Digital marketing comes with the perk of being able to instantly track campaign progress. However, unless you’re familiar with the analytics, deciphering all the information can be tricky. Fortunately, you don’t have to! In this series, we’ll be focusing on the Metrics That Matter, beginning with email marketing.
Email services, like MailChimp and Constant Contact, boast advanced analytics that allow users to boil down how, where, and when recipients interact with an email. Following are five, easy to understand metrics that truly gauge the success of the campaign.
Open rates may be the most important email metric, as nothing else can happen until that initial click occurs. The open rate is calculated by taking the number of people that opened your email and dividing it by the total number of recipients. Depending on your industry, average open rates vary. For more flashy industries, such as the arts and hobbies, you can expect one in four people to open your email. Meanwhile, one in five recipients open emails from electronics and retail companies. MailChimp tracked over 1,000 subscribers and found that the overall average open rate is 20.81%. Below average open rates mean that your messaging and/or audience may need retinkering.
The number of accounts that were unable to receive your email contribute to the bounce rate. Bounce rates are broken down into two sub-categories, hard and soft. Hard bounces occur when the email address either has a typo or doesn’t exist, while soft bounces register due to recipient errors, such as the inbox being full or server being down. Ideally, your bounce rate should be lower than 1%; otherwise, it’s time to refresh your list.
Divide the number of unsubscribes by the total number of emails sent to calculate a campaign’s opt-out rate. Sending emails too frequently, spammy messaging, or irrelevant content are some of the more common reasons why those on your list will click the unsubscribe button. Anything higher than a rate of 1% is cause for concern. Once the unsubscribe button has been clicked, your emails will no longer be delivered to that address, so keep an eye out for messages with higher opt-out rates.
Click-through rate (CTR) is based on the amount of emails opened that also had a link clicked. Average CTRs across industries hover around 2.4%. According to HubSpot, there are ways to optimize emails for click acquisitions. Mornings are best for sending an email, with 11 a.m. EST being the sweet spot. Emojis and personalized subject lines with the recipient’s first name see higher CTRs. Mobile comprises almost half of all email opens, so ensuring that your message is mobile-friendly can help prevent it from being trashed.
Conversions are counted when a user opens your email and completes the campaign objective, whether that be signing up for a conference, purchasing an item, or completing a survey. Conversion rates generally range from less than 1% to upwards of 5%. Seeing higher conversion rates begins with targeting the right email addresses. Also, creating a landing page that’s dedicated to elaborating on the email’s content has proven to drastically increase conversions.
These five metrics will help you quickly establish the success of your email marketing campaign. In the next part of our Metrics That Matter series, we’ll be covering pay-per-click (PPC). If you’d like to maximize the effectiveness of your email marketing, our team of digital experts can help. Contact Axis41, A Merkle Company, today to learn more.