Though simple in its approach, email marketing continues to be the most effective and powerful marketing tool out there today to get significant results. Being continuing to evolve at a changing pace, email marketing is focused and action-oriented. With its sheer volume of people and limitless potential, there are many reasons why email marketing is known to be a successful marketing channel.
According to David Newman, “Email has an ability many channels don’t: creating valuable, personal touches – at scale.” When it comes to email marketing, knowing how to measure and monitor closely, your activities performance is the only way to understand the value of the efforts of result-driven marketers.
What are Email Marketing Metrics?
Email marketing metrics are the indicators that help in the measurement of success from your email campaigns. As compared to all other channels, email marketing is a rewarded marketing platform that possibly tracks how many users open your email, how many clicks, how many brought more conversions or sales revenue, and so on.
Why is it important to analyze your email marketing metrics?
In an emerging marketplace, where marketing activities are increasing rapidly. Out of many top marketing channels, email marketing is a channel that makes it super customizable.
As per data found in Statista – “Active email accounts are expected to hit 4.8 billion by 2024, and 99 percent of consumers check their email every day.” It’s an amazing opportunity that email marketing gives you a chance of connecting directly to your contacts, driving traffic to your website, and ultimately generating sales.
For any successful marketing strategy or decision, it’s an important question that arises of how do you know if email marketing is effective? So, it’s important to identify the vital email marketing metrics or KPI (Key Performance Indicator) in order to determine the success of your email campaigns.
List of 11 Email Marketing Metrics below:
- Deliverability rate
- Open rate
- Click rate
- Conversion rate
- Spam Complaint rate
- Unsubscribe rate
- Bounce rate
- Revenue per email
- Social sharing rate
- Overall ROI
- List growth rate
Let’s discuss Email Marketing Metrics in detail:
1. Deliverability Rate
Before you look at any other metric, the first metric that you need to consider is the email deliverability rate. This metric indicates the number of emails made to the recipient’s server or not. More technically, the email deliverability rate represents the number of emails reached to the recipients’ email inbox.
Email Deliverability Rate = (Number of Emails Delivered / Total Emails Sent) * 100
For example, let’s say you deliver your email campaign to the 10,000 email addresses and only 6000 emails made it to the recipients, and then your email deliverability rate will be 60%.
The higher your deliverability rate will be, the higher number of subscribe requests. As in case if you are facing a higher frequency of spam complaints then you might need to update your email list and reduce the email addresses that bounce or are inappropriate. You must also need to look closely at the content that is in your email messages.
Factors impact email deliverability rate?
- Your IP Address and Sender Reputation
- Email service provider
- Email List quality
- Spam words usage in your email subject line
- User engagement with your previous email campaigns
By fixing these problems you will get to know the things that are coming in your way and ensure to monitor your email deliverability after sending a campaign.
2. Open Rate
This best metric is simply to tell you the number of emails opened. The open rate represents the number of emails opened by your subscribers as compared to the emails delivered.
The higher open rate is better because it means many people are taking the time and interested in your email content in receiving your offerings.
Email Open Rate = (Number of Emails Opened or Read / Number of Emails Delivered) * 100
For example, let’s say 3000 recipients open your email campaign and you deliver your campaign to about 5000 email addresses, then your email open rate will be 60%.
Factors impact email open rate:
- The industry you operates in;
- Whether you’re B2B or B2C company
- Email sending time and frequency
- Email subject line and preheader
- Mailing list segmentation practices
If your email open rate is less than average, then it can affect the impact of your email campaigns. In this case, you’ll need to do something that pays extra attention to creating effective and interesting subject lines that urge recipients to open your email.
3. Click-Through Rate
Another metric that is even more critical than an open rate is your click-through rate. It isn’t good enough how many subscribers opened your email and check it out, but they must also want to click on the call to action and interact with the message contained in your email.
While this metric will not only tell you the recipients opened your email but also the number of clicks on the links or respond to your offer within your email message.
