KPI stands for Key Performance Indicator. A key performance indicator is a metric used to measure progress or success. In email marketing, KPIs are used to track the performance of your email campaigns. Common KPIs include open rate, click-through rate, unsubscribe rate, and complaint rate. By tracking these KPIs, you can adjust your email marketing strategy to improve your results.
A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Email marketing KPIs can help businesses track and improve their email marketing performance.
12 KPIs in Email Marketing
- Open rate
Open rate is the percentage of recipients who opened your email.
You can track it using most email marketing platforms.
- Click-through rate
Click-through rate is the percentage of recipients who clicked a link in your email.
You can track it using most email marketing platforms.
- Unsubscribe rate
Unsubscribe rate is the percentage of recipients who unsubscribed from your email list after receiving your email.
You can track it using most email marketing platforms.
- Conversion rate
Conversion rate is the percentage of recipients who took a desired action after receiving your email.
The desired action could be anything from making a purchase to signing up for a free trial.
You can track it using most email marketing platforms.
- Revenue per email
Revenue per email is the average amount of revenue generated from each email you send.
You can track it using most email marketing platforms.
- Average order value
Average order value is the average amount of money spent by customers who purchase something from your email.
You can track it using most email marketing platforms.
- Email list growth rate
Email list growth rate is the percentage of new subscribers you gain after each email you send.
You can track it using most email marketing platforms.
- Delivery rate
Delivery rate is the percentage of emails that are successfully delivered to recipients’ inboxes.
You can track it using most email marketing platforms.
- Spam complaint rate
Spam complaint rate is the percentage of recipients who mark your email as spam.
You can track it using most email marketing platforms.
- Bounce rate
Bounce rate is the percentage of emails that are undeliverable.
This can happen for a number of reasons, such as an invalid email address.
You can track it using most email marketing platforms.
- Engagement rate
Engagement rate is the percentage of recipients who engage with your email.
Engagement can be anything from opening the email to clicking a link.
You can track it using most email marketing platforms.
- Forward rate
Forward rate is the percentage of recipients who forward your email to someone else.
You can track it using most email marketing platforms.
Metrics to Measure Campaign Effectiveness
There are a number of ways to measure the effectiveness of an email marketing campaign.
1. Open rate
Open rates is a very important metric to measure the success of an email marketing campaign because it tells you how many recipients actually opened your email. If you have a high open rate, that means your email subject line was effective in getting recipients to open your email. However, if you have a low open rate, that means your email subject line was not effective and you may want to consider changing it.
2. Click-through rate
Click-through rate (CTR) is another important metric to measure the success of an email marketing campaign. CTR is the percentage of recipients who click on at least one link in your email. A high CTR means that your email was effective in getting recipients to click on a link, while a low CTR means that your email was not effective in this regard.
3. Conversion rate
Conversion rate is another important metric to measure the success of an email marketing campaign. Conversion rate is the percentage of recipients who take a desired action, such as making a purchase or signing up for a newsletter. A high conversion rate means that your email was effective in getting recipients to take the desired action, while a low conversion rate means that your email was not effective in this regard.
4. unsubscribe rate
The unsubscribe rate is the percentage of recipients who unsubscribe from your email list after receiving your email. A high unsubscribe rate means that your email was not effective in keeping recipients subscribed to your email list. However, unsubscribe rates can vary greatly depending on the email provider, the type of email being sent, the frequency of emails, and many other factors. However, some estimates suggest that the average unsubscribe rate for all email providers is around 0.3%.
5. Abuse complaint rate
The abuse complaint rate measures the number of people who have marked your email as spam. This is an important metric to track as it can have a negative impact on your sender’s reputation.
Abuse complaint rate is an important metric to be monitored to understand how your team or company is doing with customer or client acquisition and retention. An abuse complaint rate that is too high means that your company or product is being associated with spam or abusive behavior, which can damage your reputation and negatively impact your bottom line.
A low abuse complaint rate, on the other hand, indicates that your team or product is not associated with spam or abusive behavior.
6. Delivery rate
The delivery rate measures the percentage of emails that were successfully delivered to the intended recipient. It is an important email marketing metric because its also a measurement that relates to a number of other important metrics. Knowing your delivery rate can help you understand what types of content your subscribers prefer, and give you a better sense of the overall quality (or quality issues) of your list.
Finally, remember that your email marketing KPIs are only as good as the data you collect. Make sure to regularly clean your data so it’s accurate and up-to-date. VeriPurge by Labnify will help you get rid of email addresses that do not convert into sales.
Email list health is important
When you have a list that has lower quality, you’re likely to have a higher hard bounce rate, lower deliverability, and your advertising value may increase due to your content ending up in the spam folder, costing you more to deliver your content (and likely to annoy your customers).
Bounced emails are a good email metric to track because they give you insight into whether you have a quality list and if you need to pay some attention to include your Delivery rate or click-through rate as well.
What should I do about bounced emails?
Some bounced email addresses can be fixed and some bounced addresses must be removed from your list. That’s why you want to check with your preferred email marketing platform and check out their bounced email handling options.
Email marketing platforms typically remove bounced email addresses from their list automatically, with the exception of soft bounces. If you are using a self-hosted platform like MailChimp you may want to consider using an SMTP server as an additional layer of protection.
The top 3 KPIs in Email Marketing
1) Open Rates: This is the most important KPI to consider when building an email marketing campaign. The higher the open rate, the more likely people are to click on your emails.
2) Click-Through Rates: Another important KPI for email marketing campaigns, this metric refers to how many emails were opened and then clicked on.
3) Bounce Rate: A bounce is when someone opens your email and then immediately closes it without reading any of it, sometimes even before they’ve finished reading it all. It’s usually a sign that you’re sending too many messages from the same source in your list or not targeting your audience well enough.
How to Measure the KPIs in Email Marketing
The biggest challenge a marketer faces is keeping track of these marketing KPIs using various technologies so they can be compared and analyzed.
To get the most accurate picture of your email marketing KPIs, consider using multiple tools. This way, you can cross-check your data and make sure you’re not missing anything. ConverSpree all-in-one email marketing tool will help you automate most of the processes involved.
One way is to divide the total number of unique visits by the total number of leads produced within the same time period to calculate this KPI. Your website traffic to lead ratio, for instance, would be 10% if you had 1,000 website visitors in January and 100 new leads over the same period.
Also, to measure email marketing campaigns specifically, divide the number of unique clicks on links in emails by the number of times the email was sent. This will give you your email click-through rate (CTR).
Finally, to measure the number of leads that were converted into customers, divide the number of new customers by the total number of leads.
Conclusion
In conclusion, KPI stands for ‘Key Performance Indicator’. This is a metric that is used to measure the success of email marketing campaigns. It is important to choose the right KPIs for your email marketing campaigns in order to ensure that you are able to accurately measure your campaign’s success.
