Marketing is not something you can measure in one click of a button. It is more like an art, and in order to master it, you have to practice it over and over again, sometimes failing, before you even see the first results. When it comes to e-mail marketing, the same thing applies. It is not that you should never take care of your e-mail marketing campaigns, but it is important to know what business KPIs are you looking to achieve in this field.
Here is a list of the most important business KPIs in e-mail marketing, and some tips on how to achieve them:
1. New and return customers
It is obvious that one of the most important business KPIs in e-mail marketing is how many customers you can gain from your email campaigns. But that is not all. There are two kinds of customers for every e-commerce business – new and returning. You should always be clear on how many new customers you have gained from your email campaign, as well as how many of your previous customers have come back to shop from you again.
This helps you understand how effective your email campaigns are and which offers are more appealing to your audience. You can then usethat information to improve your future campaigns and make them more effective.
2. Estimated lifetime value
Your email marketing campaign’s goal is to generate sales, and the best way to do it is to offer your audience something that they really want. You should always track how many customers you are getting from your email marketing campaigns, but it is also essential that you know what you are spending on that campaign in order to have an estimated lifetime value.
For example, if you are spending $100 on a campaign and you get 25 customers from it, then your estimated lifetime value is $400. This is important because it helps you understand how profitable your email campaigns are and whether or not you should spend more money on them in the future.
3. Conversion rate of the Email Marketing Campaign
Obviously, if you are spending money on your email marketing campaign, you want to get something in return. It is important to know how many of your customers have purchased from your email campaign. The conversion rate is one of the best business KPIs in e-mail marketing that can give you this information.
For example, if you sent out 100 emails and got 10 customers from them, then your conversion rate is 10%. This means that only 10 out of 100 people who received your email have actually purchased something from you. If you want to improve this number, you need to test different offers or even change the subject line of your emails.
If you want to track your business KPIs in your e-mail marketing campaigns, then you should use a CRM software. This is an essential business tool that will help you organize your contacts, leads and customers, as well as improve the efficiency of your email campaigns.
4. Frequency
The more people receive your emails, the more customers you will have. However, you cannot send out too many emails or your audience will get annoyed and unsubscribe from your list. That is why it is important to know how often you should send out your email campaigns.
For example, some businesses send out their email campaigns once a month, whereas others do it once a week. It all depends on your industry and what kind of customers you are targeting. If you are selling a product that requires some time for customers to decide on buying it, then once a week is probably a good idea. However, if you are selling something that can be bought right away, then once a month would be enough.
If you want to know how often you should send out your email campaigns, then you should always test your audience’s reactions. If you have a small list and you have not sent out any campaigns yet, try sending two or three per week and see how your customers react. If they start unsubscribing from your list, then reduce the number of email campaigns you are sending out.
5. Spam complaints
No one likes spam, and that is the reason why the majority of people unsubscribe from their e-mail lists. However, if you are sending out too many emails or your emails are full of ads and promotional offers, then your audience will get annoyed and they might report your emails as spam.
It is important to know how many spam complaints you have received from your email campaign so you can fix your mistakes and avoid spam complaints in the future. In order to avoid getting spam complaints, you should always make sure that your emails are not only informative but also helpful for your customers. You should also avoid sending out too many emails or sending them out at an inappropriate time.
6. Unsubscribes
The best way to see if your email campaigns are successful is to count how many people have unsubscribed from your email list. If you have a list of 100 people and you send out an email campaign and only 10 people unsubscribe, then you are doing something right. However, if you send out the same email campaign and 50 people unsubscribe, then it might be a sign that your audience does not like your email campaigns.
If you want to avoid getting too many unsubscribes, then you should always make sure that your emails are informative and useful for your customers. You should also create an incentive for them to stay on your list and continue receiving your emails. Finally, you should always test different offers and email templates tosee which ones work better for your audience.
7. Bounce rate
Bounce rate, also known as a ‘hard bounce’, is a metric that measures the percentage of emails that get returned to the sender because the recipient address is invalid. It’s one of the key performance indicators (KPIs) in email marketing.
Bounce rate is one of the most misunderstood email marketing metrics, but it’s also one of the most important.
You need to know your bounce rate so you can improve your email list. Bounce rate is one of the most important email marketing metrics that tells you how well your list is built.
8. Open rate
Open rate is a key factor in deciding the success of a business. For example, if you have an email marketing campaign but the open rates are low, then this could mean that you have chosen the wrong audience. You can run more email marketing campaigns if your open rates are low.On the other hand, if the open rates are high, then you can focus on improving conversions.
A low conversion rate could be a problem with the product, service or content. If that is not the case, then perhaps you have chosen the wrong audience. You can always run the same campaign again with a different audience to improve conversions.
