Your next objective is to persuade your recipients to take the desired action after they have clicked on your email. Anyone who downloads an ebook by clicking the link in an email you send that invites readers to do so is considered to have converted.
Email Marketing KPI Benchmarks | Email Marketing Course (51/63)
Why are KPIs important?
KPIs are crucial because they provide data needed to develop email campaigns that successfully engage audiences, expand customer bases, generate sales, and boost overall business revenue. Here are ways KPIs help a business:
Improve strategy
A company can evaluate the successes and failures of its marketing campaign by monitoring metrics like KPIs for emails. This is necessary to make time and financial investments that will yield a high return. A marketing team can replicate their success with similar content if they find that a particular email’s subject line, call to action, images, videos, or text generates the desired response. Additionally, marketing teams can identify the root of a campaign strategy weakness revealed by KPIs, improve their content or technique.
Track consumer opinions
KPIs can help track the opinions of consumers. Marketing professionals can create content, modify their campaign strategies, and improve their products or services for their customers by understanding what consumers like and dislike. KPIs that might help track consumer opinions are:
Measures ROI
Because ROI demonstrates how much money a company makes from an investment, measuring ROI is an important component of KPIs that aids in evaluating the success of email campaigns. In deciding on and managing the marketing budget, ROI is important.
Recognize consumer trends
KPIs are also excellent tools for identifying consumer trends, such as those in buying patterns, which conversion rates may indicate. Monitoring KPIs during an email campaign can help determine what content consumers respond to, how to boost sales, and what goods or promotions may work best.
What are email marketing KPIs?
The effectiveness of an email marketing campaign is measured by email marketing KPIs, or key performance indicators. KPIs aid in goal tracking, reveal consumer behavior, and enhance marketing tactics. To achieve goals relating to revenue and customer base growth, businesses can use KPIs to develop and improve email marketing.
Email marketing campaign KPIs
You can use the following KPIs to gauge the success of an email campaign:
Click-through rate
The percentage of email recipients who click on or visit a link inside the email is known as the click-through rate. Links could point to the company’s website, online store, or other materials it wants to share with its clients. Because it reveals how frequently and how many customers interact with content, click-through rate is crucial. Businesses can use this information to determine which customers are most likely to make purchases, who is viewing their offers, and what content customers are most interested in.
By counting the number of links clicked in emails and the total number of emails sent, you can calculate the click-through rate. To calculate the click-through rate, divide these two figures by 100.
(Total clicks/total emails sent) x100
Conversion rate
The percentage of email recipients who take a particular action, like completing a form or making a purchase, after clicking on a link within the email constitutes the conversion rate for an email campaign. Often, a conversion is the purpose of an email. Conversion rates can be raised by including the conversion action in a call to action, such as “buy now” or “make a call.” Since clicks on links result in conversions, this metric is related to click-through rate.
By multiplying the result by 100 and dividing the number of conversions by the total number of emails sent, you can calculate conversion rate.
(Conversions/emails sent) x100
Bounce rate
The number of emails that fail to reach a customer is known as a bounce rate. A full inbox or an incorrect email address may be to blame for this. It’s helpful to keep track of emails that bounce and remove these addresses from your email list so that other metrics are unaffected. You can count the number of emails that report not being sent to determine the bounce rate.
List growth rate
The list growth rate determines how quickly new subscribers are being added to your email list. Because the number of customers who receive emails can impact how effective your email campaign is, it’s crucial to monitor your list growth rate. There is a higher chance of generating leads and closing sales with more subscribers.
List growth rate can be calculated by counting new subscribers, deducting clients who have unsubscribed and emails that bounce, dividing this result by the total number of email addresses on your list, and multiplying the result by 100.
(Total number of email addresses) x 100 * (Number of new subscribers) – (Number of unsubscribes bounce emails)
Email sharing and forwarding rate
The number of times a customer forwards your email to another person is known as email sharing and forwarding. These rates are crucial because email forwards from customers to people they know can act as referrals, boosting conversions and expanding your email list. Additionally, clients can share the email on social media to broaden your consumer base. Include a button in the email that provides a link to share on social media or use a call to action asking customers to forward the email to a friend to help increase the rate of sharing or forwarding emails.
You can count the number of recipients who clicked the share button, divide that number by the quantity of emails you sent, and multiply the result by 100 to determine the email forwarding or sharing rate.
(Number of clicks on a forward or share button/total emails delivered) multiplied by 100.
Open rate
The number of email recipients who click on and view your emails is known as the open rate. When testing content and determining customer interest in a particular subject or offer, like video content or product discounts, open rate can be a useful metric. Writing intriguing email subject lines increases open rates, and it’s crucial that customers view your emails so they can see special offers and take conversion-boosting actions.
To calculate the open rate, total the number of emails that customers view, divide that number by the total emails sent, and multiply the result by 100.
(Emails opened/emails sent) x100
Mobile open rate
The same as an open rate, a mobile open rate monitors when clients open emails on their mobile devices. This metric is crucial because it allows you to create content for mobile devices that could increase customer satisfaction.
Unsubscribe rate
The percentage of customers on your email list who take action to unsubscribe from your emails is known as the unsubscribe rate. Knowing when subscribers unsubscribe is useful for figuring out what may have caused this behavior and for satisfying other customers. Additionally, unsubscribe rates are useful for determining other key performance indicators, such as list growth.
By counting the number of recipients who unsubscribe, dividing that number by the total number of people on the email list, and multiplying the result by 100, you can calculate the unsubscribe rate.
(Recipients who unsubscribe/total recipients on the email list) x100
Return on investment
The profit you earn from spending money on a specific marketing action is known as return on investment (ROI). For instance, the money the marketing team spends to create an email campaign—which includes market research, content creation, email address acquisition, and offer creation—represents an investment, and any revenue the business receives as a result of the email campaign represents a return.
You can determine ROI by adding up your sales, deducting your email campaign expenses, dividing the result by the amount you invested in the campaign, and multiplying the result by 100.
[(Amount Made in Sales-Money Invested in the Campaign)/Total Amount] x 100
Spam reports
When customers mark your emails as unsolicited communications, this is known as spam reports. Occasionally, the recipient email provider might mistakenly consider your emails to contain spam. It’s crucial to keep track of this so you can delete this address from your mailing list and maintain a list of clients who regularly open your emails.
Revenue per subscriber
The number of sales and money made from each person on your email list is referred to as revenue per subscriber. Which demographics respond to email marketing the best can be determined using this metric. In order to better serve a particular demographic with email marketing, reallocate resources to do so, omit that demographic from marketing efforts, or create content for that demographic that is contributing to higher revenue, among other possibilities are to consider revenue per subscriber.
FAQ
What are KPIs in email marketing?
KPIs, or key performance indicators, are indicators of how well various components of an email campaign are performing. You can gather a variety of insights by monitoring your email KPIs. The majority of the time, you’ll be curious to know who views your marketing emails or forwards them to other contacts.
What are the 5 key performance indicators?
- Check the bounce rate on your email campaign landing pages.
- Measure website traffic, too. …
- Look at the email conversion rate. …
- Track your email list growth rate. …
- Check the forward/share rate for each email campaign.
What is most important metric in email marketing?
- Revenue growth.
- Revenue per client.
- Profit margin.
- Client retention rate.
- Customer satisfaction.
