Conversion rate measures the percentage of SMS recipients who complete a desired action after receiving your message. It's the ultimate measure of SMS campaign ROI.
Conversion Rate Formula
Conversion Rate = (Conversions / Delivered Messages) × 100
Example: 200 purchases from 10,000 messages = 2% conversion rate
Types of Conversions
Purchase/sale
Form submission
App download
Appointment booking
Event registration
Account creation
SMS Conversion Benchmarks
Excellent: 10%+ conversion rate
Good: 5-10% conversion rate
Average: 2-5% conversion rate
Below average: <2% conversion rate
SMS typically achieves 6-8x higher conversion rates than email marketing.
Factors Affecting Conversion
Message quality:
Clear value proposition
Strong CTA
Personalization
Urgency/scarcity
Offer quality:
Relevance to recipient
Compelling discount/value
Exclusive deals
Technical factors:
Mobile-optimized landing pages
Fast page load times
Simple conversion process
Calculating ROI
ROI = ((Revenue - Cost) / Cost) × 100
Example:
Campaign cost: $300 (10K messages × $0.03)
200 conversions × $50 average order = $10,000
ROI = (($10,000 - $300) / $300) × 100 = 3,233%