In an era when customers and businesses constantly interact with each other, the importance of email marketing campaigns has obviously increased. Electronic mailing systems allow every business to maintain a relationship with its customers, turning them into loyal and satisfied brand ambassadors as time goes by.
One of the most important and often discussed questions in the field of email marketing is How to keep track and analyze the results of your email marketing campaign?
The Open Rate: Crossing the threshold is only the first step
The first indicator you should consider is the Open Rate which will show you the percentage of people who received and opened the commercial email sent to them. The average open rate is considered to be between 20% and 35% only. That is the range you should look for.
Needless to say however, the relatively low rates can be explained by the enormous amount of emails arriving daily in one's inbox. At the same time, there are several techniques and tips that can help you increase the opening rate: Among other things we recommend sending the email from a personal email address, rather than from a generic one, while at the same using both an effective and attractive subject headline.
The CTR (Click-through Rate): Leading the clients to your website
While the opening rate is important, it is clearly not the most important thing, as it is the only the first step in the entire process. During the second and the more important stage, you will have to measure the percentage of people who received the mail, opened it and actually clicked on one of the links that appeared inside. This indicator will provide you with the exact figures to help you to examine the effectiveness of some of the links, thus helping you decide which can be kept and which can be discarded. This indicator is called CTR (Click-through Rate).
In order to significantly increase your click-through rate we also recommend you carefully and thoroughly check the email you are about to send, just before pressing the "send" button. You ought to check the content for typos as well as the design but also pay close attention to the technical dimension which will require you to make sure, for example, that all the links embedded in the email, actually refer the recipient to the relevant landing pages.
Naturally, as you will immediately understand – even clicking on the link and arriving at the designated landing page will not be enough. This is exactly why we need the conversion rate that will enable you to discover the overall ROI.
The Conversion Rate and the ROI: The bottom line
The Conversion Rate represents the percentage of recipients who not only visited your website, but also performed a certain action, whether making a purchase or a contacting you for further information. The conversion rate is calculated by dividing the number of conversions by the amount of emails successfully sent. The universally acceptable average conversion rate is about 4%.
Once you have calculated the conversion rate, you can also calculate the total ROI for the entire campaign. In order to do so you'll need to divide the sum of your campaign investment by the revenue total. Here, you can also find some common reference points: an ROI rate ranging between 40% and 45% is considered adequate.
The Spam Complaint and the Unsubscribe Rate: Avoiding your worst enemies
Finally, the last indicator you will have to rely on when analyzing the results of email marketing campaign, is the Unsubscribe Rate which will, as its name suggests, include the percentage of people who chose to unsubscribe from your mailing list. Keep in mind there will always be people wishing to opt-out. However, an unsubscribe rate of 10% or higher is worth worrying about.
Furthermore, you should also take into account the amount of people who chose to label your emails as junk mail (aka spam).Generally, and given the fact that you send out email that actually provide the recipients with an added value, the Spam Complaint rate should not be higher than a tenth of a percent.
Our experienced Pulseem team will provide you with all the advice you need in order to maximize the conversion rate of your emails - noticeably increase your income and reduce the complaints and unsubscribe rates. This is exactly what we are here for.