In today’s digital age, marketing’s prominence has elevated greatly. As a powerful means for promoting a brand’s product or service, it has assisted several companies to generate leads and earn money.
Email marketing is one marketing tool that has become prevalent over the years. Being a highly influential method, it has connected brands with their target audience effectively.
Furthermore, it is the best way to understand an audience, create what works well, eradicate what doesn’t, and develop the most suitable strategy.
For getting successful results, measuring the effectiveness of your email marketing strategy using essential metrics or Key Performance Indicators (KPIs) is essential.
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KPIs for Evaluating Email Marketing Efficacy
Email KPIs are standard measures that help you comprehend the performance of your email marketing campaigns, especially when utilizing the best survey tools integrated with your email marketing platform to send emails. These KPIs generally track the rate at which emails are received, opened, and clicked.
This data is then recapitulated in the form of reports that represent how your email campaigns perform over time against industry email marketing statistics and in comparison to each other.
Here are some KPIs you must know to build upon a measurement plan and get successful results for your company’s growth and development:
Among the fundamental metrics in personalized email marketing, the open rate is a crucial aspect. It gives you data on the number of recipients who opened your email. Usually, a higher open rate denotes that your sender name and subject line are quite appealing to capture the interest of your subscribers.
If you want to calculate your campaign’s open rate, just divide the amount of opened emails by the number of delivered emails and multiply the result by 100 to get a percentage.
Besides the open rate, an email marketing campaign should also be evaluated via conversions. A conversion can be a download, sign-up, sale, or
another action that lines up with your email campaign goals. Moreover, to determine how optimally your campaign strategy is achieving your desired outcomes, tracking conversions is crucial.
You can track your conversion by calculating the conversion rate. To get the result, divide the number of conversions by the number of delivered emails and multiply it by 100.
There can be times when your emails bounce. This can be due to several reasons, including issues with the recipient’s inbox or an invalid email address. The bounce rate is one parameter that determines the percentage of emails not delivered. There are primarily two types of bounces, i.e., soft and hard bounces.
Hard bounces occur when the email is sent to an invalid or non-existent email address. Whereas temporary problems, such as a full mailbox, cause soft bounces. Keeping a low bounce rate is essential to ensure your emails are received by your intended recipients. Furthermore, it’s required to keep your sender’s reputation unchanged.
Click-Through Rate (CTR)
Another KPI that is used to determine the efficacy of your personalized email marketing campaign is the Click-Through Rate (CTR). It reveals the total number of recipients who clicked on the link within your email and further visited your landing page or website.
Calculating your CTR is really easy. Divide the number of clicks by the number of delivered emails and multiply the result by 100.
List Growth Rate
Did you know that the success of your email campaign is not only measured by how many emails you send? It also includes how well your email list grows over time. A good list growth rate shows how your campaign is drawing in and retaining new subscribers, extending your reach, and boosting your conversion opportunities effectively.
Measure your list growth rate by subtracting the number of unsubscribes and email complaints from the total number of new subscribers, dividing the result by the total number of subscribers at the beginning of the period, and multiplying it by 100.
Aside from the above-mentioned metrics, the most paramount KPI in measuring the success of your email campaign is tracking the revenue generated from it. A good email marketing strategy should add to your brand’s bottom line.
To measure the revenue generated, just explain the investment in your email marketing efforts and adjust your strategy to maximize Return on Investment (ROI).
Developing a lasting connection with your target audience and generating high sales for your business is achievable with email marketing, as it is a great promotional tool. By making use of the KPIs mentioned above, you can evaluate the effectiveness of your campaign and make informed decisions. Moreover, you must understand your audience well, analyze the reports, make data-driven enhancements, and improve your email marketing plans for the continued growth of your business.
All of the above factors contribute to the success of an email marketing campaign, which helps in quick decisions and understanding the whole market very well.