Advanced Email Marketing Metrics

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For the advanced email marketer, this is a guide on which metrics you should be using to evaluate the success of your email marketing campaigns.

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Advanced Email Marketing Metrics

  1. 1. themarketingnut.wordpress.com Advanced Email Marketing Metricsthe marketing nutCrazy about marketing 1
  2. 2. themarketingnut.wordpress.comBounces# of undelivered emails (bounces) / total # of emails sentIt seems very obvious to say it, but if your marketing emails don’t reach peoples’ inboxes, then youremail marketing campaign isn’t going to be very successful or profitable. These are just a few of thereasons why emails “bounce”:  the Internet Service Provider (ISP) you are using  incorrect email addresses (a data cleansing issue)  subject headings and from addresses which look “spammy” (eg, ALL CAPS)  recipients have previously identified your email as junk/spamBy determining the exact number of emails that were delivered and undelivered, there are many actionsto take away including looking at the quality of your customer database and how you use subjectheadings to attract a recipient’s attention and encourage them to open. It also allows you to calculate awhole big bunch of useful metrics like the ones mentioned below.Open to Click Ratio# of clicks / # of emails openedSeeing how many emails were opened is one thing, but no email marketer wants his or her emails to beread without resulting in an action of some sort. With this ratio we can get a good indication of howengaging our emails actually are. There must always be at least one objective for each email marketingcampaign, whether that be that the campaign leads to sales, repeat purchases, cross/up-selling etc. Byusing email marketing software you will be able to see how recipients interact with your emails bytracking the clicks on any links contained within the emails, the first step in the process to your ultimateresult.Conversion Rate# of conversions on website or landing page / total # of emails deliveredConversions, seemingly the holy grail of internet marketing (you’ll see why I only say “seemingly” whenyou read about Customer Lifetime Value) is a very important metric. Conversion rate tells you howeffective your marketing emails are in generating sales, leads or any other type of conversion. If there’san extremely low conversion rate, you need to make changes to address it. 2
  3. 3. themarketingnut.wordpress.comAverage Revenue per Email Sent# of revenue generated by the campaign / total # of emails sentThe most common objective of an email marketing campaign is to increase sales for the company. Byseeing an average for how much revenue that each email (or each marketing segment) generates, youwill be able to determine if your future email campaigns should be sent to just thosecustomers/segments which generate the most revenue.Profitability per Email Sent(total revenue generated – cost of goods sold – campaign cost) / total # of emails sentEmail marketing is a very cost-effective channel for online marketing, however it’s still necessary toevaluate how profitable each campaign has been. For this metric, always divide the profit by the totalnumbers sent (not just delivered) as even though those emails may not make it to an inbox, you are stillpaying to send it.Complaint Rate# of complaints / total # of emails deliveredThis is a metric that often gets overlooked by many email marketers. It’s especially significant if you aresending emails on behalf of a large brand for which brand reputation is of the utmost importance. Manyemails marketers do not report on complaint rate as a complaint is always going to be a negative and itcan be difficult to track a complaint for a specific email campaign. Of course, each complaint will differ inseverity however it is good to have an idea of how wide-scale complaints are, so that you can do somefurther analysis afterwards if needed. 3
  4. 4. themarketingnut.wordpress.comUnsubscribe Rate# of unsubscribes / total # of emails deliveredIf the recipients of your marketing emails are unsubscribing from your mailing list in large numbers, thenyou need to know about it. There may be something about the specific email campaign that doesn’t flywith the customers in your database or they may not have realized that they originally opted-in to yourmailing list (in which case you should make it more clear). The main thing to remember withunsubscribes is that there needs to be a facility to automatically cleanse your database of those peoplewho have unsubscribed; further problems could arise if people who don’t want to receive your emails,keep on receiving them on a regular basis. The best way to ensure that this is happens is by usingintegrated online marketing software. 4

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