Email marketing remains an effective way of reaching out to clients – a trend that will continue in the coming years. According to recent email marketing statistics, the total number of emails (both sent and received) per day will be as high as 333B in 2022. Therefore, the potency of email marketing as a digital marketing channel lies in its ability to do most of the functions of other marketing approaches – increase brand awareness, generate sales, and engage customers – at a lower cost. Since the users themselves opt-in to receive, another huge perk is that you’re already marketing to a targeted audience.
More businesses and marketers are using emails as part of their strategy, given its numerous advantages. However, with all the data produced by analytics reports, most solopreneurs and marketers new to email tend to get overwhelmed by the number of metrics involved in running a campaign. In case you missed them, we’ve gathered a list of important KPIs (key performance indicators) you should consider in your assessments.
5 Helpful KPIs to Get You Started
- Inbox Rate: This metric focuses on the delivery rate of your emails to subscriber inboxes and excludes emails that go into the spam folder. The equation is simple: total emails that reached inboxes divided by total emails sent. Compared to a delivery rate, which only counts emails that reach your subscriber’s inbox, this metric shows whether or not your emails are passing spam filters in the first place.
- Opens-By-Device: Similar to open rate, this metric helps identify which devices your subscribers are using to open contents of your email. With the growing market of mobile users and the fact that screen size now affects engagement, this metric allows you to further optimize email content and design based on device usage.
- Click-To-Open Rate (CTOR): The first thing you’re probably wondering is how CTOR differs from click-through rate (CTR). Let’s take a look at how each one is calculated.
CTR: the total number of clicks divided by total emails delivered CTOR: the total number of clicks divided by total emails opened
While the difference might seem small, it’s significant. CTR doesn’t discriminate whether or not the emails landed in the inbox or in the spam folder, or even if they were opened. CTOR, in contrast, does and gives more direct insight into content performance. If you’re seeing low numbers for this particular KPI, it may be that you need to improve the quality of your subject lines, preview text, and your overall content. You can also up your CTOR scores by tweaking layouts to increase the visibility of your links and optimize your anchor texts to be more engaging.
- Revenue Per Email (RPE): Revenue generated divided by the difference between the total quantity of emails sent and the number of emails that bounced. This is not to be confused with RPME or revenue per 1,000 emails. RPE is useful because it puts a dollar amount on the performance of your email campaigns.
According to ClickZ, the advantage of using this metric is that you don’t need to determine costs as you would when calculating for overall ROI. Yet, it still gives you an idea of which campaigns are successfully driving sales. What it doesn’t do, however, is reflect changes to actual revenue profits and losses. As a heads up, to get numbers on revenue generated, you’ll need to look to analytics from your actual business website, mobile app, or wherever the sales transactions were made.
- Revenue Per Subscriber (RPS): This metric points out which portion of your audience pool you should be giving additional focus on. Knowing your RPS can also help determine resource and budget allocation for future campaigns.Jilt discusses three methods of calculating RPS:
Method 1: Monthly subscribers / total number of subscribers
Method 2: Total campaign revenue / total number of subscribers who were sent emails during the campaign
Method 3: Monthly email revenue – overhead costs) / number of subscribers
Food For Thought
Don’t be discouraged by low numbers if you’re just starting out. Email marketing accomplishes a lot, but patience is necessary since real results take time. Chances are that you’ll have to test and analyze data from your campaigns and make adjustments as you go – and then evaluate again. As long as you keep employing the best email marketing practices – such as creating relevant, high-quality content for users, avoiding sending out unsolicited emails, and taking the hygiene of your subscriber list seriously – it’ll only be a matter of time before you start seeing positive results.