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How to Measure Email Marketing KPIs – PLUS Tips to Drive Business Growth

There is no such thing as “going with the flow” in the business world. When our money and our business are involved, we would rather rely on data, analytics & colorful graphs. If you were looking for some help on how to measure email marketing KPI’s to govern your email automation with efficacy, you’ve come to the right place!

Keep reading to pick up some pro advice on measuring your email marketing analytics and grab some free .tips tot drive business growth while your at it!

First, Let’s Discuss Your Open Rate (OR)

Email marketing is one of the easiest types of marketing to measure because you own the content, the list, and every bit of your data. Smart marketers use this as an opportunity to use their data to draw insights that help them take action.

So the first thing that we are going to talk about is Open Rate. What is Open Rate?

Well, open rate is the percentage of people who actually open your emails, out of all of the people that you sent an email to.

How is Open Rate Calculated?

Simple… Take the total emails opened and divide it by the total emails delivered… And then multiply it by 100.

Example of How Email Open Rate is Calculated:

Okay, let’s say you sent an email to 1,000 people.
Out of that 1,000, let’s say that 100 people actually opened the email
Open Rate = 100 divided by 1000 times 100 would = 10%

Your open rate would be 10%.

What Influences Email Open Rates?

The open rate is mainly influenced by the subject line.

If you want to know an easy way to improve your open rate, just go through your mailbox and see if you see any other examples of interesting headlines. Do they have something in common?

Here are some good examples that I found in my inbox:

1. Many of them use my first or last name.
2. They use numbers to indicate listicles or to convey discounts.
3. They convey their excitement if there is something is new, updated or super interesting.
4. They use emojis
5. They use thoughtful questions
6. Use words that invoke excitement, urgency or exclusivity

The key to good open rates is not using the same trick every time. If you put your recipient’s name in the subject in every email, they will start blocking them out. Keep your subject lines new and interesting, switching up your tactics to get the best results.

Now, Let’s Talk About Click-through-rate (CTR)

So what is Click-Through Rate?

Easy… Click-Through Rate is the percentage of recipients who clicked on one of the links included in your email.

How is Click-Through Rate Calculated?

Click-through rate is calculated by taking the total number of unique clicks and dividing it by the number of emails delivered, then multiplying times 100.

Example of How Click-Through Rate is Calculated?

Let’s say that your total emails delivered was 1,000 again.
Let’s say that out of that 1,000, you got 150 clicks on link #1, and 50 clicks on link #2.
So, your total clicks is 200 in this case.

Your Click-Through Rate (CTR) would be calculated like this:

150+50 = 200 divided by 1000 times 100 = 20%

So your CTR is 20%

What Influences Click-Through Rate?

Click-Through Rate (CTR) is mainly influenced by your email’s content, but in some cases, the niche that you are emailing has a generally lower CTR. For example, B2C click-through rates tend to be around 2% lower than B2B click-through rates.

Click-through rate is the metric that tells you how ‘engaged’ your audience is with your brand and your content. CTR is what helps you determine the performance of A/B testing or multivariate testing emails.

The content in your email should be encouraging, informational, and/or educational. Tell them something new or tell them something that they already know, but do so in a fun and simple way…

Put yourself in their shoes… Would you read it?

But providing amazing content and incredible value in your emails is not all there is to it. Ideally, you should lead your reader to take action. This is accomplished by crafting a clear call to action.

What does that mean? A clear Call to Action? (CTA)

Make your call to action stand out from the rest of the content. Draw attention to your CTA by making it clearly visible with plenty of white space around it and bold colors…

If you are using a hyperlink for your CTA, make it stand out in the copy.
If you don’t want to be too pushy, you can use ‘Learn More’ instead of ‘Buy Now’.

Now Let’s Talk About Bounce Rate

What is Bounce Rate in email marketing?

Simple… Bounce Rate is the percentage of recipients who never even received the email in their inbox.

How is Bounce Rate Calculated?

Bounce rate is calculated by taking the total number of emails bounced and dividing it by the number of emails sent and then multiplying it times 100.

Example of How Bounce Rate is Calculated?

Okay, let’s say that you have a total email send of 1,000 emails. Now out of those 1,000 emails, let’s say that 970 actually reached the recipient.
So you have 1000-970 = 30 bounced emails.

The Bounce Rate would be calculated by taking 30 and dividing by 1,000, and then multiplying by 100.

So your Bounce Rate in this case is 3%.

What Influences Bounce Rate?

A lot of times, Bounce Rate is influenced by the sender’s IP reputation, and sometimes it is influenced by the validity of their email address.

Now, there are two types of bounces that you will encounter in email marketing.

A Soft Bounce, and a Hard Bounce. So what;s the difference, and why does it matter?

