What is SMS Conversion Rate?
SMS Conversion Rate is the percentage of text message recipients who complete a desired action — typically a purchase — after receiving an SMS. Calculated as conversions divided by messages delivered.
What is SMS Conversion Rate?
SMS Conversion Rate measures how effectively text messages drive a desired action — most commonly a purchase. It's calculated as: (number of conversions ÷ number of messages delivered) × 100. A conversion rate of 5% means 5 out of every 100 delivered texts resulted in a purchase.
SMS Conversion Rate is distinct from SMS click-through rate (which measures link clicks) or SMS open rate (which measures message reads). Conversion rate measures the end goal — did the recipient actually buy something?
The metric is particularly important in SMS commerce because it directly quantifies the revenue impact of your text program. A higher conversion rate means more revenue per message sent, better ROI, and more efficient use of your messaging credits.
How does SMS Conversion Rate work?
Measuring SMS conversion rate depends on your purchasing model. For link-based SMS, conversion tracking requires click tracking, UTM parameters, and attribution windows — which introduces ambiguity (did the text drive the sale, or did the customer buy through another channel?).
For text-to-buy SMS, conversion tracking is direct and unambiguous. The customer replied to a text and a purchase was created. There's no attribution modeling required — the message and the conversion are the same event.
Benchmarks vary dramatically by model. Traditional link-based SMS campaigns average roughly 0.12% conversion. Text-to-buy campaigns on AudienceTap average 5.5% — a 46x difference. Individual brands range higher: Tinker Coffee converts at 8.6%, Fellow Drops at 6.2%.
Why does SMS Conversion Rate matter for DTC brands?
Conversion rate is the metric that separates SMS as a cost center from SMS as a profit center. At 0.12% conversion, SMS is an awareness channel — you're paying to send messages that mostly don't result in purchases. At 5.5% conversion, SMS is a direct sales channel generating meaningful revenue per message.
The difference in conversion rate between link-based and text-to-buy SMS explains why brands switch models. At $0.01–0.05 per message, even a 5.5% conversion rate is highly profitable. The revenue-per-message calculation ($2.01 for text-to-buy vs $0.16 for link-based) tells the story.
For brands evaluating SMS platforms, conversion rate should be the primary comparison metric — not open rates, not click-through rates, not "engagement." Revenue per message and conversion rate are what matter.
Key points
5.5% vs 0.12%
Text-to-buy SMS converts at 5.5% on average. Link-based SMS converts at 0.12%. A 46x difference driven by removing checkout friction.
Direct attribution
Text-to-buy conversion tracking is unambiguous — the reply and the purchase are the same event. No attribution models needed.
Revenue per message
Conversion rate drives revenue per message: $2.01 for text-to-buy vs $0.16 for link-based SMS campaigns.
See SMS Conversion Rate in action with AudienceTap
AudienceTap is the text-to-buy platform that powers sms conversion rate for DTC brands.
Related terms
Revenue Per Message
Revenue Per Message (RPM) measures the average revenue generated per SMS sent. Calculated as total attributed revenue divided by total messages sent.
SMS Attribution
SMS Attribution is the process of tracking and assigning revenue or conversions to specific text messages, campaigns, or flows to measure SMS marketing effectiveness.
SMS Campaign ROI
SMS Campaign ROI measures the return on investment from text message campaigns, calculated by comparing revenue generated against costs — including platform fees, message costs, and list acquisition.
SMS Conversion Rate FAQ
For traditional link-based SMS, 0.5–1% is considered good (industry average is ~0.12%). For text-to-buy SMS, 3–5% is typical and 5–8%+ is excellent. The benchmark depends entirely on whether you're using links or reply-to-buy.
Text-to-buy removes every friction point: no link to click, no page to load, no form to fill, no checkout to complete. The customer goes from reading the text to owning the product in one reply. Every step you remove increases conversion.
For text-to-buy, tracking is automatic — every reply that results in a purchase is a conversion. For link-based SMS, you need click tracking, UTM parameters, and an attribution window in your analytics tool.
The average across AudienceTap merchants is 5.5%. Individual results vary: Tinker Coffee converts at 8.6%, Fellow Drops at 6.2%. These are 46–71x higher than the 0.12% industry average for link-based SMS.
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