How Do I Calculate ROI for RCS Campaigns?
Calculate RCS ROI by comparing incremental revenue and cost savings against total RCS costs (platform + per-message + setup). Include direct revenue, retention value, and operational savings. Typical RCS ROI is 3-5x within 12 months. Payback period averages 6-9 months.
Key Points
- { "Direct revenue": "conversion rate × order value" }
- { "Retention value": "LTV improvement × customer count" }
- { "Operational savings": "support cost reduction" }
- { "Typical ROI": "3-5x within 12 months" }
- { "Payback period": "6-9 months average" }
RCS ROI Calculation: Proving the Business Case
ROI calculation is how you justify RCS investment and prove it's working.
The ROI Formula
RCS ROI = (Incremental Revenue + Cost Savings - Total RCS Costs) / Total RCS Costs
Example:
- Incremental revenue: $300,000
- Cost savings: $50,000
- Total RCS costs: $80,000
- ROI = ($300,000 + $50,000 - $80,000) / $80,000 = 3.4x or 340%
Identifying All RCS Costs
Direct costs: Platform fees, per-message, SMS fallback, setup Indirect costs: Team time, content creation, training Hidden costs: Premium support, API overage, carrier fees, data storage
Calculating Incremental Revenue
Method 1: Direct attribution
- 100,000 RCS messages, 5% conversion (vs 2% SMS)
- 5,000 conversions × $50 AOV
- Incremental: (5%-2%) × 100,000 × $50 = $150,000
Method 2: Cohort comparison
- RCS cohort: $150 LTV over 12 months
- Control: $100 LTV over 12 months
- LTV lift: $50/customer × 100,000 customers = $5,000,000
Method 3: Multi-touch attribution
- Assign percentage of conversion value to RCS based on journey role
Calculating Cost Savings
Customer service reduction:
- 1,000 tickets/month deflected × $15/ticket = $180,000/year
Operational efficiency:
- 20 hours/week saved × $50/hour × 52 = $52,000/year
Reduced SMS costs:
- 500K messages shifted from SMS to RCS = $12,000/year
Building the Business Case
Year 1 ROI Example:
Costs:
- Platform fees: $18,000
- Per-message: $60,000
- Setup: $15,000
- Team time: $40,000
- Total: $133,000
Benefits:
- Incremental revenue: $300,000
- Customer service savings: $180,000
- Operational efficiency: $52,000
- Total: $532,000
ROI = 300%Payback period: 4 months
Industry-Specific ROI
- E-commerce: 4-6x (cart recovery focus)
- SaaS: 3-5x (trial signups)
- Financial services: 5-8x (retention)
- Healthcare: 3-4x (appointment attendance)
Common ROI Calculation Mistakes
- Attributing all lift to RCS (use controls)
- Ignoring time costs (team time is real)
- Forgetting SMS fallback costs
- Optimistic revenue projections
The Bottom Line
RCS typically delivers 3-5x ROI within 12 months, with payback periods of 6-9 months. Build the business case with conservative estimates, track actual performance, and iterate based on data.
Related Questions
Pricing
Are There Setup Fees or Hidden Costs with RCS?
Look past sticker price for RCS setup, carrier fees, creative, training, and SMS-fallback costs—for buyers comparing platforms before they commit.
Pricing
How Much Does RCS Cost Per Message?
US RCS often runs about $0.0075–$0.015 per message plus platform fees—for operators budgeting monthly volume before they negotiate a provider contract.
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