Essential Email KPIs You Can't Afford to Ignore
Posted: Sun Dec 22, 2024 5:52 am
According to email usage statistics , 99% of people in the UK check their personal email on a daily basis. Are your marketing emails among those they open, or could your campaigns be performing better?
Most business owners want to see better results. Marketers consider an open rate of around 15% to be relatively good, but that leaves a lot of business on the table. Is there a better way?
According to Statista, email marketing joins digital philippines number marketing for second place as the most popular marketing technique. As seen in the chart below, only social media marketing surpasses it in popularity.
Source: Statista
Source: Statista
There's no doubt that social media marketing is effective, but it can be expensive and time-consuming. Email marketing is much simpler, more cost-effective, and perhaps offers a better return on investment.
Unfortunately, using email to promote your business is a tricky prospect these days. With the onslaught of messages assaulting customers, it’s hard to stand out from the crowd. In 2020, 306 billion emails exchanged hands. Unless your campaigns hit all the right notes, they’ll fade into obscurity.
You are probably wondering how you can optimize your campaigns. There are several tips and tricks out there and you can try them out.
However, you might be wasting your time.
Why? It's simple: no set of generic tips will work in every situation. To appeal to your target market, you need a more personalized approach.
That’s why, in this article, we’re not going to discuss how to optimize your email campaigns. There are already plenty of articles about that online. Instead, we’ll discuss the essential marketing KPIs you need to monitor. The data you collect will help you tweak your campaigns and discover the winning formula.
Sounds good? Let’s not waste any more time and dive deeper into the article.
What are good email marketing metrics?
In summary, you should focus on the following KPIs:
List growth rate
Conversion rate
Click-through rate
Bounce rate
open rate
Email Exchange Rate
Low rate
Overall ROI
brett-jordan-LPZy4da9aRo-unsplash
Take a minute to set your goals first
Before you get started, though, take some time to set your campaign goals. Do you want to convert customers, increase your number of subscribers, or generate more leads ? You can choose one or several goals, as long as you carefully define what you want to get out of marketing.
Goals will determine the tone and content of the email and to whom you send it. Now that we have those details sorted out, let’s look at each metric in more detail.
List growth rate
Every marketer understands that it’s best to focus on qualified leads. However, to successfully grow your business, you need leads coming in at a steady pace. The same principle applies to your subscriber list, as natural attrition can have a significant impact over time.
Here's how to calculate your list growth rate:
Add the number of spam reports or complaints and unsubscribes
Subtract that total from your total number of new subscribers
Divide the answer by the number of email addresses in your database.
Multiply the answer by 100
Why worry?
You should care because this statistic indicates how relevant and useful your emails are to your subscribers. All email lists are subject to some attrition. People may lose interest, unsubscribe, mark the email as spam, or change their address.
If you have a 4% email list growth rate but gained 25% new subscribers, it’s time to rethink your campaign. What’s driving your subscribers away?
Conversion Rate
Significant list growth and a high number of clicks mean nothing if conversions don't increase as well. Your conversion rate is the number of people who clicked on the link in the email, visited your site, and performed as you expected.
Here's how to calculate your conversion rate:
Divide the number of emails sent by the number of subscribers who acted on the email as you expected.
Multiply the result by 100 to get the percentage.
With this metric, we see why it's so important to set goals in advance. Let's say, for example, that you talk about a free download in your email, but they land on a page selling a product . The customer will automatically think "clickbait."
Instead, let them see the download clearly on your landing page. You can then add an incentive to keep them reading about your product.
The last thing to keep in mind is that you need to integrate your web analytics with your email program so you can see what actions your customer took. Maybe they went to the landing page and didn't go any further. Maybe they came back a day or two later and bought it.
Most business owners want to see better results. Marketers consider an open rate of around 15% to be relatively good, but that leaves a lot of business on the table. Is there a better way?
According to Statista, email marketing joins digital philippines number marketing for second place as the most popular marketing technique. As seen in the chart below, only social media marketing surpasses it in popularity.
Source: Statista
Source: Statista
There's no doubt that social media marketing is effective, but it can be expensive and time-consuming. Email marketing is much simpler, more cost-effective, and perhaps offers a better return on investment.
Unfortunately, using email to promote your business is a tricky prospect these days. With the onslaught of messages assaulting customers, it’s hard to stand out from the crowd. In 2020, 306 billion emails exchanged hands. Unless your campaigns hit all the right notes, they’ll fade into obscurity.
You are probably wondering how you can optimize your campaigns. There are several tips and tricks out there and you can try them out.
However, you might be wasting your time.
Why? It's simple: no set of generic tips will work in every situation. To appeal to your target market, you need a more personalized approach.
That’s why, in this article, we’re not going to discuss how to optimize your email campaigns. There are already plenty of articles about that online. Instead, we’ll discuss the essential marketing KPIs you need to monitor. The data you collect will help you tweak your campaigns and discover the winning formula.
Sounds good? Let’s not waste any more time and dive deeper into the article.
What are good email marketing metrics?
In summary, you should focus on the following KPIs:
List growth rate
Conversion rate
Click-through rate
Bounce rate
open rate
Email Exchange Rate
Low rate
Overall ROI
brett-jordan-LPZy4da9aRo-unsplash
Take a minute to set your goals first
Before you get started, though, take some time to set your campaign goals. Do you want to convert customers, increase your number of subscribers, or generate more leads ? You can choose one or several goals, as long as you carefully define what you want to get out of marketing.
Goals will determine the tone and content of the email and to whom you send it. Now that we have those details sorted out, let’s look at each metric in more detail.
List growth rate
Every marketer understands that it’s best to focus on qualified leads. However, to successfully grow your business, you need leads coming in at a steady pace. The same principle applies to your subscriber list, as natural attrition can have a significant impact over time.
Here's how to calculate your list growth rate:
Add the number of spam reports or complaints and unsubscribes
Subtract that total from your total number of new subscribers
Divide the answer by the number of email addresses in your database.
Multiply the answer by 100
Why worry?
You should care because this statistic indicates how relevant and useful your emails are to your subscribers. All email lists are subject to some attrition. People may lose interest, unsubscribe, mark the email as spam, or change their address.
If you have a 4% email list growth rate but gained 25% new subscribers, it’s time to rethink your campaign. What’s driving your subscribers away?
Conversion Rate
Significant list growth and a high number of clicks mean nothing if conversions don't increase as well. Your conversion rate is the number of people who clicked on the link in the email, visited your site, and performed as you expected.
Here's how to calculate your conversion rate:
Divide the number of emails sent by the number of subscribers who acted on the email as you expected.
Multiply the result by 100 to get the percentage.
With this metric, we see why it's so important to set goals in advance. Let's say, for example, that you talk about a free download in your email, but they land on a page selling a product . The customer will automatically think "clickbait."
Instead, let them see the download clearly on your landing page. You can then add an incentive to keep them reading about your product.
The last thing to keep in mind is that you need to integrate your web analytics with your email program so you can see what actions your customer took. Maybe they went to the landing page and didn't go any further. Maybe they came back a day or two later and bought it.