Calculate your exact return on investment from SMS campaigns. See how much revenue, profit and ROI you can generate with SMS marketing in the UK.
Enter your campaign details below to calculate expected returns, profit and ROI instantly.
| Metric | Value |
|---|---|
| SMS Sent | 1,000 |
| Cost Per SMS | £0.07 |
| Total Cost | £70 |
| Click-Through Rate | 30% |
| Expected Clicks | 300 |
| Conversion Rate | 15% |
| Expected Sales | 45 |
| Average Order Value | £50 |
| Total Revenue | £2,250 |
| Net Profit | £2,180 |
| ROI % | 3,114% |
Watch how UK businesses use Team-Connect to generate measurable returns from SMS campaigns
Our calculator uses industry-standard ROI formulas based on real SMS campaign data from UK businesses:
These ranges come from actual Team-Connect customer data and industry reports:
How does text message marketing compare to email, social media, and paid search on the metrics that matter?
SMS consistently delivers higher engagement and conversion rates than any other digital marketing channel available to UK businesses. The reason is simple: text messages arrive directly on a customer's phone, trigger an immediate notification, and sit in a space people check dozens of times a day. Unlike email, which competes with hundreds of messages in a crowded inbox, or social media ads that users scroll past in under a second, a text message demands attention. According to the Data & Marketing Association (DMA), SMS response rates are up to 8 times higher than email, making it one of the most cost-effective marketing investments available.
| Metric | SMS Marketing | Email Marketing | Social Media Ads | Google Ads (PPC) |
|---|---|---|---|---|
| Open Rate | 98% | 20–25% | N/A | N/A |
| Click-Through Rate | 25–45% | 2–5% | 0.5–1.5% | 3–6% |
| Conversion Rate | 10–25% | 2–5% | 1–3% | 3–8% |
| Average ROI | £21–£40 per £1 | £35–£40 per £1 | £2–£5 per £1 | £2–£8 per £1 |
| Cost Per Message | £0.055–£0.07 | £0.001–£0.01 | £0.30–£2.00 (per click) | £0.50–£5.00 (per click) |
| Time to Read | Under 3 minutes | Hours to days | Often never | If clicked |
| Opt-In Required (UK) | Yes (PECR/GDPR) | Yes (PECR/GDPR) | No | No |
The table shows why SMS delivers exceptional ROI even though individual messages cost more than emails. The dramatically higher open rate (98% vs 20–25%), click-through rate (25–45% vs 2–5%), and conversion rate (10–25% vs 2–5%) mean that far more of your spending translates into actual revenue. A £350 SMS campaign that converts 250 customers is more profitable than a £50 email campaign that converts 15. For UK businesses evaluating their SMS marketing strategy, the ROI numbers speak for themselves — the cost per acquisition through SMS is typically lower than any paid advertising channel.
Realistic return-on-investment benchmarks based on UK campaign data across different sectors
ROI varies dramatically between industries because of differences in average order value and conversion rates. A trades business sending 500 SMS at £0.07 each (£35 total cost) only needs one boiler installation at £2,500 to achieve a 7,000% return. An e-commerce store sending the same 500 SMS might generate 25 orders at £50 each (£1,250 revenue) for a 3,471% return. Both are excellent results — the calculator above lets you plug in your own numbers to see what's realistic for your business. If you're just getting started with SMS marketing in the UK, begin with a small test campaign of 500–1,000 messages and measure your actual conversion rate before scaling up.
The calculator gives you projections — here's how to measure your actual returns after campaigns go live
Create a unique discount code for each SMS campaign (e.g., FLASH20, SUMMER15). When customers redeem the code, you can directly attribute that revenue to the specific text message that drove it. This is the simplest and most reliable attribution method — no special analytics setup required.
Append UTM tags to every link in your SMS messages (e.g., ?utm_source=sms&utm_medium=text&utm_campaign=jan_flash_sale). This lets Google Analytics track exactly which visitors, conversions, and revenue came from each text campaign. Without UTM tags, SMS traffic gets lumped into "direct" and you lose visibility.
