Email Marketing - Top 7 Metrics to Measure Performance


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Email Marketing - Top 7 metrics to measure performance and understand effectiveness of your campaigns. Understanding how to measure ROI on your email marketing spends.

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Email Marketing - Top 7 Metrics to Measure Performance

  1. 1. Email Marketing: Top 7 Metrics to Measure<br />Team Ohana / 4th June 2010<br /> @ohana_media<br />Ohana Knowledge Series<br />
  2. 2. Email Marketing: Top 7 Metrics to Measure!<br />email marketing as of today!<br />Old-kid on the block<br />It not much talked about as it was 4-6 years back!<br />Over shadowed<br />Today, its more cool to talk about – Social Media, Search, Display <br />But a Smart Marketer knows that Email Marketing still is:<br />Simple + Reliable + Effective<br />One of best customer acquisition channels!<br />And direct marketers, ecommerce & transactional platforms spend 30% of their budgets<br /> @ohana_media<br />Ohana Knowledge Series<br />
  3. 3. Email Marketing: Top 7 Metrics to Measure!<br />the email marketing funnel<br />Send out email to the database / subscribers<br />Mail reaches consumer’s inbox<br />Consumer Opens the Mail<br />Consumer Clicks on the Links<br />Consumer Reaches a Landing Page<br />Consumer does an conversion / transaction / goal<br />Effective ROI for Email Campaign<br /> @ohana_media<br />Ohana Knowledge Series<br />
  4. 4. Email Marketing: Top 7 Metrics to Measure!<br />metric #1 - delivery rate<br />Number of Emails Sent – Number of Bounced Emails<br />Delivery Rate = <br />Number of Emails Sent<br />Also Know That:<br />All email sent is not means all emails delivered<br />Emails reaching junk mail folder are not bounced; but practically no use for your campaign<br />Over a period of time, consumers also opt out of mailing list; track the rate as well<br />Keep a check of how old/new are email addresses. Users might have also moved to a new email address… is your system updated with that?<br /> @ohana_media<br />Ohana Knowledge Series<br />
  5. 5. Email Marketing: Top 7 Metrics to Measure!<br />metric #2 - open rate<br />Number of Emails Opened by Consumers<br />Open Rate = <br />Total Emails Sent<br />Also Know That:<br />All mails delivered are not all mails opened by consumers<br />Emails might also reach junk folder<br />A good subject line is critical to grab consumer’s attention and get it opened<br />Other reasons like – Consumer checking emails on mobile device, in preview mode, checking mails after too many days, etc may affect this metric<br /> @ohana_media<br />Ohana Knowledge Series<br />
  6. 6. Email Marketing: Top 7 Metrics to Measure!<br />metric #3 - subscriber retention rate<br />No of emails in list – No. of Bounces – No. of Unsubscribes<br />Retention Rate = <br />No of emails in list<br />Also Know That:<br />This metric is most neglected, its important to measure the retention rate from time to time<br />Ensure that rate at which the email list is growing is higher thank the shrinking rate<br />Keep a watch on number of emails sent, unsubscribe rates, quality of content, frequency of email sent to particular email address.<br /> @ohana_media<br />Ohana Knowledge Series<br />
  7. 7. Email Marketing: Top 7 Metrics to Measure!<br />metric #4 - click to open rate<br />Number of clicks received on email campaign<br />click to open rate = <br />No of emails opened by consumers<br />Also Know That:<br />This metric is also compared as number of clicks received v/s emails sent<br />It eventually means when X numbers of subscribers received an email, Y of them clicked and visited your website / landing page<br />If you user email campaigns regularly, also know your average open rate all times and gauge performance of every mailer against the average. This will help you know your performance on every campaign and it has to keep on improving.<br /> @ohana_media<br />Ohana Knowledge Series<br />
  8. 8. Email Marketing: Top 7 Metrics to Measure!<br />metric #5 - bounce rate<br />Number of visitors with one page view<br />Bounce rate = <br />Number of visits from the email campaign<br />Also Know That:<br />Not to be confused as ‘bounce rate of email delivery’<br />Higher bounce rate means the proposition of your landing page is incorrect or not in sync with the messaging that enabled user to click and reach the landing page.<br />Look at average bounce rates from email campaigns between 15 to 35%. <br /> @ohana_media<br />Ohana Knowledge Series<br />
  9. 9. Email Marketing: Top 7 Metrics to Measure!<br />metric #6 - conversion rate<br />Number of conversions / goals completed<br />conversion rate = <br />Number of visits from the email campaign<br />Also Know That:<br />It is great practice to measure performance of every campaign against its conversion rate<br />Also measure other critical components like – number of pageviews, time spent, repeat visitors, fall-out of consumers across transaction funnel (if conversion means a payment)<br /> @ohana_media<br />Ohana Knowledge Series<br />
  10. 10. Email Marketing: Top 7 Metrics to Measure!<br />metric #7 - revenue per email sent<br />Total revenue generated per campaign<br />Revenue per email = <br />Total emails sent<br />Also Know That:<br />This is the best measure to calculate the productivity of your email campaign and also profitability.<br />If you are using an email service that is charged by per email sent; this metric should also allow you to ensure profitability of your email campaign by comparing revenue generated against cost incurred.<br /> @ohana_media<br />Ohana Knowledge Series<br />
  11. 11. Email Marketing: Top 7 Metrics to Measure!<br />Concluding remarks:<br />It takes a time for 7 to 14 days for a email campaign to complete its desired impact. Do not panic if the numbers don’t seem healthy on 2nd or 3rd day of campaign.<br />Email campaigns still work like magic when done correctly.<br />Consumers who opt-in to your email subscription list are more likely to convert than others done by spam. Focus on efforts to get subscribers to your email list by their choice.<br /> @ohana_media<br />Ohana Knowledge Series<br />
  12. 12. Email Marketing: Top 7 Metrics to Measure!<br />Just a little about us<br />we are not into email marketing:<br />This presentation is shared as a part of Ohana Knowledge Series. Meant to educate users about online marketing, metrics, social media, & product management.<br />we are into:<br />online ad-network<br />Helping clients reach emerging markets (India & China)<br />Un-named technology platform<br />In limited alpha stage – our own proprietary technology platform that lets advertisers combine their search, display, social & natural search efforts through retargeting & real time audience segmentation.<br /> @ohana_media<br />Ohana Knowledge Series<br />
  13. 13. Want to talk to us?<br />Write to us:<br />Mahalo!<br /> @ohana_media<br />Ohana Knowledge Series<br />