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10 Essential Email Marketing KPIs & Metrics for Winning Email Campaigns
So you’ve launched your first email marketing campaign. (We bet you that
little task took longer than you thought!) Whether promoting a new product
or attracting leads, it takes some time to pull the right headlines, copy and
images together. But that’s just the first step. The next is knowing how to
measure your newsletter or email marketing KPIs.
But before you can start tracking, you must know what you’re measuring.
Not all email marketing campaigns are about generating sales (although
that’s likely your ultimate goal). For example, you may have other goals, such
as:
re-engagement
generating brand awareness
education (e.g. a blog or eBook)
growing another email list
collecting additional data on subscribers
Too many marketers are tracking just 3-5 KPIs for their email campaign
metrics. But when it comes to KPIs for email marketing there are around 10
KPIs you need to watch to get the complete picture. To help you truly
optimize your campaigns, here are Maropost’s 10 essential metrics and KPIs
for email marketing.
#1: Number of marketing emails delivered
You may have 10, 100 or 1,000 names on your email list, but sadly, that
doesn’t mean all these emails are being delivered. Unfortunately, a 100%
deliverability rate is impossible. And there are various reasons why.
For example, if 85% of your emails make it into your subscribers’ inboxes,
that means 15% might as well not exist. So, in simple terms, if you have 1,000
names on your list, 150 people never got your email.
Secondly, you need to know if there’s a sudden dip in deliverability.
Sometimes, through no fault of your own, a marketer can suddenly be
blacklisted by an ISP, especially if you have a shared—rather than
dedicated—IP.
Suppose you realize you suddenly can’t email anyone with a Gmail address,
for example. In that case, you need to act immediately to find out why — and
fix the problem.
IMPORTANT CAVEAT: There’s a difference between an email being ‘delivered’
and actually making it into the inbox. How so?
Your email could very well be delivered yet go straight to a recipient’s junk
folder. (Not so ideal.) That’s why more marketers are using the Inbox
Placement Rate (IPR) as a KPI to measure how many emails actually make it
to the inbox.
#2: Number of emails opened
Before you pop the champagne cork, making your email newsletter (or EDM)
into the inbox isn’t enough. We all know how many messages we get in our
inboxes. But how many do we actually open?
That’s why it is vital to note how many emails from your carefully crafted
campaigns are opened. Because, after all that hard work, we want people to
read these emails. And remember, if you get 85% of your emails delivered
and an IPR of 79%, that still doesn’t mean subscribers are paying attention to
your message. That just means they have simply landed in the recipients’
inboxes.
Not good enough. (Sigh.)
Much like email deliverability, you want to track trends in the open rate and
adjust accordingly.
A good tip is to compare your open rates to what’s typical for your industry
so you can have a benchmark. An industry-specific comparison is vital. For
example, some industries, like finance and hospitality, typically see higher
open rates (which makes sense given that people open emails from the
banks and hotels they frequent).
ROOKIE TIP: Some people use preview panes for their email. These panes
can register email opens that aren’t actually opened. Also, text-only emails
won’t register as opens, even if they are.
#3: Click-through rate
The click-through rate (CTR) indicates how many people clicked on a link in
your email to a particular destination.
However, unlike ‘opens’ and ‘deliverability’, you’ll need to dig deeper with
your CTR. For each campaign, you need to know which links interested your
readers the most and where those links were located.
For example, if most clicks are above the fold, you’re passing the blink test.
And here’s another consideration. Let’s say you offered the same link but
worded it two different ways, and one performed better than the other. In
that case, in the future, you can optimize your CTA text, accordingly, using the
more successful text. Also, compare buttons to text links. And don’t forget to
track the images. Track as much as you can — even the bad stuff.
What bad stuff? Unfortunately, the unsubscribe link will probably count as a
click — so let’s not kid ourselves that all clicks are good.
#4: Click-to-open rate
Your click-to-open rate (aka CTO or CTOR ) is the number of email opens
compared to the number of email click-throughs.
Of all the people who opened your email, how many actually clicked on a
link? This metric can often, but not always, tell you how well your subject line
and content work together. It’s likely that if your subject line generated a lot
of opens but few clicks, there was a disconnect. Similarly, if you had few
opens but many clicks, you may have missed out on an excellent opportunity.
You likely had a fantastic offer but didn’t nail the subject line.
ROOKIE TIP: As attractive as they may be, stay away from clickbait headlines
in your emails. Although they’re not as harmful as clickbait blog headlines,
never frustrate your readers by leading them on and failing to deliver.
Other factors that influence your open rate include:
The quality of your list
Email address of the sender
Date or time of your delivery
External events such as natural disasters, political upheaval or
distressing international news (so always ‘read the room’,
figuratively speaking, before you hit SEND)
#5: Unsubscribe rate
Seriously, your email unsubscribe rate KPI cannot be underestimated!
