5 Email Marketing Metrics & KPIs Every Marketer Should Track

5 Email Marketing Metrics & KPIs Every Marketer Should Track

 

Email is one of the most valuable marketing tools when used effectively, so it’s crucial to consistently review your practices and make changes to improve your results. Marketing metrics allow you to measure the success of each email and identify any strategies that could be holding you back.

 

While each marketing metric tells a story, there are a few key statistics you should focus on with nearly every email. These are some of the most important email marketing metrics for marketers.

 

1. Return on Investment

 

Return on investment, or ROI, is the simplest way to track your marketing results. This metric calculates how much you earned on each dollar you spent. A campaign that cost $100 to run but earned $120, for example, achieved a return on investment of 20 percent.

 

Email marketing expenses include email marketing service fees along with the hours your employees spent working on the campaign. The return includes all sales made as a result of email marketing.

 

That said, it can be tough to determine exactly how much you spent on a campaign, making return on investment more difficult to calculate than many other email marketing metrics. Combining this information with other metrics gives you a more accurate picture of your email marketing success than using ROI alone.

 

2. Conversion Rate

 

Most marketing emails are designed to increase sales, so a higher conversion rate indicates that your approach is working. If certain emails are leading to fewer conversions than others, try out some different ideas to see if another strategy is more effective.

 

The average email conversion rate is roughly 0.2 percent, although this number is different from one industry to another. If you’re trying to sell a high volume of relatively low-cost products, for example, you might need to convert more than 0.2 percent of readers in order to reach your target return on investment.

 

Like return on investment, sales can be tough to measure. Most email service providers don’t give you this information, so you’ll have to use Google Analytics, Omnisend or another program that tracks conversions.

 

Increasing Conversions

 

If you notice consistently low conversion rates, there are a few ways to make your emails more dynamic and increase sales on future campaigns. These tactics are incredibly effective and easy to implement using most email marketing services.

 

Add Personalization

 

Customers expect more personalized content than ever before, and it’s critical to send relevant emails based on customer information. Generic content will lead your audience to ignore future emails or even unsubscribe from your newsletter.

 

Before you can personalize emails, you’ll need to start gathering customer data and using that information to segment your audience. Factors like age, income, gender, previous purchases, and more can be used to create more targeted emails and increase conversions.

 

Marketing Automation

 

Automation is central to any successful email marketing campaign, and it enables you to send more personalized content by setting certain emails to send based on specific triggers. Getting started with email marketing automation can be overwhelming, so these two workflows are a great place to start.

 

Welcome Emails

 

A strong welcome sequence gives new subscribers a positive impression of your brand and keeps them engaged for future interactions. Most customers expect a welcome email when they register for a newsletter, so it’s important to follow up after each subscription.

 

In addition to basic information about your brand, you can also offer an exclusive discount to new subscribers in order to increase your sign-up rate (more on that later). The goal of your welcome sequence is to maintain their interest and convert new leads into loyal customers.

 

Cart Abandonment

 

The majority of online shopping carts are abandoned before the purchase, and cart abandonment emails lead to the highest conversion rate of any automation workflow. It’s always easier to sell to someone who has already shown interest in your products, and abandoned carts are one of the top sources of missed revenue for businesses that sell online.

 

Your cart abandonment sequence should start with a reminder email sent roughly an hour after the user leaves your store. Simply remind them of the product they added to their cart and ask if they’re still interested.

 

If they don’t convert on the first email, you should send a follow-up the next day along with a discount on the product in their cart. You can also use this opportunity to cross-sell related products they might also be interested in.

 

3. Open Rate

 

If you’re having trouble achieving the results you want with email marketing, it’s important to check your performance on different metrics to determine the source of the problem. A low open rate, for example, indicates that you’re not getting your audience’s attention, while a low conversion rate but high open rate probably means something is wrong with the body of each email.

 

A low open rate can typically be traced back to uninteresting subject lines and email openings. That said, email clients might also be filtering your content into spam folders before your audience gets a chance to read it. The more readers that open an email, the more chances you have to make the sale.

 

As with other metrics, A/B testing is one of the most effective ways of identifying issues that could be impacting your open rate. Try out different subject lines, sender names, greetings, and even times of the day and week to see which ones lead to the best results. You can even gather customer feedback to learn exactly what users like and don’t like about your content.

 

Personalized content is more likely to succeed in every area, and open rates are no different. The more specifically you can segment your audience, the higher your open rate will become. While non-segmented content leads to an open rate of just over 18 percent, emails sent to audience segmented are opened at a rate of more than 28 percent. This difference will have a substantial impact on your sales over time, so start experimenting with audience segmentation as soon as possible.

 

4. Click-through Rate

 

Click-through rate represents the percentage of users who clicked on at least one ad during a given email campaign. Like open rates, click-through rates are available with most email service providers. High click-through rates indicate that your audience is interested in learning more and engaging with each ad.

 

In addition to tracking total clicks, most email marketing solutions allow you to see which links each user clicked. This is a great way to view exactly which parts of each email succeeded and which ones could be improved. You can also split test two versions of every ad using click-through rate to measure their effectiveness. If you’re having trouble increasing click-through rates, try adjusting them to be more readable for all users:

 

Improving Readability

 

Many subscribers will read your content on a mobile device, so it’s important to make each email as scannable as possible. Use subheadings and plenty of images to break up the text, and limit each section to just a few sentences. Edit out anything that isn’t directly related to the email’s value.

 

The call to action is the most important element of every email, so be sure to make the CTA visually clear in each message. Subheadings, images, and the call to action should be the most conspicuous elements in all email content. Readers should be able to understand the point of the email in just a few seconds.

 

5. Unsubscribe Rate

 

Unsubscriptions are an unfortunate reality in email marketing, but that doesn’t mean there aren’t ways to decrease your unsubscribe rate. Most ecommerce marketers see an unsubscribe rate of about a quarter of a percent, so anything significantly above that number could be problematic for your business.

 

If you’re struggling with unsubscriptions, it’s critical to understand exactly what about your approach is turning customers off. Email frequency is one of the most common causes of high unsubscribe rates, as readers will lose interest if they’re constantly hearing from you. Sending emails too often will also make each one less unique.

 

To combat this issue, simply ask your audience exactly how often they want to hear from you. Many businesses give new subscribers the ability to select their preferred email frequency—it’s better to keep a contact in touch with occasional emails than to lose them entirely when they unsubscribe.

 

Customer feedback can also be used to identify other issues in your business. Don’t be afraid to periodically ask your audience for input—this will help you respond to their pain points and develop more personalized marketing in the future. Users who unsubscribe can offer even more valuable feedback by letting you know exactly what’s causing your audience to leave.

 

Most email marketing services offer a wide range of metrics, and this can be confusing for marketers unfamiliar with analytics. Start with these five statistics to get a better understanding of your successes and failures and start taking steps to optimize your email marketing strategies.

 

 

Track all your email marketing metrics in one easy-to-use automated reporting tool.

 

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Evaldas Mockus

Evaldas Mockus is an Experienced Search Engine Optimization (SEO) Specialist with a demonstrated history of working in the information technology and Saas companies. Currently, he is associated with Omnisend, an e-commerce marketing automation platform built for growing e-commerce businesses. Follow him on LinkedIn.

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