SMS Marketing ROI: Essential Metrics & How to Track Them
Why SMS ROI is So High
SMS has a 98% open rate (email is 20%). SMS costs ₦1-5 per message. If 1% of recipients convert at ₦1,000 profit, your ROI is 20-100x.
The Metrics That Matter
1. Delivery Rate
What it is: Percentage of SMS that successfully reach the recipient
Good target: 95%+
Why it matters: Bad delivery = wasted money
2. Open Rate (Read Rate)
What it is: Percentage of SMS opened (estimated by delivery time)
Good target: 90%+
Why it matters: Shows list health
3. Response Rate
What it is: Percentage of people who reply to your SMS
Good target: 10-30%
Why it matters: Shows engagement and interest
4. Conversion Rate
What it is: Percentage who complete your desired action (click, buy, sign up)
Good target: 2-10%
Why it matters: Direct revenue impact
Calculating Your SMS ROI
Formula: (Revenue - Cost) / Cost × 100
Example: Sent 1,000 SMS at ₦2 each (₦2,000 cost), got 50 conversions at ₦500 revenue each (₦25,000 revenue)
ROI: (₦25,000 - ₦2,000) / ₦2,000 × 100 = 1,050% ROI
Nigerian SMS Benchmarks
- Delivery rate: 93-97%
- Open rate: 85-95%
- Response rate: 5-20%
- Conversion rate: 1-5%
Track your SMS metrics: Use 1app Grow's analytics dashboard for real-time insights.