Email marketing has emerged as the most effective and cost-efficient marketing channel due to several key factors. Firstly, Email marketing KPIs, allow businesses to track and analyze each activity of their campaigns and provide valuable insights into customer behavior and engagement. With detailed metrics at your disposal, you can make informed decisions to enhance your marketing strategies.
Many marketers consider open and click-through rates as crucial metrics for campaign success. But there are other Email Marketing KPIs and metrics that often go unnoticed. To ensure the success of your email marketing campaigns, it’s crucial to monitor other important key performance indicators (KPIs) that provide valuable insights into their effectiveness.
In this article, we will explore the top 15 email marketing KPIs, along with their metrics and formulas, to help you measure and optimize your campaigns for maximum impact.
1. Open Rate
The open rate is a key metric in email marketing that measures the percentage of recipients who open your emails. It provides insights into the effectiveness of your subject lines, sender name, and overall email content in capturing recipients’ attention and encouraging them to engage with your message.
Calculation of Open Rate:
Open Rate = (Unique Opens / Delivered Emails) * 100
To calculate the open rate, divide the number of unique opens (the number of recipients who opened the email at least once) by the number of delivered emails and multiply the result by 100 to get the percentage.
2. Click-Through Rate (CTR)
Click-Through Rate (CTR) is an important metric in email marketing that measures the percentage of contacts who clicked on a link in your email. It indicates the level of engagement and interest generated by your email content, as well as the effectiveness of your call-to-action (CTA).
Calculation of Click-Through Rate:
CTR = (Unique Clicks / Delivered Emails) * 100
To calculate the click-through rate, divide the number of unique clicks (the number of recipients who clicked on a link) by the number of delivered emails and multiply the result by 100 to get the percentage.
3. Conversion Rate
Conversion rate is a crucial metric in email marketing that measures the percentage of recipients who complete a desired action after clicking on a link in your email. It represents the effectiveness of your email in driving recipients to take the intended action, such as making a purchase, filling out a form, or subscribing to a service.
Calculation of Conversion Rate:
Conversion Rate = (Conversions / Unique Clicks) * 100
4. Bounce Rate
Bounce rate represents the percentage of emails that were not successfully delivered to customer’s inboxes. It is categorized into two types: hard bounces (permanent delivery failures) and soft bounces (temporary delivery issues). Read the difference between Hard Bounce and Soft Bounce.
Calculation of Bounce Rate:
Bounce Rate = (Total Bounces / Total Sent) * 100
5. Unsubscribe Rate
Unsubscribe rate indicates the percentage of recipients who opted out of receiving future emails from your campaign.
Calculation of Unsubscribe Rate:
Unsubscribe Rate = (Unsubscribes / Delivered Emails) * 100
6. List Growth Rate
List growth rate shows the rate at which your email subscriber list is growing. It is calculated by subtracting the number of unsubscribes and email/spam complaints from the number of new subscribers, divided by the total number of subscribers at the beginning of the period, and multiplying by 100.
Calculation of List Growth Rate:
List Growth Rate = ((New Subscribers – Unsubscribes – Complaints) / Subscribers at the Start) * 100
7. Spam Complaint Rate
Spam complaint rate is a crucial metric in email marketing that measures the percentage of recipients who mark your emails as spam or report them as unsolicited or unwanted. It indicates the level of dissatisfaction or lack of engagement among recipients and can have a significant impact on your email deliverability and sender reputation. You can use Free spam checker tools to prevent email spam.
Calculation of Spam Complaint Rate:
Spam Complaint Rate = (Number of Spam Complaints / Number of Delivered Emails) * 100
To calculate the spam complaint rate, divide the number of spam complaints received by the number of emails delivered and multiply the result by 100 to get the percentage.
8. Revenue per Email
This metric measures the average amount of revenue generated per email sent.
Calculation of Revenue per Email:
Revenue per Email = Total Revenue / Delivered Emails
9. Return on Investment (ROI)
ROI helps determine the profitability of your email marketing efforts. It is calculated by subtracting the total cost of email marketing from the total revenue generated, dividing it by the total cost, and multiplying by 100.
Calculation of Return on Investment (ROI):
ROI = ((Total Revenue – Total Cost) / Total Cost) * 100
10. Forward/Share Rate
The forward/share rate measures the percentage of recipients who shared or forwarded your email to others.
Calculation of Forward/Share Rate:
Forward/Share Rate = (Forwards/Shares / Delivered Emails) * 100
It is calculated by dividing the number of forwards/shares by the number of delivered emails and multiplying by 100.
11. List Churn Rate
List churn rate indicates the rate at which subscribers are leaving your email list over time.
Calculation of List Churn Rate:
List Churn Rate = ((Unsubscribes + Hard Bounces) / Subscribers at the Start) * 100
12. Click-to-Open Rate (CTOR)
CTOR measures the percentage of unique clicks compared to unique opens. It provides insights into the relevance and effectiveness of your email content.
Calculation of Click-to-Open Rate (CTOR):
CTOR = (Unique Clicks / Unique Opens) * 100
13. Mobile Open Rate
Mobile open rate specifically measures the percentage of recipients who opened your email on mobile devices. It helps optimize your campaigns for mobile users.
Calculation of Mobile Open Rate:
Mobile Open Rate = (Mobile Opens / Total Opens) * 100
14. Average Order Value (AOV)
Average Order Value (AOV) is a metric in e-commerce that calculates the average monetary value of each order placed by customers. It provides insights into customer spending patterns and the effectiveness of your sales and marketing strategies in driving higher transaction values.
Calculation of Average Order Value (AOV):
AOV = Total Revenue / Conversions
15. Delivery Rate
Delivery rate is an essential metric that indicates the percentage of emails successfully reaching customer inboxes. It provides insights into the effectiveness of your email deliverability and the overall health of your email list.
Calculation of Delivery Rate Formula:
Delivery Rate = (Total Delivered Emails / Total Sent Emails) * 100
Tracking and analyzing the right email marketing KPIs is vital for understanding the effectiveness of your campaigns and optimizing your strategies for better results. By monitoring these top 15 email marketing KPIs and utilizing the provided formulas, you can gain actionable insights into your email campaigns, improve engagement, increase conversions, and maximize your return on investment.
Remember, consistent monitoring and experimentation are key to achieving email marketing success in today’s competitive landscape.