SMS is cheap enough that many businesses never measure it. But knowing which campaigns make money — and which just generate opt-outs — lets you send fewer, better messages.
The formula
ROI = (revenue from the campaign − campaign cost) ÷ campaign cost
Campaign cost is mainly SMS cost: recipients × SMS parts × price per SMS. Estimate it with the cost calculator.
Metrics to track
- Delivered: from delivery reports.
- Response: replies, calls, clicks or code redemptions.
- Conversion: purchases, bookings or payments.
- Revenue from those conversions.
- Opt-outs caused by the campaign.
How to track responses
- Unique codes: “Quote SMS20 at the till”. Count redemptions.
- Tracked links: add campaign parameters to links — see links in SMS.
- Keywords: “Reply YES” or text a keyword to a short code.
- Dedicated phone line for a campaign.
Worked example
A shop sends a single-part offer to 5,000 opted-in customers at KES 1.0 per SMS: cost KES 5,000. 120 customers redeem the code, spending KES 2,500 on average: revenue KES 300,000. If the gross margin is 30%, profit from the campaign is KES 90,000 — an ROI of (90,000 − 5,000) ÷ 5,000 = 17×.
Illustrative numbers. Measure your own results; they vary by audience, offer and timing.
Common mistakes
- Counting revenue rather than profit.
- Ignoring customers who would have bought anyway — hold back a small control group to compare.
- Not counting opt-outs as a cost.
- Changing several things at once, so you can’t tell what worked — see A/B testing SMS.
Get started
Create a Connect Media account — SMS from KES 1.0, no minimum top-up, credit that never expires, and one account for Safaricom, Airtel and Telkom. Call +254 707 339 945 or email info@connectmedia.co.ke.
