8 Tips to Measure the Success of Your Email Marketing Campaigns
Friday April 1, 2016
Hit send and your work as an email marketer is done. Wrong! It’s afterwards that the real work begins…
As soon as something is done, it’s all about the future; that email may now be in the past, but the results should be informing your next campaign – the good, the bad and the ugly.
Now we have grabbed your attention… What are the best ways to determine the true performance of an email? What metrics should you be paying attention to? Let’s take a look:
1. Click Through Rates (CTR)
- Definition: The percentage of email recipients who clicked on one or more links
- Calculation: (Total clicks OR unique clicks ÷ Number of delivered emails) * 100
- Example: 1,000 total clicks ÷ 10,000 delivered emails *100 = 10%
Click Through Rate is likely the first answer you'll get when you ask an email marketer what metrics they track. Monitoring email CTR is a cornerstone of email marketing analytics, because the CTR indicates whether the message was relevant and the offer compelling enough to encourage recipients to action and consequently click-through from your email to the desired link.
However, be careful, CTR can vary widely depending on your email’s intent – such as booking confirmations, often have the highest CTR. Therefore, we would always recommend benchmarking your CTRs according to the different types of emails you send i.e. newsletter, fixture information, retail offering or sales focussed information.
2. Conversion Rate
- Definition: The percentage of email recipients who click on a link in an email and completed a desired action, such as purchasing a ticket or completing an enquiry form.
- Calculation: (Number of people who completed the desired action ÷ Number of total emails delivered) * 100
- Example: 800 people who completed the desired action ÷ 10,000 total email delivered * 100 = 8% conversion rate
Conversion rate is the ultimate measure of an email campaign’s success. The higher your conversion rate, the more relevant and targeted the email was for your audience. Therefore, ensure your offering is relevant, targeted and timely delivered.
3. Open Rates
- Definition: How many people open (or view) your campaign
- Calculation: Number of displayed (opened) emails ÷ Number of emails sent
- Example:1000 emails opened ÷ 2000 emails sent = 50% open rate
Once you’ve managed to land in an inbox, you want to get people to open the email. Bear in mind the average business receives/sends 121 emails a day, what tricks can you apply to stand out? The design of your email and your subject line/from name to entice the recipient.
It would be amazing to think that every single person will open your email, but we don’t live in a dream world and fact is, they don’t! Therefore, use open rates to determine both how successful your tactics were, but also to discover the times your audience is most receptible and likely to open.
4. Bounce Rate
- Definition:The percentage of total emails sent that could not be delivered to the recipient’s inbox.
- Calculation: (Total number of bounced emails ÷ Number of emails sent) * 100
- Example: 150 bounced emails ÷ 10,000 total emails sent * 100 = 1.5% bounce rate
Bounce rate is a metric analysed to uncover potential problems with your email list. There are two kinds of bounces to track: “hard” bounces and “soft” bounces.
Soft bounces are typically a temporary problem with a valid email address, such as a full inbox or an issue with the recipient’s server.
Hard bounces are the result of a permanent reason an email cannot be delivered. We would always recommend removing hard bounce addresses from your email list, because internet service providers (ISPs) use bounce rate as one of many factors to determine an email sender’s reputation (don’t be classed a spam sender).
5. Unsubscribe Rate
- Definition: The unsubscribe rate indicates how many subscribers choose to unsubscribe from your email marketing list.
This is any marketer’s worse nightmare, but unfortunately, there are people who are going to see no value in your email and hit the dreaded unsubscribe button. But on the flip side, you can analyse the unsubscribe rate to measure the quality of your campaign, design, target audience, email subject line, call to action buttons or information. Turn the negative of unsubscribes into a positive for your next campaign.
6. List Growth Rate
- Definition: The rate at which your email list is growing.
- Calculation: ([(Number of new subscribers) minus (Number of unsubscribes + email/spam complaints)] ÷ Total number of email addresses on your list]) * 100
- Example: (1000 new subscribers - 200 unsubscribes and email/spam complaints) ÷ 10,000 email addresses on the list * 100 = 8% list growth rate.
Of course, you should be aiming to grow your list in order to extend your reach, expand your audience, and position yourself as an industry thought leader. Sounds easy right? Think again…
Unfortunately, research suggest we lose 22.5% of our marketing list every year – which means you must think of new creative ways to grow your subscriber list to continue your marketing campaign effectiveness.
Think outside the box…
7. Revenue Per Email Sent
- Definition: The overall ROI for your email campaigns.
It’s all about making a return, surely? Well, not always – sometimes the goal of an email is just to raise awareness or maintain contact with your customer, fan or potential visitor. For sports or leisure organisations, though, the overall return on investment will be an important metric to measure. But what if the returns are not matching the revenue spent building the campaign? We will let you ponder your own thoughts on this one…
So, after you hit send on your next email campaign, enjoy the couple of minutes afterwards. Get yourself a coffee, grab a sandwich, and then get yourself comfortable; it’s time to measure your email success rate.
Find out more information about our Go eCommunication platform, built within Microsoft Dynamics CRM: Click here