If you use email marketing to promote your company's products and services, you've probably wondered what key metrics you need to consider to track the effectiveness of your promotional efforts. As marketers, we use email marketing data to understand what types of emails interest our audience and trigger online purchases. We also need to know what types of emails cause our audiences to unsubscribe from our contact lists and, as a result, opt out of receiving future emails.
In order to grow an email database and effectively nurture existing contacts, there are ultimately 6 email and lead nurturing metrics that every marketer and business owner needs to know:
1) Database size is the number of email contacts in your database. Your database will naturally shrink by about 25% per year as people who are no longer interested unsubscribe, so increasing the size of your database should always be near the top of your priority list.
2) Unsubscribe, or 'opt out' rate is the number of your contacts who have opted out of receiving emails from you by clicking the "unsubscribe" button. If you are able to keep your unsubscribe rate below 5%, then you are doing a good job of segmenting your database and offering great value to specific contact groups.
3) Delivery rate shows the percentage of your emails that actually end up in a subscriber's inbox. If the majority of your emails reach your subscribers, then you have a great sender reputation and your emails are considered to be coming from a trustworthy source. The higher the delivery rate, the more trustworthy spam filters consider you to be.
4) Email open rate is one of the most powerful metrics to measure the success of your email marketing campaign. This metric tells you what percentage of subscribers open an email they receive from you. What is considered a good open rate varies by industry, and can be anywhere between 23% and 49%. A high open rate indicates that the title of your email clearly states the value of the content inside and effectively prompts users to open the email.
5) Click-through rate is the key to lead nurturing. It measures the percentage of people who received and opened your email, and then clicked on a link that was provided in that email. By monitoring your click-through rate, you can not only know how many people follow the links to your website from a certain email campaign, but also compare different campaigns and get better results in the future. People who click on the links in your emails are the ultimate candidates for further lead nurturing, since they have already shown interest in your brand.
6) Campaign conversion rate tracks the percentage of new leads that resulted from recipients opening and reading your email. This is one of main metrics used to determine the success of any given email marketing campaign against previous campaigns. Well constructed, targeted emails that provide high-quality offers result in higher conversion rates.
I hope these top metrics help you as you measure the effectiveness of your email marketing campaigns! Check back here for more ways in which you can increase your email marketing success - and if you want some professional assistance, contact us today for a free consultation.