6 Email Marketing Metrics and KPIs You Must Track In 2021        

6 Email Marketing Metrics and KPIs You Must Track In 2021

6 Email Marketing Metrics

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Emails are an excellent tool to market the brand’s products and services.  Email marketing metrics must be observed in 2021 to achieve the goals of effective email marketing campaigns when using a data-driven approach.

So, what are email marketing KPIs?

The marketer uses automated email marketing to send mass emails to potential and existing customers.  However, amidst the lacks of emails being sent, some are opened, missed, rejected, clicked, and so on.

Email marketing KPIs or the key performance indicators measure the performance of the email campaign. There are various metrics that help in determining the effectiveness of email marketing campaigns.  These metrics include the open rate, click-through rate, unsubscribe rates, etc. that will highlight if the campaign is successful or not.

Here are the 6 Email Marketing Metrics and KPIs that you must track in 2021 even before you begin to send a campaign and measure the campaign.

#1.Open Rate (OR)

The open rate refers to the number of emails that were opened by the recipient of the emails as against the total emails delivered by the marketer.  The open rate is an important indicator to measure the success of the campaign and is influenced by the two major components, namely, subject and preheader.

How to calculate Open Rate?

To calculate the open rate, the number of emails opened is divided by the total number of emails delivered multiplied by 100.

You need to apply the following:

Number of emails opened x 100

Total number of emails delivered

 

Generally, the open rate of bulk emails is around 30 percent to 40 percent. With a smaller audience, this can be anywhere between 40 percent to 70 percent. Even if the open rate is more than 20 percent, it is a positive indicator.(source: exponea.com )

To improve the open rate it is suggested that the marketers must choose the attractive and personalized subject line with impactful wording. Creating curiosity among the recipient will increase the chances of the opening of emails. At the same time, the preheader should complement the subject line and within the limited number of characters available.

#2.Click-through rate (CTR)

Click-through rate refers to how many customers have actually received the email, opened it, and clicked the hyperlinks available on the content.  The higher the click-through rate means the email marketing strategy is effective to attract the recipients.  An ideal click-through rate is approx 15 percent. (source: campaignmonitor.com). However, an average click-through rate that the marketers should aim for must be 3 percent to 4 percent. (source: exponea.com)

A lower click-through rate indicates that either the customers were not interested in your email, or they were not convinced enough to click the link.  The click-through rate is also affected by the images, color theme, videos, and other visuals of the email.

How to calculate click-through rate?

To calculate the click-through rate you need to divide the number of clicks by the total number of emails delivered multiplied by 100 and the formula is stated as hereunder:

            Number of clicks                   X 100

Total number of emails delivered

 

To enhance the click-through rate the marketers must run A/B tests frequently on the email copy and style, its design, and the content layout. 

#3.Unsubscribe Rate

When you are sending emails regularly according to the data available, then it is necessary to find out the number of people who have unsubscribed from your email list.  The unsubscribed list of people means the number of people who are not interested in your marketing campaigns or the brand’s products and services, therefore, they chose to unsubscribe and prefer not to receive your emails anymore.

Even though your email marketing efforts were impressive and attractive, yet there is a large segment of the recipient who does open such emails, instead they mark the email as ‘spam’ or ‘junk’. So, next time, the marketing emails will not be delivered and you can consider that the subscriber is lost.  Ideally, the unsubscribe rate should be below 2 percent (source: mailup.com)

How to calculate Unsubscribe Rate?

To calculate the Unsubscribe Rate, you need to divide the number of unsubscribed users and spam complaints by the total number of emails delivered multiplied by 100, and the formula is stated as hereunder:

Number of unsubscribed users + spam complaints   X 100

Total number of emails delivered

 

If you receive any spam complaint or any user applied to unsubscribe your marketing emails, then immediately stop sending the emails to such subscribers.  To lower the unsubscribe rate, it is suggested to evaluate your content strategy, visuals, frequency of sending emails and run multiple tests for solving the level of dissatisfaction or the lack of interest of the recipient. 

#4.Conversion Rate

The purpose of sending the marketing emails is to achieve conversion of the prospects and inducing them to take the specified action.  Conversion rate refers to the number of subscribers who opened the email, clicked the link available, and chose to complete the action required.  The action that the subscribers need to perform could be buying the product or service, downloading, registering, visiting a landing page, watching a video, and similar other actions.

How to calculate Conversion Rate?

To calculate the Conversion Rate, you need to divide the number of purchases or actions completed by the total number of emails delivered multiplied by 100, and the formula is stated as hereunder:

Number of purchases or actions completed  X 100

Total number of emails delivered

 

Higher the conversion rate means better effectiveness of email. The average conversion rate lies between 3 percent to 5 percent, and in certain cases, it can be 15 percent. (source:  exponea.com)

#5.Bounce Rate

Bounce rate refers to the number of people who failed to receive your emails due to temporary or permanent issues with the email addresses.  The higher bounce rate arises due to email addresses being fake, wrong, not in use, old, incorrect, etc.

How to calculate Bounce Rate?

To calculate the Bounce Rate, you need to divide the number of bounced emails by the total number of emails delivered multiplied by 100, and the formula is stated as hereunder:

Number of bounced emails  X 100

Total number of emails delivered

 

Before sending the emails, it is suggested to check and verify the database to avoid bounce rates. 

#6.Return on Investment (ROI)

The Return on Investment refers to the revenue achieved by investing in the email campaign and if the purpose of email marketing is achieved.

How to calculate Bounce Rate?

To calculate the Return on Investment, you need to divide the revenue from sales less money invested by money invested multiplied by 100, and the formula is as follows:

(Revenue from sales – Money invested in the campaign)  X 100

Money invested in the campaign

 

Conclusion

Keeping a track of KPIs and analyzing the same regularly helps in attaining the effectiveness of the email marketing campaign and ultimately achieve the marketing goals and objectives.  These metrics measure and monitor the progress of email campaigns and give you a fair idea of where improvement is required.

 

 

 


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