Text Message Marketing SMS Analytics and Performance Metrics 1 — Questions and Answers
Question 1: What does 'delivery rate' measure in SMS marketing analytics?
- The percentage of sent messages that were successfully delivered to recipients' devices (Correct answer)
- The speed at which messages are sent from the platform
- The percentage of subscribers who clicked a link in the message
- The ratio of opt-ins to total messages sent
Correct answer: The percentage of sent messages that were successfully delivered to recipients' devices
Delivery rate is calculated as the number of successfully delivered messages divided by total messages sent, indicating the health of your phone number list and sending infrastructure.
Question 2: What is the 'click-through rate' (CTR) in an SMS campaign?
- The percentage of message recipients who clicked a link included in the text (Correct answer)
- The percentage of subscribers whose messages were delivered
- The ratio of replies received to total messages sent
- The number of unique subscribers who opened the message
Correct answer: The percentage of message recipients who clicked a link included in the text
CTR measures engagement by dividing the number of link clicks by the number of messages delivered, showing how effectively the message motivated recipients to take action.
Question 3: How is the 'opt-out rate' calculated for an SMS campaign?
- Number of opt-outs divided by total messages sent, expressed as a percentage (Correct answer)
- Total opt-outs divided by total list size at the start of the year
- Number of opt-outs minus new opt-ins over a period
- Total complaints divided by total delivered messages
Correct answer: Number of opt-outs divided by total messages sent, expressed as a percentage
Opt-out rate is calculated by dividing the number of subscribers who replied STOP (or equivalent) by the total messages sent in that campaign, expressed as a percentage.
Question 4: What is considered a healthy opt-out rate benchmark for an SMS marketing campaign in the US?
- Below 2-3% (Correct answer)
- 10-15%
- 5-8%
- 20% or higher
Correct answer: Below 2-3%
Industry benchmarks suggest SMS opt-out rates below 2-3% per campaign indicate healthy list engagement; rates consistently above this signal frequency, relevance, or targeting issues.
Question 5: What does 'conversion rate' measure in an SMS marketing campaign?
- The percentage of message recipients who completed the desired action, such as making a purchase (Correct answer)
- The percentage of messages that were delivered without errors
- The rate at which new subscribers join the list
- The ratio of SMS revenue to total marketing budget
Correct answer: The percentage of message recipients who completed the desired action, such as making a purchase
Conversion rate tracks how many recipients took the intended action (purchase, sign-up, download) divided by total messages delivered, measuring the campaign's ultimate business impact.
Question 6: What is 'revenue per message' (RPM) in SMS analytics?
- Total revenue attributed to a campaign divided by the number of messages sent (Correct answer)
- The cost charged by the SMS platform per message delivered
- Revenue generated by the top 10% of subscribers
- The price per SMS segment billed by the carrier
Correct answer: Total revenue attributed to a campaign divided by the number of messages sent
Revenue per message (RPM) is calculated by dividing total campaign revenue by messages sent, providing a straightforward metric for the financial efficiency of each SMS sent.
Text Message Marketing SMS Analytics and Performance Metrics 1
What does 'delivery rate' measure in SMS marketing analytics?