Calculate return on investment for SMS marketing campaigns. Determine profitability, optimize messaging strategy, and maximize revenue from text message marketing.
Understanding SMS Marketing ROI for eCommerce Growth
SMS marketing has become one of the most powerful channels for eCommerce businesses, delivering the highest ROI of any digital marketing medium. With 98% open rates and messages read within 3 minutes on average, text message marketing provides unmatched immediacy and engagement.
But is your SMS marketing actually profitable? Our free SMS Campaign ROI Calculator helps you measure the exact return on investment from your text message campaigns, so you can make data-driven decisions about your marketing budget and optimize your SMS strategy.
Whether you're using Klaviyo, Attentive, Postscript, or Twilio, understanding your SMS ROI is essential for scaling profitably and justifying marketing spend.
Why SMS Marketing ROI Matters
SMS marketing can be highly profitable, but it also comes with real costs. Understanding your ROI helps you:
Budget Allocation: Determine how much to invest in SMS vs. other channels
Campaign Optimization: Identify which campaigns deliver the best returns
Profitability Tracking: Ensure SMS marketing contributes to your bottom line
Scaling Decisions: Know when to increase or decrease SMS frequency
Platform Selection: Compare SMS providers based on actual ROI, not just featuresHow to Calculate SMS Campaign ROI
The formula for SMS marketing ROI is:
ROI = ((Total Revenue - Campaign Cost) / Campaign Cost) × 100
For example:
Campaign Cost: $300 (10,000 messages at $0.03 each)
Revenue Generated: $1,500
Profit: $1,200
ROI: ($1,200 / $300) × 100 = 400%This means you earned $4 in profit for every $1 spent on SMS marketing.
Net Profit = Revenue - Cost = $1,500 - $300 = $1,200
SMS Marketing Cost Breakdown
To calculate accurate ROI, understand all costs involved:
Per-Message Costs
US SMS: $0.01 - $0.05 per message
Canada: $0.01 - $0.04 per message
UK: $0.03 - $0.08 per message
International: $0.05 - $0.15 per message
MMS (images): 2-3× SMS ratesPlatform Fees
Most SMS platforms charge monthly fees:
Basic Plans: $20-50/month (up to 1,000 messages)
Growth Plans: $100-300/month (up to 10,000 messages)
Enterprise Plans: $500+/month (unlimited or high volume)Additional Costs
Keyword Setup: $0-50/month per keyword
Toll-Free Numbers: $0-15/month
Short Codes: $500-1,000/month (for high-volume senders)
Compliance Tools: Built into most platformsSMS Marketing ROI Benchmarks
Understanding industry benchmarks helps you gauge performance:
Average SMS Marketing ROI
Overall Average: 300-600% ROI
Top Performers: 800-1,200% ROI
Well-Targeted Campaigns: 500-900% ROI
Broadcast Campaigns: 200-400% ROIBy Campaign Type
Abandoned Cart SMS: 600-1,000% ROI (high intent)
Flash Sales: 400-700% ROI (urgency drives action)
Product Launches: 300-500% ROI
Back-in-Stock Alerts: 500-900% ROI (high demand)
Welcome Series: 400-600% ROI
Birthday/Anniversary: 500-800% ROI (personal)
General Promotions: 200-400% ROIConversion Rates by SMS Type
Abandoned Cart: 15-25% conversion
Flash Sales: 10-20% conversion
Product Recommendations: 5-12% conversion
General Offers: 3-8% conversionHow to Use This Calculator Effectively
Using our SMS Campaign ROI calculator is straightforward:
Enter Campaign Cost: Total cost of sending messages (message cost × quantity + platform fees)
Enter Total Revenue: Revenue directly attributed to the SMS campaign
Enter Average Order Value (Optional): Provides additional insights
Enter Number of Messages (Optional): Calculates cost per acquisitionThe calculator provides:
ROI percentage
Net profit amount
Breakeven analysis
Performance interpretation
