In our opinion, email marketing is alive and well! 🙂
We recommend email marketing as a tool in a digital marketing strategy (depending on your objectives, of course!) we remind you that email marketing is used for customer loyalty. At least it should be!
And not only.
When implemented properly, email marketing allows us to generate qualified leads that advance the sales funnel, increasing the conversion rate and ROI.
But now let’s see…
One of the main problems of email marketing campaigns is in the analysis of the metrics obtained. Many marketers have yet to realize that are many more email marketing metrics than open rates, click-through rates (CTRs) and unsubscribe rates.
In fact, these metrics will not help you to understand the impact of your email marketing campaigns on the performance of your business or company.
With this article, we are going to take a look at everything you need to know about email analytics. You will find out about KPI’s of email marketing (those that appear in your email marketing platform and in your email analysis tool) and how you can measure each one of them in a realistic way.
Below is a list of the most important email marketing metrics that you should follow during the course of your campaign. But pay attention! Some of the formulas that we will show you follow a “standard” mode. To make sure that you’re comparing apples to apples, we suggest that you’ll use a single tool or analysis dashboard.
Main email marketing metrics and their name pompous names.
1 – Open rate
In a very simple way, the open rate is nothing less than the number of times your subscribers have opened your emails. Usually, the number is displayed in percentage and it’s calculated by the total number of emails opened by the number of emails successfully sent (excluding the bounced emails but will talk about it later). 🙂
Open rate = (number of emails opened number of emails sent) * 100%
⦁ Why is this important?
Some say that this metric is more important than any other email marketing metric. We respect that, we sigh a little, and we end up disagreeing. This metric tells you the number of people who saw the subject of the email and if you have aroused interest, have opened the email. It is good to see but it doesn’t show the real impact of the campaign.
⦁ What is a good opening rate?
Good question. There are many variables that can affect the opening rate. A “good” rate varies from country to country, from industry to industry, to companies even between campaigns of the same company (for example, more appealing and suggestive subjects than others).
⦁ Click-through rate
The click-through rate shows you how many times the links in your emails have been clicked. This metric also usually appears in percentages.
Email click-through rate = (number of clicks in the email/number of emails sent) * 100%
2.1 – What is its importance?
Probably this is the most important metric to keep an eye on. Of course, this does not reflect the refund that you can get from your campaigns, but it is a good indication of the person’s involvement with your email and can tell you a lot about the quality of the campaign.
⦁ What is a good click-through rate?
Like the opening rate, there are also many factors that influence the clicks your campaign can generate. Typically, click-through rate is around 2-6% in generic campaigns. Of course, they differ from company to company and from business to business.
⦁ Bounce rate
Yeah, the promised is due! Bounce exists when your emails do not reach their destination or return after sending. There are two types of bounces:
Hard bounce: hard bounce exists when the email is permanently rejected (because the destination email is invalid or does not exist).
Soft bounce: there is soft bounce when the email arrives at the destination but returns back. This is often because the mailbox is full.
It is not necessary to say that that the lower your campaign bounce the better, right? 🙂
4 – Unsubscribe rate
The unsubscribe rate tells you how many people have clicked on the unsubscribe link, usually at the end of the email, opting not to receive more emails from you in the future.
Usually, this link is automatically placed by your email marketing platform but you can also manually put it.
Email unsubscribe rate = (number of unsubscribes / number of emails sent) * 100%
All campaigns that have an unsubscribe rate of more than 0.5% are grounds for alarm! You will not want your clients to stop getting your information. 🙂
5 – Complaint rate
Once again you will want to have this rate as low as possible throughout your campaigns. It reveals the number of people who report your email as spam.
Typically, email marketing platforms track spam reports to help maintain the good reputation of your campaigns and optimize email delivery.
Complaint rate = (number of spam reports / number of sending attempts) * 100%
This rate helps you understand the quality of your contact list and subscribers and whether they really like the content that you’re sending to them. As far as subscribers are concerned, it’s worth a few, but good ones! 🙂
6 – Click-to-open rate (CTOR)
This rate it’s nothing less than the key to evaluating the quality and relevance of your emails!
Click-to-open rate = (number of email clicks / number of emails opened) * 100%
We encourage you to use CTOR to evaluate and improve the performance of your email marketing campaigns. How? If your campaigns have good open rates but low click rates, then CTOR will also be low. This may mean that your email subject was more interesting than the content itself.
7 – Conversion rate
The conversion rate shows you how people really interact with the content that is sent to them.
Conversion rate = (number of actions / number of emails sent) * 100%
The challenge here is to define what conversion is. In fact, it can be what you want (how many times they place an order on your website, how many times they sign up for a workshop, fill out a form, etc.). The conversion is different from company to company and yet it is important for everyone!
8 – Email Marketing Campaign Profitability
This metric will provide you with information about the value of your campaign. As with any marketing campaign you’ve got the revenues and the costs. You have to make an account to see if it was profit! 🙂
This metric is useful but also very difficult to evaluate. After all, how much does it cost to launch an email marketing campaign? Do you just include the costs of creating, testing and sending an email marketing campaign or do you also include the price of subscribers, the income of the people who run the email marketing campaigns?
As you can see, there are a lot of factors to consider…
Which are the email marketing KPIs that you usually keep an eye on?
These are the metrics that we use the most to analyze and evaluate the performance of our email marketing campaigns and those of our clients.
Certainly, you’ll find other interesting metrics that can give the essential boost to your company. It’s up to you to decide which are the most relevant.?