Email marketing is a powerful tool that can help you reach your target audience and generate leads and revenue for your business. To make the most of email marketing, you need to track your KPIs (key performance indicators).
In this blog post, we will discuss the top 11 email marketing KPIs that you should be tracking. Knowing which metrics to track will help you measure the success of your email marketing campaigns and optimize them for better results.
Table of Contents
Understanding Email Marketing
Email marketing involves using email communications to promote products or services, build relationships with potential and current customers, and provide information about your brand.
It is a cost-effective and targeted form of marketing that allows business owners to reach a large audience quickly and track their success through key performance indicators (KPIs).
What are KPIs?
KPIs, or key performance indicators, are metrics that can be used to measure the success of a certain aspect of your business.
In email marketing, KPIs can include measures such as open rate, email click-through rate, email conversion rate, unsubscribe rate, and revenue generated from email campaigns.
By tracking KPIs in email marketing, businesses can monitor their overall performance and make adjustments to improve in areas where they are falling short.
Top 11 Email Marketing KPIs
Here is a look at the top 11 email marketing KPIs that you should be tracking:
Open Rate
Email marketing efforts are only as successful as the number of people who open your emails. The open rate is the percentage of recipients who opened your email out of the total number of emails that were delivered.
This metric can give you insight into the effectiveness of your subject lines and overall engagement with your email campaigns. For example, if you send out an email campaign to 100 recipients and 50 of them open the email, your open rate would be 50%.
It’s important to track your open rate over time and make adjustments as necessary to increase engagement with your email campaigns. Your open rate is typically a good indicator of how successful your subject line and sender name were in grabbing the recipient’s attention.
To increase your open rate, try personalizing subject lines with the recipient’s name or segmenting your email list so that you can send more targeted and relevant messages to specific groups of people. You can also experiment with different sending times and frequencies to see what works best for your audience.
Clickthrough Rate
The clickthrough rate, also known as the CTR, measures the number of recipients who clicked on a link within your email out of the total number of emails that were delivered. This metric can give you insight into how effective your call to action and overall message were in driving recipients to take the desired action.
For example, if you send out an email campaign with a call to action to visit your website and 50 recipients click on the link, and you send the email to a total of 500 recipients, your CTR would be 10%.
A low CTR may indicate that your call to action is not compelling enough or that your email content is not relevant to the recipient. To improve your CTR, try experimenting with different calls to action and offers in your email campaigns. You can also segment your email list to send more targeted and personalized messages to specific groups of people.
Unsubscribe Rate
The unsubscribe rate measures the number of recipients who choose to opt out or unsubscribe from your email list out of the total number of emails that were delivered. This metric can give you insight into how well your email content is resonating with recipients and whether they want to continue receiving communications from you.
For example, if you send out an email campaign to 500 email recipients and 10 of them unsubscribe, your unsubscribe rate would be 2%. A high unsubscribe rate may indicate that your email content is not relevant or valuable to the recipient and they no longer want to receive communications from you.
To improve your unsubscribe rate, try sending more targeted and personalized communications to specific segments of your email list. You can also give recipients the option to adjust their email preferences or frequency of communications.
It’s important to provide value in every email you send and give recipients a clear way to opt out if they no longer want to receive communications from you. An example would be to add an unsubscribe link in the emails.
Bounce Rate
The bounce rate measures the number of emails that could not be delivered to the recipient’s inbox out of the total number of emails that were sent. This metric can give you insight into the accuracy of your email list and whether or not your emails are being received by email servers.
For example, if you send out an email campaign to 500 recipients and 50 of the emails bounce, your bounce rate would be 10%. A high email bounce rate may indicate that there are errors in your email list or that your emails are being marked as spam.
To improve your bounce rate, ensure that your email list is up to date and remove any inaccurate or inactive bounce email addresses. You can also work on improving your sender reputation by following email marketing best practices. Avoid spam trigger words in your subject lines and email content to prevent spam complaints.
A high bounce rate can negatively affect your email marketing efforts. For instance, a high bounce rate may lead to your emails being marked as spam and going into the spam folder. This will lower the overall email deliverability rate.
It’s important to regularly clean out and update your email list and work on improving your sender reputation.
Overall Engagement Rate
The overall engagement rate measures the number of recipients who engage with your email out of the total number of emails that were delivered. This metric can give you insight into how well your email content resonates with recipients and the success of your overall email marketing efforts.
For example, if you send out an email campaign to 500 recipients and 50 of them open the email, click on a link, or engage with the content in some way, your overall engagement rate would be 10%. A low overall engagement rate may indicate that your email content is not relevant or compelling enough for recipients.
To improve your overall email engagement metrics, try experimenting with different types of content and offers in your emails. You can also segment your email list and send more targeted and personalized communications to specific groups of people.
Additionally, pay attention to the time and day that you are sending your emails as well as the subject line to ensure that they will stand out in the recipient’s inbox.
