The 6 Key Metrics to Track in Your Email Marketing

Email marketing can be powerful and far-reaching -- more people use email than Facebook and Twitter combined -- but you won't get far if you're going in blind.

Email marketing is like any other form of online marketing -- you'll only succeed if you optimize, and optimizing requires data. But which data should you track to learn the most about your campaigns?

The answer to that question depends on the goals of each of your email campaigns. If you're optimizing an email meant to generate sales, you'll look at different data than you would for an email meant to bring visitors to your blog. Keeping these goals in mind will eventually help you optimize more efficiently.

So where to begin?

In this post, I'll review 6 key metrics to track in your email marketing campaigns. I'll also explain how each metric can help to optimize emails with different goals.

Before Getting Started...

You can't collect the data you'll need until you create special tracking URLs through a Web analytics platform. I recommend Google Analytics, a powerful (and free) analytics tool.

In order to track traffic to your website from email campaigns, you'll need to use the URL Builder to create special tracking URLs.

With these tracking URLs installed, you'll see how email recipients react to your campaigns and interact with your website. Then you can really get your hands dirty.

Metric #1: Clickthrough Rate

Clickthrough rate, or CTR, is perhaps the most universally important metric worth tracking. Whether you're promoting a sale or registering subscribers for a webinar, you'll always want recipients to click on links or share buttons in your emails. Engaging email campaigns earn more clicks from recipients. If your CTR is unusually low, then you'll know your messaging needs work.

To calculate CTR, divide your total clicks by the number of emails that reached their destination. Then multiply the answer by 100.

Don't be surprised if your CTR seems low. A study by Hubspot.com found companies that send 16 to 30 emails per month see median clickthroughs of 6.5 percent (and that's twice the CTR of companies that launch just one or two email campaigns per month).

Metric #2: Conversion Rate

If CTR measures engagement, then conversions measure effectiveness.

If the goal of your campaign is to entice people to complete an action -- such as requesting a quote, downloading an e-book or making an online purchase -- then anyone who follows through counts as a conversion.  These actions can be tracked in Google Analytics by setting up Goals.

To calculate your conversion rate, divide the number of email recipients who completed their desired action by the total number of emails that reached their destination. Multiple the answer by 100.

Conversion rates will always be smaller than CTR. However, a strong CTR with a weak conversion rate usually means your offer or your landing page needs some TLC.

Metric 3: Email Sharing/Forwarding Rate

If the goal of your email campaign is to get people talking about your business, then you'll want to pay close attention to your email sharing and forwarding rate. This is a measurement of how many people click on "forward" or "share" buttons embedded in your email. Shares and forwards can help raise awareness of blogs and social media profiles, and they're great for organically advertising compelling services and sales.

To calculate this rate, divide the total number of clicks on share/forward buttons by the total number of emails you've delivered. Multiply the answer by 100.

Shares and forwards also usually bring new people to your email list. Also, this metric can help you understand which campaigns your customers find to be most compelling.

Metric #4: Bounce Rate

Are your emails reaching their intended targets? Although email marketing isn't as engaging as social media marketing, it's still powerful because emails reach their intended targets and have tremendous staying power.

Emails remain in inboxes until they're deleted, creating opportunities for reengagement.

Unless, of course, those emails bounce, meaning they can't be delivered to recipients' inboxes. These can be "soft" bounces -- temporary problems usually resulting from server problems -- or they can be "hard" bounces from email addresses no longer being valid. Too many hard bounces can cause your ISP to flag you as a spammer, which can harm your marketing efforts. Delete invalid email addresses from your lists as soon as you're made aware of them.

To calculate your bounce rate, divide the number of bounced emails by the total number of emails you've sent. Multiply the answer by 100.

Check your bounce rate if an email campaign surprisingly underperforms. You might find that a hardware issue, not a marketing issue, is impeding your efforts.

Metric #5: Growth Rate

Even with stellar CTRs and conversions, your efforts will eventually fizzle out if you're not adding new emails to your list. That's because your list will shrink over time as people get new email accounts, unsubscribe or flag your messages as spam. Your growth rate is the no-nonsense answer to whether you need to more urgently grow your list.

To calculate your growth rate, subtract the number of emails you've lost from your total new subscribers. Divide the answer by the total number of email addresses on your list, then multiply that answer by 100. Positive numbers are good; negative numbers, not so much.