Click-Through Rate: (Number of Unique Clicks / Number of Email Delivered) * 100
Let’s say 200 recipients click on your email and the total number of recipients to which you delivered the campaign is 10,000, and then your email click-through rate will be 2%.
Factors impact click-through rate:
- Clear CTA and functional CTA Link
- Mailing List Segmentation
- Targeted Email Content
- Ad positioning
So, what is considered for the better click-through rate? Sometimes, many people find CTRs useful for successful click rates. Even when a subscriber clicks many times on CTA in your email message it will be counted as one click. Make sure to segment your email list to specify your audience thus getting a high click rate.
4. Conversion Rate
Now we have finished discussing the measuring of subscribers who open your email i.e., open rate and interact with it by clicking through. In this metric, we are going to analyze the measuring of your conversion rate.
This is the most important metric as it looks at the recipients who did what the sender was expecting to do by clicking on the call to action in your email content.
Conversion Rate: (Number of actions taken by users / Total emails delivered) * 100
For example, let’s say you have sent your email campaign to 5000 email addresses and 300 emails clicked and interacted with your email, then your email conversion rate will be 6%.
The conversion rate can be influenced by the following factors:
- Call to action’s quality
- Responsive and justified Email
For a good conversion rate for your business, it is important that your email should have a clear objective that justifies the subject of your call – to – action corresponding to the email message.
5. Spam Complaint Rate
Thankfully (or you might be calling sadly) your recipients have the power to click on “Report as Spam” means they are capable of reporting something that might be disturbing and useful for them in their email inbox.
To avoid these so-called spam complaints, you need to pay attention to these metrics as it may have a huge negative impact on your entire email campaign and recipient reliability.
Spam Complaint rate: (Number of Complaints / Number of emails sent) * 100
For example, let’s say the total emails that have been delivered are 10,000 and 500 emails found to be reported as spam or junk emails, then your spam complaint rate will be 5%.
Factors influence this Spam Complaint Rate:
- Using single opt-in subscription form,
- Using spam words in the subject line and email body
- Illegal list building
- Poor email content
- Bombarding of too many emails
- Recognizable Email sender name
To fix these issues of why subscribers give spam complaints, you need to keep your email content relevant and consistent, honest with your recipients, and avoid using spammy words in your campaign by taking consideration of the guidelines.
6. Unsubscribe Rate – Number of unsubscribed emails
Possibly it is accepted that the unsubscribe rate is the simplest metric to evaluate. Noticing how many recipients unsubscribe to your campaign is equally important just like you track your email open rate and click rate. This metric determines how many subscribers didn’t like your email and mark your email campaign to the unsubscribers list.
Unsubscribe Rate: (Total No of Unsubscribes / Number of Emails Delivered) * 100
For example, Let’s say you deliver your campaign to 1500 email addresses, and out of which 200 recipients unsubscribe your email, then your unsubscribe rate of that email campaign will be 13.33%.
It is generally accepted that a healthy unsubscribe rate should stay low, less than 5%. Also, your number of unsubscribed users should be lower than the number of email messages delivered.
Factors impact the unsubscribe rate:
- Poor Email list segmentation
- Spammy and offensive content
- Spamming your customers
- Lack of unsubscribe link
To avoid these scaring off your recipients, you need to analyze the sending frequency of email messages and run regularly testing of content
7. Bounce Rate – Number of emails undelivered
The bounce rate is a metric that shows how many emails didn’t make it to the customer inbox. You might see ending up a lot of bounced emails that return an error after being sent or wasn’t delivered to the recipient inbox. Bounces can be of either two types: soft bounce and hard bounce.
We are not talking about types of boiled eggs here.
Bounce Rate: (Number of bounced emails / Number of emails sent) *100
For example, let’s say 60 bounced emails that are found undelivered and you sent 2000 emails in a specific time period. Then your email bounce rate for the same period will be 3%.
