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Performance Metrics to Judge the Effectiveness of Your Email Marketing Campaigns

email-statisticsIn the world of email marketing, companies evaluate their marketing efforts using certain marketing metrics that act as statistical data for studying the effectiveness of their email marketing campaigns. The metrics used differ according to the type of marketing campaign used and also depend on the size of each campaign. Marketing metrics may focus on the ROI that the campaign generates, may measure the level of awareness that a company and brand name creates, as well as keep track of the number of new customers who get attracted and the old ones who are retained.

Since a large portion of a company’s budget is spent on marketing campaigns, every company needs some data showing whether the campaign is effective or if it is generating no response from the consumers. To accomplish this, marketing metrics are very necessary. Three top performance metrics used to judge the effectiveness of an email marketing campaign are:

Email campaign generated performance: Not all emails are sent out with the intention of encouraging a customer to purchase. However, all emails require a click-through action or some sort of confirmation indicating that the mail has been viewed or has generated interest. Such indicators can be converted into applicable metrics to measure the success of the marketing campaign. Certain queries like the number of registrations and the number of purchases etc can be directly calculated via such metrics. Email conversions and their rate percentage can also be determined through such metrics.

The revenue generated from emails: The monetary amount generated from email campaigns or gained as a result of emails being a part of some multi-channel marketing campaign also acts as an effective metric by which to judge the effectiveness of an email marketing campaign. The gross profit derived from each campaign excluding the direct costs, deployment costs, the costs incurred from creative development, list rental costs, losses from unsubscribers, lost opportunities, customer service gaffes and complaints, are a valid measure of the campaign’s success. More profits are an obvious indicator of success and those statistics can be used as the basis for future email marketing campaigns.

The effective cost of email per thousand or Email CPM: This is a measure of the amount of revenue generated because of the impressions that email deliver and is used for list rentals. The total revenue calculation is done by subtracting the costs incurred by sending emails from the total revenue that is generated. The figure is then divided by the number of impressions which are delivered and the result is multiplied by 1000.

Most marketers have access to some of the above mentioned metrics. However, you can access the rest through your service provider or your software. With email becoming an indispensible part of our life, it serves as a very powerful marketing media. But it can only be effective if the campaign is designed well enough to generate public response. Metrics measuring the effectiveness of each such marketing campaign will help the company/seller in figuring out how to make email marketing better and in tune with the desired objectives. In case you haven’t yet assessed the effectiveness of your email marketing campaigns, it’s time to do so using the performance metrics as mentioned above.

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