Text Message Marketing SMS Analytics and Performance Metrics 2

Question 1

What does 'subscriber lifetime value' (LTV) represent in SMS marketing?

Accepted Answer

The total revenue a subscriber generates over their entire time on your SMS list

Answer

Subscriber LTV estimates the total revenue a subscriber is expected to generate from the time they opt in until they opt out, helping justify subscriber acquisition costs.

Question 2

What is 'list growth rate' and why is it an important SMS KPI?

Accepted Answer

The net percentage increase in subscribers over a period, showing whether the program is growing

Answer

List growth rate measures net subscriber growth (opt-ins minus opt-outs) as a percentage of list size, indicating whether your SMS program is gaining momentum or shrinking over time.

Question 3

What does a high 'undelivered message' rate typically indicate?

Accepted Answer

Poor list quality with many invalid, ported, or landline numbers

Answer

High undelivered rates usually point to list quality issues, including disconnected numbers, landlines that cannot receive SMS, or numbers that have been ported away from their original carrier.

Question 4

What is 'campaign ROI' and how is it calculated for SMS marketing?

Accepted Answer

(Revenue from campaign minus campaign cost) divided by campaign cost, expressed as a percentage

Answer

SMS campaign ROI is calculated as (revenue generated − campaign cost) ÷ campaign cost × 100, giving a percentage that shows the financial return on each dollar invested in the campaign.

Question 5

What is 'response rate' in two-way SMS marketing analytics?

Accepted Answer

The percentage of message recipients who sent a reply to the message

Answer

Response rate measures the percentage of recipients who actively replied to a two-way SMS conversation or interactive campaign, indicating strong engagement and relevance.

Text Message Marketing Practice Test

Text Message Marketing Practice Test

Text Message Marketing SMS Analytics and Performance Metrics 2