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SMS Opt-Out Rate Best Practices Guide

Sarita Markande avatar
Written by Sarita Markande
Updated this week

Understanding SMS Opt-Out Rates

SMS opt-out rates are a key indicator of how well your text messaging campaigns resonate with your audience. While some level of opt-outs is normal in any SMS program, maintaining rates below 1.5% helps ensure the long-term success and sustainability of your messaging strategy.

Why Opt-Out Rates Matter

  • Deliverability and Sender Reputation

    Higher opt-out rates can signal to carriers that your messages may not be well-received, which could potentially affect your message delivery rates. Maintaining lower opt-out rates helps preserve your sender reputation and ensures your messages reach their intended recipients.

  • Cost Efficiency

    When opt-out rates climb above 1.5%, you may experience:

    • Increased costs per conversion due to shrinking audience size

    • Reduced return on investment for SMS campaigns

    • Need for more frequent list rebuilding efforts

  • Regulatory Compliance

    Consistently high opt-out rates may draw attention from regulatory bodies and could indicate compliance issues with messaging regulations such as TCPA (Telephone Consumer Protection Act) requirements.

  • Customer Relationship Health

    Frequent opt-out rates often reflect a disconnect between your messaging and customer expectations, which can impact overall brand perception and customer lifetime value.

Best Practices to Maintain Healthy Opt-Out Rates

  1. Respect Frequency Preferences

    • Start conservatively with messaging frequency

    • Monitor engagement rates alongside opt-out rates

    • Consider segmenting your audience by engagement level

    • Offer frequency preferences rather than all-or-nothing subscriptions

  2. Personalize and Add Value

    • Use subscriber names and relevant personal data

    • Send messages that provide genuine value (exclusive offers, important updates, helpful information)

    • Segment your audience based on preferences and behavior

    • Avoid generic, one-size-fits-all messaging

  3. Optimize Timing and Relevance

    • Send messages during appropriate hours (typically 9 AM - 8 PM)

    • Consider time zones for your audience

    • Make messages timely and relevant to current events or seasons

    • Test different send times to find optimal engagement windows

  4. Monitor and Respond to Feedback

    • Track opt-out rates by campaign type and timing

    • Review common reasons for opt-outs when provided

    • Conduct periodic subscriber surveys

    • Be responsive to customer service inquiries about messaging

  5. Maintain List Hygiene

    • Remove inactive subscribers periodically

    • Implement re-engagement campaigns before removing subscribers

    • Ensure your sign-up process attracts genuinely interested customers

    • Avoid purchasing or using third-party SMS lists

Monitoring Your Performance

  • Key Metrics to Track

    • Overall opt-out rate (target: under 1.5%)

    • Opt-out rate by campaign type

    • Time-to-opt-out after subscription

    • Engagement rates (clicks, responses, conversions)

  • Regular Review Schedule

    • Weekly monitoring during active campaigns

    • Monthly comprehensive analysis

    • Quarterly strategy reviews and adjustments

    • Annual audit of messaging practices and compliance

Taking Action

If your opt-out rates begin approaching or exceeding 1.5%, consider:

  • Immediately reviewing recent campaign content and frequency

  • Implementing a re-engagement campaign

  • Revisiting your targeting and segmentation strategies

Conclusion

Maintaining SMS opt-out rates below 1.5% is a realistic goal that supports sustainable business growth, fosters positive customer relationships, and ensures regulatory compliance. By focusing on delivering value, respecting subscriber preferences, and continuously optimizing your approach, you can build a thriving SMS program that serves both your business objectives and customer needs.

Remember that SMS marketing is most effective when it enhances rather than disrupts the customer experience. Quality engagement with a smaller, more interested audience often delivers better results than high-volume messaging to a broader, less engaged group.


For additional support with SMS marketing best practices or compliance questions, please don't hesitate to contact your account manager or customer support team.

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