1.1. ROI Reports
You need to use your SMS Marketing software to generate reports that reveal your return on investment. You might have different objectives for distinct campaigns, like the promotion of a new product, increase the followers' base in social media profiles, increase sales, and more. A simple formula to calculate ROI is
Total cost spent to run the campaign/ Number of desired actions taken = Cost per action
For example, if you spend $500 on a campaign, and based on your analytics a total of 20 sales were made, then your cost per action is $25. If you've earned more than $25 profit on these sales, then you've got a higher ROI.
1.2. Opt-In and Opt-Out Rates
In addition to ROI, it is also important to take care of the opt-in and opt-out rates for each campaign. If there is a huge increase in opt-out rate, it might indicate the failure of the campaign among the subscribers.
Always be mindful of the various factors that have a direct or indirect impact on the opt-in and opt-out rates.
1.3. Leveraging Graphs and Charts
To understand your SMS analytics and performance, you will need to dig deeper into a few metrics. This can help you understand what parameters are most successful and what needs to be optimized for your future campaigns. A few important metrics which need to be monitored are listed below
Cost Per Acquisition
Cost Per Click
The SMS marketing software will represent all these data in graphs or charts for easy understanding.