Five critical email marketing metrics to track your ROI

Are you looking forward to invest more in email marketing? Are email campaigns your next target? If yes, it is important to know why you should be choosing email at the first place.

  • 93% of B2B marketers prefer emails to distribute their content
  • 73% of B2B customer prefer email communication over other modes of communication.
  • 80% of B2B businesses believe email marketing increases customer retention.
  • 59% of marketers believe email to be their most significant source of ROI.
  • Email marketing generates an ROI of 3800%

Marketers can never overstate the significance of email marketing as it has always fetched returns. Much why, marketers face questions like:

  • “How do the campaigns flare?”
  • “How well are the emails performing?”
  • “What impacts are the emails creating?”

The answer to such questions usually depends on specific and significant email marketing metrics. The reason why email marketing metrics are the next big thing for you to focus in your campaigns!

Importance of Email marketing metrics

In simple terms, email marketing metrics provide you with the required data to track your marketing impact. These data ensures your ROI by taking necessary action based on it. But, the key is to understand the metrics you need, interpret data correctly, and calculate it.

One has to use the correct marketing metrics to track efficiency and run a successful email marketing campaign. If otherwise, the campaign is bound to suffer loss of finance, inadequate outreach, loss of customers, etc.

But how do you calculate your success from the emails you send?

Fortunately, there are specific email marketing metrics that could act as the benchmark of success for you.

Here’s a list of 5 critical email marketing metrics to track your ROI:

Click through rate

CTR determines the performance of your email marketing campaign. Usually, marketers adopt email marketing to enable their subscribers to click on a link attached. CTR measures this data.

How to calculate- CTR = (Total Number of clicks) / (Number of emails delivered)

Tracking Period- Weekly

Nominal Value- The average click rate is usually 7.77%. A positive CTR that is higher than this value will result in a positive ROI.

Bounce Rate

While calculating the success of an email campaign, one should also consider the scenario where the emails fail to get delivered. There are two categories of bounce rates to consider:

  • Soft Bounce Rate- tracks temporary problems with email addresses
  • Hard Bounce Rate- monitors permanent issues with email addresses

Bounce rate helps us understand the quality of the subscriber list.

How to calculate: Bounce rate= (Total number of bounces/ Emails sent)*100

Tracking Period: Monthly

Nominal Value:

  • Soft bounce rate is usually around 0.6 to 1%
  • Hard bounce rates are usually around 0.39%. The bounce rates should not exceed these values. More because, higher hard bounce rate indicates that your subscriber list consists of fake emails addresses.

We can however avoid higher bounce rate by using double opt-in options, where

  • Subscribers are asked to verify their email address
  • Subscribers are requested for the confirmation, to receive emails from your brand

Conversion Rate

Conversion rate denotes the Number of subscribers who have participated in an action that follows a click through. Conversion Rate offers a unique perspective on your ROI. It determines the extent to which you have achieved your marketing goals.

How to calculate:

(Total Number of subscribers who have completed the action after the click-through/Total Number of emails sent)*100

Tracking Period: Monthly

Nominal Value: Nominal conversion rate usually varies from 2.35% to 5.31%. Achieving a higher value indicates the success of your email campaign.

Email Sharing/ Forward Rate

Email sharing/forward rate usually denotes the Number of subscribers who have either shared or forwarded your email. It is a helpful metric as it allows you to measure the Number of brand advocates you have in your subscriber list.

How to calculate: (Total Number of forwards and shares/Number of emails sent)*100

Tracking Period: Monthly

Overall ROI

One of the most essential email marketing metrics is Overall ROI. It calculates the total and individual return of investment of all your email campaigns.

How to calculate: {(Money earned through sales – money spent on your campaign)/ (money invested in the campaign)}*100

Tracking period: Monthly

In conclusion, email marketing is not a simple walk in the park. While creating an email marketing campaign, you need hard data to guide you through. The campaign that does not use these metrics will not achieve the desired result and might also result in financial loss. These marketing metrics forms a critical part of your business strategy as they enable you to take actions based on hard data. And the essential marketing metrics that have been discussed so far can help your marketing efforts by:

  • Providing valuable data or information regarding your email campaigns
  • Providing useful insights regarding your user activity
  • Keeping your marketing team focused on your email campaign goals.

These metrics can not only ensure your campaign’s success but also help you with your future strategies. It is important to assess them properly. After all, if there are no proper returns, is anything even worth investing?

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