There are a few specific metrics which need to be measured
in order to determine the success (or failure) rate of your email marketing
campaign.
If you’re using a tool for your email marketing efforts,
such as Aweber or an alternative, are using the services of an Email Service
Provider, or are using Google Analytics to gauge the metrics of your email
marketing campaign, you’ll have access to certain stats and data about your
campaign. All of which will make up a stats pack which will help you ascertain
how well your email marketing is doing.
So what exactly are these metrics? Here are six that should
help you determine the success of your email marketing campaign:
1. Bounce Rate
Another word for delivery-success rate, bounce rate can be
defined as the percentage of emails that went undelivered, as compared to the
total emails sent. The resultant number is the bounce rate.
Use these to determine issues with your mailing lists, for
instance if you have a high-bounce rate, why is it high? Why are your emails
not being delivered. In order to determine these, make sure you know the
difference between hard and soft bounce rates. Soft bounce is a result of a
temporary problem with the recipient’s email ID, such as problem with the
server or a full inbox. Hard bounce are those emails which repeatedly bounce
back, and hence points towards an issue such as an invalid email ID, to which
an email will never be delivered.
Remove hard bounce email IDs immediately, in order to have
an acceptable bounce rate, otherwise you might be flagged a spammer by your ISP
or email service provider.
2. CTR (click-through rate)
The number of email recipients who ended up clicking on one
or more of the links within your email. This can be measured as a percentage of
unique clicks per emails sent/delivered, or total clicks per emails
sent/delivered. However only one of the aforementioned should be used, and not interchangeably.
CTR is easily one of the most important and useful statistic
when it comes to online marketing, and especially email marketing campaign. Why?
Because CTR tells you straightaway how relevant, interesting, related,
compelling, appropriate and above all, valuable your message was to your
recipients. An email with a high CTR would indicate an interesting and relevant
email, and would mean that your subscribers and recipients found it to be compelling
enough to open and click on the links within it.
3. Conversions
Conversion rate is simply measured by looking at the number
of people who clicked on a link within an email and performed a desired action,
which is ideally an action you wanted them to take with the help of the email.
This could be anything – form reading your newsletter, to filling out a form,
to reading your post, to liking your Facebook page, to purchasing a product off
your website.
Conversion rate is another important tool in assessing the
effectiveness of your email marketing campaign. Some would even argue that it
is the most important tool when it
comes to email marketing, as conversions are directly proportional to your
success. A higher conversion rate would mean your offers are compelling, and
all your marketing efforts are effective.
It is important to note that a successful conversion is one
which completes the process.
Also, a lot of different factors contribute towards a
successful or unsuccessful conversion rate – factors such as the quality of
your landing page, problems with your conversion process and so on. Most
importantly however, having a strong, effective and clear CTA (call to action)
would ensure that you have a strong conversion rate as well.
For instance a bug in your form, or a dead URL would
adversely affect your conversion rate.
4. List Growth
Simple, and pretty self-explanatory: This is a measure of
how quickly your list is growing. This can be measured by adding opt-outs and
hard bounces and subtracting the result from the number of new subscribers and
dividing the resultant number by the total list size.
A good list needs to have a good growth rate, add new members
and email IDs constantly and at regular intervals. This is especially important
because many email IDs on your list will probably end up being unused to be closed
down, as people switch to other providers, change service providers, switch
jobs, forget their passwords, etc.
5. Forwards
In simple terms, the number of people who forwarded an email
to friends, coworkers, etc, or clicked on the share button to share it on their
social media profiles.
This also demonstrates the relevance and interest-level of
your email among its recipients. For instance if your emails are interesting
enough, and recipients find your newsletter, offer, etc interesting and
compelling enough to share with others, they will most likely do so. Emails
with interesting content, such as videos and images are likely to be forwarded
and shared a lot, giving you the potential to go viral. Likewise emails that
are forwarded a lot can end up being chain-emails.
6. Revenue
Return on Investment, or ROI, of your emails and your email
campaign in general. Revenue and ROI gives you a clear picture of the success
of your email marketing campaign in general, and in monetary terms as well.
While measuring ROI is important for all marketers, as well
as all email marketers, ROI is particularly useful for ecommerce email
marketers, who would want to determine the sales generated from email
campaigns. However measuring ROI usually goes hand-in-hand with measuring
bounce-rates, CTR and conversion rates.