Would you believe that email marketing might not look like a significant component of marketing or promoting a business? But it has become an integral part of digital marketing strategies to create successful campaigns and reach their target audience effectively and efficiently. Moreover, it is a cheap way to promote products and services, generate leads, and build customer loyalty.
Let us tell you that emails alone for marketing are insufficient to guarantee a business’s campaign effectiveness.
Don’t worry, we have got something exciting for you to measure the success of email campaigns
The use of email marketing Key Performance Indicators (KPIs) to analyze and track email marketing campaign to measure their success. These email metrics provide insights on what works in the email campaign; ultimately, you can better understand your audience, and their behavior, track email campaigns, and tailor your emails accordingly, which can increase engagement and ultimately drive optimized results. Simply put, you will get the email marketing analysis for your email marketing campaign. Isn’t this sound interesting?
Furthermore, this article will explore the top 10 key performance indicators (KPIs) and metrics for tracking email campaigns. Let’s dive into them now!
What are Email KPIs and Why are they Important?
Email marketing KPIs as known as Key Performance Indicators (KPIs) are a set of measurements used to evaluate business performance and progress over a defined period of time with the aim of monitoring the achievement of specific objectives. In email marketing, KPIs serve as analytical tools for measuring the effectiveness of marketing campaigns against predefined goals by identifying the trends in email engagement, such as:
- The types of content that resonate most with their audience.
- The times at which they are most likely to engage with email content.
- The devices on which they are accessing email content, etc.
With this interesting information, businesses can optimize their email marketing campaigns for better results. However, with email marketing kpis and metrics, it is essential for businesses to establish appropriate objectives and carefully consider their specific requirements when selecting the most suitable email marketing KPIs.
Moreover, email marketing kpis are important in the tracking of email campaigns and to measure the performance of their email campaigns and adjust their strategies accordingly. Therefore, the monitoring of email marketing metrics is crucial when you have email marketing campaigns.
Top 10 KPIs and Metrics to Track Email Marketing Campaign Performance
Hope you have a good understanding on email marketing KPIs, lets take our understanding to one step higher and lets get a good understanding on top 10 email marketing KPIs you should consider.
Clickthrough Rate
As the name suggests, Clickthrough Rate (CTR) measures the percentage of subscribers who click on a link within an email. Measures the effectiveness of an email campaign in terms of the level of subscriber engagement it generates.
How to Calculate Email Clickthrough Rate
It is calculated by dividing the number of clicks by the total number of delivered emails and then multiplying the result by 100 to get the percentage.
For example, if you have sent 1000 emails and 70 people clicked on the link, then the clickthrough rate would be:
It is recommended that the CTR should be not less than 4 percent, as a high CTR suggests that subscribers find the email content appealing and are engaged with the message, indicating that the email campaign is successful in conveying its intended meaning.
Significance
Click-through rate (CTR) is a crucial metric for businesses to measure the success of their email campaigns and gain valuable insights into resonating content. This empowers them to make informed decisions about their email marketing strategies for a successful campaign.
Conversion Rate
The conversion rate shows the percentage of email recipients who complete a desired action, such as making a purchase, filling out a form, or signing up for a newsletter. In simple words, it measures how effective the email campaign is at achieving the marketing objectives.
How to Calculate Email Conversion Rate
It is calculated by dividing the number of people who took the necessary action (signups and purchases) by the total number of emails delivered and multiplying the result by 100 to get a percentage.
For example, if you have sent 1000 emails and 100 people clicked on the link and made the purchase to become customers, then the conversion rate would be:
A high conversion rate indicates that the business is doing a good job of creating a compelling user experience, providing relevant content, and offering products or services that meet the needs of their target audience. While a low conversion rate may indicate that the business needs to make changes to their email marketing strategy to better meet the needs of their target audience.
Significance
Email conversion rate is a crucial metric for any business engaged in email marketing. It helps them determine how effective their campaigns are at engaging their target audience and converting them into customers. By analyzing the conversion rate, businesses can adjust their email marketing strategy to improve their chances of generating revenue in the long term.
Deliverability Rate
Email deliverability rate refers to the percentage of emails that successfully reach their intended recipients’ inboxes. It is an important KPI for email marketing campaigns since it measures the effectiveness of the campaign’s ability to reach its target audience.
How to Calculate Email Deliverability Rate
It is calculated by dividing the number of emails delivered by the total number of emails sent, and then multiplying the result by 100 to get a percentage.
