Email marketing has gained a lot of popularity because of high efficiency and greater return on investment. It solves the issues of non-targeted marketing, raises brand awareness, and the messages are easily shareable. As you craft the email marketing strategy, it is important to get the objective right. It is also crucial to understand the following key performance indicators.
This is what many SEO consultants refer as the day-to-day marketing metric. Click-through-rates are easy to follow and calculate based on every message that you release. Besides, it is used to determine the results from various A/B split tests designed to identify better methods of making clients hit your email. When you track the click-through-rates, you get direct insights on the number of people engaging with your brand.
The conversion rates
This is the percentage of people who completed the preferred action after reading your email. You calculate this by finding the percentage of the number of those who completed the targeted action to the total number of emails sent.
Once the target client has opened your email, the next target is making him/her convert (completing the action the email was asking them to). Therefore, if the email was asking clients to download an item; you want to know the percentage of those who actually downloaded. Note that the conversion rate is closely tied to the call-to-action on the email campaign.
The email bounce rates
This is the percentage of the emails sent that were never delivered to the client’s inboxes. The bounces can be either soft or hard. Soft bounces mean that there was a temporary issue with the email address on the recipient side. However, hard bounces result from sending emails to non-existent emails. If you experience soft bounces, it is advisable to try resending the emails. In the event of too many hard bounces, your company may appear like a scammer.
The rate of sharing email
If your email is being shared a lot, it means that the message is carried to more people. This rate is calculated by getting the percentage of the ratio between total shared emails to every 10,000 delivered emails. When the emails are shared, they help to generate new leads to raise ranking and conversion rates. By following the emails being shared, you will know the type of content to use in other emails campaigns.
The email list growth rate
This is the rate that your email list is growing. In addition to the call-to-action metrics, it is important to establish whether the email list is growing or shrinking. Notably, you should expect a natural decay of the email marketing list by about 20%. Therefore, it is important to amplify all efforts targeted at helping to grow the email list throughout the year.
The ROI (Return on Investment)
This is the total revenue from the marketing campaign divided by the entire spread. Determining the ROI should involve assigning values to different leads depending on the probability of making revenue for the company. Then, establish the lead that generated the revenue you achieved via email marketing. This should be the long-term objective because it actually determines whether your online marketing effort is bearing fruits.