How to Calculate Your Conversion Rate For Your Email Marketing Campaign and The Metrics You Should Use to Judge Its Success
Despite all other modern forms of business communication which are emerging, Email marketing campaigns still remain king. With 73 percent of senior-level marketers claiming that email marketing is core to their business, due to its importance to the customer’s purchasing journey, email marketing campaigns certainly shouldn’t be discounted in your marketing strategy.
But how can you measure the success of your email marketing campaign?
The first step for measuring your success is to calculate your conversion rate: meaning how many people complete the desired action that you want the recipient of the email to make. For websites, calculating your conversion rate is simple. All need to do is divide the number of conversions by the total number of visitors to your site. So, for example, if you had 100 people visit your site, and only 25 completed a sale, your conversion rate would be 25%.
But for email marketing campaigns, what you need to know is how to calculate the conversion rate for email marketing.
Similarly to your website conversion rate, your email conversion rate (ECR) is vital to understand when measuring the success of your campaign. Firstly you need to think about: what is your conversion goal? Is your conversion goal either the number of sign-ups or the number of purchases? Is the motive of this emailing campaign to spread your brand identity, and increase the number of consumers loyal to it, or to result in sales? We would recommend calculating your conversion rate for both sign-ups and purchases, for a more well-rounded approach.
Depending on your conversion goal, the next step in how to calculate your conversion rate for email marketing is to follow this formula:
Conversion rate (%) = the number of conversion goals (sign-ups or purchases) divided by the number of successfully delivered emails x 100.
The conversion rate is the perfect place to start when measuring the success of your email marketing campaign. This measurement provides you with the best way to asses your return on investment (ROI): seeing whether the money your campaign costs is worth it.
Overall ROI is a metric that every email marketer should be constantly tracking, of which conversion rate is an important factor. Here’s a formula you can follow to measure your overall ROI:
ROI = money made in sales (conversion goal) - money spent on executing campaign divided by money invested x 100
But the conversion rate is just the starting point, and a successful ROI is the goal. Email marketing can have the highest ROI out of any digital marketing strategy - so you’re on the right track to reach your business goals. Here are some other metrics you cannot ignore in calculating the success of your campaign:
Open rate is the easiest email marketing KPI (key performance indicator), measuring how many of the people who successfully received your email actually opened it. This metric can be used to measure the success of your email subject line. Recipients will instantly be turned off if they see a subject line which is boring - or looks instantly spammy.
If your open rate is low, there are a few things you can do to change it up. Statistics show that people are far more likely to open an email if their first name is used in the subject line. So try and make it as personalized and friendly as possible. A great, and very effective way, to do this is to include an emoticon. According to a report by Experian some of the most effective things you can do to increase your open rate in the subject of your email is: personalize, add emojis, and mention a holiday - or time-specific theme - creating a sense of friendly urgency.
Your click-through rate (CTR) is another very important metric for measuring the success of your email marketing campaign. It indicates the number of people who click on the links included in successfully delivered emails. The average CTR is just over 4%. If your CTR is much lower than this, you might want to consider adjusting the way you present links in your emails to entice people to click. For example, you can embed them throughout the email so people can look to find more information, or include a specific call to action button.
Your bounce rate metric tracks how many email addresses on your subscriber list didn’t receive your email. By comparing this to your open rate metrics, you can get a more fully fleshed view of your subscriber list itself, and it’s quality. There are soft bounces and hard bounces: soft bounces meaning that the email address is temporarily down, and hard bounces meaning that the email address is permanently down. This could be because your subscriber list has a large number of fake email addresses, ones with mistakes in them or old email addresses that are no longer used.
To reduce your bounce rate, we at Seller’s choice would recommend you include a double opt-in in your email marketing campaign, meaning recipients of the email have to click again to confirm that they actually want to be receiving your emails. This creates much better quality email lists, leads to higher CTR, conversion rates and lower bounce rates.
Number of Unsubscribes
Figuring out your number of unsubscribes is one of the easiest metrics to measure for your email marketing campaign. Most email providers will tell you on your main or metrics dashboard how many people unsubscribed after receiving an email from you.
If you have a high number of unsubscribes, it’s not always a bad thing, so don’t worry! Instead, view it as you perfecting your email subscription list, and only targeting people who really want to learn more about your brand. It can also build your brand trust: clearly offering people an easy way to unsubscribe from your emails means that customers know that they can pick and choose what kind of information they want to receive from you.
List growth rate
Your list growth rate shows you how fast your email list is growing. To calculate this, use the following formula:
List growth rate = number of new subscribers - the number of unsubscribes divided by the total number of addresses on your list x 100
Keep an eye on your list growth rate metrics, always measuring what you have changed, or different approaches you have used for each campaign, for example in the copy of the subject line. When your list growth rate increased, you know you’re doing something right!
Spam complaints are a big red flag for email marketing campaigns. If you get too many of these, your email service provider could even shut you down, so it’s of utmost importance that you pay attention to these metrics and avoid spam complaints at all costs. Make sure that there’s nothing wrong technically wrong in your emails and that your copywriting is always at a very high standard and it edited and proofread with a fine-tooth comb.
Your forwarding rate is the number of shares your emails get: either on social media or to another email address. This will give you an idea of how many brand advocates are on your email list. Consumers are hugely influenced by personal accounts of products, especially if a friend shares something about your brand on social media, it could really increase your CTR and conversion rate exponentially whilst simultaneously growing trust in your brand.
Make sure to include a “share this” button on your email to make it easier, and to encourage recipients, to share the email, information or product with their friends. You can then track the number of people who click on the “share this” button on your email and use this as a metric to measure the effectiveness of your campaign.
Engagement over time
Engagement over time is a great metric for measuring when the most effective time to send out your emails is. Keep a close eye on this, and make sure to really hone in on the right time for your brand, using an automation tool to send emails at a point which will optimize your conversion rates. Some studies suggest that Tuesdays are the most lucrative day. But we here at seller’s choice would suggest trying multiple different days and times, keeping a close eye on your engagement, and adjusting your sending time accordingly.
Mobile open and click rate
Mobile shopping is quickly becoming the main way that people purchase items online. Make sure to track the metrics of your mobile open and click rates, and ensure your emails are mobile-friendly, to make sure that you’re fully utilizing this development. Make sure that your mobile email engagement process is as simple as possible: for example that links and CTAs are obvious, the font is the right size, and that recipients do not have to turn their screens to view your email properly.
Remember to use these metrics to calculate the success of your email campaign, remain flexible and adapt your copy, text, images or approach accordingly. Then we’re sure you’ll see more bang for your buck. Consider using a tool like MailChimp To make the whole process easier.