What Are KPIs for Email Marketing? 9 Essential Metrics One Should Track
As the use of email for marketing purposes has become more widespread, it has become crucial to understand the key performance indicators (KPIs) that you can employ to measure the success of your email marketing campaigns.
Most business owners are familiar with the concept of KPIs—metrics that one tracks to measure the success of an organization or a specific marketing campaign. Email marketing is no exception to this rule.
By monitoring these KPIs, you can adjust your strategy to achieve your desired results. This post will outline nine essential KPIs for email marketing and explain what each means for your business. Here are the metrics that you can use to strengthen your email marketing for your next project.
Top Essential Email Marketing KPIs
Here are the metrics that you can use to strengthen your email marketing for your next project.
1. Open Rate
The open rate is a KPI in email marketing that measures the number of recipients who open an email. You can compute this metric by dividing the number of recipients that opened the email by the total number of addresses on your list. For example, if 1,000 people receive an email and 200 people open it, the open rate would be 20%.
This metric is vital because it’s an excellent indicator of engagement. It also assesses the effectiveness of your call-to-action and determines whether your content is relevant to your target audience. For example, if your open rate is low, it may indicate that your subject lines need to be more effective or that your messages need to be more relevant to your audience.
Some ways to improve open rate include segmenting your email list, personalizing emails, and using compelling subject lines. Another optimal strategy is sending emails when recipients are likely to be online and able to see them. Additionally, boost your email deliverability rate and credibility by enabling DMARC. By paying attention to open rates, marketers can reinforce the effectiveness of their email marketing campaigns and ultimately achieve better results.
2. Clickthrough Rate
Another essential parameter is the clickthrough rate (CTR). This is also one of the most critical kpis for email marketing which measures the percentage of email recipients who click on a link in an email. You can calculate this metric by dividing the number of email recipients who click on a link in the email by the total number of addresses on the list. For instance, if 100 people receive an email and 10 of those recipients click on a link in the message, then the CTR would be 10%.
CTR is crucial to measure because it determines how well your campaign performs. It’s also an excellent indicator of how interested your audience is in the content of your email. A high CTR signifies that your email content interests people, and they’re more likely to visit your website or click on your call to action.
However, a low clickthrough rate may indicate that your content isn’t interesting or relevant to your audience. It may also suggest an outdated email list or that you must fix your subject line to capture your audience’s attention.
To maximize your CTR, it’s essential to segment your email list so that you’re sending appropriate content to each group of recipients. It’s necessary to test various subject lines and call-to-action buttons to see what performs best with your clients.
3. Unsubscribe Rate
Meanwhile, the unsubscribe rate is a KPI in email marketing that measures the extent of recipients who unsubscribe from an email list after receiving one or more emails.You can determine this criterion by dividing the number of unsubscribed recipients by your list’s total email addresses. For example, if 10 out of 100 email addresses on a list unsubscribed after receiving an email, the unsubscribe rate would be 10%.
The unsubscribe rate should be evaluated because it can provide insights into the effectiveness of your email content. It can also determine whether it’s providing value to your subscribers. For example, if your unsubscribe rate is high, it may indicate that you’re sending too many emails or that your emails need to be more relevant to your audience. As a result, you may need to adjust your content strategy to keep people subscribed to your list.
A few ways to reduce the unsubscribe rate is to enable customized email frequency settings so subscribers can choose how often they receive emails. In addition, you can provide other communication method options like an RSS feed or social media follow buttons in your emails.
By monitoring the unsubscribe rate, you can ensure that your email content gives value to your subscribers and makes them want to stay on your list.
4. Conversion Rate
In contrast, the conversion rate is the percentage of recipients who take the desired action after receiving an email, such as making a purchase or signing up for a newsletter. You can calculate this metric by dividing the number of email recipients who took the desired action by the total number of email addresses on the list.
Conversion rate is also regarded as among the most vital kpis for email marketing because it indicates how successful your marketing campaigns are in achieving your desired results, like making a sale and obtaining prospects and leads. Moreover, if your conversion rate is low, it may indicate that you need to target the correct audience or that your call to action needs to be more appealing.