Metric 6: ROI

Is your email marketing campaign profitable, or are you spinning your wheels? Calculating your ROI gives you the answer. You'll definitely need to outfit your emails with analytics tracking URLs in order to learn your overall ROI.

To calculate this metric, divide the amount of money earned by your campaign by the money you've invested in your campaign. Multiply the answer by 100 to get your return on investment. Don't expect all of your campaigns to be profitable right off the bat, especially if you don't have a sizeable email list. But keeping track of your ROI will help you stay within your email marketing budget.

Conclusion

Email marketing is powerful and effective, but only if you know how to optimize. The six metrics reviewed in this article are a great start. Become proficient in monitoring these metrics, and you can rest easier knowing whether your campaigns are hitting their targets.

Email Marketing Lessons from Trump & Clinton

With this year’s election, there sure is a lot to talk about.  It seems like every day we have some new gossip on Trump or Clinton.

But if you sift through all the noise, there’s actually a lot you can learn from this election - specifically with email marketing.  

In this article I’m going to dissect one email from each candidate so you can see what they’re doing right and where they could improve by incorporating email marketing best practices.

Neither candidate is perfect, but one is head and shoulders above the other from an email marketing perspective.  For both candidates, we’ll review a few of the most critical elements of email marketing:

• From name
• Subject line
• Personalization
• Call to action

Let’s start by reviewing an email from Clinton…

The Clinton Email Example

The From name for the Clinton emails is “Hillary Clinton” so the emails appear to be sent from Hillary herself.  This follows email marketing best practices because the email looks personal, which helps increase the open rate (number of people that open the email versus ignore it).

The Subject line for this particular email is “Let me know when your birthday is.”  This is a missed opportunity, which likely hurt the open rate for this email campaign.  There’s no benefit in the Subject line and no compelling reason to open the email.

A much more compelling Subject would have been “I want to send you a gift” since that’s ultimately what the email was about.  Who wouldn’t open an email from Hillary Clinton that said she wants to send you a gift?  Nobody is the answer.

Now on to personalization…  This is again where Clinton’s email falls short. The email is addressed to “Friend” so right away it smells like a generic, mass email (aka “junk mail”).  

Finally, the Call to Action is a button that says “Get a note.”  Since when is a “note” exciting?  It’s not and that’s why this is a weak Call to Action that likely did not get a high click-through rate.

Now let’s review the Trump email example...

The Trump Email Example

Again, the From name is the candidate’s name, in this case Donald J. Trump so it looks like a personal email from Mr. Trump himself.  

The Subject line in this example email is “Hilllary - I’m coming for you.”  In no way is this boring like the Hillary example above.  When you read this Subject you feel like you’re in the middle of a debate fight and you almost can’t resist the urge to open the email to read more.

In other words, Trump’s email creates curiosity which is one of the best ways to get more of your emails opened.

Once you open this email you’re instantly addressed by your first name, which makes it feel like Trump is speaking directly to you.  Plus, midway in the email Trump addresses you by name a second time.  Everyone loves to hear (or read) their name and repeating it throughout an email is a proven way to increase response rates.

Finally, Trump’s Call to Action is a button that says “Contribute $$$ to win.”  It doesn’t just say “Contribute $$$” which is the most obvious Call to Action. Instead, Trump added a benefit to the Call to Action to emphasize why it’s important to take action.  It’s not about contributing, which benefits Trump; it’s about being a part of the winning team.

What Did We Learn?

By reviewing each candidate's email we learned that Trump’s marketing team has done a better job with email marketing compared to Clinton’s marketing team.  

However, with just a few tweaks Clinton’s team can dramatically improve their email performance.  They need to use compelling Subject lines that encourage more opens, include personalization throughout the emails, and highlight the benefit in the Call to Action.  

Remember these examples when you’re drafting your next email campaign. Small edits to each of the key elements highlighted above can make a huge difference in the success of your email marketing.

Marketing 101: Why Conversion is Key to Your Success

Your conversion rate is hands-down the most important metric in digital marketing.

 

Everything you do in online marketing is designed to convert visitors to your website into paying customers for your business.  And conversion rates don't just include sales -- people who make appointments, fill out contact forms, call you, and request free quotes also count as conversions. A conversion can be any desired action that brings your business closer to making a sale.

