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ROI Calculator: Estimating SMS Campaign Investment vs Results.

October 6, 2025

written by Maingi

ROI Calculator: Estimating SMS Campaign Investment vs Results.

Introduction

For every marketing shilling spent, Kenyan businesses want to know: “Did this campaign deliver real returns?” With SMS marketing, the question is no different. While SMS is among the most affordable and high-conversion channels, you need a clear framework for measuring ROI (Return on Investment).

With SMSLeopard, businesses in Kenya can track not just delivery and open rates, but also cost per conversion, campaign ROI benchmarks, and customer lifetime value impacts. This blog explores how to use ROI calculations effectively, and why SMSLeopard is the best platform for measurable results.

Why ROI Tracking Matters in SMS Campaigns

  • Accountability → Proves the value of your marketing spend.

  • Optimization → Identifies which campaigns drive the most conversions.

  • Benchmarking → Helps compare SMS vs. other channels (e.g., email, social media).

  • Scaling decisions → Guides how much budget to allocate for maximum impact.

Key Metrics for SMS ROI

  1. Total Campaign Cost

    • SMS cost per message × total messages sent.

    • Add extras: sender ID fees, setup costs, or integrations.

  2. Conversions

    • Define what counts as a conversion:

      • A purchase,

      • An event registration,

      • A loan application,

      • A donation, etc.

  3. Revenue Generated

    • Average order value × number of conversions.

  4. Cost per Conversion (CPC)

    • Formula:

      CPC=Total Campaign CostNumber of Conversions\text{CPC} = \frac{\text{Total Campaign Cost}}{\text{Number of Conversions}}CPC=Number of ConversionsTotal Campaign Cost​

  5. ROI (%)

    • Formula:

      ROI=Revenue – CostCost×100\text{ROI} = \frac{\text{Revenue – Cost}}{\text{Cost}} \times 100ROI=CostRevenue – Cost​×100

Example ROI Calculation

Scenario:

  • Business: E-commerce store in Nairobi.

  • Campaign: Back-to-school promo.

  • Messages sent: 10,000.

  • Cost per SMS: Ksh 1.00.

  • Total campaign cost: Ksh 10,000.

  • Conversions: 400 purchases.

  • Average order value: Ksh 1,500.

  • Revenue generated: 400 × 1,500 = Ksh 600,000.

ROI:

  • Cost per conversion = 10,000 ÷ 400 = Ksh 25.

  • ROI = (600,000 – 10,000) ÷ 10,000 × 100 = 5,900%.

Insight: Even with a small investment, SMS delivered massive returns compared to most digital channels.

ROI Benchmarks for SMS Campaigns in Kenya

  • Delivery Rate: 90–98% (SMSLeopard optimized for Safaricom, Airtel, Telkom).

  • Open Rate: 95%+ (vs. ~20% for email).

  • Response Rate: 10–30% depending on offer relevance.

  • ROI Range: 200%–5,000% (depending on industry and campaign design).

Industries with highest SMS ROI in Kenya:

  • Retail & e-commerce → Promotions, flash sales.

  • Financial services → Loan reminders, repayment nudges.

  • Education & healthcare → Fee payment reminders, appointment alerts.

  • NGOs & religious groups → Fundraising and mobilization campaigns.

Tools for ROI Tracking on SMSLeopard

  • Campaign analytics dashboard → Tracks delivery, clicks, and responses.

  • UTM tagging → Attribute conversions to SMS campaigns via Google Analytics.

  • A/B testing → Test offers and timing to find best-performing variations.

  • API integration → Sync conversions directly from your website, CRM, or POS.

  • Revenue tagging → Assign conversion values to see revenue impact per SMS.

Best Practices for Maximizing ROI

  • Targeted segmentation → Send only to relevant groups (parents, farmers, students).

  • Compelling CTAs → Clear action points like “Buy now,” “Reply YES,” or “Claim offer.”

  • Optimal timing → Send messages when customers are most likely to act.

  • Follow-up flows → Reminder SMS for those who don’t convert immediately.

  • Combine SMS + WhatsApp via ChatSasa → Hybrid strategies increase response rates.

Why SMSLeopard is the ROI Leader in Kenya

  • Affordable pricing → Flexible rates for bulk campaigns.

  • Advanced analytics → Built-in ROI insights, not just delivery stats.

  • Local expertise → Optimized for Kenya’s mobile ecosystem.

  • Automation → Trigger-based workflows reduce wasted spend.

  • Multi-channel → Extend ROI with ChatSasa (WhatsApp + SMS).

  • Support → Dedicated guidance to design campaigns that deliver measurable returns.

Conclusion

ROI isn’t just a number—it’s proof that your SMS campaigns are driving business growth. By calculating cost per conversion, tracking revenue, and benchmarking against Kenyan market standards, you can make smarter investment decisions.

With SMSLeopard, you don’t just send messages—you measure impact, maximize ROI, and scale your business.

Ready to measure your returns? Start calculating your SMS ROI with SMSLeopard today.

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