.

7. ROI (Return on Investment)

ROI is the ultimate KPI. It shows whether SMS campaigns make more money than they cost. If you spend $500 on a campaign and earn $2,000 in sales, your ROI is strong.

Improving ROI comes from optimizing every stage: delivery, clicks, conversions, and loyalty. Even small percentage gains can multiply profit.

Secondary Metrics Worth Tracking

While the main KPIs matter most, secondary data provides deeper insights.

  • List growth rate: How fast your subscriber list expands.
  • Churn rate: The rate at which subscribers leave.
  • Message frequency impact: How often you send before engagement drops.
  • Time-to-open: How quickly recipients read your texts.

These numbers help fine-tune strategy and reveal hidden opportunities.

How to Improve SMS KPIs

Metrics are only useful if you act on them. Here are strategies to improve performance across the board.

Optimize Timing

When you send messages matters. Mid-morning or early evening often works best. Avoid late-night texts, which feel intrusive. Test different times and compare results.

Segment Your Audience

Not all customers are alike. Segment lists by behavior, location, or purchase history. Sending targeted offers improves engagement and reduces opt-outs.

Personalize Messages

Generic texts fade into the background. Personalization grabs attention. Use names, local references, or tailored offers. “Hi Sarah, your local store has 15% off today” beats “Shop now.”

Keep Messages Short and Clear

SMS has strict character limits. Long texts get cut off or split. Focus on one main message per text. Clarity improves open, click, and conversion rates.

Test and Refine

Use A/B testing. Send different versions of the same campaign and compare metrics. Test subject lines, call-to-action wording, or sending times. Data reveals what your audience prefers.

Respect Frequency

Too many messages drive unsubscribes. Too few cause customers to forget you. Find the right balance. Track opt-out rates as a guide.

Integrate with Other Channels

Combine SMS with email, push notifications, or social media. For example, send a text reminder before a webinar and a follow-up email after. This multi-channel approach improves conversions.

Closing the Loop with Feedback

Numbers tell part of the story. Customer feedback fills in the rest. Ask subscribers if they find your texts helpful. Use SMS surveys to collect opinions. Feedback helps explain why metrics rise or fall.

For instance, a campaign may show low CTR. Feedback might reveal the links looked suspicious or the offer felt weak. With that knowledge, you can refine future efforts.

closing the loop with feedback

Final Thoughts

SMS marketing delivers speed, reach, and high engagement. But success comes from measuring the right metrics and acting on insights. Delivery rate, open rate, CTR, conversion rate, and ROI form the backbone of SMS KPIs. Secondary metrics like list growth and churn provide added depth.

Improvement requires testing, personalization, timing, and respect for customer trust. Every number tells a story. When you listen and adapt, you create SMS campaigns that not only reach phones but also drive action.

Data may look technical, but in SMS, it translates to human behavior. Brands that understand and optimize these KPIs stay ahead, while those who ignore them fall behind.

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