Email campaigns can be difficult to master, but tracking Email Marketing KPIs (Key Performance Indicators) will provide you with the essential data needed for success in any endeavor.
All Business owners understand that a successful business relies upon growth on a daily basis and email campaigns are certainly one of the most profitable decisions an organization could make as they reach new heights!
Here, In this article, we’ll discuss Why email marketing KPIs are important, and we will also list eight KPIs you should be tracking to have a successful email campaign.
What Are Key Performance Indicators?
Key Performance Indicators (KPIs) are measurable values that help assess the success or performance of a business, team, or individual in achieving specific objectives. They provide a way to track progress, make data-driven decisions, and focus on areas that contribute to desired outcomes.
Key characteristics of KPIs include:
- Relevance: KPIs should be closely related to the goals and objectives of the business being measured. They should concentrate on important factors that determine success or point out areas that require improvement.
- Measurability: KPIs must be measurable in a quantitative or qualitative manner, allowing for objective evaluation. This typically involves defining specific metrics, targets, and benchmarks.
- Specificity: KPIs should be specific and well-defined to provide clear guidance and understanding of what is being measured. They should be easily understood and communicated to stakeholders.
- Time-bound: KPIs are often associated with a specific time frame, such as monthly, quarterly, or annually, to track progress and compare performance over time.
- Actionable: KPIs should provide insights and data that enable informed decision-making and drive actions to improve performance. They should be actionable and allow for adjustments in strategies or tactics based on the results.
Why KPIs for Email Marketing are Important?
There could be different reasons for tracking email marketing KPIs, but the primary goal is to measure email performance and optimize email campaigns based on key metrics.
By tracking email KPIs, you can assess what works for your audience and what doesn’t. It helps you create more effective email campaigns, save time and money and boost return on investments (ROI).
Now that you know the importance of email marketing KPIs, let’s discuss some of them to track.
Eight Email Markeitng KPIs To Track
Tracking key performance indicators (KPIs) is essential for effective email marketing campaigns. These KPIs provide valuable insights into the performance, engagement, and success of your email marketing efforts.
Here are eight email marketing KPIs to track:
Click-Through Rate (CTR)
What is it: CTR is the way to measure how many email recipients clicked on a link, email, or button on your email.
With the help of this metric, email marketers can track their success in terms of how successful their emails are about content, subject lines, and call-to-action buttons.
This KPI allows email marketers to make changes based on what works for them and further enhances the effectiveness of campaigns.
Furthermore, It is an excellent tool for assessing A/B tests as it provides valuable insight into which methods generate more clicks from your subscribers so that you can modify or optimize your approach accordingly.
How to Calculate: CTR = (Number of Clicks / Number of emails delivered) * 100
Example: If you sent an email to 1000 email recipients and 150 email subscribers clicked on the link, then your CTR would be 15% (150/1000*100)
Open Rate
What is it: Open rate reflects the open email rate. It is a measure of how many email recipients opened the email sent to them compared to the number of delivered emails.
Many marketers focus on optimizing email for a higher open rate since it has positive consequences. However, they should strive to optimize the email for click-through rate (CTR) instead – as this will have an even more powerful impact on their business.
However, this metric can be misleading since it regards an email as “opened” even if the recipient did not view it.
Conversion Rate
What is it: The success of an email campaign mainly depends on its conversion rate, which reveals how many recipients took the desired action after receiving your message.
Whether it be a purchase, filling out a form, or downloading an ebook, we can measure the effectiveness of our emails by tracking this KPI.
Aiming to generate conversions with every email should be our ultimate goal to maximize successful outcomes from our campaigns!
How to Calculate: Conversion Rate = (Number of actions taken/Number of emails delivered) * 100
Example: If you email 2000 email recipients and 100 email subscribers took action, then the conversion rate would be 5% (100/2000*100)
Bounce Rate
What is it: A bounce rate is the percentage of emails that did not reach the intended email address. An email bounce can be classified as a soft bounce or a hard bounce.
A soft bounce generally occurs when an email box is temporarily unavailable, there is a problem with the server, or when an email message is too large for the recipient’s mailbox.
On the other hand,
A hard bounce generally indicates an email address that no longer exists and cannot receive emails. This metric helps email marketers identify and remove these email addresses from their database, so they don’t waste time sending emails to them in future campaigns.
