3 Email Campaign Metrics Small Businesses Should TrackPosted: January 6, 2021 - By Melody Gandy-Bohr
Email marketing is a cost-effective way for small businesses to keep in touch and build relationships with clients. You can use email to promote offers and gain more revenue for your business. In fact, email marketing produces the best results of all marketing strategies, with an average ROI of $42 for every dollar spent.
One of the other great benefits of email marketing is that it’s easily measurable. You can track how well your emails perform, allowing you to refine future emails for greater success. For example, you can explore different subject line options, segment your mailing list, or try out email sends at different days or times of the week.
However, the only way to know what’s working is to track key email metrics. No matter the goal of your email campaign, here are three must-know metrics every small business should track.
#1: Click-Through Rate
One of the most important email metrics to track is your click-through rate (CTR). Simply put, CTR is the measure of how many people clicked on a link, image, or call-to-action in your email. Understanding click-through rates helps you gauge interest in your content. This is also useful for ensuring that you are sending relevant emails to your subscribers. CTR is calculated by dividing the number of clicks by the number of emails delivered. Determine the number of emails delivered by subtracting the number of bounces (more on that in a moment) from the number of emails sent.
#2: Conversion Rate
The next metric to understand is your conversion rate. The conversion rate shows how many people clicked on a link and took a specific action. For example, your email’s call-to-action can direct subscribers to download an ebook, sign up for a list, make an appointment, or purchase a product. For each email you send, it’s important to identify a goal and use the conversion rate to measure your success. Always have a clear goal in mind for every email.
#3: Bounce Rate
Your bounce rate identifies how many emails got “bounced” back to you. This means that the intended recipient was unable to open the email. The bounce rate is calculated by dividing the total number of emails received by the total number of emails sent. Why do emails bounce? The recipient’s email address may no longer be valid. Or there may be server issues on the recipient’s end that prevent your email from passing through.
A permanent issue—such as an invalid email address—is called a hard bounce, which means it’s not resolvable. By contrast, a soft bounce is temporary, such as bounces caused by server issues. We recommend frequently looking through bounced emails to determine if you need to remove any invalid email addresses. Continuing to send to invalid addresses and having high bounce rates can harm your reputation with internet service providers (ISPs).
Measure the Success of Your Email Marketing
There’s no doubt that email marketing is one of the most powerful tools in your marketing toolkit. After all, an estimated 4 billion people use email today. That’s over half of the world’s population! If you do the hard work of crafting, writing, and designing emails, knowing how they perform is key.
Together, the email metrics we outlined above will help you understand how effective your email campaigns are at reaching your audience. You’ll grow relationships, build trust, and continue to grow your business.