Further to the previous post introducing email marketing metrics, this week we are going to take a look at the principles surrounding the top 3 - clickthrough, open and deliverability.
The most tracked email metric is click-through rates. With the tight integration into Sage CRM, you will be able to measure further metrics such as post-click conversions, revenue per email and of course your email ROI.
In order to improve the performance of your clickthrough rate you can use different tests on subject lines, calls to action, content and links. This helps you to determine what is working and importantly, what is not. On that basis you can make the necessary changes - to your list (size, segments), subject lines, incentives and layout to drive this metric. By taking note of what generates higher click-through rates, you can incorporate similar links in future messages.
Segmentation also plays a huge role in increasing your clickthrough rate - by targeting the right offer at the right prospect you will not only increase the level of interest in your product or service, but also reduce campaign cost by removing irrelevant addresses.
Subject lines have the biggest impact on open rates, therefore it's essential that you test headlines to see which subject line performs best. As mentioned in the blogs on "Layout and Design", the template you use, the mix of text/image, the information you place at eye-level above the fold among other things, will all influence performance.
It is also important to note the time and day of the week your email campaigns are sent out. Depending on whether you operate in the B2B or B2C channels and what industry you operate in, the results will vary. B2B tends to work better on Tuesday - Thursday during working hours; B2C tends to be more successful in the evenings and at weekends.
It is important to define a clear formula for calculating the delivery rate and apply it consistently across your email programme, as different companies calculate it in different ways. For example, the simplest method for determining your deliverability rate is:
- Total number of emails ÷ Total number sent
However other companies take a more detailed approach:
- (Total number of emails sent - hard bounces only) ÷ Total number of emails sent.
Making it to the inbox involves a complex set of issues and is a big challenge for email marketers. As mentioned in the blogs on "List Growth and Management", one of the most effective measures for improving your deliverability rate is removing the "deadwood" from your list.
As time goes on and your company reaches a higher level of email marketing maturity, you should look to move beyond operational metrics similar to the above, and assess more tangible returns on your email marketing campaigns.
This could include:
- Revenue per email
- Click-to-purchase conversion rate
- Customer-lifetime-value of email address
- Customer-lifetime-value of your list, or a segment of the list
- Value to your business of permission vs. non-permission customers