In today’s competitive marketing landscape, phone number validation is crucial for ensuring the success of SMS marketing campaigns. SMS marketing can be a good method through which companies engage with customers or influence people to do business or buy their products and services.
With that in mind, however, the effectiveness of the campaigns is highly subject to the correctness of the contact details, particularly the phone numbers. Unused or outdated phone numbers not only result in a lack of the use of resources but also reduce potential returns on investment. This will cause several issues, including high bounce rates, waste of resources, and harm to your brand reputation. Phone number verification eliminates all such problems because it makes sure that the phone numbers in your marketing list are the right ones, updated, and current.
Let’s explore how you can improve your SMS marketing ROI with phone number validation in this blog post.
Why Phone Number Validation is Essential for SMS Marketing?
SMS Marketing ROI is a very simple return that a business gets on investing money in SMS marketing campaigns. It is calculated by relating the net profit, that is, revenue minus campaign costs, to total campaign expense. The key to maximum ROI is delivering the right message to the right people, sending it at the right time, having the right calls to action, and, of course, having a clean and accurate list. A good contact list ensures your messages get to the right people to better engage and drive conversion for a higher return.
While evaluating your SMS marketing campaigns’ effectiveness, it is necessary to be aware of specific metrics that give insight into your return on investment.
Here are some key metrics of SMS Marketing Campaign ROI;
Delivery Rate: The percentage of messages that are delivered. It is a good indicator of the campaign reach and also the quality of the contact list.
Open Rate: The number of recipients opening the message. SMS generally has open rates scoring about 98%.
Click-Through Rate (CTR): The percentage of recipients who clicked on links contained in the SMS, demonstrating an engagement with content.
Conversion Rate: The percentage of recipients that take the desired action after the SMS such as a buy or sign up.
Cost Per Conversion: Total campaign divided by the number of conversions. It is a formula to determine whether the cost is worth it or not.
Response Rate: This usually refers to percentages of recipients that reply or take action on the SMS, which can be taken to be a good percentage of interest in general.
Unsubscribe Rate: Percentage of users who unsubscribe to the message. This helps the relevance of the content being sent.
Customer lifetime value: The value obtained from an individual customer acquired through the SMS campaign, which defines the long-term impact on ROI.
Why phone number validation is required in SMS marketing?
The verification of a phone number ensures whether the specific number exists and is active, so it should be able to receive messages or calls. It will also confirm if the number is in the proper format and make an assignment to a carrier and may even go as far as to tell if the number is a mobile, landline, or VoIP number.
As a quality control of bulk SMS marketing, phone number verification plays an important role. It ensures that the contact list consists of valid, active numbers and has no non-working or wrong numbers sending messages to them. This creates fewer chances of communication errors and keeps your business on a good marketing track.
Also, phone number verification eliminates accidental messages to numbers that should not be contacted, avoiding landlines or obsolete numbers. This thereby conserves the integrity of marketing lists and thus companies only focus on delivering their message to actual reachable recipients. In general, it simplifies operations and improves targeting accuracy, as well as minimizes waste in outreach efforts.
How to Improve SMS Marketing ROI with Phone Number Validation
Phone number verification is one of the essentials that must be achieved to maximize the return on investment in SMS marketing programs. As an SMS marketer who aims to maximize his utilization of the SMS marketing programs in place needs, he would also need to have a phone number verification tool. Here’s how to use phone number verification effectively in improving your SMS marketing ROI.
1. Start with the correct contact list
You should begin with a clean, updated, and verified contact list. Regularly delete inactive numbers to avoid wasting resources on invalid entries. That way, you’re more likely to reach actual customers and drive up engagement levels.
For Example: the retailer will clean the customer contact list regularly using the phone number validation tool and ensures that promotional messages reach the right target audience, hence increasing the impact of campaigns.
2. Reduce Message Wastage:
Before launching any SMS campaign, remove inactive numbers from your contact list. You will save money by avoiding sending messages to nonresponsive numbers, hence freeing up that budget for valuable contacts.
For example, Let’s say you normally send 10,000 SMS messages but then discover that 1,500 of them are too bad numbers. You will end up saving all the unnecessary spending by validating your list. And then those savings can be channeled into reaching actual customers thereby increasing your overall ROI
3. Deliverability Rates:
Validating your contact list is a good move to ensure you get high deliverability rates. With out-of-service numbers filtering out and with validation tools correctly adjusting improperly formatted ones, you increase your prospects of contacting potential customers.
For example, By making use of phone number validation, the deliverability rate of service providers can improve from 85% to 95%. Meaning, that there would be a higher prospect of successful promotional messaging reaching recipients, higher engagement, and more conversions.
4. Target the Right Audience:
Numbers must be validated for you to reach the right audience to increase the response rate of your SMS marketing campaigns. The numbers used must be assigned to a device, either mobile or landline, for you to send them relevant messages.
For example, A restaurant can validate contact lists to ensure that only mobile numbers are available for its food delivery service. A targeted approach can help increase engagement and sales through the timely delivery of information to customers according to their preferences.
5. Improve Campaign Metrics
It is also essential to have the right metrics for measuring the result of your SMS marketing. Use a phone number validation tool to ensure the validity of the data you are working with. Only messages sent to validated numbers will count toward successful open rates, response rates, and conversion metrics.
For example, Validating phone numbers as an input feature for a website will allow the online shop to improve its rate of conversion from 5% to 8%. The improvement reflects increased customer engagement and better overall campaign results for higher ROI.
6. Maintain Brand Reputation:
A good brand reputation is critical in SMS marketing. You risk marking that brand as a spammer if you send a message to an invalid number. A phone number validation tool makes sure that the right messages reach active recipients who opted in.
For example, A brand that has been complaining that their messages reach junk numbers will go a long way in reducing these problems after implementing the validation tools. Apart from that, it increases the satisfaction of the clients apart from making it possible for the brand to enjoy good perception in the market.
7. Reduce Compliance Risks:
You would need to check all your marketing compliance, mostly legal regulations such as GDPR and TCPA. Confirming the phone number ensures that your business is only communicating with opted-in numbers and, by extension, is unlikely to attract any legal implications with regard to such communications.
For example, A direct marketing company that has exposed itself to potential legal liability by placing solicitation calls to those who do not opt-in can protect themselves with a tool that checks whether the numbers are valid. Preventing the firm from non-compliance helps the firm retain its marketing license and thus supports the sustainability of this marketing activity.
Conclusion:
Effective usage of a phone number validation tool helps improve your ROI from SMS marketing. A clean and up-to-date contact list minimizes wasted messages and improves deliverability rates to connect the campaign with the actual target audience, not to mention saving brand reputation and compliance risks. You will also eliminate the cost of invalid numbers as your budget will work for you through real leads. The more conversions from the leads, the better. Ultimately, with phone number validation, you will be able to connect with customers more effectively, resulting in better returns from marketing investments and a sustainable SMS marketing strategy.