Cost per acquisition (if AOV provided)Factors That Drive SMS Campaign ROI
Multiple factors determine whether your SMS marketing is profitable:
1. Audience Quality
Opt-In Method: Subscribers who explicitly opt in engage more
Segmentation: Targeted messages to specific groups perform better
List Health: Remove inactive subscribers to reduce costs
Timing: Send when customers are most likely to buy2. Message Content
Clear Value: State the benefit immediately
Urgency: Time-sensitive offers drive action
Personalization: Use names, purchase history, preferences
Strong CTA: Make the next step obvious (link, code)3. Offer Quality
Compelling Discounts: 20%+ typically drives clicks
Exclusive Deals: SMS-only offers feel special
Free Shipping: Often more effective than discount
Early Access: VIP treatment for loyal customers4. Campaign Frequency
Optimal: 2-4 messages per month
Too Few: Under 1/month leaves opportunity on table
Too Many: 8+/month leads to opt-outs
Balance: High ROI campaigns can justify more frequency5. Send Timing
Best Days: Thursday-Sunday for eCommerce
Best Times: 10am-1pm, 7pm-9pm in recipient's timezone
Avoid: Early morning (<9am), late night (>9pm)
Test: Your audience may differ from averagesProven Strategies to Increase SMS ROI
Want to boost your SMS marketing ROI? Implement these tactics:
1. Segment Your SMS List
Don't send the same message to everyone:
VIP Customers: Exclusive early access, higher discounts
Recent Buyers: Cross-sell, upsell related products
Lapsed Customers: Win-back campaigns with strong offers
Browse Abandoners: Gentle reminders about viewed products
Geographic: Local events, store openings, weather-based2. Personalize Messages
Generic texts get ignored; personalization drives clicks:
```
Generic: "Sale now on! 20% off everything. Shop now: [link]"
Personalized: "Hi Sarah! The sneakers you viewed are 25% off today only. Grab them before they're gone: [link]"
```
3. Create Urgency
Time-sensitive offers drive immediate action:
Flash Sales: "Next 6 hours only"
Limited Stock: "Only 5 left in your size"
Countdown: "Sale ends at midnight"
Early Access: "24 hours before everyone else"4. Use Abandoned Cart SMS
Highest ROI of any SMS campaign:
Send 1-4 hours after abandonment
Include product details
Offer help: "Need assistance with your order?"
Optional: Small discount if no action after 24h5. Implement Two-Way Messaging
Engagement drives higher ROI:
"Reply YES for 20% off your next order"
"Reply with questions - we're here to help!"
"Text STOP to opt out, HELP for assistance"
Respond promptly to maintain trust6. A/B Test Campaign Elements
Test one variable at a time:
Send time (morning vs. evening)
Offer type (discount vs. free shipping)
Message length (short vs. detailed)
CTA wording ("Shop Now" vs. "Get Yours")
Emoji usage (yes vs. no)SMS Marketing Compliance
Staying compliant protects your ROI by preventing fines and opt-outs:
TCPA Compliance (US)
Explicit Consent: Get clear opt-in (not pre-checked boxes)
Identify Yourself: Start with your business name
Opt-Out Instructions: Include in every message
Honor Opt-Outs: Immediately (within 30 days, but do it instantly)
Quiet Hours: Don't text before 8am or after 9pm recipient timeGDPR Compliance (EU/UK)
Legitimate Interest: Document consent
Right to Deletion: Remove subscribers on request
Data Protection: Secure storage of phone numbers
Transparency: Clear privacy policyBest Practices
Use double opt-in for higher quality lists
Keep opt-out language simple: "Reply STOP to opt out"
Document consent with timestamps
Train team on compliance requirementsCommon SMS Marketing Mistakes That Hurt ROI
Avoid these costly errors:
No Segmentation: Sending same message to everyone reduces relevance
Too Frequent: 8+ messages/month leads to high opt-out rates
