Your first email marketing campaign has just begun. When advertising a new product or trying to get people to buy it, it takes work to come up with the right headlines, writing, and images. But this is just the beginning.
The next step is to learn how to figure out your email marketing or newsletter KPIs. Check out the top key performance indicators (KPIs) for email marketing that you should track and measure.
What are KPIs for email marketing?
Email marketing KPIs, or key performance indicators, are ways to find out how well different parts of an email campaign are doing. Email marketing is one of the most important parts of any marketing strategy.
So, it must also be carefully looked at using KPIs. When email marketing KPIs are measured, you may find out different things. Every campaign for email marketing is different. Some are sent to generate leads, others to grow your list of subscribers, and still others to get your subscribers interested again.
Why Keep Track of and Measure Email Marketing KPIs
KPIs are set up for each department or employee in almost all organizations and businesses, big and small. This is because email KPIs is a tool that helps in a number of ways:
- They make it possible to see how well goals are being met.
- They can help you figure out what needs to be fixed.
- They could try to get their employees to do a better job.
- They could help figure out how well different campaign strategies work.
- Email marketing is also a good way to grow a business. Because KPIs work, you will get the most accurate evaluation in terms of metrics, which will help you figure out what is working and what isn’t so you can make the necessary changes.
Top Email Marketing Key Performance Indicators to Track and Measure
There are a few key performance indicators (KPIs) for email marketing that every business or marketer should look at. The metrics you choose will depend on the goals of your business.
The open rate is the percentage of people who receive an email who actually open it. It helps you figure out how valuable your email is and how good your subject line is.
Formula: Open rate = (Emails opened Total emails sent) 100
Why it’s important: Open Rate is one of the most important key performance indicators for email marketing campaigns because it shows how interested your subscribers are in your business and what you have to offer.
On the other hand, the fact that the open rate is not a useful statistic shows how unreliable it is. This is because a user is only counted as having opened an email if it has images embedded in it. So, if the user has their device set to block images, they won’t be counted in your open rate.
Rate of Click-through
CTR stands for “click-through rate,” which is the number of people who click on the links in your email. It gives you an idea of how well your campaign is doing.
CTR = (Links clicked times emails sent) 100
If you send out 10,000 emails and 500 people click on them, your CTR is 5%.
Why it’s an important metric: The CTR shows how well an email gets the attention of the people you want to reach. The more clicks your email gets, the more interesting it is. When you ask an email marketer about the metrics they use, CTR is the most common answer. It’s called the “day-to-day” email marketing metric because it lets you measure how well each email you send does. Then you can track how your CTR changes over time.
List Rate of Growth
List growth rate is the rate at which the total number of people on your broadcast list goes up. It’s figured out after new subscribers are added and old ones are taken away.
List Growth Rate = [(New Subscribers – Unsubscribes) / Total Subscribers] 100
Why it’s an important metric: It’s one of the most important email engagement metrics because it shows how well your lead-generation efforts are working and how engaged your audience is in general. List growth will be negative if the number of people who sign up for the list is less than the number of people who drop off. If you add more people than you lose as subscribers, your list will grow in a good way.
Rate of sharing/forwarding
It is the number of people who click on links in your emails to share them or send them to someone else.
Share/Forward Rate = (unique clicks on share and forward links / number of emails sent) x 100
Why it’s an important metric: Content that is shared has a bigger impact than content that isn’t shared. When people share a brand’s content, they show that they like it. So, indirectly, for that brand. This is a strong example of social proof and word of mouth.
Also, a lot of people buy things based on what their friends tell them.
Rate of Change
Conversion rate is the number of people who take action because of your email. Not every conversion leads to a sale. A conversion could be anything you want to happen, like downloading something or signing up for an event.
Conversion rate = (Subscribers who did what you wanted them to do + Emails sent) / 100
Your email Conversion Rate is the number of people who clicked on a link in your email and then did what you wanted them to do (like made a purchase, filled out a form, etc.).
