What are the Metrics for Email Marketing?

With the proliferation of online stores, it’s easy for your customers to find what they want, when they want it. However, keeping up with the trends and updating your offers is difficult. One way to engage with your customers, and prove to them that you’re listening and acting on their feedback, is Email Marketing.

What are the metrics for email marketing? In this article, you will discover the key performance indicators (KPIs) that can help you determine the success of your email marketing campaign.

Open Rate & Click-Through Percentage

The open rate for an email is the number of people who had your email in their inbox, or on their contacts’ list, at the time the email was sent. The open rate for an email measures the effectiveness of the email’s subject line and main text in drawing in potential customers. Generally, we recommend that you strive for an open rate of at least 20%, as this could mean that your email was interesting enough for that person to open it, and more importantly, click on one of the links in your email to find out more.

The click-through percentage for an email is the number of clicks, relative to the number of people who opened the email. The click-through percentage for an email is used to determine the effectiveness of the email’s subject line and main text in drawing in potential customers, as well as to determine the effectiveness of the email’s design and the engagement strategies used (e.g., images, videos, and buttons). When measuring the click-through percentage, it is important to keep in mind that people can become disinterested in your product or service quickly, which could mean that they are simply moving on to the next email.

Conversion Rate & Buyer Behavior

The conversion rate for an email is the number of people who opened the email, relative to the number of people who were exposed to the email’s subject line and main text. The conversion rate for an email measures the effectiveness of the email’s subject line and main text in drawing in potential customers. Generally, we recommend that you strive for a conversion rate of at least 1% (e.g., 1 in 100 people), as this could mean that your email was interesting enough for that person to open it, and more importantly, click on one of the links in your email to find out more.

The buyer behavior of an email’s recipients is the behavior that you can measure online, which can indicate whether or not they are interested in your product or service. The buyer behavior of an email’s recipients can be used to determine the effectiveness of the email’s subject line and main text in drawing in potential customers, as well as to determine the effectiveness of the email’s design and the engagement strategies used (e.g., images, videos, and buttons). You can measure the buyer behavior of an email’s recipients with click-through rate calculations, such as (1) the % of visitors who completed a desired action (e.g., made a purchase or signed up for a newsletter) after viewing only one of our blog posts; or (2) the % of newsletter subscribers who opened one of our blog posts.

Average Order Value & Productivity

The average order value of an email is the value, in USD, of all the products, or services, that a customer ordered after viewing one of your email marketing messages. The average order value of an email measures the effectiveness of the email’s design and the marketing and sales strategies used (e.g., special offers, affiliate programs, etc.) in encouraging customers to make purchase decisions and complete transactions. It is important to note that this figure can be extremely misleading, as it does not consider the value that customers place on your product or service, or the size of the transaction.

Productivity is a measure of how much your customers are achieving with your product or service. Productivity for an email measures the effectiveness of the email’s design and the marketing and sales strategies used (e.g., special offers, affiliate programs, etc.) in encouraging customers to make purchase decisions and complete transactions. Generally, we recommend that you strive for a productivity of at least 1, as this could mean that your email was interesting enough for that person to open it, and more importantly, click on one of the links in your email to find out more about your product or service. You can use this number to determine the effectiveness of the email’s design and the marketing and sales strategies used.

Unsubscribe Rate & Satisfaction

The unsubscribe rate for an email is the number of people who unsubscribed from your email, relative to the number of people who were sent the email. The unsubscribe rate for an email measures the effectiveness of the email’s design and the marketing and sales strategies used (e.g., special offers, affiliate programs, etc.) in encouraging people to subscribe to your email list. Generally, we recommend that you strive for an unsubscribe rate of no more than 10%, as this could mean that your email was interesting enough for that person to open it, and more importantly, click on one of the links in your email to find out more about your product or service. This metric can be extremely misleading, however, as it does not consider whether or not that person was satisfied with what they received.

Satisfaction for an email is a measure of how much your customers are enjoying what you’re offering them. For example, if someone is reading a blog post about your product or service and are interested in what they’re reading, but don’t want to receive daily emails about it, they can simply click on a button to unsubscribe. In these cases, your customer would be considered dissatisfied, as they did not want to receive daily emails about your product or service, but did want to continue reading about it. You can use this metric to determine the effectiveness of the email’s design and the marketing and sales strategies used.

Lifetime Value & Value Propagation

The lifetime value of an email is the value, in USD, that you can expect to receive from a customer who has used your product or service to its full potential. The lifetime value of an email measures the effectiveness of the email’s design and the marketing and sales strategies used (e.g., special offers, affiliate programs, etc.) in encouraging customers to become active users of your product or service. Generally, we recommend that you strive for a lifetime value of at least $100, as this could mean that your email was interesting enough for that person to open it, and more importantly, click on one of the links in your email to find out more about your product or service.

The value propagation for an email is the spread of word-of-mouth about your product or service, which can be measured in terms of the number of people who hear about your product or service through email. The value propagation for an email measures how effective the email’s subject line and main text were in encouraging recipients to talk about your product or service and, more importantly, convert this interest into action (e.g., make a purchase, sign up for a newsletter, etc.). When measuring the value propagation for an email, it is important to keep in mind that people can become disinterested in your product or service quickly, which could mean that they are simply moving on to the next email.

Reach & Frequency

The reach of an email is the number of people who were exposed to the email’s subject line and main text, relative to the number of people who were sent the email. The reach of an email measures the effectiveness of the email’s subject line and main text in attracting potential customers. Generally, we recommend that you strive for a reach of at least 1%, as this could mean that your email was interesting enough for that person to open it, and more importantly, click on one of the links in your email to find out more.

Frequency for an email is a measure of how often you’ll be able to send the email, based on the size of your email list. The frequency for an email measures the effectiveness of the email’s subject line and main text in encouraging recipients to open the email, and, more importantly, click on one of the links in your email to find out more about your product or service.

Subject Line & Click-Thru-Rate

The subject line for an email is the phrase or words that you’ll use to categorize the email when it is delivered. The subject line for an email measures the effectiveness of the email’s design and the marketing and sales strategies used (e.g., special offers, affiliate programs, etc.) in encouraging recipients to open the email. Generally, we recommend that you strive for a click-thru-rate of at least 1%, as this could mean that your email was interesting enough for that person to open it, and more importantly, click on one of the links in your email to find out more about your product or service.

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