MARKETING TIP #106
Top 5 ways to use Email Metrics

Our last Marketing Tip, The Strength of Email, sparked a lot of questions about the ways we measure the success, return on investment (ROI), and information that is gathered from an email campaign. Here are the top 5 ways to evaluate, understand and use those metrics:

  1. Open rates, Read rates and Click-throughs
  2. Click-through Rates
  3. Lead Generation and Sales Qualifying
  4. Links and Forwarding/viral marketing
  5. Conversion and ROI

Open rates, Read rates and Click-throughs
Open rates are usually reported as the percentage of recipients who were recorded opening the email, such as double-clicking on it or viewing it in a preview pane. The percentage can be based on the number of emails sent (the total number of email addresses) or delivered (the number of emails that actually made it to a recipient); on the total number of times it was opened (could be the same recipient clicking on it more than once) or on the unique times it was opened (records recipients that open it, not how many times they open it.) However, it is important to know that some services only track HTML emails. If a recipient opens a text-only version such as on a mobile device, or if they choose not to allow images recognized in their incoming emails, these opens may not be recorded.

Some reporting services may offer a Read rate, which is very similar to the Open rate. Generally, a message is considered Read if it has been open for five seconds or longer.

Once the recipient opens and reads the email and then clicks on a link in your email, this is called a click-through. The link could be to your website or a special offer.

Open rates and Click-throughs work together to show how effective your messaging and campaign is. For example, a high open rate but low click-through rate can be a red flag that your campaign needs help.

Click-through Rate
The click-through rate is the total number of clicks on all links in the email divided by the open rate. This metric can be more powerful and revealing than looking just at opens or clicks. It shows how many of the recipients who opened the email chose to click on a link. It is a great indicator of who was genuinely interested in the email and how good your message is.

Lead Generation and Sales Qualifying
This is probably the most under used information gathered from email campaigns. Just about every email tracking service provides the email addresses of those who clicked on a link. They've shown interest; they are strong leads and warrant their own follow-up whether through another email campaign, direct mail or phone call.

Links and Forwarding/Viral Marketing
Email metrics can provide insight into what links were successful. This can help you get a feeling for what your recipients are looking for and are interested in to help you tailor your content to their needs. It can also help you with determining the path for future products and services. Likewise, pay attention to forwards. When a recipient forwards your email, there is interest. If you see a rise in forwards, you may be onto something that should be continued, developed or deserves further follow-up.

Conversion and ROI
When a recipient performs a desired action based on the email, this is conversion. The action you are trying to get (your goal) could be a monetary transaction, such as a purchase after clicking a link. It could also be registering at a website, downloading a white paper, signing up for a web seminar or opting-in to an email newsletter. Conversion is linked to your ROI. ROI is based on the goals you set when you decide to implement an email campaign. When analyzing your conversion to determine your ROI, you must view the numbers based on these goals - this is the final judge of your campaign.

The professionals at North Star Marketing can help make the most of evaluating these numbers. They can help you determine what your average open rate should be, locate trends within the numbers for your email list and emails, evaluate the effectiveness of your subject lines and other elements that contribute to the success of your email campaign. Give us a call, 717-392-6982 or email info@northstar-m.com. We'll be happy to further explain how email metrics work and how you can use them to grow your brand and your business.

Best,

Bowen Smith
Executive Vice President