10 Email Marketing Metrics and KPIs You Should Be Tracking In 2023
Whether you’re an expert email marketer or just starting your first email marketing campaign, these 10 key metrics will guide you on the right path.
Everyone knows how effective email marketing is regarding the return on investment and other success rates compared to other marketing channels.
- According to Databox, in 2022, 33% of marketers send emails weekly, and 26% send emails often throughout the month.
- As per Litmus, in 2022, 41.5% of brands, down from 78% in prior years, believe email marketing will be essential to their company’s success.
- Email marketing delivers a whopping ROI: 36$ for every 1$ spent.
The list is endless regarding writing down how effective email marketing can be.
Creating and executing email marketing campaigns can be a challenging task. Nonetheless, one can easily ace this task with the right email marketing tool and following the best practices. Although, in the end, all that matters is whether the email campaigns can fulfil your end goal. Importantly, whether or not you can measure if the emails are hitting the set benchmarks.
Importance of Measuring the Performance of Email Marketing Campaigns
I think setting clearly-defined and relevant goals is essential to determine what works and where you fell short in your email marketing efforts. This is particularly true for email marketing as giving privacy the utmost value and importance becomes increasingly essential. All the more, it’s crucial for businesses to keep the clients who have expressed interest in their brand engaged and subscribed.
“If you cannot measure it, you cannot improve it.” – Peter Drucker
Key performance indicators (KPIs) should be tracked to evaluate the success of your email marketing initiatives to comprehend how each campaign is doing separately and collectively fully.
Consistently prioritizing KPIs helps maintain a high-level picture of the data points because the target audience never has a uniform or straight customer journey or purchase pattern. This not only offers but also allows you to modify and improve strategically.
Depending on the business niche and email marketing objective, the email marketing metrics or KPIs you need to measure will vary. However, you should generally start at the top before going down. Every campaign you run should be guided by understanding the type of data you are looking for from your audience, the response or actions you want them to complete, and how these impact the overall email and customer experience.
Here is a list of the email marketing metrics that you cannot afford to overlook if you wish to measure the success of an email marketing campaign effectively. Remember: For the ideal baseline for an omnichannel strategy, take a comprehensive look at your email marketing efforts, including the email data.
What are email marketing metrics and KPIs?
KPIs show how your email marketing is doing about the objectives you set for each campaign.
Some essential email performance measures will decide your overall email marketing strategy, even though each campaign is unique. You can use these to establish your own email KPI standards.
Review each metric for the current campaigns and contrast it with the previous email marketing campaigns. Different KPIs help to analyze various aspects of email marketing campaigns, like email performance, email list health, ROI, and email engagement.
10 Essential Email Metrics and KPIs you should be tracking
1. Email Open Rate
The email open rate, which is the percentage of your delivered emails that were “opened,” is an excellent way to assess the efficacy of subject lines, keep track of email deliverability, and gauge highly engaged subscribers. You’ll be able to learn more about your previous brand awareness via open rate. The available rate might indicate that subscribers have evolved to value your brand and believe your emails are worth it. It can also indicate how well your previous emails resonated with your audience.
Remember that now Apple’s Mail Privacy Protection has also come into play. This has a significant impact on open email rates. Thus, the email available rates can be longer, wholly reliable, and sometimes inaccurate.
2. Click-through Rate
Your list’s engagement with your email and interest in finding out more about your company, its products, or your offer can be directly inferred from your email’s clickthrough rate (CTR). It essentially functions as a “day-to-day” email marketing statistic because it makes it simple to determine the effectiveness of every email you send. From there, you may monitor the evolution of your CTR. Additionally, CTR reveals a lot about the quality of an email marketing campaign.
Since A/B testing is typically created to discover fresh approaches to increase email clickthrough rates, CTR is frequently used to ascertain the outcomes of these experiments.
