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Understanding SMS marketing terminology is essential for running effective campaigns. Here's your complete glossary of terms, metrics, and how to optimize based on the data.
Core SMS Terms
10DLC (10-Digit Long Code)
A standard 10-digit phone number registered for business SMS. Required for all commercial texting in the US.
Short Code
A 5-6 digit number used for high-volume messaging. More expensive but offers higher throughput.
Toll-Free Number
An 800-series number that can be used for SMS. Good for customer service and two-way messaging.
A2P (Application-to-Person)
Messages sent from a business application to consumers. All marketing SMS is considered A2P.
P2P (Person-to-Person)
Messages sent between individuals. Not for marketing use.
Key Metrics
Delivery Rate
Percentage of messages successfully delivered to recipients.
- Good: 95%+
- Action: Clean your list if below 90%
Open Rate
Percentage of messages that are opened/read. SMS typically sees 98%+ open rates.
Click-Through Rate (CTR)
Percentage of recipients who clicked a link in your message.
- Average: 19%
- Good: 25%+
Conversion Rate
Percentage who completed the desired action (purchase, sign-up, etc.).
Opt-Out Rate
Percentage who unsubscribed after receiving a message.
- Average: 0.5-1%
- Concern: Above 2%
Revenue Per Message (RPM)
Total revenue divided by messages sent. Key ROI metric.
How to Optimize Based on Metrics
Low Delivery Rate
- Clean invalid numbers from your list
- Check 10DLC registration status
- Review message content for spam triggers
Low CTR
- Shorten your links with a branded shortener
- Place link early in the message
- Create urgency with limited-time offers
- Personalize message content
High Opt-Out Rate
- Reduce sending frequency
- Improve message relevance
- Segment your audience better
- Review timing of your sends