TLDR Section
Bulk SMS campaigns continue to deliver excellent ROI when you track the right metrics such as delivery rate, open rate, engagement, conversions, and subscriber growth. In Malaysia, the MCMC prohibits including links in SMS messages, so marketers should focus on engagement through reply keywords, short codes, or promo codes instead. Messages must also comply with local regulations, containing only legal content and being sent exclusively to Malaysian phone numbers. By monitoring performance, benchmarking results, and partnering with a data-driven marketing agency, businesses can refine targeting, improve engagement, and build repeatable, high-performing SMS campaigns.
Table of Contents
In the age of mobile-first marketing, bulk SMS campaigns remain one of the most direct ways to reach customers. However, success is not just about reach, it is about measurable return. Organisations that treat bulk SMS simply as a broadcast channel risk wasting spend. To truly optimise ROI, you must track the right metrics, benchmark performance, and continuously refine your strategy in line with competitor best practices.
This article provides a detailed, EEAT-compliant, and SEO-optimised guide to the key metrics you should monitor for bulk SMS campaigns, draws insights from competitive sources, and offers actionable steps to improve performance.
Why bulk SMS still delivers high ROI
SMS marketing continues to deliver impressive returns. For example, businesses can achieve ROI many times over their spend.
There are a few reasons for this:
- Exceptionally high open-rates – SMS messages often see open-rates around 90 % or more.
- Low cost per message – sending thousands of texts often carries a much lower cost than comparable email or social campaigns.
- Immediate delivery and action – messages land on mobile devices and typically generate responses faster than many other channels.
Yet, without tracking, even the best campaign will underperform. The key is knowing which metrics drive ROI and how to benchmark against competitors.
Key metrics to track (and why they matter)
To measure ROI effectively, you need to understand the key metrics that matter. These include delivery rate, open rate, CTR, conversion rate, and more. For those starting, our SMS marketing guide offers a step-by-step approach to building and optimising campaigns.
1. Delivery Rate
Definition: The percentage of messages sent that reached recipients’ devices.
Why it matters: If messages aren’t delivered, no further action can occur. One analytics blog suggests aiming for delivery rates of 95 %+ in bulk SMS.
How to track: Delivered messages ÷ messages sent × 100. Monitor segmentation (e.g., incorrect numbers, carrier filtering) and clean your list frequently.
2. Open Rate / Read Rate
Definition: The proportion of delivered messages that are actually opened or read.
Why it matters: A High open rate shows your message landed in front of the recipient and captured attention. For SMS, open rates are notoriously high (up to 98 %).
How to track: Many platforms use link clicks as a proxy for open rate (since SMS open tracking is tougher). Delivered messages with click ÷ messages delivered × 100.
3. Click-Through Rate (CTR)
Definition: The percentage of delivered messages where the recipient clicked a link or took the next step.
Why it matters: CTR bridges attention and conversion. Typically, higher CTR indicates greater interest and engagement.
In Malaysia, SMS messages cannot include clickable links due to MCMC regulations. This means traditional click-through tracking may not be applicable. Instead, measure engagement using replies, promo codes, or redemption instructions. Users can report any non-compliant messages to the MCMC portal.
How to track: Track engagement through replies or promo code redemptions instead of clicks. Delivered messages with response ÷ messages delivered × 100 can be used as a proxy for CTR.
4. Conversion Rate
Definition: The percentage of recipients who complete the desired action (purchase, sign-up, form fill) after the SMS.
Why it matters: Ultimately, ROI is about actions that drive revenue or value. Without tracking conversion, you cannot tie your SMS spend to business outcomes.
How to track: Conversions ÷ clicks (or delivered messages) × 100. Define conversion clearly per campaign (e.g., purchase, booking, redemption).
5. Opt-In/Opt-Out Rate
Definition: Opt-in rate is new subscribers or consenting contacts; opt-out rate is the percentage of recipients who unsubscribe following a campaign.
Why it matters: Subscriber list health influences deliverability, cost efficiency, and long-term ROI. High opt-out signals fatigue or poor targeting.
How to track: Opt-out rate = Unsubscribes ÷ messages delivered × 100. Monitor trends by segment and message type.
6. Revenue Generated (and Cost per Conversion)
Definition: The total income driven by the SMS campaign and the cost incurred to get each conversion.
Why it matters: This metric ties the campaign back to business performance. The ROI formula is fundamentally revenue minus cost divided by cost.
