Email promotion can remain a little elusive. You take your time to write the ideal email, deliver it, and still receive little feedback, not knowing how the email played out.
The best part is you can monitor a few important email marketing KPIs (key performance indicators) to ensure your initiatives are yielding results. But first, let’s comprehend the top 10 email marketing KPIs.
What Is KPI in Email Marketing
Simply put, a KPI is an acronym for a crucial performance metric. It’s a metric used to assess how well a company or person is doing in comparison to defined objectives.
KPIs are frequently combined with additional data sources to provide a comprehensive picture of performance. A KPI might, for instance, track how many sales a salesman earned within a particular month.
Additional data factors, such as the volume of customer dissatisfaction, could also be considered to provide a complete picture of the seller’s performance.
Key performance indicators (KPIs) can be helpful for goal-setting and performance reporting, but choosing KPIs pertinent to your company’s objectives is crucial. If not, the KPI might not offer valuable data.
Let’s identify what they are:
1. Click To Open Rates of emails (CTOR)
The open-and-click rate measure shows the number of times people who open your emails and whether they interact with the content. Poor mail open rates can show that readers do not find your material engaging or pertinent. It can be a sign that your email subject lines are inefficient.
Experiment with various subject lines and openers to increase open email rates. Keep in mind the following things –
- The email’s opening sentence
- The time of the day you send it
- How frequently you send mails
- The kind of device used by your audience, and so forth.
In an email campaign, tracking open rates is essential.
Now, how to calculate?
Divide the total number of recipients who opened your email by the overall number of recipients, then multiply the figure by 100 to determine the open rate.
Your CTOR would be 30%, for instance, if 100 people received your email and 30 opened it.
2. Conversion Rate of Email
At Nautilus, Email marketing is our area of expertise for online vendors, one of our most crucial KPIs being conversion rate.
The ratio of conversions for specific marketing is known as the conversion rate. Therefore, you have a 10% conversion rate if you send out 100 emails and 10 of them are opened.
Remember that a conversion can have different meanings for various companies. Most online shops define a conversion as a sale. However, a conversion can also be something like registering for a trial, a conference, a chat, an audiobook, etc.
Pay close attention to your call-to-actions (CTAs) if you want to increase conversion rates.
Make sure that your CTAs are simple to identify and understand (explain what they will receive if they click!). Bold wording or a button in a vibrant color are two excellent ways to make your CTAs stand out.
Ensure that the location is also conversion-optimized. When a user clicks on a CTA, they arrive at the destination.
When a buyer clicks your link and is ready to make a purchase, for example, make sure their name and address are already filled out on your website.
3. Rate of Unsubscribing
You will gather a significant amount of information from your unsubscribe ratio. It may imply, for instance, that people just stopped caring about your emails and presumably placed them on the wrong channel rather than reporting your emails as spam.
In particular, when you change something like the segmentation process, a theme update, or a different delivering strategy, keep an eye out for trends in your unsubscribe rates. You should rethink the adjustment if an unexpected rise in unsubscribes occurs because of it.
As long as you keep in mind that people who unsubscribe do not really want to be on your list and are doing so willingly, your reliability will be much healthier.
4. Bounce Rate
The bounce rate is one email marketing KPI that is frequently disregarded. The percentage of email receivers who didn’t receive your message make up the the bounce rate.
An elevated email bounce rate means that many accounts did not get your emails, which could be brought on by a lot of things, including:
- Poor sender ratings
- Wrong email address
- Spamming reports
- Poor latency.
ISPs may potentially restrict your emails due to a high bounce rate. It can harm your brand and email delivery, mainly if you use Gmail as your mail client.
You can spot possible issues with your email marketing and take action to increase email deliverability by keeping an eye on your email bounce rate.
5. Online References
Online reference KPI measures social media engagement and is a reliable measure of the value of your contents. Thus, by including social sharing links in your email, you may make it simple for recipients to share your material.
Always try to provide the actual link of the content you want to share rather than trying to make your readers visit the website. This way readers lose their interest and skip sharing the content they were willing to share in the first place.
If your email reference rate increases, the chances of your conversion in sales also grows.
6. Forward Rate
The forward rate is similar to social sharing, but with one notable difference and that is, email forward recipients have a tendency to be more responsive to the contents than recipients of content provided to them through social media.
This is due to the fact that forwarding is similar to responding to a call or having a real letter by mail.
Due to its rarity, it remains noticeable.
7. Reports of spam
Since some individuals choose to report emails as spam instead of taking the bother to unsubscribe, keep an eye on spam reports along with your unsubscribe rate.
If two KPIs are moving together on the same path, it’s a red flag for your email marketing. Moreover, if you change the format, keep an eye on this statistic.
8. Click-Through Rates
The click-through rate (CTR) shows how many recipients of your email actually clicked on the links.
But, you’ll need to notice a little more than just openings and delivery performance. You have to identify not just to which links piqued their curiosity during each promotion, but also how the links were placed.
For instance, you would pass the blink test if the majority of the clicks were located above the break.
If, for example, you provided the identical link with two distinct wordings and one showed better performance compared to the other, you can adjust your writing CTA accordingly. Do the same for contrast buttons and links.
Maintain a record of the links that receivers really clicked. The possibility that clicking the unsubscribe link may count as a click is a NOT-SO-GOOD indicator!
9. ROI (Return On Investment)
Your return on investment for email marketing (ROI) contrasts revenue with costs. ROI is one of the most crucial metrics for all businesses. You make that amount after subtracting the cost of acquiring clients.
Email Marketing ROI reveals similar data. It’s your income relative to the amount you spend on email marketing initiatives. It’s an important number.
Whether the email is an area in which you’re ready to experience a loss because of additional benefits received, you might face a dilemma when you’re investing more in your email campaigns than you’re earning in return.
If your income is significantly more than your expenses, you might consider devoting extra funds to your email marketing campaigns.
10. Response Rate
How precise your email campaigns are, will determine the email response rate.
This KPI is calculated by dividing the entire number of emails sent by the amount of individual email responses received during a single campaign.
In order to acquire a proportion of the total statistics, multiply the value by 100 and to estimate the success rates of your next campaigns, you can use this metric.
Response rates are crucial because they affect how you generate leads, engage your audience, and increase sales in general.
The aforementioned indicators or KPIs provide you with practical actions regarding how your email marketing tactics are going and whether there are certain points to consider depending on those data, despite the fact that there are many more KPIs you may be following.