Email Marketing: How to Measure Verticle Response

You’ve probably heard of email marketing — chances are, you’ve received marketing emails from brands you follow or work with. But did you know that email marketing is a form of direct marketing that can be used to target individual consumers?

Traditionally, direct marketing has been considered any marketing that is geared toward a specific group of people (customers or potential customers). But what is the line between marketing to customers and marketing to potential customers?

Marketing to customers, also called brand advertising or brand outreach, refers to any kind of marketing that aims to drive customer loyalty and increase sales. For example, a clothing brand might advertise to customers about their newest styles or the quality of their products.

On the other hand, marketing to potential customers refers to any type of communication that a brand or company sends out to attract new customers or encourage current customers to buy their products. For example, a car manufacturer might send out a new product alert email to attract people to their site or social media accounts.

The line between these two marketing strategies can be blurred. A clothing brand, for example, might send out a newsletter to encourage people to buy their products. Yet, at the same time, this newsletter could be considered brand advertising because it aims to drive customer loyalty.

How Email Marketing Works

To understand what makes email marketing special, it’s important to know the basics of how digital marketing and advertising work in general.

The first and most crucial step in the digital marketing and advertising process is collecting data — typically via emails, clicks, or page views — on what worked and what didn’t. This is called analysis while marketing (A/M) or analysis of marketing (A/OM).

Once brand or company marketers have analyzed the results of their marketing efforts, they can create more meaningful and effective strategies for the future. With email marketing, this means reviewing the responses and actions of previously engaged users to determine what works — and what could be improved upon.

Why Email Marketing Is Popular

The data collected from previous email marketing campaigns can be used to determine the effectiveness of a new campaign. If a brand has already sent out a similar email in the past and saw positive results, they may decide to try something similar in the future.

Additionally, analyzing the results of previous emails allows marketers to determine the demographic and geographic segments that benefited the most from a particular campaign — information that can be used to inform future marketing decisions.

Email marketing is popular for a reason. Its flexibility makes it easy for companies of any size to implement.

Why Should You Care About The Demographics Of Your Audience?

Whether you’re a marketer for a car manufacturer, soft drink company, hotel chain, or technology company; everyone wants to know who their ideal customer is. Without a clear idea of who your audience is, it can be difficult to target the right people with your marketing messages.

By determining the demographics of your audience (such as age, gender, and location), you can tailor your message to resonate with your target audience. This will, in turn, make your marketing more effective and generate better results.

How To Measure Your Email Marketing Success

To track the success of your email marketing campaigns, you’ll need to consider using analytics software. With most email marketing platforms, this will be fairly straightforward: you can review the stats on site to determine the effectiveness of your campaign.

But this won’t be enough. To get an accurate reading of the success of your email marketing efforts, you’ll need to measure multiple metrics. Fortunately, we’ve got you covered on this front as well.

First, look at the open and click rates of your marketing emails. Are people reading your messages and interacting with them as you expect? If so, great!

On the other hand, if people aren’t opening or clicking on your emails as frequently as you’d like, you might want to reevaluate whether this is the right audience for your brand and if there’s something else you can do to improve your efforts.

The second metric you’ll need to track is the conversion rate — or how well your email marketing is performing relative to how many people you’re sending the email to. For example, if you sent an email to 1,000 people and three people converted (meaning they bought a product, signed up for a subscription, or took some other action), the conversion rate is 3 percent.

Not bad, right? That’s a pretty good conversion rate, even if it’s a little lower than you’d typically hope for.

But it gets better. If you look at the demographics of your audience, you’ll see that 3% converted into customers who are more likely to be younger, healthier, and more affluent.

Based on this, you may decide that you want to focus more on attracting this type of person to your brand. One way to do this is by creating content that speaks to their needs and interests — like an email promoting a new car model that is sleek and stylish.

By tailoring your marketing to match the demographics of your audience, you can increase the effectiveness of your campaigns and the potential for viral growth.

To learn more, read our guide to marketing analytics or contact us to speak with an expert today.

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