The effectiveness of email marketing hinges on more than just sending out well-crafted messages; it’s about understanding the impact of those messages on the desired business outcome. And this is where email marketing metrics come into play.
Email marketing metrics provide insights into how recipients interact with the emails, from the moment they are received to the actions taken after opening them. Tracking these metrics is not just a numerical exercise; it’s a strategic approach to deciphering the behavior and preferences of an audience.
1. Open Rate
Open rate is a measure of how many people open or view an email compared to the total number of emails sent. It is calculated by dividing the number of emails opened by the total number of emails sent (excluding those that bounced), then multiplying by 100 to get a percentage. For example, if you send 200 emails, five bounce and 50 are opened, the open rate is [(50 / (200 − 5)) × 100] = 25.64%.
2. Click-Through Rate (CTR)
Click-through rate gauges how often people click on a link, call to action (CTA) or image within an email. To find the CTR, divide the number of clicks by the number of delivered emails, and then multiply by 100 to express it as a percentage. For example, if you send 200 emails, five bounce and 20 recipients click a link, the CTR is [(20 / (200 − 5)) × 100] = 10.26%.
3. Conversion Rate
Conversion rate in email marketing refers to the percentage of recipients who completed a desired action (such as making a purchase) after clicking on a link in the email. This is calculated by dividing the number of people who completed the action by the total number of emails delivered, then multiplying by 100. For instance, if 200 emails are delivered and 10 recipients make a purchase, the conversion rate is (10 / 200) × 100 = 5%.
4. Bounce Rate
Bounce rate refers to the percentage of email addresses in your campaign to which your emails could not be delivered. It is calculated by dividing the number of bounced emails by the total number of emails sent, and multiplying the result by 100. For example, if you send 100 emails and five bounce, your bounce rate is (5 / 100) × 100 = 5%.
5. List Growth Rate
List growth rate measures how quickly your email list is growing. Calculate it by subtracting the number of unsubscribes and email bounces from the number of new subscribers, dividing this number by the total number of email addresses on your list, and then multiplying by 100. For instance, if you gain 50 subscribers, lose five and have two bounces in a list of 1,000, the growth rate is ((50 − 5 − 2) / 1,000) × 100 = 4.3%.
6. Email Sharing/Forwarding Rate
Email sharing/forwarding rate indicates the percentage of recipients who clicked on a “share this” or “forward to a friend” button. To find this, divide the number of clicks on these buttons by the total number of delivered emails, and multiply by 100. For example, if 10 out of 500 recipients shared the email, the rate is (10 / 500) × 100 = 2%.
7. Overall ROI
Overall ROI (return on investment) for email marketing calculates the return on your email campaigns. It’s calculated by subtracting the cost of your email marketing from the revenue generated, divided by the cost of email marketing, and then multiplied by 100. For example, if your campaign earned $1,000 and cost $100, your ROI is (($1,000 − $100) / $100) × 100 = 900%.
8. Unsubscribe Rate
Unsubscribe rate measures the percentage of recipients who unsubscribe from your email list after opening an email. Calculate this by dividing the number of unsubscribes by the total number of delivered emails, and multiplying by 100. If 10 out of 1,000 recipients unsubscribe, the rate is (10 / 1,000) × 100 = 1%.
9. Spam Complaints Rate
Spam complaints rate indicates the percentage of recipients who marked your email as spam. It is calculated by dividing the number of spam complaints by the total number of emails sent, and then multiplying by 100. For example, if three out of 1,000 recipients report your email as spam, the rate is (3 / 1,000) × 100 = 0.3%.
10. Email Readability Score
Email readability score assesses the ease with which recipients can read and understand your email content. Though not a direct metric, tools such as the Flesch-Kincaid Readability Test can provide scores based on the text’s complexity.
11. Mobile Open Rate
Mobile open rate tracks the percentage of email opens on mobile devices. It is calculated by dividing the number of emails opened on mobile by the total number of opened emails. If 300 out of 500 opened emails are on mobile, the mobile open rate is (300 / 500) × 100 = 60%.
12. Delivery Rate
Delivery rate is the percentage of emails that were successfully delivered to the recipients’ inboxes. It’s calculated by subtracting the bounce rate from 100%. Using the bounce rate from the above example, the delivery rate is 100% − 10% = 90%.
13. Engagement Over Time
This metric tracks the level of engagement (such as opens or clicks) an email campaign receives over a certain period. For example, if an email campaign gets 200 opens in the first week, 150 in the second week and 100 in the third week, the engagement over time shows a declining trend. To put it into numbers, you could calculate the average weekly engagement, (200 + 150 + 100) / 3 = 150 opens per week on average.
14. Cost per Lead (CPL)
Cost per lead measures the cost-effectiveness of marketing campaigns. It calculates how much it costs to acquire a new lead, considering all the expenses involved in the marketing efforts. For example, if you spend $1,000 on a campaign and acquire 50 leads, the CPL is $1,000 / 50 = $20 per lead. This means each lead costs you $20 to acquire.
15. Click-to-Open Rate (CTOR)
This metric measures the percentage of recipients who clicked on a link or a call to action within an email after opening it. For example, if you send an email to 1,000 subscribers, and 200 open it, but only 50 click on a link within the email, the CTOR is (50 / 200) × 100 = 25%.