Effective use of analytics will help you understand your audience better. If you can connect with your target audience, then your email marketing campaigns will be more effective. You will be able to make decisions based on data such as your open rates and conversion rates.
This is especially important for businesses that want to grow as people tend to spend more money when they are satisfied. It is important to understand that the success of your business is dependent on the people who use your products and services.
Analytics will help you understand your target audience better so that you can make better decisions about your business. With this information, you can improve your campaigns and increase your sales.
9. Click through rate
Email marketing has been around for years, but it is still a viable marketing strategy for many businesses. This is because it gives the sender complete control over their content. Not only that, but it also allows businesses to track their success. It can be a good source of leads and sales, but you need to make sure your email marketing is successful. That’s where click-through rate comes in.
Click-through rate (CTR) is the amount of people that click on an email after receiving it. It is noted as a percentage and shown in a variety of ways. The most common are a simple number or the percentage of people that clicked on the email. It is calculated by the number of clicks divided by the total amount of people that received the email. The formula looks like this:
CTR = Clicks/Total Email Sent
For example, if you sent out an email to 100 people and 20 of them clicked on it, your CTR would be 20%. If you sent out an email to 50 people and 10 of them clicked on it, your CTR would
be 20%. With that being said, it is also important to note that sometimes the number of emails sent isn’t exactly accurate. This is because some people will have multiple email accounts and a single email could be received by more than one person.
Why Is Click-Through Rate Important?
Click-through rate may not be a direct measure of sales or leads, but it is an important factor in the effectiveness of an email campaign. For example, if you sent out an email to 10,000 people and your CTR was 0.1%, then 100 people clicked on the email. That may sound like a lot, but think about it this way: if those 100 people each bought just one item from you, your saleswould be barely over $100. Because the cost of sending out an email is so little, you need to have a good CTR if you want to make a profit.
How Can You Increase Your Click-Through Rate?
As mentioned above, click-through rate is calculated by the number of people that clicked on an email divided by the number of people who received it. So, if you want your click-through rate to go up, you need to get more people to click on your emails. There are a few different ways to do this:
- How You Send The Email Out Matters: If you send out an email with a link in the body of it, then recipients will be taken to your website when they click on it. But, if you send an email with an image and a link to your website, they will be taken to your website when they click on the image. This is because images are generally more eye-catching and people are more likely to click on them. So, if you want your click-through rate to increase, make sure your email has a link in the body of it.
- The Subject Line Can Make Or Break Your Click-Through Rate: Another important factor is the subject line. If you want your CTR to go up, make sure your subject line is compelling enough to get people to click on it. If you have trouble coming up with ideas for a subject line, try using Ubersuggest for some help. With this tool, you can enter the main keyword of your email and it will give you a list of suggestions.
- Make Sure It’s Easy To Respond To The Email: If you want more people to click on your email, then make sure it is easy for them to respond to it. This means that there should be a call-to-action (CTA) button or link in the email. This is the part of the email that you want people to click on. You should have a CTA in your emails so people know exactly what you want them to do. This can be as simple as an image that says Call Now, or it could be a link that says Contact Us.
- There Are Also Tools That Can Track Your Click-Through Rate: There are also tools that you can use to track your click-through rate. These tools will allow you to track how many people opened your email, where they opened it, and what link they clicked on. There are a lot of these kinds of tools and they work in different ways. They all have the same goal though. They want to make it easier for you to track your emails and increase your click-through rate. But, the most important thing is that you need to know how many people click on your emails. This will allow you to improve your email campaigns. So, if you want your click-through rate to increase, consider one of these tools.
10. Average number of emails sent per month
It is important to always keep track of your average number of emails sent per month. This number will vary depending on your email use. If you use it frequently, you will likely send a higher number of emails per month than someone who rarely uses email. Keeping track of this number can help you when you need to reply to an email and want to make sure that you are not sending out a duplicate message. It can also help you when you want to send an email to someone, but don’t want to annoy them with an excess of emails. Finally, it can help you when you want to track your usage of email and use that to manage your account. In order to determine the average number of emails sent per month, it is important to use a number of different email addresses. Over time, you will be able to determine which one you use the most and send the highest number of emails from.
Conclusion
At their core, marketing campaigns are nothing more than a large-scale experiment. They exist to test and learn about your audience, and to adapt your campaign accordingly. By tracking the right KPIs—which are unique for your business, your industry, and your target demographic—you can gain valuable insights that help fine tune email marketing efforts. And with the right tools in place and the right tactics driving traffic to landing pages, your KPI data is presented front and center so you can pick up on trends and optimize as needed.