Several factors can influence conversion rate, so it’s critical to experiment with various strategies to identify what works best for your business. Some elements you can experiment with include emails’ frequency, the content’s length and format, and the call to action.
Likewise, to strengthen your conversion rate, you can implement automated drip campaigns, run A/B tests, and make your email content mobile-friendly. A report shows 61.9% of the open email rate occurs using a mobile device.
These tactics are only a few things you can employ to improve this metric. However, they can make a huge difference in your conversion rate and, eventually, the success of your marketing campaigns.
5. Revenue per Email Rate
Besides conversion rate, another KPI is revenue per email (RPE), which measures the average income generated from each email sent as part of the marketing campaign. You can calculate RPE by dividing the total revenue generated from a marketing campaign by the number of emails sent. For instance, if you earned $10,000 from email marketing and sent 10,000 emails, your RPE would be $1.
This metric is critical because it allows you to track the effectiveness of your email marketing in terms of generating profits for your business. For example, if your revenue per email is low, it may indicate that you need to offer more value in your emails or that you need to target high-value customers.
There are several ways to increase your RPE. One is email personalization, which you can achieve by using the recipient’s name in the email subject line or body. You can also target high-value customers with special offers or discounts. Finally, see that you write your messages well and that they are free of errors, which can negatively impact your RPE.
For this reason, tracking your RPE ensures that your email campaigns generate the desired revenue results.
6. Bounce Rate
On the other hand, bounce rate is a KPI that measures the percentage of emails sent as part of your marketing campaign that “bounce” back to the sender. A “bounce” occurs when you unsuccessfully deliver an email to a recipient’s address. Please note there are two types of bounces: hard and soft.
Hard bounces are permanent failures, meaning the system can’t deliver the email to the recipient’s inbox. For example, this may happen with an invalid or non-existent email address. In contrast, soft bounces are temporary failures that typically occur when the recipient’s mailbox is full, or the email server is down.
You can compute this metric by dividing the number of bounced messages by the total number of emails sent. For example, if you sent 1,000 emails and you discovered 100 of them undelivered, your bounce rate would be 10%.
It’s vital to track this parameter because a high bounce rate can negatively impact the deliverability of your future email marketing campaigns. In addition, the metric is a good indicator of your email list quality. For example, if your bounce rate is high, it may indicate that you’re sending messages to invalid addresses or that spam filters are blocking your emails.
To reduce bounce rate, see that you adopt a reliable email marketing service that verifies addresses before sending messages. You can likewise clean your email list regularly to remove invalid or inactive addresses with the help of a customer relationship management (CRM) tool. If you still need to implement one, it’s best to choose from this CRM application list with in-depth reviews.
Moreover, avoid using generic email addresses, such as email@example.com, in your marketing campaigns, as subscribers will more likely flag it as spam. Enabling double opt-in for your email list can also help reduce bounces, as this guarantees that you only add people who have explicitly requested to receive your messages.
Lastly, see to it you consistently send high-quality, relevant content in your campaigns. Note that going for lengthy periods of not sending emails may seem suspicious to email service providers. Hence, by tracking your bounce rate and reducing it, you can ensure that your marketing campaigns reach your intended recipients’ inboxes.
7. Spam Complaint Rate
Similarly, the spam complaint rate is a KPI that measures the percentage of recipients who mark your email as spam. You can calculate this criterion by taking the number of spam complaints and dividing it by the total of emails sent. For instance, if you send 1,000 emails and 10 people mark it as spam, your spam complaint rate would be 1%.
This metric is essential to track because a high spam complaints rate can damage your sender’s reputation and negatively impact your deliverability. It can also give you insights into whether your subscribers receive your email content well. Besides that, it gauges the effectiveness of your anti-spam measures and determines whether you’re correctly delivering your emails to your recipient’s inboxes.
If you notice a spike in your spam complaint rate, it’s crucial to address the issue promptly. This may involve changing your email content, avoiding third-party or co-registration lists, and ensuring your emails have similar branding and domain where clients signed up for your contact list.
A high spam complaint rate indicates that many people find your messages irrelevant or unwanted. Therefore, you must address this critical problem quickly to maintain an excellent sender reputation and guarantee a successful marketing campaign.
