The digital success of the business purely depends on how well the brand is promoted among its customers. As a result, digital companies are engaging in email marketing campaigns to strengthen customer relationships. This effective marketing campaign helps businesses engage with new and existing clients by sending promotional content regarding products or services directly to their mailboxes.
But how do you know whether email marketing campaigns effectively turn your potential clients into real ones? Tracking your marketing campaigns is the first step and the ultimate way to measure the success of email marketing. With tracking, businesses get to know their audience, build on what works and avoid what doesn’t, and develop a better and more effective strategy.
For the best marketing results, more than one metric should be considered to achieve email marketing benchmarks. This article will look at some of the tested email marketing campaign metrics that measure the campaign’s success.
Effective Metrics to Measure Email Marketing Success
Understand which metric will be helpful as a Key Performance Indicator (KPI).
Let’s look at effective metrics that one should consider:
Open Rate
Open Rate measures the Rate at which the client opens the marketing emails against the number of emails you send in a specific period.
It is measured as :
No. of emails opened/ No. Of emails delivered * 100
Check that the platform does not count re-opens as initial opens because you would be recording a lower open rate than your data indicates.
Unsubscribe Rate
The unsubscribe rate indicates the number of clients who have opted out of the subscribe list. It is the percentage of email addresses that unsubscribe from an email marketing campaign out of all email addresses that received an email.
The Rate is crucial because it helps to understand the health of the email list. This metric impacts email deliverability, so many unsubscribe, which leads to negative consequences for email service providers like Gmail, Yahoo, and Outlook.
Bounce Rate
The bounce rate determines the number of mail sent but not delivered to the recipient’s mailbox for various reasons. These reasons can be the maintenance of the email server, the recipient no longer having an email account, it being active, or the recipient blocking you. This data helps track the deliverability and keep the audience organised.
The bounce rate is calculated as follows:
No. of bounces / no. of sent emails * 100
Suppose you sent 1,0000 emails in 1 month, but 500 bounced; your bounce rate would be 5%, which is still above the desirable 3%.
Email marketing has two types of bounce: soft bounce and hard bounce. A soft bounce means the email cannot be delivered due to temporary reasons like the mailbox being full, while a hard bounce means you cannot send the email cannot be delivered due to permanent reasons like the email address doesn’t exceed.
Click Through Rate
Click Through Rate (CTR) represents the percentage of clients who clicked on the campaign link received in their email box. The clickthrough rate measures the performance of every marketing mail sent. It is a key metric that indicates your email engagement and relevance. For example, if your email reaches 100 people but only ten clicks on a link, something needs to connect with your audience.
Low CTR means the emails are irrelevant, and you must try some strategy to improve the CTR.
It is calculated as follows:
No. of clicks/unique clicks/ No. Of emails delivered * 100
If you had 1,000 emails successfully delivered, and out of those, 500 were clicked, your email campaign’s clickthrough rate would be 50%.
Also Read: Email Marketing Strategies: A Beginner’s Guide for 12th Pass Students
Conversion Rate
The conversion rate in email marketing shows the percentage of recipients who opened their email and clicked on the link to complete the desired action, such as buying the product or subscribing to a service.
The conversion rate tells you how well you convert traffic into revenue. This metric is based on many factors, including business and industry type, brand, customer segment, goals, time of the year, marketing efforts, and more.
The conversion rate is calculated as follows:
No. of people who took desired actions/No. Of emails delivered * 100
Suppose 200 out of 1,000 client recipients bought your product or filled out a lead generation form through the email campaign link; your conversion rate would be 20%.
Email Campaign ROI
The email campaign ROI (Return on investment) is measured by the level of revenue earned versus the total spend on the campaign. Knowing the ROI helps you to see if it’s proving to be a profitable strategy or just emptying your resources.
You can calculate ROI as follows:
Total sales from the campaign – Total spend on campaign / Total spend on campaign * 100
OR
Profit – Cost / Cost * 100
For example, if you made Rs 10,000 from an email campaign after an initial investment of Rs 4,000, your ROI would be 150%.
Conclusion
Email marketing is still important for engaging with new and existing clients. Still being a popular online marketing method, businesses opt for email marketing campaigns to increase sales and improve lead generation and operational efficiency.
As a result, these email marketing metrics become essential for the campaign as they help you understand the value of your email marketing and recognize these campaigns are achieving the desired results.
From this, you can conclude how much email marketing is for the business; if anyone is looking to study email marketing or other digital marketing topics professionally, join H1 Tags. It is a premier digital marketing institute in Delhi that offers digital marketing and graphic designing courses.
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Frequently Asked Questions (FAQs)
Q1: What is the KPI in Email Marketing?
A1: The Key Performance Indicators (KPI) measure the performance of various aspects of an email marketing campaign.
Q2: What are the two of the most popular metrics for email marketing?
A2: Open Rate and click through Rate are two of the most popular metrics followed to measure the success of email marketing.
Q3: What is a benchmark in email marketing?
A3: Email marketing benchmarks use multiple factors when determining the success of a campaign, including the email open rate, click through rate, and the size of your email list compared to the first two data points.
Q4: What is the relationship between metric and data?
A4: However, metrics and data are similar but with an important differentiation. Data are random pieces of information, while metrics are data that are measured against a stated goal.
Q5: Where can I learn about email marketing campaign metrics?
A5: You can learn about email marketing campaign metrics in detail at H1 Tags. We offer professional courses in digital marketing and graphic design.