How effective are your Email Marketing efforts in helping you achieve your strategic objectives? Email Marketing statistics demonstrate the value of investing in the channel, with studies showing that not only does Email receive higher conversion rates than Search & Social combined, but it is also expected to return an average of $38 dollars for every marketing dollar spent.
Therefore it’s no wonder that so many marketers pour their efforts into engaging with and converting their audience, one email at a time. However, to really understand how effective Email is as a channel and to make better decisions around campaigns, marketers should strategically measure their email results against some essential KPIs. Therefore, we’d like to suggest 6 KPIs to not only build a strong base for your efforts, but successfully measure your results in order to help you make wise decisions around your data.
Most serious Email Marketers will invest in a reputable and high-quality email tool, which will likely do a lot of the “dirty work” for them, including clearing hard bounces from their lists. However, if you’ve experienced any issues with your Sender Reputation, or your campaigns don’t seem to be very successful, it’s a good idea to go back to basics and review some essential performance metrics:
Sender Score: The score assigned to you as a sender (between 0 and 100). This score represents the reputation of your IP Addresses based on your historical activity, including: bounces, complaints and mailing to unknown users. It affects the deliverability of your emails and can harm your ability to reach audiences, by redirecting your emails straight to the spam basket, if you’re not careful. Make sure your list is consistently clean to ensure your score remains reputable. Good scores range from 70 to 100. While most email services will have your score available within their platform, marketers can also visit free solutions such as a Sender Score and type in their IP address or domain to check their score.
Delivery Rate: The number of emails sent compared to the number of emails delivered. If the difference is dramatic, it may be time to address how you are building your email lists and attracting followers.
List Growth: How many people your list is growing by over a set timeframe. For successful campaign results, you need a captivated and growing audience. Find out how effective your efforts to increase your email list are, and where you are getting the most engaged followers from; whether it be via content, events, social or simply through your newsletter sign up page.
To really gage the effectiveness of any email campaign, it’s important that we look beyond just the Open Rate. Open Rate, as you may have seen in our post, The 3 most pointless metrics ever reported on, is a rather deceptive metric due to the fact that emails opens can only be counted if the images contained within an email loads. Marketers should look towards performance driving metrics to show how their actions are contributing to overall objectives such as increasing awareness, generating new leads or driving sales. For this reason, the following metrics are most likely the focus of every Email Marketer’s dashboard:
Click Through Rate (CTR): The number of people who clicked a link or call-to-action (CTA) within your email / the number of emails delivered x 100. Was your content engaging enough to convince your audience to find out more?
Conversion Rate: The number of people who completed an action (sign up, purchase, request a demo, etc.)/the number of people the email was delivered to x 100. Don’t just test whether your call-to-action was persuasive enough, go one step further to see the rate of recipients who followed through and completed the desired action.
Cost Per Lead: Depending on your definition of “leads”, be it click-throughs or converted recipients, the total monetary value of your campaign divided by the number of leads over a given period is a crucial metric to include in your reports. Compare this metric to other channels to see how email is performing against social or organic efforts.
Interested in learning more about the metrics you should have in your marketing dashboards? Check out our post 8 Must-have Marketing Metrics.
Not Another Dashboard.