Emails are still one of the most dominating forces in direct marketing. The industry is worth 9.62 Billion US dollars and is growing steadily at 13.3% per year.
One of the main reasons why the marketing industry is so fascinated by email is its trackability. At every stage, there is an email marketing KPI that helps in understanding ~ what is working and what is not.
And in this guide, I am sharing with you the best email marketing KPIs that you must be tracking. Why? Because these are metrics that are directly going to help you understand your audience better and grow your email marketing ROI.
Recently, I created an ultimate eCommerce email marketing guide, sharing the types of emails, examples, and best practices. Have a read to set your best campaigns.
Why Choose Email Marketing In 2023?
Besides the fact that it has the highest ROI in marketing (4200%), Email is a medium of communication for people across the globe. Unlike other mediums, here your customers look forward to hearing from you and engaging with your brand.
According to a poll, 40% of people admit to checking their emails 6 to 20 times a day.
Moreover, email marketing KPIs and metrics are something that helps in building a people brand. It helps you in understanding your audience, communicating with them, creating a personalized experience, and even grow organically.
Using email effectively, you can create a referral program, social media community, and loyal customer base advocating your brand at every single opportunity.
Best Email Marketing KPIs You Must Start Tracking
The Click-through rate is the percentage of email recipients who clicked on the link in your email. It can be one link, or more as well.
The click-through rate helps us track how many percent of the receiver clicks on the link and visited your desired landing page.
The higher it is the better, as the goal of adding a link in the email is to make people visit a page.
For example: If you send out 500 emails out of which 200 receivers clicked on the link to visit your eCommerce, your CTR will be 40%.
The average email marketing click-through rate is between 2% to 5%.
The bounce rate is the percentage of emails that were as sent but weren’t delivered. The reason for the bounce rate can be the full inbox of the receiver or an invalid email address.
Bounce rate is among the most important email marketing KPIs. If the bounce rate is higher, that means our email list is not reliable and can’t be trusted to yield high results.
As a good practice, you must clean your email list regularly.
For example: If you sent out 500 emails out of which 150 bounce, your campaign bounce rate is 30%.
The optimal email marketing bounce rate is between 26% to 40%.
List Growth Rate
The list growth rate is the rate at which people are subscribing to your list. It is a list of positive signals indicating that people look forward to hearing from you.
It also indicates the performance of your lead generation campaigns.
For example: If 500 new subscribers join your list, and 100 subscribers unsubscribe from 10,000 lists of email subscribers, your list growth rate would be 4%.
The unsubscribe rate is the rate at which people opt out of receiving your email. This is a good and ethical email marketing practice that allows people to choose if they want to receive mail from you in the future or not.
It helps in keeping the list healthy, but it is important that the percentage of subscribers is not increasing or is very high.
For example: If 25 people unsubscribed from your list of 500 email subscribers, your unsubscribe rate is 5%.
The average email marketing unsubscribe rate is below 0.5%.
Conversion rate is among the most important email marketing KPIs as it helps us understand what percentage of the email receiver took your desired action after clicking on the link.
This could simply be filling in a form, buying a product, or downloading a file. Conversion rate helps in identifying what percentage of your recipients are taking your desired action.
The higher it is the better.
For example: If 50 recipients bought a product from your eCommerce out of 500, your email marketing conversion rate is 10%.
The average email marketing conversion rate is about 7%.
The forward rate is an email marketing KPI that helps us understand the rate at which your email is forwarded.
The forward, that is the share rate in email marketing is very less. But if you see a share (even the slightest) is a positive signal that content is worth sharing.
For example: If you sent an email to 500 recipients, and 5 of them clicked on the forward button, your forward rate will be 1%.
Revenue Per Email Subscriber
The revenue per email subscriber is an email marketing KPI that helps us keep track of the actual ROI we get from our email list.
You can sort the list in various ways, based on filters like recipients who opened the email, recipients who clicked to visit the site, and more.
You can even calculate Revenue per email subscriber of the whole list as well to learn how much your list is valued on average.
For example: If the revenue generated from your email marketing is $500 out of the list of 500 recipients, revenue per email subscriber is $1.
Subscriber Lifetime Value
Subscriber lifetime value is the value you generate out of your email list of the period of time they have joined the list. This could be for a specific email subscriber or your whole list.
Surely, the goal is to have more and more email recipients with high subscriber lifetime value.
Email marketing KPIs are the way to keep up with insight into the audience. What are their likings, what do they prefer, and what type of content does persuade them to take an action?
Based on your goals, you can pick the KPIs that align with your goal, keep track of them and learn what you need to do to improve your email marketing results.
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