It’s important to continually work on improving your overall engagement rate as it can impact the success of your email marketing efforts. A high overall engagement rate shows that your emails are valuable to recipients and can lead to increased conversions and sales.
Email List Growth Rate
The list growth rate measures the number of new subscribers to your email list over a certain period. This metric can give you insight into the effectiveness of your opt-in forms and overall email acquisition efforts.
For example, if you start with 1,000 subscribers on your email list and gain 50 new subscribers over a month, your list growth rate would be 5%. A low list growth rate may indicate that your opt-in forms are not prominent or compelling enough for potential subscribers.
To improve your list growth rate, consider adding more opt-in forms on your website and promoting them prominently. You can also offer valuable content or discounts in exchange for email addresses to incentivize potential subscribers.
Regularly clean your email list to remove inactive or unengaged subscribers. This can eliminate deliverability issues and ultimately lead to more successful acquisition efforts.
Tracking your list growth rate can help you understand the effectiveness of your email acquisition efforts and make necessary improvements. A high list growth rate shows that your opt-in forms and acquisition strategies are successful in gaining new subscribers and growing your email list.
Revenue Per Subscriber
The revenue per subscriber metric measures the average amount of revenue generated for each subscriber on your email list. This metric can give you insight into the effectiveness of your email marketing efforts in driving sales and conversions.
To improve your revenue per subscriber, focus on sending targeted and personalized communications to specific segments of your email list. You can also test out various offers and promotions in your emails to see which ones drive the most sales.
Furthermore, you can identify the subscriber lists that bring in more revenue and target them with special offers or promotions in the future. Tracking and improving your revenue per subscriber can ultimately lead to increased sales and ROI for your email marketing efforts.
Revenue Per Email
The revenue per email metric measures the average amount of revenue generated for each email sent. This metric can give you insight into which specific campaigns or promotions are performing well and driving sales.
To improve your revenue per email, test out different offers, subject lines, and types of content in your emails. You can also segment your email list and send targeted communications to specific groups of subscribers.
Average Email ROI
The email ROI metric measures the return on investment for your email marketing efforts. This metric takes into account the revenue generated from emails as well as the costs associated with creating and sending them.
To improve your email ROI, focus on driving sales and conversions from your emails by segmenting your list and sending targeted, personalized communications. You can also work on reducing any unnecessary costs associated with your email marketing efforts.
Tracking your email ROI can give you a clear understanding of the overall success and profitability of your email marketing efforts. A high email marketing ROI shows that your emails are driving revenue and generating a good return on investment.
Email Forwarding Rate
The email forwarding rate measures the number of times your emails are forwarded by subscribers to their friends or colleagues. This metric can give you insight into how engaging and shareable your emails are.
To improve your email forwarding rate, focus on creating valuable and compelling content that readers will want to share with others. You can also add social sharing buttons to your emails to make it easy for subscribers to forward them.
Tracking your email forwarding rate can help you understand the level of engagement and interest in your emails. A high email forwarding rate shows that your subscribers are finding value in your emails and sharing them with others.
Subscriber Lifetime Value
The subscriber lifetime value metric measures the average revenue generated from a subscriber throughout their relationship with your brand. This metric can give you insight into the long-term value and profitability of your email subscribers.
To improve your subscriber lifetime value, focus on offering valuable content and promotions to your subscribers to keep them engaged with your brand. You can also work on acquiring high-value subscribers through targeted opt-in forms and acquisition strategies.
Tracking your subscriber lifetime value can help you understand the long-term success and profitability of your email marketing efforts. A high subscriber lifetime value shows that your email subscribers are consistently driving revenue for your brand over time.
Benefits of Using Email Marketing KPIs
There are several reasons why tracking and improving your email marketing KPIs is important for the success of your overall marketing efforts. Here are a few benefits:
Provides Insight On Your Performance
Tracking your email marketing KPIs can give you valuable insight into the performance and success of your campaigns.
By monitoring these metrics, you can identify areas for improvement and make changes to optimize your email marketing efforts.
Improves ROI
By focusing on improving your email marketing KPIs, you can ultimately drive higher ROI for your overall marketing efforts.
This can lead to increased revenue and profitability for your business. You can identify and focus on the areas that are driving the most success and revenue for your brand.
Helps Meet Goals
Tracking your email marketing KPIs can also help you stay on track and meet your overall marketing goals.
By monitoring these metrics, you can ensure that your email marketing efforts are aligned with your larger email marketing strategy and promote the desired results.
Better Targeting And Personalization
Tracking and improving your email marketing KPIs can also help with targeting and personalization efforts.
By analyzing metrics such as subscriber engagement and click-through rate, you can better understand what types of content and offers are resonating with your audience. This can help you create more personalized and targeted campaigns that drive higher engagement and conversion rates.
What are Some Bad Email Marketing Practices to Avoid?