An unsubscribe rate is the number of unsubscribes divided by the number of
emails delivered to your recipients.
There’s so much you can learn from your email unsubscribe rate — both
good and bad. For example, if your unsubscribe rate is low, it can mean
people didn’t report your email as spam (hurrah!)
Alternatively, if the unsubscribe rate is high, perhaps your readers just
weren’t interested in your emails any more. In that case, having them
removed from your list could help with the health of your deliverability and
save you money.
Also, the more you segregate your list, the more chance you have of lowering
your unsubscribe list. Why so? Because you are marketing to people that
genuinely want your messages. And that is a good thing. This is why many
companies use emailing CRM tools to help personalize their email marketing
campaigns.
If you’ve recently made a change, watch for trends in your unsubscribe rate.
Changes can include:
Segmenting demographics
Segmenting buyer groups
Creating a template redesign
Organizing a new sending schedule
Changing the frequency of EDMs
Try to be as scientific as possible with your email marketing analytics.
Scientists usually only change one variable at a time for a reason — it makes
it easier to determine outcomes.
#6: Bounce rate (hard & soft)
A hard bounce is a permanent bounce, while a soft one is temporary.
Hard bounces are usually caused by invalid email addresses. Hard bounces
happen, for example, when someone leaves a job (and their email address is
deleted) or when an email address is entered incorrectly (e.g. the dreaded
typo.)
Pay attention to hard bounces because it indicates that you’re falling behind
on your list cleansing. It may also suggest that you use a double opt-in or
another method to check that email addresses are entered correctly. Setting
up such verification methods is time well spent.
IMPORTANT: When you get hard bounces, remove those addresses from
your list ASAP because those email addresses will never work. They’re dead.
Gone. Useless.
On the other hand, soft bounces are temporary and caused by an issue on
the receiving end. For example, it could be that the recipient’s inbox is full or
their server is down. Depending on your email service provider or email
marketing platform, the system will automatically try to resend the message
only so many times.
#7: Spam complaints
Monitor spam complaints in conjunction with your unsubscribes. Sadly, some
people simply report emails as spam rather than go to the trouble of
unsubscribing. We wish they wouldn’t, but it’s a fact of life.
If both KPIs are trending in the same direction, it’s time to take note
(meaning: you’re getting a mountain of spam reports and unsubscribes).
Chances are high that you’re doing something wrong. But again, watch this
number if you made a change. That may be the only problem — and
something easily fixable.
#8: Social shares
The social shares KPI indicates engagement on social media and is a good
indicator of the quality of your content. So, make it easy for your readers to
share your content by adding social buttons to your emails.
It’s devastating to see a blog that produces amazing content but makes it
nearly impossible to share. Sometimes, the only link in the email links back to
their home page, so the reader has to click and weave through various sub
menus to get to their blog. Not a great user experience!
#9: Email forwards (forwarding rate)
This newsletter KPI is a bit like social shares but with one key difference.
People on the receiving end of email forwards are more receptive to the
content than those who receive content shared via social channels.
The reason?
A forward is like answering a phone call or receiving a physical letter in the
mail — it stands out as it’s rare. Again, this measures the level of engagement
and the share-worthy quality of your content, both of which you want to
increase.
#10: Conversions
Finally, the KPI that matters the most: conversions.
Now, don’t assume that conversions always mean dollars. Depending on
the goal of your email campaign, a conversion might be a:
sale
registration for an event
subscription
registration for a demo
completed download of a piece of content
something else
Ultimately, you can have different goals for your email marketing campaigns.
Knowing why you’re measuring is as vital as knowing what you’re measuring.
This is particularly true when tracking conversions.
Time to start tracking these email marketing
metrics
Now that you know the 10 essential email marketing metrics and KPIs, start
testing to optimize your campaigns. Yes, conversions are super necessary,
but we must dig deeper. By paying attention to your metrics, you can be far
more successful with your marketing campaigns. You know how to increase
your subscriber rate, use the most conversion-friendly words, learn the best
headlines, lower the number of spam complaints and much more.
Most importantly, by learning more about your KPIs for email marketing,
you’ll learn how to improve your email marketing for more successful
campaigns, more leads, better customer experiences and more trust in your
brand.
Contents
1. Why measure the success of a newsletter?
2. Which KPIs should e-mail tracking determine?
3. How does newsletter tracking work?
4. E-mail marketing applications for newsletter analysis
5. The significance of e-mail analytics
6. Successfully optimize the newsletter
7. Take the right conclusions from the newsletter analysis
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Even if the number of products bought increases after the advertising campaign, you
can’t say for certain whether this is due to the newsletter. Other factors could be
responsible for the increase in sales figures, such as other marketing campaigns for the
same product, or a change in the state of the market. Without a basic check on how the
newsletter is performing, you won’t obtain any insight into how future e-mail marketing
measures could be improved. Newsletter tracking, as well as being used to understand
the actions of different e-mail recipients, can also be used for optimizing future
newsletters.
