With the growing popularity of SEO (Search Engine Optimization) and Social Media Marketing, many businesses think that Email mMarketing is a thing of the past. But, that’s far from the truth. Email marketing is still one of the most cost-effective lead generation strategies for online businesses.
Email marketing is easy to do and inexpensive. You just have to invest in high-quality software that can track, evaluate and automate emails. This marketing strategy allows you to reach a wider global audience. It also has an instant impact because it creates a strong sense of urgency.
Email marketing drives revenue because it takes advantage of impulsive buying and it has an impressive ROI. A dollar spent in 2017 has an estimated $30 return of investment.
But, not all email marketing campaigns are successful. To improve the conversion rate and the overall performance of your email marketing campaign, you must focus on important email marketing metrics.
Email Metrics That Drive Sales and Increases Conversion
Jen owns a dating website and decided to leverage her subscribers and sell a few items through the site. She launched an email marketing campaign to get the word out. But, after a few weeks, her sales remained the same.
Jen’s email marketing campaign was unsuccessful because there was no email engagement and she did not pay attention to the important email campaign metrics.
If you want to maximize the ROI of your email marketing campaign, you have to focus on the following email marketing metrics:
1. Open Rate: The King of Email Marketing Metrics
Open rate is the most important metric for email marketing. How could you make a sale if your potential doesn’t open the email?
Open rate is the percentage of the total number of subscribers who opened the email. It is calculated as the number of opened emails over the number of emails sent less the bounces. This is illustrated as:
Open Rate = Email Opened__________
Email Sent – Bounce Rate
The bounces are the emails that were returned by a recipient email server. There are many reasons why emails bounce. It may be because of typos or because the email domain mane no longer exists.
To have a successful email marketing campaign, your open rate should be around 25 to 40 percent. If your open rate is lower than this, you must follow these tips:
Keep your email title short – preferable 6 to 10 words. Use powerful and positive words.
Be honest. Do not use deceptive email titles.
Remove inactive subscribers. You must only keep active subscribers on your email list.
Segment your email list. This increases the relevancy of your emails. You can classify your subscribers based on their purchasing behavior. This allows you to send different types of emails to different types of subscribers.
Keep a clean code to avoid spam filters.
People don’t open emails during weekends. So, make sure to send your emails during weekdays and from 8 am to 2 pm.
2. Click Through Rate (CTR): One of the Most Powerful Conversion Email Metrics
Click Through Rate of CTR measures how many subscribers clicked on the embedded links in your email. CTR is a powerful metric because it measures how many people clicked on your offer link.
Remember that even if the recipients opened your email, you won’t get a sale unless they click on the link. Here are a few tips that you can use to increase your CTR and improve the overall performance of your marketing campaign:
Place your link strategically.
Incorporate countdown timers in your email to create a sense of urgency.
Create a powerful call to action phrase.
Provide information that’s really useful to your subscribers. For example, if you own a dating website and you’re selling relationship advice ebooks, you can give away few tips, then you could write something like “Do you want your ex back? Click this link”.
Use interesting words to increase email engagement and motivate your readers to take action.
Place the link multiple times in your email and make sure that it blends well with your content.
Everything you chase in life runs way, so you have to make sure that your email content doesn’t sound like a sales pitch. Remember that in sales, content is king. Make sure that your email brings value to your subscribers and it’s not just a waste of time.
But, what’s a great click through rate? The answer varies, but if you really want to maximize the ROI of your email marketing campaign, your CTR rate should be at least 28 percent.
3. Conversion Rate: The Queen of Email Performance Metrics
Conversion rate is measured as the number of people who purchased the product over the number of delivered emails. It’s illustrated as:
Conversion Rate = Number of customers who bought the product through the link
Number of emails sent
Many digital marketing experts would tell you that a 5% conversion rate is a good number to hit. This is true. But, extremely successful online businesses are converting at a much higher rate. If you want to significantly hit your sales, you must have a conversion rate of at least 11%.
To increase your conversion rate, you must follow these tips:
Make your content and purchasing process mobile-friendly. Most people read their emails from their mobile phones.
Tell a story. A good marketer delivers an engaging sales pitch. But, a master marketer tells captivating stories.
Set-up an automated drip campaign. A drip campaign automatically sends an email to your leads after they complete a certain action on your site. You can customize your drips and use them to educate and re-engage your customers. You can also create promotional drips to spread the word about your latest discounts and offers.
Keep your content short and interesting. Use bullet points to avoid losing your reader’s attention.
Test your ecommerce purchasing process and make sure that it’s hassle free. A lot of people abandon their carts because the purchasing process is just too complicated and time consuming.
People will only buy your products if they trust you. This is why you have to put a lot of time and effort in crafting your emails. You have to ensure that you’re giving out accurate information. Leave a phone number or email address. Your subscribers are more likely to buy your products if it’s easy to contact you.
4. Forwarding Rate: The Metric That Measures Brand Advocacy and Email Engagement
This is a great metric to track because it gives you a clear idea of how many eager brand advocates you have. Your marketing efforts can only do so much, so you’ll need the help of people who believe in you and your brand.
Keep in mind that “word of mouth” is still the most powerful marketing tool. A good forwarding rate can significantly increase your sales and revenue.
5. Return on Investment
Email marketing is not that costly. But like what your parents have told you when you were young, money doesn't grow on trees. You must account for every penny that you spend on marketing. This is why you should track your ROI.
To calculate your ROI, you need to divide the money earned during the email campaign period over the total amount of money you spent on email marketing. Then, divide the quotient by one hundred percent.
ROI = Money Earned in Sales during the Campaign Period x 100
The average email marketing ROI is at 37 to 42 percent. You have to stay in that range to get the most out of your campaign.
You also need to look at the revenue per email to identify the most effective email. You also need to look at your revenue per subscriber to identify your customer demographics.
If you find out that your most avid customers are middle-aged women, you have to start writing emails that are appealing to this demographic.
Aside from these five metrics, you may want to also keep track of your bounce rate to make sure that your emails are reaching your customers. You must also track your list growth rate so you can keep it at a robust size.
Tips in Improving Your Email Campaign Metrics
To increase your sales and improve your email marketing metrics, follow these tips:
Send emails regularly, but don’t annoy your subscribers with daily emails. It’s best to send an email once a week or once every two weeks.
Create a catchy title to increase your open rate.
Place your offer link multiple times in your email text.
Include a video. This increases email engagement and can motivate your readers to purchase your product.
Provide value to your customers. You have to create engaging and useful content.
And most of all, check your metrics regularly (preferably weekly). This way, you get to see problem areas right away and change your email marketing strategy if necessary.