To quote the American marketing pioneer John Wannamaker: “Half the money I spend on advertising is wasted. The trouble is I don’t know which half.”
We should all be convinced that analysis is essential to everything that you do. There are no gut feelings when it comes to measuring the success of your email marketing efforts. Be data driven and track these metrics:
Email metrics: indicate how your emails are performing.
Channel metrics: measure the ROI of your email campaigns.
Health metrics: make sure to get to the inbox.
1- Email metrics
The ultimate goal of email marketing is to get recipients click on a link within your email and complete a desired action such as buying a product online, subscribing to a webinar or downloading an ebook.
Consider your email metrics like a funnel to measure engagement.
Email sent: The number of emails you tried to send.
Email delivered: The number of emails that landed into recipients inboxes.
Open rate: The percentage of people that received your email who actually opened it.
Click through rate: The percentage of people who clicked on a link in your email after opening it.
Conversion rate: The percentage of people who clicked on a link within your email and completed a desired action.
Maximize your chances of getting a high conversion rate by following the rules included in our blog post: Components Of A High-Performing Email.
2- Channel metrics
Email channel metrics aggregate the results of all of your emails sends.
Your goal is to determine:
How people engage with your emails.
How email impacts your ability to move people through your funnel.
How email impacts your bottom line as a business.
How effectively you can use email to drive traffic to specific events and initiatives.
How your email database is growing or decaying.
Just like there are engagement metrics for emails, you should be tracking engagement metrics for the entire email channel. This includes:
Most of email service companies such as MailChimp provides interesting industry benchmarks.
Last but not least, don’t forget to track the Return On Investment or ROI your company gets from email campaigns. This is what will connect what you are doing with email marketing to real revenue for your company.
Here’s an example:
You generate $1,000 in sales from an email campaign that costs you $100 to run. You would subtract $100 from $1,000, getting $900. Divide that $900 by the cost of the campaign, $100. That leaves you with 9, which you multiply by 100. Your result is 900% ROI for that campaign.
3- Health metrics
The last set of metrics you should monitor are directly link with your email deliverability.
This has been the topic of our last post on How To Get To The Consumer's Inbox.
In a nutshell, here is what you should monitor:
Email deliverability: The measurement and understanding of how successful a sender is at getting their marketing message into people’s inboxes.
Contact churn: This includes unsubscribe, bounce, spam and direct complaint.
Now that we have learned how to measure success, let’s see how to optimize and test in our final blog series post.
Stay tuned in two weeks from now!
✓ Blog Series: How To Become Successful With Email Marketing - Introduction.
✓ Part 1: Customer Lifecycle And Email Marketing.
✓ Part 2: Components Of A High-Performing Email.
✓ Part 3: Get To The Consumer's Inbox - Email Deliverability.
✓ Part 4: Measuring Success.
Part 5: Optimizing & Testing.
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