How to Calculate: Bounce Rate= (Number of Bounced Emails / Number of emails sent) * 100
Example: If you sent an email to 1000 email recipients and 25 emails bounced, your bounce rate would be 2.5% (25/1000*100).
Subscriber List Growth Rate
What is it: The list growth rate is the metric used to measure how quickly email subscribers are adding to your email list.
It helps determine their success in terms of how effective their lead generation efforts are and whether or not they’re targeting the right audience.
The result will help you understand if you need to change your email list-building strategy.
How to Calculate: Subscriber = (Number of New subscriber – Number of unsubscribed + email/ Total number of email on the list) * 100
Example: If you have 1000 email subscribers and 50 unsubscribed emails, and 20 email addresses added to the list, your subscriber list growth rate would be 2% (20-50+20/1000*100).
Unsubscribe Rate
What is it: The unsubscribe rate is the percentage of email recipients who no longer want to receive your emails.
Understanding the unsubscribe rate is essential for email marketers to gain data into which emails, topics, or messages their audience found least interesting.
This metric tracks how many subscribers choose to opt out of your communications and allows you to adjust future campaigns accordingly. So that they are more engaging and resonate better with your target demographic.
Forwarding/Sharing Rate
What is it: The email forwarding/sharing rate reflects how many email recipients share your email with their friends and family.
If many email subscribers share your messages, you’re likely creating content that resonates well with them.
This metric also helps email marketers understand the impact of their email campaigns, as it can increase brand awareness and lead to more sales.
How to Calculate: Forwarding/sharing rate = (Number of emails forwarded or clicks on share button/ total number of emails delivered) *100
Example: If you sent an email to 1000 email recipients and 50 email subscribers forwarded or clicked on the share button, your forwarding/sharing rate would be 5% (50/1000*100).
ROI Rate
What is it: It’s a metric that tells email marketers how profitable their email campaigns are in terms of the money they spend on email marketing campaigns.
The aim is to get more money back than what was spent, which should be the goal for every email campaign. Most email campaign costs are associated with email list building, design, and delivery.
So, email marketers should pay close attention to email performance metrics such as open, click-through, and conversion rates to optimize their email campaigns for better ROI.
How to Calculate: ROI rate = (Total email campaign revenue – email marketing cost/ email marketing cost) * 100
Example: If you spent $1000 on email marketing campaigns and received a total of $2000 in revenue from those email campaigns, your ROI rate would be 100% (2000-1000/1000*100).
How can you determine which email metrics to track depending on your goals?
To determine which email metrics to track based on your goals, follow these steps:
- Define your email marketing goals clearly.
- Align metrics with your goals.
- Consider industry benchmarks for email metrics.
- Focus on actionable metrics that can be influenced through specific strategies or tactics.
- Prioritize key metrics that directly impact your goals.
- Regularly analyze and adjust based on data and insights gained from metrics.
Final Thoughts
Now that you know what KPIs for email marketing are valuable and how to measure them, you can start tracking your marketing performance and making better decisions with your email campaigns.
Even though If you have any questions related to the KPIs for Email marketing, feel free to leave your questions in the comment section. We will be happy to answer you.
Thanks for reading 🙂
FAQs
Q1. How often should I review my email marketing KPIs?
A. Regular review and analysis of email marketing KPIs are essential to monitor performance and make necessary adjustments. Depending on the frequency of your email campaigns and the goals you have set, reviewing KPIs on a weekly or monthly basis is recommended. However, it’s also beneficial to track long-term trends and compare performance over time.
Q2. How can I improve my email marketing KPIs?
A. Improving email marketing KPIs requires continuous optimization and experimentation. Some strategies to improve KPIs include crafting compelling subject lines, personalizing email content, segmenting your audience, optimizing email design for mobile, testing different CTAs, and ensuring relevant and valuable content.
Q3. What is a good open rate or click-through rate?
A. The definition of a “good” open rate or click-through rate can vary depending on factors such as industry, audience, and the type of email being sent. However, average open rates often range from 15% to 25%, while average click-through rates can range from 2% to 5%. It’s important to compare your performance against industry benchmarks and track your own progress over time.
Also, Read – Dynamic Email Content: What It Is, Its Benefits And Its Steps
No Comments