The Best Way to Measure SMS Marketing Success in Real Time
News, Retention / Loyalty

The Best Way to Measure SMS Marketing Success in Real Time

July 18, 2022

Reading Time: 1 minute

Here at Postscript, we’re big fans of Subscriber LTV (Lifetime Value). That’s because it’s the only SMS marketing metric that represents the total future value of your brand’s text messaging program.

In other words, Subscriber LTV gives you insight into the long-term return on your investment in SMS.

Subscriber LTV and ARMU are the key metrics for long-term SMS marketing ROI.  

At the most basic level, Subscriber LTV is the average dollar amount each SMS subscriber spends over the life of their subscription to your text messages. (For a detailed breakdown of the formula for calculating Subscriber LTV, check out this blog post.) There are four submetrics of Subscriber LTV that brands can influence in order to raise the total value of their subscriber list:

  • Acquisition Rate: How quickly you are growing your subscriber list

  • Revenue per Message: How much money each text generates

  • Messages per Subscriber: How many texts each subscriber receives per month

  • Unsubscribe Rate: How quickly subscribers churn from your list

Together, these are known as the ARMU metrics, and they are the key to preserving the health, longevity, and overall performance of your SMS marketing program. That’s why it’s so critical to keep a consistent pulse on each one—and why we’re so excited about the Subscriber LTV dashboard within Postscript.

Postscript’s Subscriber LTV dashboard provides a real-time forecast of your SMS revenue potential.

Whenever you log into Postscript, you’ll see a live look at your shop’s Subscriber LTV at the top of your dashboard.

Subscriber LTV dashboard in Postscript

This dashboard displays your current Subscriber LTV and ARMU values as well as a circle graph denoting your health status for each. Your color-coded rating corresponds to the benchmark ranges provided here:

  • Green means you’re in the “textpert” range

  • Yellow means you’re in the intermediate range

  • Red means you have room for improvement

Have metrics in the yellow or red?

Check out this blog post to see what levers you can pull to get back on track. You can also reach out to your Postscript CSM or our customer support team for tips and guidance based on your specific account.

Don’t have a Postscript account yet?

Take our quick quiz to see how your SMS marketing program stacks up to peers in your industry.

And once you’re ready to give us a try—and get your Subscriber LTV up to “texpert” status—go here to start your free trial.