SMS marketing ROI calculator

Find out the business impact of your messaging operations with delivery rates and alternative costs included

Add your business metrics

Expected monthly traffic SMS
We offer tailored pricing for volumes higher than 10k per month. Talk to sales to get started.
Price per message €
Message delivery rate %
Open rate %
Average Transaction Value €
Average profit margin (per transaction) %
Expected conversion rate %
Alternative cost per undelivered message
The cost of an unreceived package or cancelled purchase process due to an undelivered message. This happens mainly when using transactional messages. If you don’t have an alternative cost, leave the field empty.
 €

Calculated metrics

Delivered messages SMS
Undelivered messages SMS
Opened messages SMS
Conversions

Business impact

Expected revenue €
Expected profit €
Lost potential revenue
The potential revenue lost due to undelivered messages. Play around with the delivery rate to see how service quality affects this.
€
Lost potential profit
The potential profit lost due to undelivered messages. Play around with the delivery rate to see how service quality affects this.
€
Alternative cost €
Expected messaging cost €
Total cost €
ROI % %
Ready to make an impact with SMS?

How to use the SMS ROI calculator

Step 1
Insert different business values to calculate the ROI.
Step 2
Click on the “Calculate” button.
Step 3
Check the results screen. Play around with delivery rate to see how service quality affects ROI and business outcome.
Step 4
Create a Messente account or request an offer to start sending messages.

FAQ

Why do I need to use an SMS ROI calculator?

Calculating the business impact of sending messages can be a complicated task. Often the calculators on the internet are very simplistic and don’t include the service quality (delivery rate, alternative cost of undelivered messages) in the formula. These tools give you an inaccurate picture of the business impact and could lead to bad business decisions.

Our SMS ROI calculator accounts for all the key factors in business messaging operations to give you the best possible estimation.

What is the average deliverability rate for OTP-s/marketing in my market?


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How is the business impact of SMS calculated?


The business impact is calculated using multiple calculations in a row. Here’s how it looks like:

  1. Number of delivered messages = Expected monthly traffic * Message delivery rate
  2. Number of undelivered messages = Expected monthly traffic - Delivered SMS
  3. Number of opened messages = Delivered SMS * Open rate
  4. Numer of conversions = Opened SMS * Expected conversion rate
  5. Expected revenue = Delivered SMS * Average Transaction Value
  6. Expected profit = Expected revenue * Average protift margin
  7. Lost potential revenue = Number of undelivered messages * Open rate * Expected conversion rate * Average transaction value
  8. Lost potential profit = Lost potential profit * Expected conversion
  9. Alternative cost = Undelivered SMS * Alernative cost per undelivered message
  10. Expected messaging cost = Expected monthly traffic * Price per message
  11. Total cost = Expected messaging cost + Alternative cost for undelivered messages
  12. ROI = (Expected profit - Total cost / Total cost) * 100

How can SMS help ROI?


SMS has a high engagement rate and when combined with other marketing activities, could significantly increase the ROI on marketing campaigns. For example, you could boost recurring revenue from your e-commerce store by sending personalized messages to your customer base during a store-wide campaign. The possibilities of using SMS are endless. Test and see what works for your business.

Is SMS marketing profitable?


Absolutely. With a 98% open rate and conversion rates up to 45%, SMS marketing really is a no-brainer. Our clients have reported 5x ROI with their campaigns, but it really depends on your industry. It can go higher. Calculate yours with our free SMS marketing ROI calculator.

What is a good conversion rate for text messages?


Based on different sources, including our own customers, the average conversion rate for SMS is around 29%. However, it could be as high as 45%. Compared to other marketing channels, the difference is massive:

3.26% for email marketing
3.17% for Google Ads
9.21% for Facebook ads