 

It's easy to get overwhelmed by metrics when getting started in digital marketing. You must watch click-through rates (CTRs) and cost-per-click (CPC) while always considering your return on investment (ROI). But the whole point of digital marketing is to maximize conversions for the cheapest-possible price.

 

In this article, we'll help you understand why conversions are crucial to your success.

 

 

Why Conversions Matter

Increasing the conversion rates of your online marketing campaigns is usually the cheapest way to boost your profits.

 

Think of it this way -- would you rather get more customers from Google AdWords by doubling your ad budget or by optimizing your advertising approach? Optimizing for a higher conversion rate means more bang for the buck. That's a big reason why conversion rates are so important.

 

That's not all - here are three other reasons why conversion rates matter:

#1: Conversion rates can predict success or failure.

Want to know whether your business is on the right track? Conversion rates give a pretty honest assessment, especially once you've optimized your campaigns.

 

With help from analytics reports, you can see which parts of your business get the strongest conversions, and you can predict which audiences are likely to become your best customers. Likewise, weaker conversion rates indicate where your business strategy needs work.

#2: Better conversion rates can save you money.

Campaigns with better conversion rates are generally more efficient than campaigns with weaker conversion rates. A higher conversion rate lets you cover more ground without increasing your ad budget, or you can reduce your ad budget and have cash leftover for testing new marketing tactics.

#3: Focusing on conversion rates will improve your website.

Creating an air-tight sales funnel is the key to boosting conversion rates. Your campaigns, your website and your sales processes need to be as in-sync as possible. As you learn which factors are most important for driving conversions on your website, you'll eventually discover how to make your site more valuable for visitors and customers -- and the benefits of this extend far beyond short-term profits.

How to Boost Conversion Rates

Now that we've reviewed the importance of conversions, the next step is taking action to boost your rates. Here are six easy tips to take your conversion rates to new heights.

 

#1: Sharpen your ads. The first step toward increasing conversions is nailing your ad copy to stand out from the competition.

 

#2: Optimize your landing pages. Deliver on promises made in your ad copy, and use concise, catchy headlines that immediately engage visitors.

 

#3: Test new ad funnels. Create new ads and variations of your landing pages. See how conversion rates change with different advertising approaches.

 

#4: Pare down your audience. Sometimes casting a wider net is better, but tightening your focus to specific consumer groups is an easy way to boost conversion rates.

 

#5: Use FOMO to your advantage. That's the fear of missing out. If you're advertising a sale, say in your ads or on your landing pages that time is running out -- and you can even use countdown clocks for added urgency.

 

#6: Grow your social media. Urge visitors to follow you on Facebook, Twitter and other accounts. Install social media login buttons on your website if it requires a member sign-in; people are much more likely to register using social logins. And if you have a strong social following, display the number of followers or shares on your pages for increased social proof.

 

Conversion Rates Aren't Always Reliable

Conversion rates may be the most universally important metrics in digital marketing. However, any data viewed out of context can be incredibly deceiving. Never be blinded by a high or low conversion rate without carefully evaluating all the data at your disposal.

 

Here are a few ways in which conversion rates can be deceiving:

#1: Higher conversion rates may hide poor performance.

Strong conversion rates are generally positive -- that's what you want. However, you might have a high conversion rate paired with a low sales volume. Or, despite your favorable conversion rate, perhaps high advertising costs are wiping out your ROI. Never assume your campaigns are profitable based on conversion rates alone.

#2: Some of your visitors aren't there to buy.

If you focus too much on conversion rates, you may overlook the multitude of other reasons why people visit your website. Some people may be researching products, and perhaps they'll eventually return to become paying customers. Some may already be customers and they're seeking support or checking on their orders. Do you maintain a blog? You may be building an audience. Don't become so fixated on conversion rates that you forget all the other ways your website is valuable.

#3: Conversion rates can fluctuate with different audiences.

Is your online marketing causing a large influx of new visits? If so, your conversion rates may seem unusually low. That's because new visitors are less likely to buy goods and services than established customers. Also, visitors from different traffic sources tend to convert at different rates. Using Google Analytics reports can help you determine your true conversion rates among different types of visitors.

Conclusion

Conversion rates are immensely important when optimizing your campaigns. Not only do they indicate whether your marketing is profitable, but they also reveal how visitors engage with your website. Conversions aren't all that matter -- you still need to watch your click-through rates, overall spend and numerous other metrics -- but driving conversion rates is generally the key for successful campaigns.