3. Unsubscribe Rate
How many people unsubscribe from your emails is indicated by the unsubscribe rate. Generally speaking, you should aim for less than 1-2 per cent to maintain deliverability. Depending on the email marketing tool you select, whether a person truly opts out or clicks your unsubscribe link will affect whether an unsubscribe is recorded.
You can determine the health of your email list and the effectiveness of your content by monitoring your unsubscribe rate. Additionally, unsubscribes are only sometimes a sign of unsuccessful campaigns; instead, they can be utilized to confirm that the people receiving your emails are the correct audience and interested in hearing from you.
Allowing subscribers to opt out and making the process simple promotes trust that you appreciate their feedback and the customer experience.
You can use the data about unsubscribe rates to decide whether to alter your sending frequency, content or sign-up processes.
Additionally, it aids your email service provider in evaluating your campaigns and ensuring they adhere to recommended practices for email marketing, such as when obtaining consent.
What causes high unsubscribe rates?
Plenty of reasons may spark high unsubscribe rates. Poor email list quality and ‘aggressive’ campaigns can be some of the causes of unsubscribing. If so, examine your email analytics tool more closely and determine whether the conversions and return on investment outweigh the expense of acquiring new connections.
4. Spam Complaint Rate
Irrelevant emails, absurd email sending frequency, and sending emails to disengaged contacts may lead to high spam rates. Moreover, if the recipients do not find an unsubscribe link, they are more likely to mark the email as spam.
A high complaint rate over time might negatively impact deliverability and put you in hot water with your email marketing service provider.
To minimize your spam rate:
- Send emails only to subscribers who have given you their explicit consent.
- Use the double opt-in method.
- Make unsubscribing simple by providing an easy-to-find unsubscribe link in every email.
- Refrain from using third-party paid email lists.
- Send welcome emails to newly registered contacts.
Email service providers will automatically transport emails to the spam folder if they are frequently flagged as spam. This could harm your email sender’s reputation and take months to fix.
5. Conversion Rate
The email conversion rate counts how many recipients of your email took action after opening it. Any activity that results in a conversion, such as filling out a form or signing up for an event or purchase. There could be multiple conversion points in an email, and each must be recorded independently.
The best indicator of how campaigns are doing, what is connecting with customers, and what is generating revenue is the number of conversions. It’s crucial to keep the client’s journey in perspective, though. Although conversions rarely happen immediately, your efforts have been worthwhile. Emails and advertisements are constantly bombarding consumers. They occasionally require more messaging to move them through the conversion funnel, especially if it is tailored to them personally.
6. Email Deliverability Rate
100% email deliverability is a myth. Even if you use an effective email marketing tool, it does not mean all your emails will reach the targeted recipient’s inbox (although they may land in the spam box).
There are a few things you need to take into account when calculating the email deliverability rate.
- For instance, if recipients open 80% of your emails, then 20% of them may not even exist.
- Second, you must determine whether your deliverability rates have suddenly dropped.
- Your email could be marked as “delivered” but also in the spam folder.
When using a shared IP address rather than a dedicated IP, an ISP may occasionally add the sender’s email address to a blacklist. In this case, you must identify and solve the issue as soon as possible. Several factors influence the deliverability of your emails, but the best approach to keep it high is to follow anti-spam laws and the best email marketing practices.
7. Bounce Rate
The number of your sent emails that bounced, or were not delivered, irrespective of whether it was a soft bounce, a brief issue with email addresses or servers, or a hard bounce, is known as the email bounce rate.
A high bounce rate is a warning that the email addresses on your list are unreliable, usually due to improper list hygiene practices or problematic acquisition sources. If you wait to act immediately, it can eventually hinder your email’s ability to reach the inbox and will portray you as a spammer.
A fantastic technique to determine the calibre of your email list and whether you need to look more into what’s generating issues is to compare bounce rates against open.
Requiring double opt-in is one technique to increase safety and reduce bounce rates. In this subscription method, a new email address is only added to your mailing list once the owner of the address clicks a confirmation link in an email sent to them following they opt-in via a form or checkbox.