How to track: Revenue attributed ÷ campaign cost. Also, “cost per conversion” = total cost ÷ number of conversions.
7. Subscriber Growth / List Growth Rate
Definition: Measures how the size of your SMS-opt-in list is growing (or shrinking) over time.
Why it matters: Growth indicates potential to scale outreach; stagnation may restrict future ROI.
How to track: (New subscribers − lost subscribers) ÷ previous total subscribers × 100.
Strategic steps to optimise ROI
Having a dashboard is one thing; acting on insights is quite another. Below are strategic steps to boost your bulk SMS campaign ROI.
Set clear campaign goals
Before sending, define what success looks like. Are you driving purchases, lead sign-ups, retention, or upsells? One guide emphasises that clear objectives are step one.
Before launching a campaign, be aware of the limitations of your SMS service. For example, your provider may:
- Do not allow links in messages
- Restrict illegal content
- Only support sending to Malaysian phone numbers
Keeping these limitations in mind ensures compliance, avoids delivery issues, and helps you design campaigns that perform well within the service’s capabilities.
Segment your audience
Your competitors emphasise segmentation. For example, sending generic texts to all contacts dilutes relevance and reduces conversion. Segment by behaviour, purchase history, and demographic, and tailor the message.
Optimise timing and content
The message’s timing, content, and call-to-action matter. Provide clear value, personalise the message, and use urgency where relevant.
Monitor and test
Use A/B testing to identify what works best (message wording, timing, offer type). Data-driven refinement is crucial to improving CTR and conversion.
Ensure your landing page is mobile-optimised
An SMS click that lands on a poor mobile experience wastes an opportunity. Ensure the landing page aligns with the SMS message, loads quickly, and is clear.
Integrate SMS with other channels
Treat SMS as part of an omnichannel experience. When SMS supports email, social, or in-app messages, you build more robust journeys. This cross-channel integration often enhances ROI.
Benchmarking: How to know if you are doing well
Industry benchmarks provide helpful context. For example, some companies achieve an ROI of many multiples via SMS marketing. However, what counts as “good” depends on your industry, campaign objective, list quality, and geography. Use your own historical data as a baseline and then compare incremental improvement.
Key pointers:
- If the delivery rate < 90 % consider list hygiene issues.
- If CTR is significantly below your average (< 2-3 %) revisit message relevance.
- If the conversion rate is low, examine the offer, landing page, or funnel friction.
- If the opt-out rate climbs after a campaign (> 1 % per send), your message may be too frequent or irrelevant.
Building your dashboard for the website
To streamline measurement and decision-making, set up a dashboard that includes:
- Campaign name, send date
- Delivery rate
- Open rate (or proxy metric)
- CTR
- Conversion rate
- Revenue/cost/ROI
- Opt-in and opt-out rates
- List growth change – Having this in a simple table or reporting tool (CSV export, Google Sheets, BI tool) will allow you to spot trends across campaigns and optimise accordingly.
Conclusion
Bulk SMS campaigns offer strong ROI, but only when the right metrics are tracked and acted upon. Partnering with a marketing agency can help refine targeting, improve engagement, and maximise results.
By benchmarking performance, honing segmentation, and optimising timing and content, you can turn SMS into a repeatable, high-impact channel that drives measurable business value.
Frequently Asked Questions
Conversion rates vary widely depending on industry and offer. A well-targeted campaign might see conversion rates of 5-20 % of clicks or 1-5 % of delivered messages. Use your own historical campaigns as a baseline and aim to improve incrementally rather than comparing directly to others.
Frequency depends on your audience’s tolerance, the relevance of the content, and the opt-out behaviour. Monitor opt-out rates: if they rise significantly after a send, reduce frequency or increase segmentation. The key is value, not volume.
Use UTM parameters on links, or unique landing pages, to track clicks from SMS in your analytics. Then link conversions (or purchases) back to that campaign. The ROI formula is: (Revenue from SMS campaign – Cost of SMS campaign) ÷ Cost of SMS campaign × 100.
Common causes include outdated or invalid phone numbers, carrier filtering (spam), poor sender ID reputation, or improper formatting. A delivery rate under ~90 % warrants investigation into list hygiene and provider routing.
Yes. SMS works best when part of an omnichannel strategy. Align SMS with email, social media, in-app notifications or web to create cohesive customer journeys, reinforce messages, and improve conversion.