No matter which marketing channel you use, there is a consistent question — how do I attribute revenue to the proper source? How do I know that THIS campaign generated revenue? Whether you use Google ads, social, email, or SMS, the same question pops up. In this article we’ll discuss how to answer this question. Spoiler alert: you should be using an SMS provider that makes it easy to know.
Industry Standards for SMS marketing Attribution
We’ve been in the Shopify App space since 2018. We’ve watched marketing channels evolve over time. But the industry standard for SMS marketing has remained relatively constant. And reasonably so.
The standard SMS marketing attribution is as follows:
- 2 day view attribution: Anyone who received an SMS is tracked for 2 days
- 7 day click attribution: Anyone who clicked an SMS is tracked for 7 days
Here’s a higher level breakdown of clicks and views:
For views: With SMS, there’s no inherent way to track views, so SMS relies on industry studies which show that 98-99% of recipients of any SMS view it. This is why most SMS providers generally equate an “SMS delivery” to a “view”. And therefore the attribution is tracked for 2 days. That means that if the recipient orders within the next 2 days, that order is attributed as due to that SMS message.
For clicks: Clicks are a lot more direct to track. Any modern SMS provider can track clicks on links through SMS. That is because they usually use a custom shortlink setup, such as “myshop.smsr.co/xyzabc”. The domain “[something].smsr.co” is a click tracking domain, and the short string “xyzabc” afterwards, is a code for where the link should be redirected to. When using this style, links in SMS are replaced with this domain. This means that click attribution can be attributed to that link, and all clicks can be tracked. When a link is clicked, that subscriber’s orders are monitored for the next 7 days. If they ordered within that window, then the order is attributed as due to the SMS that they clicked on. Simple enough.
Where attribution windows fail
Some SMS providers charge you based on the orders that they have generated based on order attribution. This can often be a percentage of the total order value. This can sometimes be reasonably concerning, especially if you’re running multiple ad campaigns. There’s no way to inherently tell, through these SMS providers, that Jane Doe clicked a social media post 1 hour before her order, yet received an SMS 24 hours before her order. Therefore, only attribute the order to the social post, not the SMS.
Other SMS providers that don’t take a percentage of revenue, might simply set a predefined window, such as the industry standard (2 day view, 7 day click), and don’t let you modify it for your needs.
In this way, and others, attribution windows sometimes fall short. If you have multiple marketing channels going on at once, it can be hard to attribute an order to one instead of the other, especially when your SMS provider makes a profit off of the number of orders you receive “through them”.
So what’s the solution?
Solving the attribution problem
- Choose an SMS provider that allows you to specify your own attribution windows You should be able to specify whether or not you want View attribution to be 2 days, or 1 hour. You should also be able to specify whether or not you want Click attribution to be 2 weeks, or 1 day. And anything in between. An attribution window should be able to be set by you, not by your SMS provider. This will help you manage and understand your SMS performance depending on whatever other marketing campaigns your running at the time. The fact is, in business, everything changes, and your SMS provider should let you change your attribution windows whenever you want.
- Choose an SMS provider that shows you real-time, granular analytics, for every event taken Too often, owners have no idea where their SMS went. What the delivery status was. Who clicked on it. And how things are going overall. This leads to poor understanding of your ROI. And some providers use this ambiguity to inflate your attribution numbers. You should choose an SMS provider that has in-depth, real-time analytics for every SMS sent, and every action taken. This includes, sends, clicks, responses, orders and more. In real time. You should be able to test these events immediately, and make sure nothing is being fudged.
- For multi-channel marketing, explore using UTM parameters Your SMS provider should allow you to put UTM-parameters on every link sent. UTM parameters are first-class citizens when it comes to attribution. Often times, platforms like Shopify and Google Analytics can make sure that this visitor is now permanently associated with this UTM parameter, and if an order ever comes in, to attribute that order properly. If you’re unsure about how to use UTM parameters for your specific use-case, your SMS provider should be more than happy to help you out with that. If they won’t help, then it’s time to switch.
- If needed, the extreme case is to isolate attribution to “Click OR Coupon” The most stringent attribution window for SMS takes away the “view window” entirely. It attributes an order based on 2 factors: If a subscriber clicked your message, or if they used your message’s coupon code. Since there is no way to perfectly track a “view”, you throw these attributions out. This more stringent attribution philosophy is the most direct way you can attribute an order to be definitely due to an SMS interaction. SMS providers should give you a way to do this. They should already be generating unique coupon codes for each message, so the attribution follows simply.
- Don’t trust… Verify. Demand analytics. Look, some platforms that take a percentage of your attributed revenue are fine, if that’s what you want. There’s a reason that they exist: people just want a done-for-you solution. They can be a real advantage when you’re getting started. But they should be able to provide a truly comprehensive analytics interface that makes sure you’re not being over charged. Always verify what is being sent, clicked, and attributed. The world runs on algorithms, now, and sometimes they mess up.
- Avoid vendor lock-in if you ever attempt to be locked in to a contract, I recommend you steer clear. Sometimes it takes experimenting with the attribution method, and SMS provider, that best works best for you. If you switch, the biggest pain-point is transfering your phone number, but most platforms nowadays allow you to switch to them without too much headache, and by switching, you can often enjoy substantially lower prices. Your subscribers can be exported and imported compliantly. Software is becoming cheaper every day. Don’t sign year+ long contracts. Find the platform best suited for your needs.
Which attribution style should you pick?
This really depends on the style of business you run, and your willingness to dive into the marketing aspect of it, or let someone else handle it for you. If you’re choosing a “done-for-you” solution, that takes a portion of your attributed revenue, then you won’t be able to adjust your attribution windows… Just be sure to understand where your attribution is truly going. If you’re using a more “manual set-up” approach, you’ll often have way more bang for your buck, and way more granular control. Nowadays, an hour learning the ins and outs of a proper SMS marketing set-up is worth it in the end.
My recommendation is generally to stick with the industry standard: 2 days view / 7 days click. However, if you feel that your attribution windows are inflated, or if you’re running multiple marketing campaigns, your provider should allow you to lower this window to your liking, or opt for the strict “Click or Coupon code” method, mentioned above.
I wouldn’t personally recommend platforms that require lock-in or those that take a portion of revenue. It can be a headache when the monthly bill comes in, or when you give refunds, yet you’re still charged for the full attribution. That being said, there are use-cases for every type of shop, and I understand everyone has different needs.
You should find a provider that will help you get set up. We’ve found that some SMS providers are more willing to help you get set up without requireing an expensive $200/mo+ contract. This can be a huge help for smaller businesses who don’t have a dedicated marketing team.
If you’re running on Shopify, it’s no secret that I’d suggest you try out Blaze SMS. But whichever platform you choose, pick one that cares about its customers. Your SMS provider should be able to help with any questions you have, from attribution, UTM parameters, analytics, and more. Your success is their success. With today’s competitive marketplace, good customer support is not a paid feature, it’s mandatory. That being said, reach out to the Blaze SMS team if you have any questions. They’ll be happy to help.