Hard Bounce vs. Soft Bounce

A soft bounce means that the recipient’s server is down, that their mailbox is full, or in some cases, it means that your message is too large for their inbox. This is generally a temporary issue, so unless you have an abnormally high soft bounce rate, just ignore it,

A hard bounce occurs when the email address is nonexistent or invalid. It could be that the recipient gave fake email addresses or there is a typo in it, but either way, a hard bounce is permanent, so when you get these, just remove them from the campaign and keep going.

Removing hard bounces improves your sender reputation, eventually which improves your delivery rate.

About List Growth

The rate at which your email list is growing. You can calculate it weekly or monthly. Once you choose a time period, then stick to it to make accurate comparisons each time.

How to calculate

List Growth = [((Number of new subscribers – (Number of unsubscribes)) ÷ Total email addresses on your list] * 100

Example:
No. of Total email addresses on the list = 1,000
No. of new subscribers = 200
No. of unsubscribers = 10
List growth = ((200-10)/1000)*100 = 19%

Dependent Upon:It is dependent upon your subscriber acquisition strategy.

You should optimise all the sources to gather emails. Like, look at the conversion rate of your landing page. You can run some social media ads directing people to your signup form or landing page.

List growth is important because eventually some people will churn out of the list or become non-engaged so you should keep adding new contacts. And of course, higher the list size, more the business and impact of your work.

List growth won’t always go upwards, especially if you are in seasonal business or your volume is very high. Here is a snapshot from a list of 100K members. As you can see, the list growth keeps fluctuating.

Unsubscribe Rate

Unsubscribe rate, if it’s not obvious just by the name, is the percentage of people who opted out of receiving your emails.

How to calculate your unsubscribe rate? Easy…

Unsubscribe Rate = (# Of unsubscribers divided by the Total number of emails delivered into the inbox) * 100

Example:

No. of total email addresses on the list: 1,000
No. of unsubscribers: 5
Unsubscribe rate = (5/1000)*100 = 0.5%

Dependent Upon: Content, Quality of your email list, Frequency of emails

How to Compare?

There are two kinds of benchmarks to see if your metrics are good or not: Industry benchmarks, and your own benchmarks.

Industry benchmarks can be looked at as a reference; just try to stay in the ballpark figures. But you should pay attention to your own benchmarks.

The best way to have your own benchmarks is to compile data over a period of time – over a few months. Then you can compare weekly numbers with your benchmark to see if they are on track, growing, or declining.

One of the best platforms we’ve tested for email automation and email campaign management is GetResponse.

Click here to try a 30-day FREE trial and see what we mean when we say that your email marketing just got a lot faster, a lot more precise, and a LOT easier! Click here for a full review.

Tips to Getting Better Email Marketing KPI’s

This next section will give you some tips to getting better email marketing KPI’s, so you can start to improve your numbers like the pros and get higher success rates with your email marketing campaigns:

#1 Value

If your content is not adding value to the subscriber, or it’s too hard for them to go through the content, they will unsubscribe. So make sure you get some feedback on your content.

#2 Targeting

If your content is valuable but still if your unsubscribe rate is high, then maybe the audience you are targeting is not right. This is where you focus on the quality of the list for your particular business or content.

#3 Frequency

The frequency of your emails is also important. It shouldn’t be so frequent that people get irritated. Also, it shouldn’t be so delayed that they don’t remember signing up or relating to your brand. Thus, unsubscribing.

How to Measure Email Marketing KPIs

Every time you send an email, there will be some churn, so don’t worry if someone unsubscribes. It’s better than a non-engaged audience. But if there are unusually high unsubscribes then you need to look at your strategy, content, and the kind of audience you are attracting.

To find out why your subscribers are leaving, you can add a short survey for people to fill out when they hit the unsubscribe button. But make it optional. If unsubscribing it too hard, then the next step the reader will take is to mark your emails as spam. And we want to avoid that to maintain a good sender’s reputation.

Paying attention to email analytics will help you better grow, maintain, and convert your email lists. That will boost revenue, impact and your influence. So don’t just send an email and forget. Track the key metrics we discussed above.

You don’t have to deal with calculations and spreadsheets of numbers all by yourself. These days, most email marketing softwares provide an analytics dashboard that you can look at after every campaign or over a period of time.

If you are looking for an email marketing software that can help you gather these important pieces of data and provide them in easy to understand dashboards, then you should try SendX. You can take a 14-day free trial that will give you access to all the features, analytics, reporting and charts. You don’t even need a credit card to access the free trial. So give it a try today.

The post How to Measure Email Marketing KPIs – PLUS Tips to Drive Business Growth appeared first on SERPs Up SEO Content.

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