Email Marketing is one of the traditional methods of marketing. Email marketing is the process of sending promotional Emails for a group of people to promote your business. This method of marketing is used to send advertisements, as a request for business or solicit sales or donations. This is mainly meant to build loyalty, trust or brand awareness.
There are some important metrics that you should keep track of to determine how well your Email marketing working.
Bounce Rate (Bounced Emails)
A bounce Email is that bounces back to you because the email addresses you sent it to may not valid or not active. The main cause for the bounce may be a change in the recipient’s choice of Internet Service Provider (ISP) or closing down a domain, server or email account. The bounce rate will be less in a well-maintained email list. For eg: MailChimp, a large Email Service Provider which track millions of emails and found the typical bounce rate is around less than one percent. More than eight percent of bounce rate means your list is old and outdated or you have a quality problem with the list.
Opt-out Rate (Unsubscribed Emails)
When you send an Email to your subscribers, sometimes some of them might no longer need your email to receive. So they will unsubscribe from your list. This will lead to shrink your opt-in list up to 25 to 30 percent a year. So you must work to reduce this percentage of opt-out. Ideally, the opt-out rate should be 0.1% or below. ie., If you send 5,000 emails to a list, the opt-out number should be a maximum of 5 or below that.
Open Rate (Opened Emails)
The open rate means the number of Emails opening by the customers which you have sent to. If you send constantly, then open rate can be vary from 5 to 20%. For the promotion, the open rate is very important. Like open rate, clickthrough rate, conversion rate and gross revenue are also very important. These determine the success of your Email marketing.
Clickthrough Rate (CTR)
Clickthrough Rate (CTR) means the percentage of the people who respond to your mail by clicking the hyperlink of your site for more details and possibly to order your products. Typical CTR ranges from 1 to 5% and a study found that text emails produce 17% higher clickthrough rates than HTML emails.
The conversion Rate means the number of customers who accepted your mail and reach your site whether to buy your product or to download your files or register in your site etc. Depending on your offer through Email, whether it is a free offer or to sell a product, the conversion rate can vary from 1% to 80%.
Mainly the gross revenue are determined by four factors such as the size of the email list, the price of your product, the clickthrough rate and the conversion rate. You can increase your gross revenue by increasing the gross sales by improving the clickthrough rate or the conversion rate. If you boost the both CTR and conversion rate, they will take your revenue from modest to spectacular range.