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Home - Lookups - SMS ROI Calculator
Total Monthly Savings
Yearly SMS labor cost
Est. JustCall savings
Measuring the return on investment (ROI) for SMS marketing involves comparing your total campaign costs against the revenue those messages generated. To get an accurate picture, you must account for all related expenses:
Platform Fees: Include your base subscription cost, whether you pay a flat monthly fee or a per-message rate.
Total Message Volume: Track every message sent. While an individual text may only cost one or two cents, these costs grow significantly as you scale.
Message Format: Note that MMS messages (which include images or video) are much more expensive than standard text-only SMS.
Sender Type: Your choice of sending number affects your budget. Toll-free numbers, 10DLC, and shortcodes all have different price points, with shortcodes typically being the most expensive.
To determine exactly how much a campaign earned, use trackable links, unique promo codes, or UTM parameters. These tools allow you to attribute specific purchases directly to your SMS efforts.
ROI Example:
If an SMS campaign costs $1000 to run and generates $10000 in sales, your ROI is 900%. This means you earned $9 for every $1 you invested.
ROI helps you identify which SMS campaigns generate the most revenue, allowing you to focus on what works best.
By tracking returns, you can invest more in high-performing campaigns and reduce spending on ineffective ones.
ROI data reveals which messages convert more leads into paying customers.
Understanding response and engagement rates helps you create more effective communication that customers actually respond to.
ROI tracking highlights underperforming campaigns, helping you eliminate wasted spending and improve efficiency.
Revenue forecasts and ROI insights enable better planning, resource allocation, and long-term business growth.
1.
Get Customer Consent
Always obtain clear customer consent before sending marketing SMS messages.
2.
Respect Opt-Out Requests
Provide a simple way for customers to unsubscribe and promptly honor all opt-out requests.
3.
Follow Industry Regulations
Comply with TCPA, FCC, and carrier guidelines to avoid penalties and maintain customer trust.
Send Relevant Content
Deliver personalized and valuable messages that match your audience's interests and needs.
Contact Customers at the Right Time
Schedule SMS campaigns during appropriate hours to maximize engagement and avoid complaints.
Track and Improve Performance
Monitor key metrics such as response rates, conversions, and ROI to continuously improve campaign results.
ROI is calculated by dividing the profit earned from a campaign by the campaign cost, then multiplying by 100.
ROI = ((Revenue – Cost) ÷ Cost) × 100
An ROI of 0.3 means you earned 30 cents in profit for every $1 invested, or a 30% return.
A good SMS CTR is typically 10%–20% or higher, depending on the industry, audience, and message quality.
Subtract your campaign cost from the revenue generated, divide the result by the campaign cost, and multiply by 100 to get the ROI percentage.