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Wednesday 1 November 2017

The Quick Way to Learn if Your SMS Marketing Campaign Converts

According to the Malaysian Digital Association, Malaysia has 44 million+ mobile subscribers. That's a whopping 1.4x the total population of Malaysia. This is huge for businesses in Malaysia and should be an ideal place to reach and engage with new and existing audiences.

There's an argument though that Facebook is all the hype with 1.28 billion active users every day it seems to be a no brainer for marketers to focus their efforts here.

Hold on right there, that's the total number of active users a day, globally. How does Malaysia fair? According to Facebook themselves as reported by soyacincau.com about 80% of Malaysians that have access to the Internet are on Facebook, that's about 18 million people.

From this perspective SMS Marketing seems to be the more attractive option. However, this article isn't written with the purpose to discuss about the differences between SMS Marketing and Facebook. Rather how to measure whether the campaign you're running through SMS is actually worth it for your business. Let's get right into it.

How do you begin measuring SMS Marketing ROI?

You might be asking, why calculate your SMS ROI?

You need to know which channels are working best for you and how much return you're getting to know where to spend your marketing dollars for your future SMS Campaigns.

Here's an example scenario.

It usually costs your company around RM100 to acquire a customer. You just got to know about SMS Marketing and want to test it out by trying an SMS Marketing campaign to generate new customers with a budget of RM1,000. You run this campaign and notice that it generates you 11 new customers. Was it worth it?

To find out if your campaign is actually worth it or not is pretty simple.

Just follow a simple formula and you're good to go.

Take the amount you spent (cost) and divide it with your returns. From the example scenario above you take the RM1,000 budget that you have as the amount you have spent (cost) and divide it with the number of customers it has brought back in (returns).

11 new customers. That makes for an approximate of RM90 per acquired customer.

Since you know that the typical cost it takes to acquire a customer (RM100) with the new campaign you have decided to run you realise that it only costs you RM90 to acquire a new customer.

Knowing this allows you to understand that you're SMS Marketing Campaign is performing fairly well against the usual customer acquisition cost you have previously been running.


With this, you should be well on your way to becoming an expert on measuring your customer acquisition costs and using it as a benchmark to tell if your SMS Marketing campaign was actually worth it or not.

If you'd like to discuss more about SMS Marketing and how we can help you with your campaign, do get in touch with us here or if you'd like to learn more about the services we have on offer please visit our website.

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