A few bad email marketing practices to avoid include:
Buying or Borrowing Email Lists
Many people believe that having a larger email list means more potential customers and better results, but this is not always true. Buying or borrowing email lists often results in low-quality, unengaged subscribers who are not interested in your brand or products.
This can lead to a high number of unsubscribes and spam complaints, negatively impacting your sender reputation and overall email marketing performance.
Sending Too Many Emails
It’s important to strike a balance with the frequency of your email sends. Sending too many emails can lead to subscriber fatigue and result in a higher number of unsubscribes.
On the other hand, not sending enough emails can result in lower engagement rates and missed opportunities to drive conversions.
Not Segmenting Your Lists
Segmenting your email lists allows you to send personalized and targeted messages to specific segments of your audience. This can lead to higher engagement and conversion rates.
On the other hand, not segmenting your lists can result in generic and irrelevant messages that fail to resonate with subscribers.
Not Optimizing for Mobile
With the increasing use of mobile devices, it’s important to optimize your emails for mobile viewing. This includes using a responsive design and short, concise subject lines and content.
Failing to optimize for mobile can result in a lower open and click-through rate as well as a negative user experience for subscriber lists.
Not A/B Testing
A/B testing allows you to compare different versions of your email campaigns and determine which performs better. This can help improve the effectiveness of your emails and drive higher engagement and conversion rates.
When you do not use A/B testing, you miss out on the opportunity to optimize and improve your email marketing performance.
Not Analyzing Your Results
Tracking and analyzing your email marketing KPIs is important for identifying areas for improvement and making changes to optimize your future campaigns. Failing to do so can result in missed opportunities and ineffective email marketing efforts.
Sending Emails Without Permission or Consent
It’s important to only send emails to individuals who have explicitly given their permission or consent. Sending unsolicited emails, also known as spam, can result in a negative reputation for your brand and lower engagement rates. It can also be against the law in certain countries.
Overall, by avoiding these bad email marketing practices and tracking the right KPIs, you can improve the effectiveness of your campaigns and drive towards desired results.
Frequently Asked Questions (FAQs)
How do you optimize email marketing campaigns?
Optimizing email marketing campaigns can include segmenting your audience and targeting them with personalized communications, testing out different offers and promotions, and continuously improving the design and content of your emails.
It can also be helpful to track key metrics, such as email open rate and revenue per email, to understand the success of your campaigns and make any necessary optimizations. Additionally, complying with anti-spam laws and maintaining a clean email list can improve the effectiveness of your campaigns.
What is email marketing analytics?
Email marketing analytics refers to the metrics and data that are collected and analyzed for email marketing efforts. This can include things like open rate, click-through rate, unsubscribe rate, and revenue generated from email campaigns.
By tracking and analyzing these metrics, email marketers can understand the performance of their campaigns and make any necessary optimizations.
What is a good email open rate?
There is no one specific answer to this because it can vary depending on various factors, such as the industry and target audience.
Generally, a high open rate is considered to be between 17-25%. If you are not happy with your current open rate, consider optimizing your email subject lines and sending emails at the best times for your audience.
Remember that a low open rate can also be the result of having a large number of inactive or unengaged subscribers on your email list, so regular cleaning and updating of your list can also improve this metric.
What is a good click-through rate for email marketing?
Similar to the open rate, there is no specific answer to what constitutes a good click-through rate as it can vary depending on various factors. However, a high click-through rate is typically considered to be above 2-3%.
It is also important to consider the overall conversions and revenue generated from the emails, rather than just focusing on the click-through rate alone. Optimizing your email campaigns for mobile devices and personalizing the content for your audience can also help improve the click-through rate.
How do you calculate email impressions?
Email impressions refer to the number of times an email campaign is displayed, regardless of whether it is opened or not. To calculate this metric, you would take the total number of emails delivered and divide it by the number of unique email addresses on your list.
This metric can often be inflated as one person may receive the same email multiple times if they are on multiple lists or if the email is forwarded to others. Be sure to track metrics such as open rate to understand the true level of engagement with your email campaigns.
It can also be helpful to track impressions for individual email campaigns as well as for all of your email marketing efforts over a certain period.
How many marketing emails can I send per week?
There is no one specific answer to this as it can vary depending on factors such as your audience and industry. It can also depend on how often your subscribers want to receive emails from you and how engaged they are with your brand.
However, as a general rule, it is best to start slow and gradually increase the frequency, rather than bombarding your subscribers with multiple promotional emails per week from the start.
Offer options for frequency preferences and regularly clean your email list to remove inactive or unengaged subscribers.
Conclusion
We hope this list of essential email marketing KPIs has given you a better understanding of what email marketing metrics to track in your drip campaigns.
From deliverability rates to click-through rates, each metric offers valuable insights into the success of your email marketing efforts.
Monitor each metric to continually improve and optimize your campaigns for the best outcome. Email marketers can benefit greatly from using these email KPIs.
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