Email Marketing is one of the most effective methods of engaging with your customers and prospects. When conducting email marketing campaigns, the email marketing metrics associated with that campaign will indicate how effective you were in achieving your goal.
However, if you make your offer compelling enough, they will be responsive and continue to engage with your business.
If you have been relying on this method to market your services and you are not receiving too much of a positive response rate, then you are not using email effectively.
The only way to identify that your efforts are not overly effective is to analyze the metrics associated with your emails. Your email marketing metrics will indicate how well you are doing, and how responsive your subscribers really are to what you are offering.
However, before getting into the nitty-gritty of what your email marketing metrics can show you, let's go over what this marketing channel really entails.
What is Email Marketing?
You may think the simple answer to this question is using email to promote your products or services to your subscribers that are either clients or potential clients. And, in a nutshell, that is correct.
In fact, this method of promoting your goods and services to potential customers is a popular marketing channel.
As you may know, other marketing channels can be rather expensive, and when done right, email marketing can be a fruitful channel for any business. As Emailmonday states, 51% of companies are currently using marketing automation. With more than half of B2B companies (58%) plan to adopt the technology.
Now, you are probably wondering about the effectiveness of this form of marketing. The answer to that is, that depends on how well you are leveraging email to promote yourself. Let's dive a little deeper.
Does It Work?
Yes, email marketing is effective. According to HubSpot, 80% of businesses prefer to communicate via email for business purposes.
But, like anything, you need to learn how to utilize this channel well. In order for email marketing to be effective, you must build trust and relationships with your subscribers.
Many of your subscribers may be your existing customers, but many others have subscribed to your newsletters by finding your site that offers something they need. And, these subscribers have not purchased anything yet.
If you spam your subscribers with emails that are all about what you are selling day after day, these subscribers will lose interest. It is likely that they will unsubscribe which means you are losing potential customers.
That is spamming, and any successful business owner must always abide by the rules of the CAM-SPAM Act.
In order to make your email marketing efforts successful, you need to win the trust of your subscribers and create relationships with them. You definitely want to keep your subscribers up to date with what you are offering.
When you're brainstorming what information or offers to include in your email campaigns, ensure to make your marketing efforts personalized.
If you are unsure how effective your email marketing is, then you need to analyze your email marketing metrics.
The Email Marketing Metrics That Matter
Having an in-depth understanding of your email marketing metrics will help you take your emails to the next level. There are many components of what makes your email marketing campaign successful, and you must analyze each one to make sure you are maximizing the return from your emails.
Let's break this down further:
Click-Through Rate or CTR is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. To calculate CTR:
Impressions/Clicks = Click Through Rate (%)
If you are not satisfied with your CTR, then you need to analyze your emails and try to identify any potential areas for optimization. For example, if the call-to-action or clickable link in your email is below all of the text, you could consider moving it to a more accessible location to encourage the recipient to click it.
Open Rate is an email's open rate is the percentage of recipients who opened your email compared to how many emails were sent, excluding any emails that bounced. To calculate Open Rate:
Unique Opens/Emails Delivered = Open Rate (%)
Be cautious that open rates can vary drastically depending on how catchy and personalized your subject line is. That being said, open rates that fall between 20% - 40% are considered quite good.
If your open rate is under 20%, it is a clear indication that your email marketing campaign is not compelling enough. You should optimize your subject lines to improve your open rates and get more recipients engaging with your email.
Bounce Rate is the percentage of email addresses in your subscriber list that didn't receive your message because it was returned by a recipient's mail server. To calculate Bounce Rate:
Total # of Emails Bounced/Total # of Emails Sent = Bounce Rate (%)
There are two types of bounce rates when it comes to email marketing, soft bounces and hard bounces.
Soft Bounces are defined as an email that gets as far as the recipient's mail server, but is then bounced back as undelivered before it gets to the intended recipient. This may occur because the recipient's inbox is full, but it may be deliverable or may be forwarded manually at another time.
Hard Bounces are defined as an email that has been returned to the sender because the recipient's address is invalid.. This happens when the recipient's email is not known, or if the domain name in the recipient's email address does not exist.
If you have a particularly high bounce rate, you should analyze how you are building your subscriber list and ensure that you're collecting accurate information. Moreover, having an organized CRM with accurate customer information will assist in reducing your bounce rates.
Unsubscribe rate is defined as the percentage of subscribers that opt out of your email campaign. To Calculate Unsubscribe Rate:
# of Recipients Unsubscribed/# of Emails Delivered = Unsubscribe Rate (%)
If your unsubscribe rate is under half of a percent, then you are doing well.
However, if your rate is higher than that, then you need to find out why your subscribers are leaving, and how you can build better lists to drive more engagement from your email campaigns.
Keep Calm and Email On
Email Marketing can be very effective if you constantly monitor performance and make optimizations along the way.
Your email marketing metrics will show you where you need to make improvements. With a good strategy, you will be able to learn about what changes you need to make so that your email marketing efforts generate more leads.