For example, if you have sent 100 emails, and out of which 90 were delivered, then the deliverability rate would be:
A high deliverability rate means that the majority of the emails are received, which increases the chances of them being acknowledged by the recipients, who would open them and take the necessary actions. Yet, a low deliverability rate indicates that the email may have been land to spam or junk folders, resulting in a lower engagement rate and reduced campaign effectiveness.
Significance
Email deliverability rate is a critical KPI for email campaigns that directly impacts user engagement, conversion, and ROI. Moreover, it holds significant importance in the success of an email marketing campaign and helps in preserving a good reputation with both internet service providers and email providers.
Open Rate
The open rate measures the percentage of email recipients who opened an email. The number of opened emails are tracked through a small, transparent image called a tracking pixel embedded in the email. Yet, emails with exciting subject lines have a more chance to be opened by the recipients and increase the open rate.
How to Calculate Email Open Rate
It is calculated by dividing the total number of opens by the total number of emails delivered, and then the result is multiplied by 100 to get a percentage.
For example, if 100 emails were sent and out of them only 40 were clicked or opened, then the open rate would be:
It is recommended that the open rate not be less than 15%. A high open rate implies that the emails were effectively written and engaging, which enticed recipients to open them. While, a low open rate may indicate that either the email needs improvement or it is not relevant to the target audience.
Significance
The open rate is a significant KPI in email marketing, as it is an email engagement metric that measures the level of interest email recipients have in the business and its services. By using open rates as a comparative metric, businesses can analyze the effectiveness of their email campaigns on a weekly or monthly basis to track the success of their email campaign. Cool Right?
Bounce Rate
Bounce rate measures the percentage of email addresses that were not delivered to recipients.
How to Calculate Email Bounce Rate
It is calculated by dividing the number of emails that are bounced(not delivered) by the total number of emails sent, then multiply the result with 100 to get a percentage.
For example, if 1000 emails were sent and out of them 30 were not delivered, then the email bounce rate would be:
A bounce rate exceeding 90% is considered concerning as a high bounce rate may suggest that the email list contains invalid or outdated email addresses, or that the email was spam which impacts the sender’s reputation and deliverability rates in the long run.
Significance
The bounce rate metric is an essential tool for email marketing analysis as it helps businesses identify potential issues with their email lists. By taking corrective measures to improve deliverability rates and make their email campaigns successful.
List Growth Rate
The email list growth rate measures the rate at which the email list is growing. The growth of email list could be due to different variables such as new fresh sign-ups, subscribers sharing the email, etc.
How to Calculate Email List Growth Rate
It is calculated by subtracting the number of new subscribers from the number of unsubscribers and dividing the result by the total number of email addresses on the list, then multiplying the result by 100 to get a percentage.
For example, there are 1000 total email addresses in the list, 130 are the new subscribers, and 70 are unsubscribers and list growth rate would be:
A high email list growth rate indicates that a business is acquiring new subscribers at a fast rate, which is a positive sign as it means the business is expanding its reach and has a larger audience to market to. On the other hand, a low or negative email list growth rate indicates that people are losing interest, which can negatively impact the business’s marketing efforts.
Significance
The email list growth rate help businesses track the success of their email marketing campaigns in terms of acquiring new subscribers and ultimately make informed decisions on growing their email list and improving their overall marketing strategy.
Email Sharing/Forwarding Rate
Email Sharing/Forwarding Rate measures the percentage of email recipients sharing or forwarding an email to others. It indicates how engaged and interested subscribers are in the content of an email and how likely they are to recommend it to others.
How to Calculate Email Forwarding Growth Rate
It is calculated by dividing the number of forwarded emails by the total number of emails delivered, and then multiplying the result by 100 to get a percentage.
For example, if there are total 1000 emails delivered but only 50 of them were shared, then, email forwarding growth rate would be:
A high rate of email forwarding indicates that the content is resonating with the audience and they find it valuable enough to share with others. However, a low rate of email forwarding shows that the audience is not finding the content engaging or valuable enough to share, which could indicate a lack of interest in the business or its marketing efforts.
Significance
The email forwarding rate provides valuable insights into the effectiveness of email campaigns and increases business exposure to a wider audience. Moreover, it also helps discover new channels for generating leads and forecasting the number of new leads from various channels.
