Analyse your data - then act accordingly
After sending your first batch of texts you should have analysed and calculated the following results in your campaign:
- Churn/ opt out rate (how many people opted in/out) %.
- Redemption rate (how many people took up your offer) %.
- Cross channel engagement- how many people shared or recommended the offer to friends and family or discussed it on different media platforms.
- Bounce rate- how many texts were not sent because the number was not recognised.
- Subscriber growth- How many people joined your website or subscribed in some way to your services as a result of the message. Analysing patterns and using them for future messaging
Let’s take each aspect of the analysis and identify what indicators tell us about how well the campaign is going and use it to decide what to do next.
1. Delivery Rate or Bounce Rate
We know that 97% of marketing texts are opened and read by the recipient. Out of the number of people who you sent your first texts to, how many actually reached their intended target?
High Delivery Rate Low Bounce Rate
This means that a high percentage of your messages actually got through to their intended targets. This is good news as it proves that your data collection process is effective and people are genuinely interested in your products. It may also mean that if a customer changed their number in the meantime, they may have bothered to update their details in order to take your campaign to their new phone.
Low Delivery Rate High Bounce Rate
This could mean that there are issues with your data collection processes as it may for some reason not have been collected accurately. Secondly, customers have not bothered to update their details given to your company if they have changed numbers. Do not worry about this, they are (like you) busy people and it may also be possible to obtain their new number if they engage with your business again in the future.
2. Opt out rate
A low opt out rate (2-3%) is good news as people were interested in the message and the offer you provided them. However, do not rest on your laurels it is important to follow this up with another interesting text to maintain your customer’s interest. It is a good start but there are also the four other aspects to consider.
A high opt out rate (10%+) means that a lot of people chose to opt out of your campaign after the first message. This is not good news, but do not worry because at least it indicates that something went wrong and you can fix it. Analyse your first message closely and try to find the reasons why there may have been a high number of opt-outs.
- Did you spam them? Was the same message sent more than once and did you annoy people into opting out?
- Was the timing wrong? – Did you send the messages simply at the wrong time? For example a bar sending content out on a Sunday or Monday may result in more opt outs because the customer is not really thinking about having a night out at this time of the week or may not have decided on their plans for the following weekend.
- Did you gain the recipient’s trust by identifying yourself properly?
- Was the message too complex? Was the call to action unclear or too complicated which resulted in putting customers off doing business?
- Was the offer useful to your customer? Did the customer feel they wanted your product or service and it was of benefit to their lives?
3. Redemption Rate
A high redemption rate means that a higher percentage of your customers took up your offer and (hopefully) in the process enjoyed the experience and will become regular customers. It is also important that your second message builds on this success and can create further positive action from your recipients in the future.
A low redemption rate means that not many people redeemed the offer you sent them. A low opt out rate could mean your call to action was too complicated or not urgent enough, but the customers are willing to give you a second chance because they like your company. Coupled with a high opt out rate and the campaign is in a spot of trouble and it may be worth completely re-thinking your SMS marketing strategy.
4. Cross channel Engagement
Are your products and service being talked about? Check social media channels, Facebook, #twitter hashtags, Instagram and any other platform you can think of. If there are a lot of photos, tweets, comments, discussions about your products and services it may be worthwhile bearing this in mind and use it your advantage in future messages. If your target audience is the type to use picture and video content regularly it may be worth considering MMS in your marketing campaign.
If there is little or no engagement with the product analyse your audience, then consider whether they are the type to readily use these platforms for engagement. For example if your customer base is older (35+) they may be far less likely to take a photo of themselves engaging with the product and post it online. If there are negative comments about your products then it is wise not to panic and take into account any constructive comments for future messages, in order to improve your campaign for next time.
5. Subscriber Growth
Although this is linked with cross-channel engagement it is also a good idea to check the effect of your text messages on subscriptions to your website, Facebook group, or any other platform in which you operate.
A sharp rise in website members, likes, subscriptions or customers means that your first text message has raised more awareness of your services. In the future it is your job to build on this and use these platforms in order to advertise more, along with your ongoing SMS campaign. It also indicates that the other four aspects of your campaign are in the positive category. Any new subscribers and their contact details can also be harnessed and used in future messages providing they have given their consent.
Subscriptions about the same or less
If the number of subscribers has remained about the same then it may be worth making sure that your next message focuses directly on boosting numbers. For example, in your next message you may wish to contain a link to your website and an incentive to join, such as a free gift, coupon or discounted offer.
In your analysis there may be strengths and weaknesses to your campaign. A high opt out rate is not a disaster if the redemption rate was still high among those who chose to stay in. A low redemption rate is not a disaster if it boosted online subscribers to your website. Analyse these trends and make a list of where the campaign was successful and where it went wrong. Then, act on them accordingly in your second round of messages.