Email Marketing - Top 7 Metrics to Measure Performance

Email Marketing: Top 7 Metrics to Measure
Team Ohana / 4th June 2010
www.ohana-media.com @ohana_media
Ohana Knowledge Series

Email Marketing: Top 7 Metrics to Measure!
email marketing as of today!
Old-kid on the block
It not much talked about as it was 4-6 years back!
Over shadowed
Today, its more cool to talk about – Social Media, Search, Display
But a Smart Marketer knows that Email Marketing still is:
Simple + Reliable + Effective
One of best customer acquisition channels!
And direct marketers, ecommerce & transactional platforms spend 30% of their budgets

the email marketing funnel
Send out email to the database / subscribers
Mail reaches consumer’s inbox
Consumer Opens the Mail
Consumer Clicks on the Links
Consumer Reaches a Landing Page
Consumer does an conversion / transaction / goal
Effective ROI for Email Campaign

metric #1 - delivery rate
Number of Emails Sent – Number of Bounced Emails
Delivery Rate =
Number of Emails Sent
Also Know That:
All email sent is not means all emails delivered
Emails reaching junk mail folder are not bounced; but practically no use for your campaign
Over a period of time, consumers also opt out of mailing list; track the rate as well
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?

metric #2 - open rate
Number of Emails Opened by Consumers
Open Rate =
Total Emails Sent
Also Know That:
All mails delivered are not all mails opened by consumers
Emails might also reach junk folder
A good subject line is critical to grab consumer’s attention and get it opened
Other reasons like – Consumer checking emails on mobile device, in preview mode, checking mails after too many days, etc may affect this metric

metric #3 - subscriber retention rate
No of emails in list – No. of Bounces – No. of Unsubscribes
Retention Rate =
No of emails in list
Also Know That:
This metric is most neglected, its important to measure the retention rate from time to time
Ensure that rate at which the email list is growing is higher thank the shrinking rate
Keep a watch on number of emails sent, unsubscribe rates, quality of content, frequency of email sent to particular email address.

metric #4 - click to open rate
Number of clicks received on email campaign
click to open rate =
No of emails opened by consumers
Also Know That:
This metric is also compared as number of clicks received v/s emails sent
It eventually means when X numbers of subscribers received an email, Y of them clicked and visited your website / landing page
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.

metric #5 - bounce rate
Number of visitors with one page view
Bounce rate =
Number of visits from the email campaign
Also Know That:
Not to be confused as ‘bounce rate of email delivery’
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.
Look at average bounce rates from email campaigns between 15 to 35%.

metric #6 - conversion rate
Number of conversions / goals completed
conversion rate =
Number of visits from the email campaign
Also Know That:
It is great practice to measure performance of every campaign against its conversion rate
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)

metric #7 - revenue per email sent
Total revenue generated per campaign
Revenue per email =
Total emails sent
Also Know That:
This is the best measure to calculate the productivity of your email campaign and also profitability.
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.

Concluding remarks:
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.
Email campaigns still work like magic when done correctly.
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.

Just a little about us
we are not into email marketing:
This presentation is shared as a part of Ohana Knowledge Series. Meant to educate users about online marketing, metrics, social media, & product management.
we are into:
online ad-network
Helping clients reach emerging markets (India & China)
Un-named technology platform
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.

Want to talk to us?
Write to us: aloha@ohana-media.com
Mahalo!
www.ohana-media.com @ohana_media aloha@ohana-media.com

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Email Marketing - Top 7 Metrics to Measure Performance

by Ohana Media on Jun 08, 2010

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Email Marketing - Top 7 Metrics to Measure Performance — Presentation Transcript