In e-mail marketing, tracking is practically one of the basic requirements for deeper
newsletter analysis, and has proven to be very successful. E-mail analytics programs
collect specific key performance indicators (KPIs) through e-mail tracking. These key
figures or KPIs can be used to determine the success of marketing campaigns. In the
case of newsletter tracking, this is primarily achieved by measuring certain e-mail
actions (such as opening them or clicking on embedded links). By using tracking
technologies and other tools, KPIs can be collected.
Delivery rate: e-mails don’t always reach every address on the mailing list,
especially when it comes to newsletters with lots of subscribers. If an e-mail can’t
be delivered, the sender ideally receives a bounce message, which can be used
to work out the 'bounce rate' (the portion of mails that can’t be delivered). This
measurement helps the sender to calculate the newsletter’s delivery rate.
Unsubscribe rate: a newsletter must offer the recipient the option to opt out of
the distribution list. The unsubscribe rate provides information on how many
subscribers opt out of receiving the newsletter. If you compare this figure with the
amount of new subscribers and the delivery rate, you can work out how many
potential customers are happy to receive the newsletter.
In general, it can be said that a KPI is always dependent on the marketer’s goals and
the circumstances of the newsletter. Those carrying out a newsletter campaign can
create strict economic expectations and hope for higher sales numbers when it comes to
the product. You can find out whether the newsletter campaign has paid off by looking at
sales and Return on Investment (ROI), which are used to determine the balance
between expenditure and revenue. In addition to monetary reactions from subscribers,
newsletters can also target key figures, such as subscriptions on an online platform or
downloads.
Tracking link: the click rate is registered by tracking links. Similar to the tracking
pixel, this link sends information to the exit server through which the newsletter
was sent. Each newsletter link can be recorded individually.
In addition, the abovementioned programs have an A/B testing function. With this, two
different test versions of a newsletter (at least) can be sent to a pre-determined
percentage of subscribers. Different criteria (KPIs such as the highest possible opening
rate or the click-through rate of an embedded link) are set as targets, after which different
versions are sent out. After analyzing the tracking results, the version that faired the best
(regarding the pre-defined performance indicators) is chosen and then sent to the rest of
the newsletter subscribers. A/B testing is a useful feature if the number of subscribers is
significant enough to produce a good result. This method allows the newsletter to be
quickly adapted to the preferences of a target group.
Every professional e-mail tracking program measures the click rate, delivery
rate, unsubscribe rate, and opening rate of a newsletter (taking the bounce rate into
account). In addition to these elementary tracking features, Newsletter2Go, CleverReach,
and MailChimp also offer the following features:
In addition, most e-mail marketing tracking programs have various other features that
help with the analysis. Starting with simple functions, such as being able to automatically
create print versions of an analysis, through to previewing newsletters on different sized
(mobile) displays: depending on the application you are using, there are many options
available for your newsletter analysis. A comparison of the best e-mail marketing
software with more detailed information of the different functions can be found in our
article.
Apart from specific e-mail marketing software, there are also tools and plugins for
newsletter tracking. With Google Analytics you can easily see whether recipients have
opened a newsletter. Some WordPress plugins, such as Tribulant Newsletters and
SendPress Newsletters, are more extensive. MailChimp, Newsletter2Go, and other
providers also offer specific extensions for WordPress.
Low opening rate: the e-mail’s subject is often the reason behind a low opening
rate. If it isn’t informative enough or too long, it won’t peak the recipient’s interest
enough to be opened. Further reasons for a low opening rate could be the lack of
sender information – it should be obvious to the subscriber who the e-mails are
from. It could also be that you’re sending the newsletter out at the wrong time.
High unsubscribe rate: if you send out too many newsletters, it could come
across as annoying. Subscribers also won’t appreciate it if the content isn’t
optimally prepared or the wrong topic is focused on. Many newsletter applications
offer users the option of giving a reason for unsubscribing. This can give provide
insight into a high unsubscribe rate.
Low click rate: first you should check whether all links can be recognized as
such: if a user doesn’t see it’s a link, they obviously won’t click on it. If the links
are indeed visible, it could be that there are too many of them. Instead of linking
everything in your newsletter, it makes more sense to add links that are best
suited to your campaign goals.
Make sure you don’t rush into making conclusions from the given statistics and also don’t
over-interpret the findings. Some indicators point to non-representative results – a low
delivery rate versus a large bounce rate, or a very low sample in an A/B test. Knowing
the limits of newsletter tracking is also important, for example, that not every e-mail
program allows tracking pixels to be loaded and that this can falsify results.
If you are cautious and are able to generate meaningful statistics with the analysis, e-mail
marketing programs and associated analytical methods prove helpful. The resulting
improvements should have a noticeably positive effect on the success of your future e-
mail marketing campaigns.