5 Key Performance Indicators for Email Marketing

5 Key Performance Indicators for Email Marketing by WebTech Group in St. Louis, Missouri.

(StLouisWeb.Design) Email marketing is an ideal way to keep current customers up-to-date and attract new leads for your business.  With such cost-efficient options available to businesses of any size, email marketing is sure to deliver great returns in terms of expanding its customer base and business expansion.

Finding out when and how frequently your audience prefers receiving emails will create expectations and boost response rates.  Weekly or bi-weekly email campaigns work best.

Marketing Benefits of Email Marketing

Email marketing is an effective way for small businesses to attract new customers while keeping current ones informed.  Email also enables businesses to expand by creating leads which convert to sales.  Email marketing also keeps their audience in the know while offering them valuable content on a cost-effective budget.

Successful email marketing depends on a range of factors, from the content you send and its frequency to who it targets.  To make sure your emails are effective, understand what you hope to gain from them – for instance if you want to attract new customers try offering discounts in your emails, or using autoresponders to nurture leads.

If you want to retain existing customers, sending valuable content such as industry updates, tips & tricks, features or product recommendations may help strengthen customer trust in you and build brand loyalty over time.  This way, they may see you as a reliable source and build brand recognition over time.

No matter your goals, email marketing can help you meet them successfully.  By monitoring the performance of your campaigns and continuously optimizing content creation, email marketing is an invaluable way to expand customer conversions and boost profitability.

Rate of Response of Email Marketing

Email marketing response rates are an important performance indicator, calculated by dividing the total number of replies per email sent by its total volume, then multiplying it by 100.  Email response rates can be affected by various factors including campaign type, subject line content and call to action copy as well as when sent during the day or night.

An increased response rate indicates that your email content is more engaging for subscribers, leading to increased conversions and new business.  You can increase this response rate by personalizing emails for specific subscribers or using trigger emails that automatically sent based on subscriber behavior on your website such as when they add items as favorites or cart.  Some examples include welcome or confirmation emails as well as birthday and anniversary notifications.

Email open rate is also an important metric to monitor; this indicator shows how many recipients actually opened your email and can be affected by other emails that were also delivered at that same time.  An increase in open rates indicates how engaging your content is for readers.

ROI of Email Marketing Campaigns

(StLouisWeb.Design) Email Return on Investment (ROI) measures how profitable email marketing campaigns are for your business.  Tracking this metric is vital as it shows just how much value is being created by email strategy for your organization – if ROI exceeds objectives it shows that all is going according to plan while low ROI indicates adjustments may need to be made in your plan.

Email marketing’s return on investment varies by industry, with retail, ecommerce and consumer goods industries having the highest ROI due to direct sales conversions driven through email.  Meanwhile B2B companies see lower ROI but still reap long-term value through lead nurturing and relationship building through email.

Notably, email team size can have an effect on ROI; smaller teams often struggle to produce effective campaigns at scale and produce only 40:1 ROI while larger teams generate 42:1.  Litmus found that brands with two or fewer members produced an ROI of only 40:1, while those with larger teams average 42:1 returns.

Email marketing ROI can also be affected by using third party tools for email analytics and pre-send testing.  Brands who utilize such tools tend to see an average return on investment (ROI) ratio of 43:1, while brands without such tools report only 37:1.  3rd party tools can help marketers improve their email programs by reducing errors and inconsistencies within emails sent out from them.

Email Marketing – Safe to Send Rate

Care must be taken when sending email marketing campaigns.  If you send too many messages, recipients might become overwhelmed and stop opening or clicking through, leading them to unsubscribe and reduce deliverability rates; worse, they might report you as spammer or block all future email.

To avoid potential problems, it is advisable to gradually increase the frequency and relevancy of your emails to meet audience needs, keeping your reputation intact while preventing negative responses from subscribers.

Personalizing and including geographic data in your emails will ensure they reach the intended recipients, while encryption should be considered when sending sensitive material in order to protect subscriber privacy.

Last, for maximum effect, it is best to send promotional emails on weekday mornings or early afternoons, as these times tend to have lower email volume and higher open rates than other times of the day.  Furthermore, it is wise to avoid sending any emails which could be seen as spam such as those with clicking-bait subject lines or use of GIFs, and always include your company name in the from name field in order to comply with CAN-SPAM regulations.

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