One might think that text messaging is an old-school form of communication. This makes SMS marketing an equally old type of advertisement that will not fare well in today’s digital age. The reality is, that’s just not the case.
What’s old is new again.
Short message service (SMS) marketing displays excellent potential for businesses that want to reach their customers immediately. Text messages have higher open rates with an average of 98% compared to email marketing. Your market can easily recognize your campaigns and promotions rather than being left in spam.
There are many ways you can use SMS marketing for your business. But before employing a strategy, you need reliable text messaging software. Fortunately, the market is loaded with great platforms which vary in performance, features, and pricing, and a way to leverage the power of a marketing strategy is to find the right software for your needs. But before settling with one, you must first assess its value and budget.
Checking the Costs
Using text messaging software is a cost-effective investment. You can benefit from its ease of use and the variety of features available. But you need to ensure it’s working well and serving your money’s worth. Here are three points to consider to justify software costs:
Establish Your Purpose
Make one thing crystal clear first, “what is your purpose in employing the strategy?”
In a report by Garter, there are two types of mobile marketers: mobile extenders and mobile-centric.
Mobile extenders are companies that are using SMS marketing as an extension of their customer reach. They are more likely to be satisfied with the essential SMS software services provided because they have prior channels, which are preferred to be their primary form of communication.
On the other hand, mobile-centric relies on the “distinct capabilities of mobile devices and networks to engage their customers and prospects.” This approach makes them in need of multiple and advanced features.
Identifying your goal in SMS marketing helps you decide on the kind and number of services your strategy needs. As mentioned, software varies in parts, and the wider the scope most likely equates to more expensive plans. Establishing your conditions and purpose, in the beginning, allows you to utilize the service and maximize your spending.
Assess its Features & Pricing
SMS Marketing software offers plans that are paid monthly and annually. It includes a list of software functions, app integration, and special services from the vendor. You may want to look into certain features and eventually compare a handful of platforms to assess which falls within your preference and budget. Here are the basic costs to consider:
- Number of Users – Who will use the platform depends on you. Smaller companies may be satisfied with a single-user offer, while medium to bigger companies may need multiple. Look for a platform that offers a reasonable number of users per plan.
- Automation and App Integration – You must acquire automated services and integrate your existing platforms. Look into these well as software may limit these for basic plans.
- Message Costs – SMS messages are cheaper than MMS (Multimedia Messaging Service), but it’s still great to estimate your SMS costs. This is to properly assess your spending mainly when you only have limited text messages to send.
- Keyword Costs – Certain commands on text messages that can be directed to a promo or service are called keywords. The costs vary on the vendors and/or the plan you availed.
- Monthly/Annual Fee – The features mentioned above are most likely included in the plan, which you will have to pay monthly or annually. Anything beyond your chosen plan may cost you more or require you to scale up. However, you may also want to consider comparing monthly and annual costs because some platforms may give you additional discounts on fees when you opt for a yearly subscription.
Look Into The ROI
The Return on Investment varies according to your metrics, goals, and spending. But the ultimate goal is to generate more revenue than its costs. Here is a formula you can use:
ROI = (Gain of Investment) – (Cost of Investment) / (Cost of Investment)
The results of your ROI may vary depending on the period of time. It can appear small in the beginning because of the upfront spending on the plan. But it is expected to get better and higher as time goes by when you start reaping its benefits.
Assessing your SMS software ROI can help you make better decisions. According to Forbes, you have to prepare two estimates, “a pessimistic estimate that assumes the lowest reasonable gain and the highest reasonable cost, and an optimistic one with high gain and low cost.” The result between the two can give you a reasonable range to see your progress. This way, you can monitor how you are maximizing the use of the SMS software and if you are getting your money’s worth.
Choose a Reliable and Cost-Effective Text Messaging Software
One of the advantages of text message marketing is it’s inexpensive. More often than not, businesses already have an SMS provider. They can use this at the beginning of their SMS marketing strategy implementation. But as the business grows, the contacts list expands, and you will need SMS software to make the process easier.
Generally, text messaging software is cost-effective in the long run as it can help businesses employ their strategies effectively. However, it is essential to get your money’s worth by choosing according to your needs and their offered services.
Here at ToroWave, we aim to provide essential SMS marketing needs for every business. Our software features are guaranteed to be the best fit regardless of the company size. We want to help startups begin their growth as much as we want to support big companies’ expanding needs. Our reasonable pricing points match our plans that are sure to cater to your SMS marketing strategy.Choose the right software by experience, you can sign up for a quick demo and check out our free trial to see how we can help you scale—in a cost-effective way.