8. Email Sharing/Forwarding Rate
Email sharing or forwarding rate is the percentage of people sharing or forwarding your email to a friend or colleague. You can calculate this metric by taking the number of clicks on a share or forward button and dividing it by the total number of delivered messages. For example, if you send 1,000 emails and 100 people click on the share or forward button, your email sharing or forwarding rate would be 10%.
This is one of the most-tracked kpis for email marketing because it can provide insights into how popular your email content is with your subscribers. It can also measure the virality of your content and determine whether your recipients enjoy your email.
A high email sharing or forwarding rate indicates that your subscribers find your content valuable and share it with others. This can help you attract new subscribers and grow your email list.
On the other hand, a low forwarding rate may indicate your content needs to resonate better with your audience. In this case, you may need to rethink your content strategy and find a way to make your emails more engaging. Another method to boost the email sharing rate is to launch a referral program where you incentivize customers to share your emails with their friends and family.
Given these points, by tracking your sharing/forwarding rate, you can fine-tune your email marketing strategy to ensure that it’s as practical as possible.
9. List Growth Rate
Lastly, the list growth rate is the percentage of new subscribers who sign up for your email list. You can calculate this metric by determining the number of new subscribers, unsubscribes, and the total number of email addresses on your list over a period. Then subtract the number of unsubscribers from the number of new subscribers. Finally, divide the resulting number by the total number of email addresses on your list.
For example, you have a list of 1,000 email addresses and gain 100 new subscribers in a month. However, you lose 50 subscribers during that same period. Therefore, your list growth rate for that month would be 5%.
This metric is crucial to track because it allows you to see whether your email list grows or shrinks over time. A healthy list growth rate indicates that your marketing efforts are working and attracting new subscribers. It also determines the success of your email marketing efforts in terms of list growth.
In contrast, a negative list growth may indicate that you need to improve your email sign-up process or that your email content needs to be more compelling to encourage recipients to subscribe.
Some techniques to improve your list growth rate are to shorten your lead-capturing forms, insert positive client reviews on your website landing pages with sign-up forms, and request site visitors for feedback. In addition, you can ask for customer feedback on your social media accounts, company website, and other marketing channels.
To consolidate all client concerns, you can adopt a tool such as Wix Answers, an omnichannel platform that organizes all communication in a single workspace. You may also want to provide an item of value in exchange for an address, such as a free e-book, white paper, or coupon.
By tracking your list growth rate, you can guarantee that your email marketing efforts are functioning and making an impact.
Track Vital KPIs for Email Marketing to Achieve Business Goals
Email marketing is a powerful tool to help you reach your target audience and achieve business goals. However, you need to track and measure your results to make the most of email marketing. By monitoring the nine essential metrics outlined in this blog post, you can identify what’s working well for your marketing campaigns and what needs improvement.
In addition, by using these important kpis for email marketing as benchmarks, you can continue to improve the performance of your email marketing efforts over time.
What Are Key Performance Indicators (KPIs) In Email Marketing?
Key performance indicators are measures to track and monitor a company’s email campaign. It includes several short-term and quantifiable long-term goals that aid in evaluating the success rate.
What Are The Components Of Effective Email?
The message and structure of the email play a critical role in boosting the conversion rate. However, only these components are not sufficient. The subject line should be direct and catchy. Begin the email with a greeting. There should be no grammatical or spelling errors, and the company’s mission and vision should be clear. Make sure to give proper closing to the email to elevate its effectiveness.
How To Track Email Marketing KPIs?
Clickthrough rate, bounce rate, revenue per email rate, conversion rate, spamming, and forwarding are essential KPIs you can track to measure the campaign’s success.
How Important Is Conversion Rate In Email Marketing?
Email marketing conversion rate provides insights into how many prospects interacted with the company and completed a task after reading the email. This metric is essential to calculate the ROI of a campaign and learn about the target audience’s tastes and preferences.
Marketing Analytics: 8 Best Ways to Track Your Online Marketing Activity
Do you know how profitable your marketing campaigns are? Have… […]
Read More… from Marketing Analytics: 8 Best Ways to Track Your Online Marketing Activity