Even when social media marketing is on its peak, email marketing still plays an important part in a company marketing strategy. Email marketing allows you to build relationships with the prospects, leads, current customers and past customers because it creates the opportunity for direct conversations without the stress of replying time between you and them.
However, making a plan for the optimal implementation of this marketing method is always a challenging process. Bellow, we’ll discuss the top 8 key metrics that successful companies use for their email marketing campaign, and you will have a clearer idea on how to improve yours.
Email delivery rate shows you the percentage of emails that were delivered to recipients’ inboxes. In the other words, this metric tells you whether the number of people who received your email is the same as your expected number or not. An ideal email delivery rate would be 90% or more.
How to calculate: Email delivery rates = (the number of emails sent – the number of bounces)/ the number of emails sent.
Negative influenced factors:
Click-through rate is believed to have a strong correlation with sales, as it represents the percentage of recipients who will click on a link attached to your email. It could be an affiliate link to a certain product or advertising campaign. From this rate, we will learn the customer’s habit of interacting with email.
Click-through rate helps to measure how many customers will take the expected action with the email you send. Click-through rate will affect the following factors:
How to calculate: CTR = Total clicks / Total emails sent
This is one of the metrics that very few businesses pay attention to, but it can give important insight into the customer perception of the company, and the email marketing strategy. As the name suggests, the disengagement rate shows the percentage of recipients who are not interested in your email.
With this rate, we can accurately identify the ineffective phrases based on analyzing the least interactive emails, then removing them from subsequent emails. Always be sure to keep the disengagement rate below 0.15%, otherwise, it will drop your deliverability.
How to calculate: (Total spam complaints + Number of unsubscribes) / Total number of emails opened only once.
Concept: Percentage of emails that failed to reach the recipient’s inbox over total mail sent.
Usage: Use this metric to see potential problems with your email list. There are two types of rejected emails that need tracking: “hard” bounces and “soft” bounces.
Soft bounces result from a temporary problem with valid email addresses, like a full mailbox or a problem with the recipient’s server. The recipient’s server will keep these emails and send them as soon as there is no problem, or you can try resending the email.
Hard bounces usually happen when the email address is wrong, locked, or doesn’t exist, and these emails will never be sent successfully. Instead, immediately remove these email addresses from your email list, as Operators (ISPs) use the Bounce Rate as a major determinant of whether the email sender is trustworthy.
This metric is the measurement of the growth of an email list. You can measure the growth rate by subtracting email subscribers and hard bounces in a given month. Then divide this number by the size of the original list.
Usage: Email list growth is important because a healthy email marketing program needs to constantly refresh with new subscriber addresses. Many of the email addresses on your list will naturally “be of poor quality” over time, because they may change jobs, switch carriers or change email programs, perhaps they have forgotten their email password or set up a new account.
Concept: Percentage of recipients who click the Share button to share the content of the mail on social media or click a button to pass to others.
Usage: Share rate is another measure of whether your email content is valuable and relevant to the recipient. For example, if your email subscribers find your newsletter is interesting enough to share with your friends, it means that the topic you’re writing about is a hot topic for your recipients. Track shares carefully to see which types of news and offers people share the most and use it for future planning.
Concept: Percentage of recipients clicking on a link in an email and completing an activity that marketers want, like filling out a flyer to attract leads or buying a product.
Usage: Conversion rate is a basic measure of the effectiveness of an email campaign. The higher the conversion rate, the more relevant and engaging your email content is for recipients.
Concept: A measure of the ROI of an email campaign, by dividing the total campaign revenue by the total number of emails sent.
Usage: This metric is ideal for e-commerce marketers who have to generate a lot of sales directly from email campaigns. Again, this metric also requires a match between your Email Service Provider (ESP) and your e-commerce platform or website. If you’re ready to track conversions, you can also collect order values per conversion for your calculation.
The open rate differs from send rate in that it will tell you what percentage of senders will read your email (aka how often your email is opened), rather than just receiving mail and scan.
Calculation: Open rate = Total emails opened / (Email sent – Email bounced)
Email open rate help many marketers to measure the success of campaigns. However, it’s an unreliable measure because an email is only counted “opened” if the recipient also receives an attached image. Besides, most email users block viewing permissions. This means that even if they open the mail, they won’t be counted towards the Mail Open Rate, making it skewed and an unreliable metric for marketers, as it reports a lack of numbers, amount of mail opened.
Also, email open rate can be manipulated by compelling writing or a highly emotional subject that causes email recipients to open the mail, only to feel deceived by the content later. For that reason, it is better to focus on Click-through Rate (CTR), an excellent tool for measuring successful emails.
The percentage of recipients who unsubscribe from email marketing is also an unreliable measure of the health of the email list. Many subscribers feel tired of receiving your email marketing. However, they also don’t want to go through all the steps to unsubscribe from the mail. They will stop opening, reading, and clicking on your mail. Again, tracking CTR and Conversion Rate are much better ways to monitor recipient engagement and interest with your email marketing. Checking the email marketing UR is useful for measuring the overall email List Growth Rate, and for tracking the sudden increase after a particular email campaign.
After learning about metrics, you should have noted your email campaign to be more effective. Often, emails help nurture the prospects and lead to one day become a customer. Therefore, Email cannot run alone without having metrics and association with other channels at other stages in the conversion funnel.
There’s no formula for this—it’s all about what works best for you and your company’s voice and style.
And finally, you can move on to segmentation and analytics once you’ve mastered the basics. Start sending separate types of emails to different groups of people and always be improving.