A Mobile Subscriber Is Worth Way More Than an Email SubscriberYour text subscriber list is a valuable asset and should be treated as such. But just how valuable is it?
If you use text (SMS) marketing for your business, you need to know these numbers. Here’s how to determine the value of your text subscriber list.
What Factors Affect Text Subscriber List Value?
The factors that affect text subscriber list value include:
- Open rate
- Sales / profit per sale
- Lifetime text subscriber value
Your list of 3,000 subscribers (with 95% open rate) is more valuable than a larger email list. That’s because the text message open rate is 98% while the email open rate is just 17.85% for the marketing and advertising industry.
In order to get an equivalent 3,000 subscribers to read your message, you’d have to have larger email list, with say 30,000 email subscribers and a 10% open rate.
Calculating the Value of Each Text Subscriber
In marketing, the value of each text subscriber determines the success of your marketing campaign. In simple terms, the value of a text subscriber is:
- What each text subscriber is worth to you in dollars and cents. A text subscriber could translate to a specific sales amount for your business or have a brand awareness value assigned.
- For ex. Send a $5 Off $25 text coupon and if 10% of 3,000 subscribers use it, your sales would be $6,000 from one text message.
- What it costs to get a new text subscriber. This would be the amount of money that it costs to run a text-to-win campaign, including overhead, divided by the number of text subscribers that a campaign brings in.
- For example, with Sweeppea, a text-to-win sweeps can cost as little as $999 to run for one month and can bring in 5,000 participants. In this case, the cost to acquire each participant is $.20 cents. To this, you can add any promotional costs. Psst! Here’s how to promote your sweep for free.
Once you figure out what these numbers are, you can plug them into an equation to help you determine the value of your text subscriber list overall. If you need help with figuring this out, send us a message.
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