Weak Offers: Generic "10% off" doesn't drive urgency
Poor Timing: Sending at 7am or 11pm frustrates recipients
No Tracking: Not using UTM parameters to measure revenue
Long Messages: Keep under 160 characters or pay for multiple SMS
Missing CTA: Don't make customers guess what to do
No Mobile Optimization: Landing pages must load fast on mobileCalculating True SMS Marketing ROI
For accurate ROI, account for all factors:
Include These Costs
Per-message fees
Monthly platform subscription
Setup fees (one-time)
Compliance tools
Time spent creating campaignsInclude This Revenue
Direct Sales: Purchases from SMS links (use UTM tracking)
Assisted Conversions: Customer clicked SMS but bought later
Lifetime Value: Future purchases from recovered customersDon't Overattribute
Multiple touchpoints contribute to sales
Attribution models help (first-touch, last-touch, linear)
Conservative estimates are safer than inflated ROIReal-World SMS Campaign Examples
Example 1: Flash Sale Campaign
Messages Sent: 8,000
Cost: $320 ($0.04/message)
Revenue: $2,400
Orders: 32
AOV: $75
ROI: 650%Example 2: Abandoned Cart Recovery
Messages Sent: 1,200
Cost: $48 ($0.04/message)
Revenue: $1,800
Orders: 18
AOV: $100
ROI: 3,650%Example 3: New Product Launch
Messages Sent: 15,000
Cost: $600 ($0.04/message)
Revenue: $3,900
Orders: 65
AOV: $60
ROI: 550%SMS vs. Other Marketing Channels
How SMS ROI compares to other channels:
| Channel | Avg ROI | Open Rate | Time to Open |
|---------|---------|-----------|--------------|
| SMS | 300-600% | 98% | 3 minutes |
| Email | 200-400% | 15-25% | Hours/days |
| Facebook Ads | 150-300% | Varies | Varies |
| Google Ads | 200-400% | Varies | Immediate |
| Push Notifications | 100-200% | 90% | Minutes |
Why SMS Wins:
Highest open rates
Fastest visibility
Direct to customer (no algorithm)
Mobile-native (customers always have phone)
High intent (opted in explicitly)Optimizing SMS Marketing for Maximum ROI
Build Your List Strategically
Website Popups: Offer discount for SMS signup
Checkout: Opt-in checkbox for order updates
In-Store: Text-to-join at register
Social Media: Promote SMS-only deals
Email: Cross-promote to email subscribersSegment Immediately
Don't wait to have thousands of subscribers:
New Subscribers: Welcome series (3-5 messages over 2 weeks)
Active Buyers: Product recommendations, VIP access
At-Risk: Win-back campaigns
High-Value: Exclusive previews, highest discountsTest and Learn
Start small and scale what works:
Send test campaign to 1,000 subscribers
Measure ROI and engagement
Optimize messaging, timing, offer
Scale to larger list
Repeat with new campaign typesHow BenriBot Complements SMS Marketing
While SMS drives traffic to your store, BenriBot ensures those visitors convert:
24/7 Support: Answer questions from SMS visitors immediately
Personalized Recommendations: Show products mentioned in SMS
Cart Recovery: Second layer of recovery for SMS non-converters
Upsell Opportunities: Increase AOV from SMS traffic
Customer Data: Better segmentation for future SMS campaignsBetter on-site experience = Higher SMS ROI. Try BenriBot free and turn more SMS clicks into paying customers.
Start Calculating Your SMS ROI Today
Use our free SMS Campaign ROI calculator above to measure the profitability of your text message marketing. Whether you're just starting with SMS or optimizing existing campaigns, understanding your ROI helps you:
Justify marketing spend to stakeholders
Identify your most profitable campaign types
Optimize messaging and targeting
Scale confidently knowing what works
Make data-driven budget decisionsCalculate your SMS marketing ROI now and discover how profitable text message marketing can be for your eCommerce business.