8. List Growth Rate
Your email subscriber list’s growth rate reveals whether it is expanding or dwindling. A growing list shows that your readers are interested in what you provide and like it. Just to let you know, an unresponsive email list indicates that your strategy needs to be improved. In the worst-case situation, your email list can be contracting rather than expanding, necessitating a big adjustment to your email marketing approach.
Making email content that is click-worthy, read-worthy, and share-worthy is an effective way to guarantee a consistent organic list growth pace. Your email list will automatically grow as more and more people find the email content more engaging.
An SEO-focused email marketing campaign to generate leads is a terrific way to boost the list’s growth rate.
9. Click-to-Open Rate
The ratio of unique clicks to unique opens is known as the click-to-open rate (CTOR). This figure represents how well the email’s message, layout, and content functioned and whether the recipient was sufficiently stimulated to take the intended action or respond in a particular way.
In contrast to the click-through rate, the click-to-open rate measures the proportion of clicks to opens (rather than the number of delivered emails). Because these clicks are exclusively from people who read your email, you may better understand how your audience responded to the email campaigns.
CTOR data will help you better understand what excites your email client base when you combine this with the analytics you’re presumably already using. Capitalizing on their excitement is the key to getting your potential consumer to participate more fully in your email marketing activities.
10. Return on Investment
This email marketing metric calculates your email marketing campaigns’ profitability. You must monitor their return on investment to know whether sending emails is profitable.
Of all the digital marketing channels, email marketing provides the best return on investment. Please let me know whether email marketing is worthwhile.
Click to Open Rate (CTOR): How to Calculate it & What is a Good CTOR?
Click Open Rate (CTOR) is a substantial email marketing metric that measures the effectiveness of your email in engaging recipients who have opened it. It indicates the percentage of opened emails that resulted in a click on a link within the email. CTOR provides insights into the relevance and persuasiveness of your email content.
To calculate CTOR, divide the number of unique clicks by the number of unique opens and then multiply the result by 100 to get the percentage. For example, if your email received 200 unique opens and 40 recipients clicked on a link, the CTOR would be (40/200) * 100 = 20%.
A good CTOR varies depending on factors such as your industry, target audience, and the nature of your email campaign. However, generally, a CTOR above 20% is considered favourable. A higher CTOR indicates that your email content was engaging and compelling enough to prompt recipients to take action.
To improve your CTOR, consider implementing the following strategies:
- Compelling Subject Lines: Craft subject lines that pique recipients’ curiosity and entice them to open your email. A higher open rate will ultimately contribute to a higher CTOR.
- Personalized Content: Tailor your email content to resonate with individual recipients. Personalization creates a sense of relevance and increases the likelihood of recipients engaging with your email.
- Clear Call-to-Action (CTA): Ensure your email has a clear and prominent CTA that directs recipients to take the desired action. Use persuasive language and visually appealing buttons or links to encourage clicks.
- Relevant and Valuable Content: Deliver informative, valuable, and relevant content to your recipient’s interests and needs. This enhances engagement and increases the chances of recipients clicking on links within your email.
- A/B Testing: Conduct A/B tests to compare different email variations and determine which ones yield higher CTOR. Test elements such as subject lines, layout, design, and placement of CTAs to optimize engagement and click-through rates.
By calculating and monitoring your CTOR, you can gauge the effectiveness of your email content and make data-driven decisions to enhance engagement and drive better results in your email marketing campaigns.
To derive the most out of email marketing metrics:
- Track relevant and right email marketing metrics and KPIs.
- Break down the KPIs’ data per your marketing objective to better understand the email marketing performance.
- Shift the metrics as the email marketing campaigns scale in a broader spectrum.
Key performance indicators are essential for conducting an email marketing campaign successfully. Finding the most efficient email marketing tactics quickly becomes a guessing game without assessing the progress.