Why it’s an important metric: If people click on links in your emails but don’t buy anything, your email marketing funnel might not be working well. Maybe your call to action (CTA) isn’t clear enough, or maybe your product isn’t as useful as you thought it would be.
Return on investment (ROI) is an email metric that is often used to measure how well your marketing plan is doing as a whole.
Email overall ROI = [(Money gained – Money spent) x Money spent] x 100
For instance, if your profit is $40,000 and your costs are $12,500, your email ROI is ($40,000 – $12,500)/($12,500 x 100) = 220%.
Money spent: This usually includes the cost of marketing tools like your email service provider (ESP), marketing staff, consultants, agencies, and so on.
This is how much money you made from email marketing. You can track how much money you make from email using tools like Google Analytics or the reporting and analytics features of your ESP.
Why it’s an important metric: Any strategy must be good in terms of how much it costs to implement. To do this, an Email Marketing campaign must also track this parameter. If you spend more on email marketing than you make, you might have a problem.
Income from each subscriber
Revenue Per Subscriber is the total amount of money made from a campaign divided by the number of people who got it.
Formula: Revenue per subscriber = Total emails revenue Total subscribers
Why it’s an important metric: Your list’s worth may depend on how much you make per subscriber. If it’s too low, you have a big list, but most people on it just want free stuff and aren’t ready to buy. So, you need to find out what they want and set the price accordingly.
Money Made Per Email
It means that money is made from each email.
Formula: Revenue per email = Total emails revenue Emails sent
Why it’s an important metric: This KPI tells you important things about which marketing emails work best for your business. Look for patterns or things that all of your most successful email campaigns have in common.
Rate of Bounce
The bounce rate is the percentage of emails that the email client doesn’t accept.
Email bounce rate = (number of emails that didn’t get delivered, divided by number of emails sent) x 100
Why it’s an important metric: You need to keep track of “bounced” emails and why they did so you can avoid them in the future. For example, block bounces are a sign of bad marketing, while soft bounces are usually out of the marketer’s hands.
Rate of Spam Complaints
The spam complaint rate is the number of people who said the email they got was spam.
Spam complaint rate = (total number of complaints / number of emails sent) x 100
Why it’s an important metric: When figuring out email metrics, you should always take into account the spam folder. When something looks fishy, the people who get your messages may mark them as spam using the option on their email service provider (ISP).
Before you try to figure out what went wrong, you should check your spam complaint rate to see if your audience is reporting your emails as spam.
The Unsubscribe Rate is the number of people who drop out of your email list after getting one of your emails.
Formula: Unsubscribe rate = (Unsubscribers Emails sent) 100
Why it’s important: Like the open rate, the unsubscribe rate doesn’t tell you much about how healthy your email list is. Many people who are tired of getting emails from your business won’t bother to follow the official steps to unsubscribe. They won’t bother to open, read, or click on your emails anymore.
So, clickthrough and conversion rates are much better ways to measure how engaged subscribers are. From there, you can keep an eye out for subscribers who aren’t interested and, as we’ve talked about before, think about getting rid of them.
Once the key performance indicators (KPIs) for a marketing campaign have been set, you must make sure they can be met in the following ways:
Think about what you want to achieve by using emails to market your business: Once you know what your goals are, you can start making KPIs that will help you reach those goals. For example, if you want to get more people to visit your website, you could set a KPI of increasing your click-through rate by 10% every month.
Be realistic about what you expect. Remember that not all of your email marketing efforts will give you a direct return on investment (ROI). But your chances of long-term success will go up if you focus on interacting with your audience and making connections with them.
Follow your process and change your KPIs. As your email marketing strategy changes, so should your KPIs. You can make sure that your KPIs are always accurate and reasonable by keeping track of your progress and making changes as needed.
There are a number of key performance indicators (KPIs) for email marketing that you can use to make sure your campaign is successful. But not every campaign will need to use all of these KPIs.
The best key performance indicators (KPIs) for email marketing are those that have a direct effect on your company’s goals. To choose the best KPIs for your company, you should carefully look at your goals and expectations. On dropship-empire Blog, you can find more marketing guides.