Business

Does Email Marketing Work? 5 Kpis That Provide The Answer

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Email Marketing

We hear this question all the time: “Does email marketing work?”

Let’s put it this way: the average ROI on email marketing is $42 for every dollar spent.

If your ROI isn’t above that threshold, there’s a chance you’re tracking the wrong metrics. For example, email open rates aren’t as useful as they used to be. They can help, but they don’t provide the full picture.

Want to know which metrics you need to focus on? Here are five essential email marketing KPIs and what they tell you about your campaign.

1. Conversion Rate

The conversion rate may be the most critical email marketing KPI to keep track of. It tells you how many people took the desired action after reading your email.

The easiest way to calculate your conversion rate is: Conversion rate = People who took the desired action ÷ Sent emails x 100

Essentially, this metric tells you how effective you are at converting readers into customers. Having a low conversion rate tends to be bad news for your sales. Consider personalizing your emails to push engagement.

2. Click-Through Rate

The click-through rate (CTR) is the ratio of people who visit a page and click on an ad on that page. In email marketing, CTR tells you how many people clicked on a link inside an email.

The CTR formula is: CTR = Clicks ÷ (Sent emails – bounces) x 100

Let’s say you send 75 emails, and 25 of them bounce. If you get 30 clicks out of the other 50 emails, your CTR percentage is 60%. This is a simple way to check whether your emails are interesting enough to entice an open.

3. Deliverability Rate

You may be sending a lot of emails, but how many of them reach your customers? That’s what the email deliverability rate is for!

Deliverability rate = Delivered emails ÷ Sent emails x 100

Having a low deliverability rate will hinder your ability for marketing through email. Factors that reduce deliverability include:

  • Using a single opt-in
  • Making it hard to unsubscribe
  • Sending from a free email domain
  • Sending without custom authentication

4. Bounce Rate

The email bounce rate refers to the number of emails that failed to reach their recipient. This metric lets you know whether your email list is healthy or not.

The formula for calculating it is simple: Bounce rate = Bounced emails ÷ Sent emails x 100

Bounce rates come in two main types: soft and hard. The former is often caused by temporary errors, and the latter by invalid email addresses. Learn more about the types of bounce rates in this blog article.

5. Unsubscribe Rate

This KPI is fairly self-explanatory: it tells you how many people unsubscribed from your email list. The higher this rate is, the higher the chance you’re doing something wrong in marketing with email.

The main reason for high unsubscribe rates is a lack of segmentation. If you’re not already dividing subscribers into smaller categories, start doing it. That’s essential for sending relevant content.

Does Email Marketing Work in 2022?

Yes, email marketing works as well as it always did—as long as you know what you’re doing. The above list is a good start! By tracking these five KPIs, you’ll be able to measure and improve your email performance.

Now that you know the answer to “Does email marketing work?” why not consider other forms of marketing as well? Keep reading our Business section to find out more!

John Navarra
John Navarra is a bold and passionate writer. He continues to create engaging articles. Being bold continues by promoting a creative atmosphere, where there is the courage to do things differently and go into the unknown to make the impossible possible.

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