Hard Bounce is permanent non – acceptable of email addresses. The emails are non -existent and will never deliver the message. These rejections may occur due to permanent 1reasons or due to temporary circumstances blocked by the server. Contrarily, Soft bounce includes rejection of emails that occur due to a variety of reasons, cases like full message inbox, email is too big, and temporary server issues – in these cases email addresses are most likely with a soft bounce.
Factors impact Bounce Rate:
- The irrelevancy of Email content
- Bad email addresses
- Large email size
To prevent bounces…
Ensure that the correct email delivery takes place, update your email list in a timely manner, and clean up your bad email addresses in your list of subscribers.
8. Revenue Per Email (RPE):
This is the most significant email metric as it accurately illustrates the success of your emails, that is, how many emails works and earn you in comparison to the cost incurred for implementation.
Revenue Per Email (RPE): (Total revenue generated with an email campaign / total number of emails delivered) * 100
For example, let’s say you generated $500 of sales in an email campaign by sending it to the 1000 email addresses. Then the total revenue per email that you will gain from the same email campaign will be 50%.
Once you’ve got this figure, you would have a clear picture of the overall performance of your emails.
With this email marketing metric, you can get to know the quality of your email campaigns and what type of strategy you need to develop that leverage this channel in the best possible way.
9. Social Sharing Rate
Generally, you’ll see social sharing buttons everywhere. It can be represented on a website or email. In email marketing, social sharing buttons are used on emails for the subscribers who want to share their excitement about a deal or product offering within your email message.
Nowadays, many brands or companies are now representing social media as buttons via email messages to allow their customers to share with their friends and family.
Of course, it isn’t a bad idea. If you place social share buttons it is another indicator of getting good engagements via social sharing and can acquire new leads or subscribers.
Social Sharing Rate: (Total number of clicks on a share button ÷ Number of total delivered emails) * 100
For example, let’s say 500 total clicks on the share button and 5000 emails delivered and now the social sharing rate is 1%
10. Overall ROI
In email marketing, ROI or Return on Investment is one of the key metrics to perform because this metric is used to evaluate the efficiency and profitability of investment in email marketing. Every marketer determines what they gained on their investment in email marketing campaigns and how much they produce a healthy return.
ROI: [(Additional Sales Gained – Spent on Email Campaign) / Spent on Email Campaign] * 100
For example, let’s say you pay $200 for your overall email campaigns and you come up to $2,000. When you calculate your overall ROI in that period, then it would be: [(2000 gained – 200 spent) / 200 spent] * 100 = 900% ROI.
Gained shows you how much you’ve earned throughout the specific period of time,
Spent illustrates the amount invested in your email marketing campaigns.
Before you start executing a versatile email marketing strategy, you need to set a number of measurable goals that can be achieved, these are:
- Increasing Brand Awareness
- Boost lead generation
- Website Traffic
- Increase sales and revenue
Once you know your goals to develop for your email marketing strategy, it becomes easier to track the progress of all your goals along the way.
11. List Growth Rate
List Growth Rate is the metric to track the rate at which your mailing list is growing. This metric can clearly tell you about the direction where your campaign will go. Also, it may show how many subscribers are engaging with your email and your potential conversions and leads.
List Growth Rate:
[(Number of new subscribers – Number of unsubscribes + email/spam complaints) / Total number of email addresses in your list] * 100
For example, let’s say if you bring 800 new subscribers and find 200 unsubscribes spam complaints from 5000 email addresses recorded in your list, then your list growth rate will be 12%.
But what if your overall email list is unhealthy? It’s natural to experience this issue, so you need to focus on the following ways that will maintain your healthy email lists:
- Remove bad email addresses
- Engage and grow more
- Visually scan your email lists
There are many email marketing metrics that analyses how your email campaign results are effective. With setting clear objectives and data monitoring, all the email marketing metrics listed above should get your big picture of how you can identify the most relevant metric works best for your industry.
Furthermore, this email marketing metric can help you to determine a chart of your average email campaign stats and can ultimately increase engagements and revenue for maximum impact. You’ll definitely find a way for getting most of your email campaigns.
How satisfied are you with our email metrics and at what metrics are you currently paying attention to?