When planning for the future success of your mobile marketing strategy, it is important to consider how you are going to measure that success. Knowing the appropriate key performance indicators (KPI’s) to use is crucial for determining what is working in your mobile marketing strategy, and what is not.
To determine your KPI’s, think about what your broader business goals are and how your mobile marketing will help to achieve those goals. Find the most important criteria for your business that is statistically measurable. When you have determined what the KPI’s will be, decide when and how often you should be measuring them.
Some KPI’s to consider measuring if you’re using text message marketing (SMS):
Subscriptions: One of the easiest KPI’s to understand and measure is the quantity of SMS subscribers. Generally, the more subscriptions, with unambiguous consent, you have, the more effective your program is. Success can be measured comparatively by time period. For instance, it is a positive sign if your number of subscribers increases, during the measured time frame, from 15,000 to 20,000 subscribers. However, it is a warning flag if the reverse happens. This metric can be useful, but it should not be the sole KPI measured, because it does not necessarily align directly with the ultimate business goals. What the user does after receiving the SMS promotions is what leads to achievement of end goals.
Attrition Rate: Your SMS unsubscribe rate, or attrition rate, is important to look at in addition to the number of subscriptions. The rates should be compared to examine whether growth is staying ahead of attrition. If you are losing more subscribers than you are gaining, or you have a significant number of unsubscribes that you did not expect, it is important to explore possible reasons why it is happening and in a timely manner. Perhaps you are sending out too many messages, or the content of the messages does not match their needs. Relevance is everything when communicating with customers.
Click-Through Rate: Another key SMS-specific KPI to measure is the click-through rate, which is the percentage of customers that when seen, click on a hyperlink within an SMS message. For example, if 10 customers receive your brand’s SMS messages, and three of the customers click on the hyperlink in the message, then the click-through rate would be 30%. One way to earn and maintain a high click-through rate is to make sure that your brand’s website on the other end of the hyperlink is mobile-friendly.