How is SMS Marketing ROI calculated?

The formula used is: ROI % = ((Total Revenue - Total Cost) / Total Cost) × 100. Our calculator determines Total Cost by multiplying SMS volume by cost per message, and Total Revenue by applying your Click-Through Rate (CTR) and Conversion Rate to your Average Order Value.

What is a good Click-Through Rate (CTR) for SMS?

According to UK industry benchmarks, SMS marketing typically achieves a 25-45% Click-Through Rate (CTR), which is significantly higher than email marketing averages of 3-5%.

What conversion rate can I expect from SMS?

Based on Team-Connect customer data, typically 10-25% of users who click a link in an SMS will convert to a sale, depending on the quality of the offer and landing page.

What is the average cost per SMS in the UK?

SMS costs typically range from £0.055 to £0.10 depending on volume. Team-Connect offers competitive rates starting from £0.055.

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📊 INTERACTIVE CALCULATOR

SMS Marketing ROI Calculator

Calculate your exact return on investment from SMS campaigns. See how much revenue, profit and ROI you can generate with SMS marketing in the UK.

🧮 CALCULATE YOUR ROI

SMS Marketing ROI Calculator

Enter your campaign details below to calculate expected returns, profit and ROI instantly.

Number of SMS to Send (e.g. 1000)

Cost Per SMS (£) (typical: £0.055 - £0.10)

Expected Click-Through Rate (%) (typical SMS: 25-45%)

Expected Conversion Rate (%) (clicks to sales: 10-25%)

Average Order Value (£) (e.g.£50)

Number of Campaigns (how many sends? )

Total Campaign Cost

£70

SMS credits

Expected Clicks

300

at 30% CTR

Expected Conversions

at 15% conversion

Expected Revenue

£2,250

total sales

Profit
£2,180
revenue minus cost

ROI
3,114%
return on investment

Campaign Breakdown

Metric	Value
SMS Sent	1,000
Cost Per SMS	£0.07
Total Cost	£70
Click-Through Rate	30%
Expected Clicks	300
Conversion Rate	15%
Expected Sales	45
Average Order Value	£50
Total Revenue	£2,250
Net Profit	£2,180
ROI %	3,114%

📈 HOW THIS CALCULATOR WORKS

Understanding SMS ROI Calculations

The Formula Behind the Numbers

Our calculator uses industry-standard ROI formulas based on real SMS campaign data from UK businesses:

Total Cost = SMS Sent × Cost Per SMS × Number of Campaigns
Expected Clicks = SMS Sent × (Click-Through Rate / 100)
Expected Conversions = Expected Clicks × (Conversion Rate / 100)
Total Revenue = Expected Conversions × Average Order Value
Profit = Total Revenue - Total Cost
ROI % = (Profit / Total Cost) × 100

Realistic Benchmark Ranges

These ranges come from actual Team-Connect customer data and industry reports:

Click-Through Rate (CTR): SMS typically achieves 25-45% CTR (email: 3-5%)
Conversion Rate: 10-25% of clicks convert to sales depending on offer quality
Cost Per SMS: £0.055 - £0.10 depending on volume (Team-Connect: £0.055 - £0.07)
Average Order Value: Varies by industry. Retail: £40-£60, Services: £50-£150
ROI: Expected SMS ROI ranges from 1,000% to 5,000% depending on sector

Real Examples from UK Businesses

Salon (Appointment Reminder SMS): 1,000 SMS at £0.07 each = £70 cost. 40% open rate reduces no-shows. Saves 10 lost appointments × £40 revenue = £400 - £70 = £330 profit. ROI: 471%
E-commerce (Flash Sale SMS): 5,000 SMS at £0.07 = £350 cost.25% CTR = 1,250 clicks.20% conversion = 250 orders.£50 AOV = £12,500 revenue. Profit: £12,150. ROI: 3,471%
Restaurant (Loyalty Offer SMS): 2,000 SMS at £0.06 = £120 cost.35% CTR = 700 clicks.18% conversion = 126 bookings.£35 AOV = £4,410 revenue.Profit: £4,290.ROI: 3,575%
Local Service (Quote Request SMS): 1,500 SMS at £0.065 = £97.50 cost.30% CTR = 450 clicks.22% conversion = 99 inquiries.£150 AOV = £14,850 revenue.Profit: £14,752.50.ROI: 15,128%

Tips to Maximize Your SMS ROI

Segment Your Audience: Send relevant messages to the right people. Segmented campaigns get 2x higher conversion rates.
Perfect Your Timing: Send 9-11 AM or 4-6 PM weekdays for best engagement. Test different times.
Strong Call-to-Action: Clear CTAs like "Shop now", "Book appointment", "Reply YES" drive higher clicks.
Offer Compelling Value: Time-limited offers, discounts, or exclusive deals drive urgency and conversions.
Test and Optimize: A/B test messaging, timing, and offers.Even 1-2% improvement multiplies across thousands of SMS.
Track With UTMs: Use short links with UTM parameters to measure conversions in Google Analytics.
Clean Contact List: Remove invalid numbers and opt-outs.Deliverability impacts your actual ROI.

Ready to Achieve These Results?

Start with Team-Connect SMS Marketing. See real ROI like the examples above. No monthly fees, pay only for SMS you send.

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