So, you want to know what email marketing metrics are the most important when it comes to making sales and revenue.
Throughout my career, I’ve sent over 20 million emails.
My life has depended on the success of emails, so I’m going to share with you all the strategies and everything you need to know today.
Let’s get started.
Email Marketing Metrics Video Lesson
1. What Is Open Rate?
The first metric we want to talk about (and this is one of the most classic metrics out there) is open rate.
There are some good things with open rate in terms of tracking, and there are some bad things.
Let’s talk about what those are.
Open rate is simply just a measure of how many people open that email inside your inbox. It’s a little bit of a vanity metric.
You do want to track it, be aware of what’s going on, and see which ones are getting the most opens. It’s helpful in a certain way.
So what is open rate actually good for? Basically, it’s good for just seeing how good your subject line is.
So if you want to improve your subject lines over the course of time, make sure you’re paying attention to open rate.
It doesn’t mean money necessarily or that your customers love what they’re reading, but it’s a tracking of certain things.
2. How To Know How Good Your Email Design Was: Clickthrough Ratio
The next metric we’re going to talk about is clickthrough ratio. An acronym for this is CTR if you’ve ever heard of that before.
Now, what does clickthrough ratio actually represent?
It’s simple: It’s basically the percentage of people who click through to the content either to the sale promotion, the video, whatever it is you’re sending them to.
They read the email and they said, “Cool, I want to learn more about what this is,” and they click through.
Now there are some pros and cons of clickthrough ratio. A lot of people get confused about really what this metric means.
The pluses of clickthrough ratio in terms of tracking is that it gives you a sense of how well was this email design.
Did it get people to want to click through and see the next step?
This could be a commentary on the email design or could be a commentary on the copywriting inside the email as well.
Did it engage people to want to learn more?
That’s pretty useful because you can use this metric to design through the emails that have similar techniques, especially if it’s good.
And if it isn’t good, you need to test some new things.
Where Clickthrough Ratio Falls Off
Now, here’s where clickthrough ratio falls off, and this is very important:
Again, this is a borderline vanity metric because let’s say you get a lot of people to click through to the content, but nobody buys anything. Or it doesn’t really deepen your relationship with your audience. Or nobody writes back and says, “Oh gosh, I really love what you’re doing.”
So you want to be a little bit careful on those lines.
Clickthrough ratio doesn’t necessarily mean revenue. Just be aware of that.
Again, borderline vanity metric and very important metric.
3. Why You Want To Know How Many People Reply To Your Email
The next measure we want to track is the number of people or the percentage of people who hit reply to the email that you sent out.
This metric is important in two different ways.
Of all the email marketing metrics, this is one that not lot of people have tracked, but I’ve seen huge numbers, huge benefits to my businesses over the years and tracking this metric.
So why is the number of people who responded important?
Well, first of all, the ISP. These are your Gmails, your Comcast, your Yahoos.
They have an algorithm to see whether or not they should put you in the promotions tab or in someone’s primary inbox or (God forbid) not even inboxing at all.
And one of the metrics they track is, is this person replying to the emails? This email we’re sending out, is it getting a lot of replies?
So why would this be important?
Well, if you’re just sending out marketing spam, stuff that nobody’s interested in, nobody really responds to that kind of stuff.
But if your buddy sent you an email, there’s 99% of the chance you’re going to respond to that.
So they’re looking for that in their algorithm.
So it’s very important that you’re getting replies from your subscribers in terms of being able to send them more helpful content going forward.
Are you connecting with people emotionally?
So if you’re getting people who respond to this email, they’re sharing their opinions, you’re connecting with it.
And people who don’t feel heard or listened to or connected with? I mean, they ‘re never really going to buy from you.
We want to have these emotional connections and these touchpoints with our customers.
So those are a little bit more qualitative, but they’re also really important to track.
4. Why You Need To Track The Unsubscribe Rate
The next metric that a lot of people track — and this is a pretty informative metric in certain ways — is unsubscribe rate or un-sub rate.
This is simply the percentage of people who click the unsubscribe button on the bottom for emails or, God forbid, hit the spam button: Even worse.
Now, what does unsubscribe rate tell us?
Well, it gives us a good sense of the percentage of people who really just aren’t resonating with what you’re sending them.
If this starts creeping up in your email marketing metrics, you might want to adjust your post just slightly.
We want to be sending people stuff that they are passionate about, they’re engaged with, and they find interesting.
On a side note, really important thing here:
If you do not have an unsubscribe button on the bottom of your content marketing emails, even if you’re just sending free stuff, which I do in a lot of my list just to engage with people, it’s against the law: The “can’t spam” law.
You have to have the unsubscribe button on the bottom. Treat your customers well.
5. How To Check If You’re Earning Money From Email Marketing Metrics: Earnings Per Click
This next metric is one of my favorite metrics and this is earnings per click: sometimes called EPC.
And this is simply just a metric of the total dollar amount earned from sending out this email divided by the number of clicks.
Now, this metric is important because customers vote with how much they love what you’re doing or they’re resonating with what you’re doing with their wallets.
So if your earnings per click is low (a lot of clickthroughs but very little revenue) you got a problem there.
If their earnings per click are high, probably have a winner. So absolutely be tracking that particular metric.
6. 1 Big Secret Among Email Marketing Metrics: Last Click To Revenue
The next metric I want to talk about (and this is one of my secret sauce metrics that not a lot of people track, but it really made a huge impact in my business) is last click to revenue.
Now ultimately, if you’re building a business that’s going to last and that you’re going to develop long-term relationships with customers with, there’s a whole customer journey that people are taking along the way.