Your true SMS campaign cost includes more than the per-message fee. Factor in platform subscription costs, staff time spent writing copy and managing lists, and any design or link shortening tools you use. Underestimating costs inflates your ROI figure and gives a misleading picture of profitability. A realistic cost calculation leads to better decisions about where to invest.
Most SMS-driven conversions happen within 48 hours of the message being sent — the majority within 3 hours. Set your attribution window accordingly. Looking at revenue too far after the send date mixes in organic sales that weren't driven by the campaign. For appointment-based businesses, track bookings made within 24 hours of the reminder.
For the most accurate ROI measurement, hold back 10–15% of your list as a control group that doesn't receive the SMS. Compare revenue from the SMS group vs the control group during the same period. The difference is your true incremental revenue — the sales that would not have happened without the text message. This eliminates the question of whether customers would have bought anyway.
A single SMS that brings a new customer into your salon, restaurant, or online store generates far more than one transaction. If that customer returns 6 times over the next year, the true ROI of that first acquisition text is 6x what the immediate conversion suggests. Track repeat purchase rates among SMS-acquired customers to understand the full return on your campaigns over time.
SMS marketing has the potential for extraordinary returns, but poor execution can turn a profitable channel into a waste of budget. These are the most common mistakes UK businesses make — and how to fix each one.
The formula is: ROI % = ((Total Revenue - Total Cost) / Total Cost) × 100. Our calculator determines Total Cost by multiplying your SMS volume by cost per message, and Total Revenue by applying your Click-Through Rate and Conversion Rate to your Average Order Value. For example, if you spend £350 on a campaign and generate £12,500 in revenue, your ROI is ((12,500 - 350) / 350) × 100 = 3,471%.
UK SMS marketing campaigns typically achieve a 25–45% click-through rate, which is dramatically higher than email (2–5%) and social media ads (0.5–1.5%). The exact rate depends on your offer quality, audience targeting, and message timing. New campaigns should aim for at least 20% CTR as a starting benchmark and optimise from there through A/B testing.
Typically 10–25% of people who click a link in an SMS will convert to a sale, depending on the quality of your offer and landing page. This compares favourably to email (2–5%) and paid search (3–8%). Service-based businesses (salons, clinics, trades) often see higher conversion rates because SMS appointment reminders and booking links have very clear calls-to-action.
UK SMS costs typically range from £0.055 to £0.10 per message depending on volume and provider. Team-Connect offers rates from £0.055 per SMS on higher-volume packages. Messages over 160 characters use two SMS credits. When calculating ROI, remember to include platform fees and staff time alongside per-message costs for an accurate total investment figure.
Email marketing is often quoted as delivering £35–£40 per £1 spent, while SMS delivers £21–£40 per £1 spent. However, these headline figures don't tell the full story. SMS has dramatically higher engagement rates (98% open vs 20–25% for email), faster response times (under 3 minutes vs hours), and higher per-recipient conversion rates. Many UK businesses find the best results come from using both channels together — SMS for time-sensitive offers and reminders, email for longer-form content and newsletters.
Most UK businesses see optimal ROI with 2–4 campaigns per month. Sending too frequently increases unsubscribe rates, which reduces your list size and future earning potential. The sweet spot balances staying top-of-mind without causing message fatigue. Transactional messages (order confirmations, appointment reminders) don't count toward this limit — customers expect and welcome those. Track your unsubscribe rate after each campaign; if it rises above 2%, reduce frequency.
Yes, SMS marketing is fully legal in the UK when you follow ICO PECR guidelines and UK GDPR. You must obtain explicit opt-in consent before sending marketing messages, include a clear opt-out mechanism in every text (e.g., "Reply STOP to unsubscribe"), and store consent records. Team-Connect handles opt-out processing automatically and maintains consent logs for your compliance records.
There's no minimum — even small lists can generate excellent ROI. A trades business with 200 contacts sending a £14 campaign that generates one boiler installation at £2,500 has achieved a 17,757% return. Larger lists benefit from economies of scale (lower per-message costs), but small, highly targeted lists often outperform large, poorly segmented ones. Start with whatever list you have and grow it through website opt-in forms, in-store sign-ups, and social media.
Start with Team-Connect SMS Marketing. See real ROI like the examples above. No monthly fees, pay only for SMS you send.