“To measure is to know. If you cannot measure it, you cannot improve it.” — Lord Kelvin (physicist who developed the Kelvin temperature scale in 1848)
This idea still holds true today, whether it relates to job performance, business productivity, goal setting, or email marketing campaigns. It is important that every marketer know how to measure and track email campaign metrics in order to determine a campaign’s effectiveness, and to discover potential areas of improvement.
Tips to track email campaign metrics:
First, know what’s important to track
What are the key data points that you need to know about your email campaigns? Some of the most basic metrics that tell you how your campaign is performed include…
- Sent messages – How many emails were sent out?
- Delivered messages – How many of the sent emails were actually delivered?
- Bounces – Emails that you sent but were not delivered, possibly due to temporary issues (soft bounces) like a full inbox, or permanently undeliverable emails (hard bounces) like those due to invalid addresses entered.
- Opened messages – How many recipients actually opened the email you sent them?
- Click rate – How many recipients opened the email and clicked on a link found in the email?
- Unsubscribes – How many people on your mailing list unsubscribed to your email campaign?
- Marked as spam – How many subscribers marked or reported your email as spam?
Next, dig deeper…
The above items are the basic data you need to know to track email campaign metrics. However, you don’t have to stop there. The next two metrics below will give you an even clearer picture for measuring your email success rate.
- Conversion rate – Also known as CTA (call to action) rate, this parameter shows you how many clicks to your email were “converted” into accepting the offer you presented.
- Overall ROI – Any project’s success can be measured by determining the return of the investment you put into it. Did your email campaign generate any leads? Did these leads produce potential or actual income? Was the revenue worth the effort and cost of executing the email campaign?
Now, track revenue and profit…
These metrics can help determine whether your campaign is bringing in financial gains. And isn’t that what running a business is all about?
- Average Revenue per Email Sent = Total revenue / # of emails sent
This helps by verifying if the number of emails you send out is sufficient to bring in revenue. Getting a low value here may be a sign that you aren’t being very successful in targeting the right customers no matter how many emails you send.
- Profitability = (revenue generated – campaign cost – cost of goods sold) / # of emails sent
Measuring profitability and not just revenue helps keep your costs in check and determines if your campaign is costing more than it’s worth.
And finally, get better rates by properly targeting…
Are you receiving very low values on the metrics above? Clearly defining your target market is a good way to increase your conversion rates. Sending a mass email out to every email address you have in your CRM system may not always be a good idea. Narrow your target list and focus on only the people to whom you have something to offer that can provide value — and ditch the rest.
Data is powerful, but it’s also useless unless you apply it to your business to make better decisions. How does your data compare to historical data? What does the data say about your email campaign’s progress? Does it bring in more clients than your other marketing campaigns? What was its profitability? Pay attention to what the data is telling you and use it to rescue a failing campaign, improve your campaign reach or ultimately, bring more profitability to your organization.