Email Marketing campaigns have one of the highest ROI when compared to any other form of marketing campaigns. According to Direct Marketing Association, Email marketing has a ROI of 4,300%. With such high ROI potential, it is crucial that your email marketing campaigns are optimized, and you measure if the campaign is helping you reach your goal or not.
Figuring out which email metrics you need to track in order to determine how you're progressing towards your campaign goal can be confusing. In this post, I list the email marketing metrics you should be paying attention to measuring the success of your email marketing campaigns since what they want to see is real metrics-driven results.
Email Conversions: Not all Email campaigns are intended to drive a purchase, however, most email campaigns have a call-to-action (CTA) such as a click-through to register to an event or to download an eBook. Email Conversions calculation is:
Email Conversion Rate = # of actions taken / # of messages delivered
Revenue per Email: This metric gives you an indication on how much revenue you are generating from your email list. If you're using analytics that allows you to track revenue such as Google Analytics, you can simply calculate your revenue per email with this formula:
Revenue generated / (Email quantity sent - number of bounces)
Email Gross Profit: This metric measures how much profit was generated as a direct result of your Email campaign. It is calculated as follows:
Revenue generated from your email campaign - direct costs (cost of platform to send the email, cost of creatives, etc)
Effective Email Cost-per-Thousand (eCPM): This metric calculates the revenue per 1,000 email impressions. It is calculated as follows:
(Revenue generated from Email Campaign - Email campaign direct costs) / Total Impressions * 1,000
Email Open Rates: This metric calculates the number of times a given campaign is opened. This is done by including an invisible pixel in your email campaign, and calculating the number of times that pixel was loaded.
Total Email Open Rate Are the total emails opened divided by the total number of delivered emails for the campaign. This is expressed as a percentage.
Unique Email Opens: This metric is similar to an Email Open, but here, duplicate opens are eliminated. This attempts to answer the question, "How many unique individuals viewed this Email campaign?" This metric is a whole number in the form "100,000" or as a Unique Email Open Rate percentage in the form "25%". The denominator is Email Delivered.
It's important to note that: Some email opens can not be detected. For example, the user email client does not load images by default (most email clients on mobiles disable image loading by default), or if the user has selected to receive text-only Emails.
Total Email Click Through Rate: This metric calculates the percentage of how many times a link or multiple links were clicked in your email campaign as it is calculated as follows:
Total Number of Email Link Clicks / Total Email Delivered * 100
Unique Email Click-Through: This metric calculates the percentage of unique link clicks in your email campaign as it is calculated as follows:
Total Number of Unique Email Link Clicks / Total Email Delivered * 100
Click-to-Open Rate: This metric shows you the number of users who clicked after opening, and can be done for both total and unique opens and clicks.
It is generally calculated as either:
Unique Click-Throughs / Unique Email Opens
Total Email Click-Throughs / Total Email Opens.
Email Forwards: This metric measures how many times your email campaign message was forwarded from the original recipient to a new recipient.
Email Unsubscribe Requests: This metric measures the number of contacts unsubscribed from your email list as a direct result of receiving your email campaign message.
Email Complaints: This metric measures how many of your contacts clicked on a link in their email client to report as SPAM or send to Junk.
With these email marketing terms, you can start measuring and evaluating your campaigns effectiveness to compile a more effective email marketing campaign with a higher ROI.
I would like to hear your thoughts and experience in measuring your email marketing metrics. Please do so by leaving me a comment below.