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3,046 viewsEven though marketing is a highly dynamic field, email remains one of the most powerful marketing tools, and there are many reasons for that.
One major reason that has stood the test of time is here:
You’re not losing money on campaigns due to emails being lost in spam filters or read by someone other than your target audience.
As the number of email users worldwide continues to grow, email marketing will become more powerful.
Marketing can be hard because it changes quite often. Plus, different people have their own opinions about what they want as part of an email marketing campaign.
One thing hasn’t changed though – even with all these great newer tools out there – nothing beats a good old-fashioned email when we talk about ROI.
“How can I tell whether my email marketing is successful?” is a big question to which there is no quick answer.
This article will take you through the vital email marketing metrics that performance marketers should keep an eye on and make sure their efforts are paying off.
However, remember that the metrics you choose to track depend on the goals you have set for your campaign.
1. Delivery Rate
This metric serves as the foundation for your email campaign and is an excellent way to track the vitality of your email list.
A high delivery rate indicates that you are successfully reaching your target audience. If your delivery rate is low, you should focus on growing a solid subscription list.
How to calculate: Delivery Rate = (Number of emails sent – Number of emails bounced) ÷ (Number of emails sent) x 100
How to improve: The most common way to grow your lists’ size is by placing your email subscription on your home page. If you want to boost the integrity of it, apply double opt-in.
2. Open Rate
Open rate is among the most basic yet crucial KPIs for determining how many subscribers read your emails.
It’s the most accurate indicator for evaluating how efficient your subject line is. So, you should check it and adjust it regularly.
How to calculate: Open rate = (Number of emails open) / (Number of emails sent – Number of emails bounced) x 100
How to improve: Use A/B testing to compare and evaluate your subject lines. Constantly A/B testing and reviewing open rates can provide you with a profound look at human behavior, motives, and what will best way to inspire their action.
3. Bounce Rate
Bounce rates are classified into two types: hard bounces and soft bounces.
- Soft bounces are typically due to a malfunction on the recipient’s server.
- Hard bounces occur on account of incorrect or non-existent email addresses.
A high bounce rate leads to low source credibility, quickly pushing your emails to the spam box. And if your sender’s reputation score drops, it might be difficult to regain.
How to calculate: Bounce rate = (number of emails bounced / number of emails sent) x 100
How to improve: There are two tips. Email your subscribers who have opened one of your emails in the previous six months. Along with it, avoid spam words to minimize the number of emails that wind up in the spam box.
4. Click-Through Rate
Click-through rate is the percentage of people who act on the links you’ve included in your email.
CTR offers you an insight into how likely people are to engage with the content of your email. It also tells you how enthusiastic they are in knowing more about your business.
How to calculate: CTR = (number of emails clicked / number of emails delivered) x 100
How to improve: To accomplish optimal CTR, organize your lists by subjects of interest. It could mean sending more emails. But it will also drive more traffic to your website and lead to fewer members unsubscribing.
Also, if you’re not pushing items for sale or sharing several resources, limit the number of links or action buttons. Add CTAs to only the most vital things you want people to respond to.
5. Conversion Rate
Conversion rate defines the number of people who clicked and then took a specified action.
For instance, you added a link in your email inviting your subscribers to join in a Halloween Season sale.
The conversion rate for this campaign would indicate what proportion of those who followed the link actually purchased something.
How to calculate: Email conversion rate = (Number of people who completed the desired action ÷ Number of total emails delivered) x 100
How to improve: Add powerful call to action copy in the button or link that will direct readers to your website. While you do so, make those buttons big and in vibrant colors.
Also, keep the CTA brief and clear. Give a dash of urgency to entice subscribers to act immediately and notice an immediate improvement of your conversions.
6. Unsubscribe Rate
Unsubscribe rate shows who has chosen to withdraw himself from your audience.
Although some people will always opt to unsubscribe, analyzing data tells you whether or not you’re providing relevant information to your audience.
Pay attention if you notice a considerable increase in people unsubscribing after one (or a few) of your emails. It can help you identify the types of content, tone, layout, or promotions to skip in the future.
How to calculate: Unsubscribe rate = (number of unsubscribes / number of emails delivered) x 100
How to improve: Check with your subscribers how frequently they would like to receive mail from you.
Don’t hesitate to ask your audience for feedback every now and then. It will allow you to address their concerns and create a more tailored marketing strategy.
7. Spam Score
Spam score calculates the rate at which recipients label your emails as spam. A high spam score indicates that your customers don’t applaud your content.
It signals to internet providers that they are no longer keen to hear from your brand. This can affect your sender status, affecting deliverability.
How to calculate: Spam score = (number of spam complaints / number of emails delivered) x 100
How to improve: Spam score exceeding 0.1% is cause for alarm. People usually complain about spam if they don’t identify you, get irritated, or can’t find the unsubscribe button.
That’s why it is essential to make locating the unsubscribe link as simple as possible. Also, evaluate your acquisition tactics, send rate, and content or classification strategies.
8. Overall ROI
This metric determines how much you profited from every dollar invested. If profit is a campaign’s goal (which almost always is), assessing ROI is critical.
According to 2020 statistics, email earns $38 for every $1 spent. It’s a remarkable 3,800 % ROI – making email marketing the most efficient digital marketing strategy.
How to calculate: Overall ROI = (Revenue – Campaign Cost) / (Campaign Cost) * 100
How to improve: Sort your list into categories. Marketers have reported a 760 % boost in income as a result of segmenting email campaigns.
Also, apply customization. Customization boosts email CTR by an average of 14% and conversions by 10%.
How Do I Track Email Metrics?
Metrics are essential components of any business plan because they allow you to act upon the evidence. The trick is to learn what metrics to look for, how to perceive them, and how to access them.
These are some of the most popular tracking tools, but keep in mind. It’s challenging to find an email tracking solution that fits every company’s objectives.
When choosing the best email marketing software, keep in mind your team’s particular needs and the cracks in your current technology.
- MailChimp: In the world of email marketing, MailChimp is one of the most well-known names. Their platform is based on four essential elements: a basic campaign design, powerful email automation capabilities, sophisticated analytics, and hundreds of platform interconnections.
- Benchmark Email: Benchmark Email resembles MailChimp in several ways. Both allow you to build email campaigns, use insights to enhance your following, and interact with various services. They also have similar fees and a lot of small features in common. You can’t go wrong with either.
- Google Analytics: GA remains the king of the game. It offers extensive analytics for real-time website content. Users can also set targets to monitor conversions, improve their e-commerce offerings, and learn more about their customers.
How to Use the Data That You Collect From Your Emails?
By detecting trends in your analytics, you should be able to strengthen your email content. Along with it, your company’s overall email marketing plan.
Email metrics can provide important information about your clients’ preferences, point out chances you may have overlooked, and warn you about potential problems.
- Did one email perform better than the other in terms of open rates?
- Are open rates affected by factors such as time of day or frequency?
- Do clients often engage (CTR) with certain types of content?
When answering questions like this, look for patterns that indicate your strategy’s strong sides and new opportunities.
Conclusion
The best thing you can do is keep your eye on the ball and know what’s most important for any given project.
You should align your KPIs to your priorities to achieve the desired effect.
When you focus on the right metrics, they will show you which direction needs more attention or help make decisions that are tough but necessary.
No matter how many stats there are out there, it all comes down to knowing where you want to go and finding a way forward with an objective perspective.
Which metrics would work well for your company?
Very informative article.