In the world of SMS marketing, many businesses only look at surface-level metrics. Yet, to manage your campaigns effectively, you need to go deeper.
The key lies in tracking the right performance indicators.
Here are 7 essential KPIs every serious business should monitor to evaluate and optimize the performance of their SMS campaigns.
These KPIs should be tracked regularly (by campaign and by period) and compared to your internal data — in other words, to your previous campaigns.
What Is a KPI?
A KPI (Key Performance Indicator) is a measurable value that demonstrates how effectively a company achieves its strategic goals.
In the context of professional SMS marketing, KPIs help you determine whether your campaigns deliver the expected results — engagement, conversions, and return on investment.
Delivery Rate: The Foundation of Your Success
The delivery rate measures the percentage of SMS messages successfully delivered to recipients compared to the total number sent.
Formula: Delivery Rate = (Number of Delivered SMS ÷ Total Sent SMS) × 100
Performance benchmarks:
- Excellent: > 95%
- Satisfactory: 90–95%
- Needs improvement:
A message that isn’t delivered has zero impact.
If your delivery rate is low, it often means your contact database is of poor quality — invalid or inactive numbers, for instance.
To improve it, clean your contact lists regularly and validate numbers before sending.
Click-Through Rate (CTR): Actionable Engagement
The Click-Through Rate (CTR) measures the percentage of recipients who clicked on a link within your SMS. It’s the go-to metric for assessing the effectiveness of your call-to-action (CTA).
Formula:
CTR = (Number of Link Clicks ÷ Number of Delivered SMS) × 100
Your CTR reflects how compelling your CTA is, how clear your offer appears, and how persuasive your message is.
A low CTR may indicate that your message isn’t relevant enough or that your CTA lacks clarity.
==> To boost CTR, use short URLs, strong CTAs, and make sure your landing page is mobile-optimized.
Conversion Rate: Measuring Real Business Impact
The conversion rate turns engagement into tangible results. It measures the percentage of recipients who completed the desired action — such as a purchase, registration, appointment booking, or app download — after receiving your SMS.
Typical conversion actions:
- Online purchase
- Appointment booking
- Event registration
- App download
This metric, directly tied to your revenue, helps you precisely calculate the ROI of your SMS campaigns.
Formula:
Conversion Rate = (Number of Conversions ÷ Number of Delivered SMS) × 100
As one of the KPIs most closely linked to your business outcomes, it’s the one to watch when sending offers, promo codes, or discounts.
==>If this rate is low, review your landing page, offer relevance, and conversion funnel friction.
Unsubscribe Rate: Retaining Your Audience
The unsubscribe rate represents the percentage of recipients who opted out after receiving your SMS.
Formula: Unsubscribe Rate = (Number of Opt-Outs ÷ Number of Delivered SMS) × 100
A high unsubscribe rate is a red flag — it means your messages are perceived as intrusive, irrelevant, or too frequent.
Alert thresholds:
- Normal:
- Concerning: 2–5%
- Critical: > 5%
==> If this KPI increases, revisit your sending frequency, audience segmentation, and message relevance.
5. Response Rate: Measuring Two-Way Engagement
The response rate measures the percentage of recipients who reply to your SMS.
Formula:
Response Rate = (Number of Replies ÷ Number of Delivered SMS) × 100
This KPI is especially important for interactive campaigns such as surveys, polls, or customer service interactions — it reflects direct engagement with your audience.
Cost per Acquisition (CPA): Optimizing Your Budget
The CPA (Cost per Acquisition or Conversion) shows how much each new acquisition from your SMS campaigns costs you. This financial KPI helps you allocate your marketing budget efficiently.
Formula:
CPA = Total Campaign Cost ÷ Number of Conversions
It’s a powerful way to assess your campaign’s profitability.
==> Compare your SMS CPA to that of other marketing channels to identify the most cost-effective acquisition strategies.
Return on Investment (ROI / ROAS): Measuring Profitability
Definition: The ratio between the revenue generated by the campaign and the amount you invested in it.
Formula:
ROI = [(Revenue Generated – Campaign Cost) ÷ Campaign Cost] × 100
Alternatively, you can use ROAS (Return On Ad Spend):
ROAS = Revenue Generated ÷ Campaign Cost
This is the metric your executives care about most — “Is it actually profitable?”
A strong positive ROI justifies further investment in SMS marketing.
How to Prioritize and Use These KPIs ?
Define Clear Goals for Each Campaign
Every campaign (promotion, reactivation, loyalty, etc.) should have a main KPI to focus on — for instance, CTR, conversion rate, or unsubscribe rate.Use Internal Benchmarks
Compare your results not only to general industry standards but also to your own previous campaigns — and, if available, to benchmarks in your specific sector.Cross-Analyze Your Data
- High CTR but low conversions? Likely a landing page or offer issue.
- Rising unsubscribe rate after a certain campaign? Sending frequency might be too high.
Track Consistency Over Time
Don’t draw conclusions from a single campaign — analyze monthly or quarterly trends.Segment and Test
Experiment with different messages, timings, and audiences. Then measure KPIs to identify what performs best.Automate Reporting
Ensure your SMS platform (like TextingHouse) lets you track all these metrics in a clear dashboard, ideally with alerts on critical KPIs such as unsubscribe rate.
Ready to optimize your SMS campaigns? Discover how TextingHouse can help you achieve your marketing goals with powerful analytics tools and excellent deliverability.
With our 10 free SMS, try our professional SMS sending solution today.