In 2000, the first mobile ad was shared through SMS. In 2007, smartphones got smarter and in 2010, Mobile Marketing began to evolve in leaps and bounds. So yes, we have been dabbling with Mobile Marketing for nearly a decade but it’s still quite an elusive creature that many have tried taming without success. If you’re interested to learn more about the history of Mobile Marketing, click here.
To learn more about the 4 Metrics every Mobile Marketer needs to create a successful campaign, read on!
CTRs are straight-forward and easy to measure but quite misleading.
Understanding CTRs, SARs, SVLs and SSSIs.
Sounds like a lot of strange industry jargons right? Don’t worry, we’re here to break it all down for you. Soon, these acronyms are going to roll off your tongue and become your BFFs. Let’s get started!
1) Click-Through Rate (CTR)
CTRs are a bit of a comfort zone in mobile marketing because they are so straight-forward and easy to measure. Unfortunately, they can also be quite misleading. Click-through-rates on an average mobile marketing campaign
are generally 0.5%. This means that out of 1000 impressions, you would generally get around 50 clicks. Unfortunately, most of those clicks on mobile are accidental which makes CTRs on the more unreliable end of the spectrum. Let me introduce you to SARs.
2) Secondary Action Rate (SAR)
SAR is a performance metric based on the percentage of ads that resulted in action beyond the initial CLICK. Since there is more engagement from the user, SAR is a better indicator of a user’s intent to purchase.
For example, if 20 people click on your Hair Growth Shampoo ad and 10 of them scroll through the information or click on Before/After images, then those 10 users would be more likely to purchase from you.
3) Store Visitation Lift (SVL)
Store visitation lift is one of the best indicators of purchase intent because it measures the increase of in traffic to a store (whether online or a brick and mortar location) as a result of a mobile marketing campaign. We can measure this by creating a marketing funnel that tracks a user’s itinerary from the clicking of an ad all the way to entering the store. SVL is made possible by using software that allow geo-targeting. For instance, our In-App Mobile Marketing services allow us to target not only by behavior but also zip codes, cities or DMA’s that fall into location-based audience segments.
4) Same Store Sales Increases (SSSI)
Merely mentioning that abbreviation and following it up with what it stands will give you brownie points with your clients. Ultimately, a mobile marketing campaign’s success lies on the Same store sales increase because this metric is typically expressed as a percentage of either an increase or decrease in revenue. It isn’t exactly the same as an ROI (Return on Investment) because with a SSSI, you take the sales from a previous period and compare them to the current period.
For example, if a company’s same store sales increase for a particular period is 20%, it means that the company’s revenue increased by 20% in comparison to the previous period.
Same Store Sales are important it allows the market to evaluate the store’s current and future performance. If a chain of restaurants only sees an increase in revenue from the additional restaurant locations that are added, that may be a sign that sales are flattening out. Once the total number of locations is reached, the amount of revenue from all restaurants will be capped.
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Mobile Marketing Success.
The next steps of Mobile Marketing
Now that we have covered the 4 metrics of Mobile Marketing including CTR, SAR, SVL and SSSI, let’s use them to build a successful campaign.
Next: Action Steps to build a successful Mobile Marketing Campaign.
