In the world of digital marketing, email is a relatively old communication channel, but despite the growth of other more sophisticated tools it has held its place in most marketing strategies. For a while, there were many who believed that email was no longer effective in marketing, and many believe it is not effective as a sales driver, but should only be used as an engagement tool.
Whatever you are using email for in your marketing, it is important to be sure that it is working for you, but with so many uses for it, there are many possible metrics and measurements for success.
What is it for?
Before you do anything else, think about what you need to use email marketing for. Is it for customer acquisition? Customer retention? Lead generation? All of these? For whatever you are using email marketing, you need to customise your metrics and analytics.
If you are using email marketing to generate initial leads (for example, if you are purchasing data lists and then working people down the sales funnel) then only measuring sales or clicks may not be as important as measuring responses.
What should you measure?
You can have more than one metric, and you probably should have more than one metric, but you need that key performance indicator at the centre of your Analytics. Than one thing that shows whether the campaign was a success or not. On top of that, you can have other indicators that would show you why it wasn’t a success. For example, if your main goal of email marketing is to contact current customers, and push them to purchase again, then sales is the key performance indicator, but open and click through rates will show you whether there is room for improvement.
If you have no sales, and a low open rate, then it may be that email marketing could work for you, but you need to first make your subject lines more inviting.
Putting an email marketing measurement strategy together
When putting together your email marketing strategy, you need to create an email marketing measurement strategy. This can simply be done with a spreadsheet but needs to include these types of metrics:
- Key Performance Indicator: The one thing you’re looking to get out of email marketing
- Sub-Metrics: These are the metrics that show why the KPI is or isn’t good.
So, for a business that is looking to drive sales, your email marketing strategy could be to target customers with daily deals. Therefore, sales generated from your emails is the key performance indicators. Sub-metrics for this would be
- Open rates (as low open rates could stop people even seeing the offers)
- Click through rates (are people even getting to your website? You may need to make your buttons more visible)
- On-Site Conversion Rate (Compare those coming from your email to those who come to the page from other channels. It could be that the destination page is irrelevant to them, but it could be a poorly performing page)
- Unsubscribes / List Size (If you are losing people from your list, or don’t have a big list in the first place, you may need to look at growing it and keeping subscribers.)
If you would rather, we can manage your email marketing, including the metrics so you don’t have to. If you would like to discuss marketing services with us, please get in contact.