By launching email marketing campaigns, businesses make the most effort to promote their products and services, attract more clients, and increase brand awareness. But after all, email optimization and your creativity do not play a huge role until you see significant results. But what to consider as email marketing success? It can be generating leads, increasing open rates, content distribution, growing subscriber lists, improving click-through rates, converting leads into customers, and more. Once you define the goal of your campaign you can effectively track the campaign results. In this article, we will find what metrics are used for analyzing email marketing progress.
Email Marketing KPI and Its Importance
KPI is a key performance indicator used for measuring how effective email marketing is. It assesses the campaign performance against your marketing goals, indicating if there’s success in achieving them. Consider that the marketing goals you set should be SMART. It means they are specific, measurable, attainable, relevant, and time-bound. KPI is crucial for evaluating your progress and is tightly bound to your goals.
Businesses use KPIs to effectively connect with their audience, grow clientele, and boost revenue. There are main advantages that using key performance indicators can bring your company:
- Improved marketing strategy to identify the campaign strengths and weaknesses;
- Tracking customer opinions through unsubscribe, share & forward, and conversion rates;
- Determining consumer trends to predict what content will best work to increase sales;
- Measuring ROI for tracking campaign effectiveness and managing a marketing budget.
Top Metrics to Track Email Marketing Campaign
You can track your email campaign using email trackers to know the letter was read, but there are many other effective methods for evaluating your marketing success. There are different content types and strategies used in email marketing campaigns. Today video email marketing is a popular and effective solution for business promotion. Marketers widely use a movie converter to make their video in email accessible to all users. They also add catchy subject lines and make their emails mobile-friendly. If you haven’t found your marketing strategy that works for your business, then experiment and track how email receivers interact with your content using special metrics. Here are key KPIs to know how your campaign performs.
Bounce rate is the metric for measuring what percentage of recipients didn’t get your email. It tracks email deliverability showing the number of letters rejected by an email server. A low bounce rate means that your email campaign is successful. There are two types of bounces: hard and soft. A hard bounce is a permanent error that occurs when an email address is invalid, closed, or non-existent. A soft bounce is a temporary problem like a server issue or full inbox. You can calculate the bounce rate by dividing the total number of bounces by the number of emails sent and then multiplying it by 100. Drive to achieve a 2% bounce rate. It will help you understand if there are issues with email deliverability and encourage you to take action and make your campaign effective.
Open rate is a percentage of opened emails compared to the total number of emails sent. It is a crucial metric for monitoring your marketing campaign success and showing customer interest in your content and email topic. Marketers usually use catchy subject lines to attract the audience’s attention. You can calculate the open rate percentage by dividing opened emails by the overall amount sent and then multiplying the number by 100. You should aim to have at least 20% of your email open rate. A low number indicates your email subject lines need optimization.
A click-through rate (CTR) is the number of recipients who open your email and click links. It is more crucial for indicating marketing campaign success than open rates as people may simply open your email and do not take any actions. While a link they open can lead them to your site, online store, or other business-related content. This metric shows how many customers are interested in your emails and interact with their content. It is measured by dividing total clicks by emails sent. Multiply the number you get by 100 and get your click-through rate. It is great for your campaign to have at least a 4% rate.
Conversion rate is a valuable metric for indicating the percentage of recipients who click on a link and do something. This metric is connected to the click-through rate. It shows if your campaign achieves the purpose and people fill out the form, buy products, download a file, etc. Conversion rate shows how successfully you generate leads. You can measure conversions using web analytics or calculate the percentage with a standard formula (number of people who completed the desired action divided by emails sent and multiplied by 100).
List Growth Rate
Your list growth rate measures the rate of your subscriber list growing. It is important that the rate of gaining subscribers is higher than the one of losing them. A steady list is not also a good indicator, and you should seek solutions to attract new newsletter subscribers. Keep track of your list and maintain it in a good size to expand your business reach. In order to calculate your list growth rate, count new subscribers and subtract the number of unsubscribes and divide this number by the total email addresses on your list and finally multiply the result by 100.
Return on Investment
Return on investment (ROI) measures the revenue you get from investing money in a marketing campaign. Email ROI rate shows if your strategy is profitable. There are many expenses needed for achieving email marketing success, including content creation, building email lists, market research, and more. Your email marketing effort should bring you profit. To calculate your return on investment rate and take action if needed. You can find email ROI by counting money made in sales and subtracting email campaign costs. Then divide the number you get by the overall sum invested in the campaign and multiply by 100.
Email Forwarding & Sharing Rate
This metric shows the percentage of receivers who share and forward your emails. It helps to indicate whether you generate new clientele. Once you see people who have been forwarded your email, you can add them to your database. You can find valuable information about what types of content and topics are the most shareable to consider these insights in your future campaigns. In order to calculate the forwarding and share rate, you should divide the number of clicks on the buttons to share/forward by the total emails sent and multiply it by 100.
There you have seen only a few popular email marketing KPIs and there are many more such metrics for measuring business strategy effectiveness. So choose the metrics that fit best your company and define how customers interact with specific types of your email marketing strategies. Finally, you will find your marketing method to achieve business success.