So if you see, hey, you know what, they clicked through through this email. Maybe they didn’t buy today immediately from this email but maybe they bought it a day to two later, and that was the last email they clicked before that.
So you want to be tracking this metric last click to revenue because it’s part of the customer’s entire experience with your brand.
If you see a lot of people are clicking this email, they might not buy it right away but two or three days later they are, it’s an important email, especially if you’re doing retargeting and you’re doing multichannel acquisition and multichannel touchpoints. So important.
7. How To Figure Out What Gets Clicked First: First Click To Revenue
The next metric that I want you to pay attention to is first click to revenue.
Now, what does this actually mean?
Well, this is a metric that’s really more for not just overall subscribers in your database, but really it’s a metric for your customers.
You want to see which emails your customers click first because this is an important thing.
If they’re clicking on this email, and even if they don’t buy right away from that particular email, but later on they’re buying, well, that says something.
That first email you sent them out, they resonated with it somehow. Maybe it didn’t lead to money right away, but if it was horrible, something was not good with it. It pissed them off. They weren’t connecting. You think they’re going to continue to engage with your content. So you want to be tracking that as part of their customer journey.
What’s the first email that they are clicking on? And you can start building some trends and some sort of predictions based off of the content from there?
Create more content like that. More content that makes people happy means more revenue for you. Your customers are happier. Everybody wins.
8. How To Figure Out Where Your Customers Are Clicking: Engagement Per Device
This next metric is really important, especially for modern times.
Now, this metric is called engagement per device. And this is so important.
This is a metric that not a lot of people pay attention to, but if you really dial it in and start paying attention to it, you can see 30, 40, 50% lifts in your business if you work on this and improve this.
So basically the way that a lot of people are email marketing these days, they think it’s still the year 2005 and that people are only opening your emails or clicking through your content on their desktops.
Newsflash: It’s not 2005 anymore.
Most people are opening their emails on their mobile phones.
So you want to make sure that you’re designing your emails to be mobile-friendly. They look good and they’re designed for the mobile user.
So if you see, “Wow, the clickthrough ratio is 40% lower on mobile phones than it is on desktop.” Interesting.
That’s huge right there. That means that you’re not designing something properly for the mobile experience.
You want to be testing your emails, all kinds of different inboxing type situations, making sure that it looks good on mobile, and it looks good on tablet. Testing this stuff out.
So if you see that you have such a low clickthrough rate on mobile, work on that. How would you love to have, 20, 30%, 40% more people clicking through to your stuff?
9. One Very Important Email Marketing Metrics Secret: Full Impact Metric
This next metric we’re going to talk about is really important, especially if you have some sort of subscription business or a membership site or something where your customers are being billed for your product or service every month.
This metric is the full impact metric.
Write this down. Really important metric.
So unlike the earnings per click — which just tracks the immediate revenue that happens right after someone clicks –full impact tracks the whole customer’s journey.
So let’s say you have a $20 widget and it’s a monthly billing for this $20 widget. Well if you look at just earnings per click by itself, cool: This particular email only made $20 for this particular customer.
But what if the customer loves, absolutely loves your widget and they stay a customer for five years?
Well, $20 a month times 12 months is $240; times five years, that’s $1200.
That’s a really important number to track. If you’re just looking at earnings per click, “Oh man! This email only made $20 for this customer,” but that’s not the whole story. It actually made $1,200.
The customer loved the email. They loved everything it said in there. They loved the product and it’s really engaged.
So full impact is a big-picture concept in terms of really tracking the whole customer journey for rebillings and subscription-based products and services.
This is also critical if your using a price positioning strategy like a loss leader in the beginning of your marketing funnel.
Absolutely track this one. This is a gamechanger in email marketing metrics.
10. How To Figure Out The Popularity Of Your Email: Forwarding Rate
This next metric we’re going to talk about is forwarding rate.
Now, pretty simple: Everybody knows how to forward an email, and you’re just tracking the percentage of the people who send them out to their friends, family, or colleagues.
There’s this concept in marketing called the viral coefficient, and this is the percentage of people of one user who generates more users.
So more fans, more people engaging with your content.
In the early days of the internet in email, I remember way back seeing on the bottom of Hotmail emails.
Yes. I’ve been in this game for a long time.
Hotmail emails was a little advertising blurb for Hotmail. And what they said was that the more people who saw that particular email, the more people signed up and that’s why Hotmail originally exploded on the scene very early on.
Unfortunately, they didn’t keep up with a lot of the trends of, modern inboxes and things like that.
Eventually, Gmail absolutely crushed them.
But that’s what viral coefficient is: One user sharing it with multiple users.
It’s one of the cheapest and most effective grassroots types of marketing out there.
So if you say, “Hey! Wow! This particular email had 400 forwards in there,” there’s something about that.
Your audience is resonating with it. It’s generating new users, new viewers, new potential customers for you as well.
So be paying attention to that particular metric.
It’s something that’s kind of sneaky behind the scenes, but if you’re tracking your other people who are in your space or not, your competitors or not, you’re going to have a leg up on them.
And there you have it, multiple different metrics that you can be tracking inside your emails.
A Final Piece Of Advice
Now as a final piece of advice for today’s video, always remember that yes, we are tracking numbers, and its helpful terms of seeing some numbers and then creating new stuff accordingly based off of improving certain numbers and things like that.
But always keep this in mind: there are real people on the other side of the emails you’re sending. People with emotions, feelings, thoughts, life experiences and things like that.
So don’t just think zeros and ones and numbers. Also understand that these numbers that we’re tracking, these email marketing metrics are the story of people’s lives as well.
Thanks for watching. I will see you at strategysamurai.com.