SMS campaigns, how much do they pay? The answer in figures!
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SMS campaigns, how much do they pay? The answer in figures!


SMS marketing for restaurants can generate up to €44 in sales for every euro invested. These are the findings of our survey on the profitability of SMS campaigns. Discover all the statistics that make SMS the hottest loyalty lever for restaurants. 


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[.is--yellow-highlight]Écoutez ce qu'ils disent de nos campagnes SMS :[.is--yellow-highlight] Toasushi Eguilles (13)

 

Statistics: how profitable are my SMS campaigns?


Note: all these statistics are based on data from 5 SMS campaigns carried out by Pongo customers, in collaboration with our teams.


  • Every euro invested in SMS generates an average of 30 euros in sales. 
  • SMS campaigns converted an average of 20.4% of customer-recipients.
  • The number of SMS sent for each campaign is between 500 and 3,500.  
  • In general, Pongo's customers have seen a 10% to 25% increase in sales thanks to SMS marketing.  



How do you calculate the ROI of SMS campaigns? 


It's easy to calculate the profitability of your SMS campaigns. The most interesting statistic is the volume of sales generated directly by text messages. Compared with the cost of sending the SMS (around 7 cents/message), you can precisely calculate your return on investment (ROI ). ROI calculation is based on the following metrics:


  • Number of messages sent
  • Price per SMS message 
  • Sales generated.


Another equally useful approach is to calculate the number of converted customers. In the 5 examples below, the percentage of converted customers corresponds to the proportion of recipients who actually completed a restaurant transaction following the SMS. 


The percentage of customers converted or the profitability per euro invested are easier to calculate when you include a password or promotional code in the SMS. By communicating the password at checkout, it's possible to know exactly how profitable the operation is.  



5 examples of profitable SMS campaigns


All the examples below are based on concrete, recent data from our SMS loyalty tool. Restaurant names have been anonymized.



Example 1: Coffee shop sign


This example concerns an SMS marketing campaign launched for a coffee-shop chain. The text message offered a free hot drink "upon presentation of this SMS at the checkout". The results are as follows: 


  • SMS sent: 1070
  • 21% of customers converted 
  • Generated sales of €2320
  • Profitability: €31 in sales for every euro invested 



Example 2: seasonal restaurant chain 


In this second example, a large-scale campaign was used to disseminate a new offer. In this case, SMS messages were used to invite customers to discover a new set of reusable cutlery on sale in restaurants. 


  • SMS sent: 3476
  • 19% of customers converted 
  • Generated sales of €8567
  • Profitability: €35 in sales for every euro invested 



Example 3: Pizzeria sign


Independent restaurants also stand to gain from SMS marketing. Here, the campaign concerns a pizzeria chain with two locations in Paris. The attractive text message offers free drinks on presentation of a password. The results are more than conclusive: 


  • SMS sent: 529
  • 14% of customers converted 
  • Generated sales of €760
  • Profitability: €20 in sales for every euro invested 



Example 4: fast-food chain 


In this case, a sandwich restaurant chain came up with a tailor-made campaign. Small SMS volume, but high profitability: 


  • SMS sent: 913
  • 17% of customers converted 
  • Generated sales of €1334
  • Profitability: €20 in sales for every euro invested 



Example 5: Coffee shop signs 


This campaign confirms that profitability can be extremely high with a high volume of SMS messages. Here, the text message offers a free hot drink or muffin at the checkout:


  • SMS sent: 2879
  • 31% of customers converted 
  • Generated sales of €8940
  • Profitability: €44 in sales for every euro invested 



Would you like to take advantage of this too? With Pongo's Auto SMS function, you can easily create your first marketing campaign (with 50 free SMS messages as a welcome gift). And to find out how to build up a customer database for your SMS campaigns, go to Pongo !

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