Email marketing is a strategy applied to achieve business growth through effective customer outreach. For the majority of businesses and brands that put in the time and effort to build a solid email list and have a proven marketing plan in place, email marketing have been doing really well across the board and is said to have a positive impact on business when done right. While that is interesting, it is not enough information for anyone to simply build a mailing list, market to it, and then find immediate success. For this to all work, there has to be more specific tasks that take place in order to get the most out of your email marketing efforts.
There are plenty of ways for businesses to track the exact ROI email marketing is giving them, which we are going to be covering in great detail in this article. Applying these methods will help inform a lot of business decisions concerning advertising and customer outreach because it reveals the metrics that should be focused on.
Many businesses and brands have some form of email marketing and lead generation in place, but without continually analyzing and improving upon the key points and methods below, there is plenty of money and opportunity being left on the table.
Methods and Solutions for Tracking Email Marketing ROI
Your open rate refers to how often the emails are opened. Keeping a tab on this helps you understand your customer base more. By studying the kind of topics that are opened and the types that are left unopened, you can better understand how to engage your customer’s and get their attention. This way you can focus on only sending out subjects of interest or learning to optimize email subjects. Tracking email open rates is possible with the help of a software like Bitrix24, or through the use of any of the most recommended email list hosting providers out there today. After tracking your open rate and some other metrics regarding customer’s interaction, you can then proceed to work with that by optimizing contents, tailoring messages to suit the observed interest and personalize emails delivery with Dynamic Content and HubSpot
Click through rate: Click through rate is an insight on what kind of links your customers are willing to engage in. this matrix measures the percentage of customers that clicked a link contained within the email. The purpose of email marketing is to get customers engaged, by having them click through and eventually patronize. Click through rate can be checked with Bitrix24 software as well. Measuring the click-through rate monthly is essential to know the kind of contents that inspires action from your customers. Knowing your click-through rate can help you better optimize your anchor text, and of course tailoring your offers to suit consumer’s needs.
while you are focusing on interested customers, you also need to study customers that are leaving. From them, you can get information on the kind of business moves that are counter-productive and as well understand your customers better. This rate refers to the percentage of unsubscribes when placed against the number of emails sent. Any unsubscribe rate above 0.5% should be a call for action from your end because you shouldn’t be losing customers that fast.
This information can help you send out more relevant emails, especially segmented emails.
Click through that converts to patronage is what is called a conversion. Patronage could be anything from purchasing your product/services to filling a form. Conversion rate helps you measure the effectiveness of your sales strategy, it shows how well your sales methods have been able to convince your customers/followers.
To calculate your conversion rate, you need the number of conversions and the number of delivered emails. Get the percentage of the conversions to deliver messages and that becomes your conversion rate. It is important not to measure this percentage against the population of click-through because then it gives a false perception of effectiveness. The goal is to have most of the people who receive your emails convert and not to only focus on those that are already engaging. With this information, you can then proceed to apply effective methods to improve your conversion rate, like making patronage easier for customers. For example, making the purchase easier on websites, and booking of services easier and faster as well.
Complaint rate helps you measure the number of customers that had a problem with your email, which is usually reflected in them marking your emails as spam. Perhaps you are sending to the wrong target group or your emails look shady to consumers, hence inspiring a certain amount of distrust.
Complaint rate is calculated by measuring the number of complaints to your email and calculating a percentage of that number to the number of delivered emails.
From the complaint rate, you can figure out whether you are targeting the wrong group, being too bothersome, sending irrelevant or unrelated content or even repeating email contents.
Unlike other calculations in this list that focuses on emails delivered, the bounce rate takes a look at undelivered emails as well. Emails that were undelivered are referred to as bounce emails and the total number of this is calculated against the total number of emails sent.
Afterward getting a percentage. High bounce rates show a problem of having unresponsive email addresses; it shows that you have to figure out how to be sent to available addresses instead.
Besides taking your word for it, there is a good percentage of potential customers that are more likely to trust a product based on referral. These group of people are the ones that can be gotten with a forward and/or a share.
Asides that, email addresses that share your emails are pointers to customers with high interest in your brand and can be considered ambassadors
This rate refers to the total ROI you get from all your email marketing. To calculate this, business profit from email marketing is measured and the total amount spent on the marketing also calculated. The percentage of the first to the latter is then gotten and used as the Campaign ROI.
Everything on this basically boils down to the Campaign ROI so it is important not to overlook it.
In conclusion, email marketing can be optimized by measuring the right metrics. Arguably business owners consider the metrics mentioned from 1 to 5 of this list as the most important matrixes to focus on and mostly ignore the others. To set yourself apart and be more thorough with your metrics while taking advantage of email marketing, it is important that you keep a tab on more than just the first 5 but all of the metrics on this list. To make it easier, different software can help you get the information you need, for example, Bitrix24.
Email Tracking and Growth Management is Key
If you aren’t actively tracking the performance and engagement of your mailings, you will quickly find yourself left in the dark on how to further improve your email marketing ROI. Open rates, clicks, and delivery rates can all be improved through different split testing, analysis and optimization methods. Be sure to invest some time into each of the methods above and see how you can improve your focus on email marketing, while boosting profits and conversions in the process.
Also, if you are ever looking to increase your list size and attract hundreds of new 100% opt-in subscribers daily, contact us today!