Measuring Email Marketing Success Made Easy

Email marketing is a highly effective digital marketing strategy to directly connect with prospects and customers. The aim is to generate, nurture and convert leads. Social media may have taken over digital marketing, but email marketing still has its benefits. The success of your email campaigns can be significantly increased if you measure and analyse them carefully and regularly. Here are some metrics that you should track on a regular basis:

1. Open Rate

This is the percentage of email recipients who opened your email. Using a relevant subject line and accurate sender’s name, you can calculate open rate by the following formula:

OPEN RATE = EMAIL OPENED/(EMAIL SENT - BOUNCED RATE)

2. Unsubscriber Rate

This is the percentage of email recipients who have clicked the ‘unsubscribe’ link in your mail. The unsubscriber rate would be high if you are sending too much email or if your subject line does not match with your email body. It can be calculated by the following formula:

UNSUBSCRIBER RATE = NUMBER OF UNSUBSCRIBERS/EMAILS DELIVERED

3.  Complaint Rate

It is the percentage of email recipients who marked your email as ‘spam’. The complaint rate is high when you have a purchased email list or have the wrong target audience. It can be calculated by the following formula:

COMPLAINT RATE = TOTAL COMPLAINTS/EMAILS DELIVERED

4. Click-through Rate

This is the percentage of email recipients who have opened the link given in your mail. It is one of the most important metrics. The low number of times a link is mentioned, unclear anchor text on the link and clumsy body of the email can be reasons behind your low click-through rate. Click-through rate can be calculated by the following formula:

CLICK-THROUGH RATE = NUMBER OF CLICK-THROUGH/EMAILS DELIVERED

 A well-designed email can greatly increase clicks on the email. Here's how you can design a successful email campiagn:

5. Conversion Rate

This is the percentage of email recipients who completed the desired action such as purchase, registration or any other. It can be calculated by the following formula:

CONVERSION RATE = (NUMBER OF CONVERSION/EMAILS DELIVERED) x 100

6. Campaign ROI

This is the overall return on your investment for your email campaign. This measure is important to calculate so that future strategies can be planned accordingly. Try and experiment with new designs and analyse what is performing and what is not. It can be calculated by the following formula:

CAMPAIGN ROI = (SALES - INVESTMENT/INVESTMENT )  X 100

7. List Growth Rate

This is the rate at which your email list has grown over a certain period of time. If your list is not growing, it could result in huge losses for your email marketing efforts. You should build a long list of customers who are genuinely interested in your product. It can be calculated by the following formula:

LIST GROWTH RATE =
[(NEW SUBSCRIBERS - UNSUBSCRIBERS) + EMAIL DELIVERED / SPAM COMPLAINT] / NUMBER OF SUBSCRIBERS X 100

 

If you measure, track and analyse these metrics, you will never go wrong with your email marketing. These should be tracked on a weekly basis, as email marketing is one of the most impactful methods of digital marketing, and should be used wisely.

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