Overall ROI
Overall ROI measures the success of the email marketing campaigns. It indicates the profitability of an investment, excluding the cost. In simple words, it measures the investment returns against the marketing efforts in terms of cost.
How to Calculate Overall ROI Rate
It is calculated by subtracting the cost of an investment in a campaign from its revenue, and dividing the result by the cost of an investment in the campaign, and multiplying the new result by 100 to get the percentage.
For example, if there are $1000 in the revenue, and $200 are invested in the campaign the the overall ROI would be:
An overall ROI with positive response indicates that the investment generated more revenue than the cost, while a negative ROI indicates a loss.
Significance
Overall ROI Rate is a critical KPI email marketing for optimizing investments and maximizing profitability. As it measures the profitability of an investment and helps businesses make decisions regarding their marketing campaigns. Lastly, it also enables businesses to evaluate their overall financial performance and identify areas for improvement.
Unsubscribe Rate
Unsubscribe Rate measures the percentage of email recipients who choose to unsubscribe from an email list after receiving a marketing campaign email. It is an important email marketing KPI that can provide effectiveness and performance of email marketing efforts.
How to Calculate Unsubscribe Rate
It is calculated by by dividing the number of unsubscribes by the total number of emails sent and multiplying the result by 100 to get the percentage.
For example, if 1000 emails were sent out of which 400 recipients unsubscribed from a list, then the Unsubscribe Rate would be:
When the unsubscribe rate is high, it implies that the recipients are not finding the emails valuable or interesting. In this case, the business needs to redefine its email marketing strategy and make necessary changes to improve its effectiveness while writing emails. While, a low unsubscribe rate indicates that the recipients are satisfied with the email and they are not considering spam.
Significance
Unsubscribe Rate is a critical KPI for marketing campaigns that help businesses optimize their email marketing strategy, enhance subscriber engagement, and ultimately generate more revenue. Moreover, it provides insights into the health of a subscriber list.
Spam Complaints
Spam complaints is the percentage of recipients who report marketing campaign emails as spam.
How to Calculate Spam Complaints
It is calculated by dividing the number of spam complaints by the number of emails sent and multiplying by the result by 100 to get the percentage.
For example, if 100 emails were sent out of which 45 were reported as spam, the Spam Complaint rate would be:
A high spam complaint rate can be fatal for any business as it damages the reputation. While, a low spam complaint rate demonstrates the good health and effectiveness of an email marketing campaign.
Significance
The spam complaint rate is crucial for businesses to maintain their reputation and improve email deliverability and engagement rates. This email metric provides valuable feedback on the email content. It can help businesses identify areas for improvement in their email marketing strategy, ensuring that emails are relevant and valuable to their subscribers.
Final Thoughts
And that’s a wrap! Email marketing is a super effective way to promote your business, but it’s crucial to track and analyze your email KPIs and metrics to make it a success. We went over the top 10 KPIs and metrics that can really make a difference in the effectiveness of your email campaigns. To really take things to the next level, it’s important to know your target audience. This ensures that your campaign reaches the right people and drives more engagement.
Frequently Asked Questions (FAQs)
How can the effectiveness of e-mail advertising campaigns be measured directly?
The effectiveness of email advertising campaigns can be directly measured by tracking email marketing metrics, as each metric holds a significant place in assessing the success of email marketing campaigns. Yet, ROI, click-through rate, conversion rate, bounce rate, and unsubscribe rate are considered email performance metrics that play a significant role in measuring the success and effectiveness of email campaigns.
In addition to monitoring email metrics, businesses can also use the Triple-A Approach to measure the effectiveness of email campaigns. The approach involves analyzing data, making adjustments based on the analysis, and taking action to improve results. By continuously improving email campaigns, businesses can optimize their marketing strategies and achieve better results.
How would you track visitors coming from an email or newsletter campaign?
There are many ways that you can use to track the visitors coming from email ot newsletter campaigns. One of the most effective methods is by using UTM parameters, which are tags (in simple words) added to the end of a URL to track traffic from specific sources. UTM parameters can help track essential details like the source, medium, and campaign name of your email or newsletter. When someone clicks on the link in the email, the UTM parameters are sent along with the URL to analytics tools, making it easy to track your campaign’s performance. Other ways includes the use of marketing automation tools, analytical tools, or email marketing software, which provides analytics and reporting features to track traffic from email campaigns.
