Marketers love tool debates. I’ve been sitting in these rooms for years, building businesses and advising brands. The truth is simple: if a tool makes more money than it costs, use it. If not, continue. No ego. No theater. Just math.
The opinion I express here is direct: ROI should decide your stack. No hype, no “must-see” lists, no what your peers post. The right decision is to test, measure and scale what pays. This mindset allows you to act faster and win more often.
The fundamental rule by which I live
When my team and I research new tools or channels, we start with a cold question: Will it make more money than it costs the customer? If the answer is probably yes, we test. Otherwise, we pass. That’s it.
“Plug in and go…you look at it and it’s just a rational thing. Is this a tool that will make more money than it costs the customer?” —Erik Huberman
That’s what we called SMS marketing early on. The calculation was obvious. It costs pennies to send a text message. Open rates crush email. People who share their number actually care. This combination translates into real revenue gains, not just pretty engagement graphs.
“It costs you, you know, pennies to text…we know texting is going to be more effective because if they give you their phone number, they don’t care.” —Erik Huberman
Why texting was an easy yes
We didn’t need a 60-slide deck to see it. The signals were there and the unit economics worked. Compare a text to an email. Emails are cheap, but they are more often ignored. Texts land in a space that people constantly check. Response times are faster. Offers convert at higher rates because the intent is higher.
Run the numbers on a basic use case. Let’s say you have 50,000 registered customers. You send a simple $0.015 promotion via SMS. That’s $750. If the campaign generates even a slight increase in orders, coupled with typical average order values, you get a quick ROI. Then, you overlay the flows: back-in-stock alerts, abandoned cart reminders, VIP drops. Mathematics is composed.
How I rate any new tool
There is a pattern that I repeat with every investment or deployment. This keeps things honest and fast.
- Set a clear revenue goal related to the tool.
- Set a short testing window with a fixed budget.
- Use simple KPIs: conversion rate, AOV, LTV lift, CAC impact.
- Run a clean A/B or holdout if you can.
- Scale only if the return on investment appears quickly.
The goal is not perfection. It’s proof. If the results show positive net returns, you’ve earned the right to scale. Otherwise, kill him without fear.
But what about fatigue and compliance?
Good perspective. Yes, texting can annoy people. Yes, you have to follow the rules. This is no reason to ignore it. It’s a reason to do things right. Use strict frequency limits. Segment by intent and recency. Offer real added value to each message. And always make it easy to unsubscribe.
Managed with respect, SMS becomes a useful ping and not a harmful one. The same idea applies to any tool. The chain is not the problem. Lazy execution is.
The biggest point
This ROI-driven goal isn’t just for SMS. It guides the way I invest and operate at every level. Some bets win; others don’t. But the process is consistent: hypothesis, test, verify, scale. This stops teams from chasing shiny objects and allows money to be focused on what actually moves the needle.
Act now
If you’re stuck on analysis, choose a tool you’ve been debating and do a thorough two-week test. Define success in dollars, not vanity metrics. If the tool is profitable, double down. If it doesn’t, cut it. Repeat. Momentum beats endless meetings.
In short, stop overthinking. Let ROI Decide. Your customers (and your P&L) will thank you.
Frequently Asked Questions
Q: How do you know if a tool is worth testing?
Look for a direct line to income. If you can associate the tool with higher conversion, better retention, or lower CAC, it’s worth running a small, time-limited test.
Q: What KPIs should I track during a pilot?
Track conversion rate, average order value, revenue per send or session, and net profit after costs. If you see a rapid return on investment, you are on the right track.
Q: How can I stop text messages from annoying customers?
Use permission-based lists, maximum frequency, segment by behavior, and send an actual value. Make unsubscriptions simple. Respect gives you long-term gains.
Q: What is a good initial budget for testing?
Keep it small but significant, enough to get statistically useful results. For SMS, a few targeted sends to a defined segment can quickly show clear signals.
Q: How quickly should I expect results?
For direct response tools like SMS, you can see the impact within days. If results drag on for weeks without improvement, take a break and reevaluate the offering, audience, or channel suitability.
