If you are a marketing professional, there are dozens of statistics you consider daily. Response rate, click-through rate, return on investment, to name a few. However, one of the critical metrics you likely focus on is conversion rate. Quite simply, how many of the people you pushed content to made a purchase and converted into customers?
Marketers use a variety of channels to move potential customers through to purchase. Think about direct mail, Google search, Facebook ads, or any of the thousand-plus pieces of email outreach in your inbox right now. Each of these has a unique conversion rate. Typically the more expensive a marketing channel is, the higher its conversion rate… but that isn’t always true.
$$$ doesn’t always mean better!
According to data provided by WordStream, Facebook ads have an average conversion rate of 9.2%. Email campaign conversion rates only hover around 1%, but they also tend to be cheaper than Google or Facebook. Direct mail campaigns typically judge efficacy on response rate, which peaks at about 2%.
As you can see, these numbers are all relatively low, which is why even the most creative content marketer will confess that at the end of the day, outreach is a numbers game. But there is a channel that combines high conversion rates with low costs. SMS has entered the chat.
A growing channel for everyone
When we look at some of the comparative statistics for SMS, the numbers are pretty staggering. Open rates are around 98%, and three-quarters of cell phone owners keep zero unread SMS messages. The majority of these messages are read within three minutes.
Furthermore, Mitto data shows that click-through rates can be as high as 40% on the SMS channel, and the conversion rates can reach 30%. Pair that with the fact that SMS has an unsubscribe rate of only 3%, and it’s genuinely shocking that not every major brand uses the channel for marketing.
Compared with almost every other digital channel (and honestly non-digital for that matter), SMS wipes the floor with the competition. One might infer from those staggering stats that SMS marketing is wildly expensive. But that’s the best part; it’s not.
A common misconception is that SMS is a channel for large global enterprises. Still, the ubiquity of the channel makes it extremely simple for even small businesses with small marketing budgets to leverage. Low-code/no-code options such as Mitto’s browser-based Conversations tool allow any company to utilize the channel without requiring the dev resources to deploy an API.
Global reach on any mobile device
The Google search that most likely led you to this blog was probably along the lines of “do text messages increase conversion rates?” The answer is yes. In addition to increased conversion rates, marketers need to consider the impressive reach of the channel. 5.27 billion people in the world own a mobile device. The vast majority of these can receive SMS. When brands start to think of the highly customizable ways to use SMS and how it can enable them to reach the right people in the right market at the right time – it becomes increasingly clear how powerful SMS can be when added to your tech stack.
The power of SMS
SMS is a great channel to help marketers cast a wider net. By increasing your reach and upping your conversion rates, you start to tip the mathematical scales in your favor. We mentioned that outreach is a numbers game, but by leveraging SMS, you turn this into a winning equation. Contact Mitto today and learn about all the ways businesses of all sizes are using SMS to win customers.