It seems insane to talk about email direct marketing as today people all talking about social media and no one cares about email. Regarding Web 2.0 era, we prefer two-way communication and that’s why social media blast in recent years and information is not push but pull.
It’s not true that email is meaningless to your marketing effort. If emails sent by means of more personalize yet it remains an immensely credible and profitable channel. Today, many company’s EDM is way changed to updating subscribers on company news with subject line likes XXXX – January Newsletter. It’s good to limit the number of EDM per month rather information overwhelms the audience and it’s not too hard selling.
So, to analyze the email campaign effectiveness of your overall marketing effort, remember to think end-to-end. Don’t just stop at the metrics that email service providers provide but also look at your website data and combine multiple data source.
A general report from email service provider would include the following metrics (may be more).
- Soft Bounce
- Hard Bounce
By evaluating theses metrics, you only know about how effective that email encourage people to click the inner links to your website or how attractive that your promotion incentive is in order to have a very high open rate.
In terms of an end-to-end EDM campaign objectives, the only thing businesses want is result, and it can be lead generation/ acquisition, audience behavior and sales. Just make sure you are clear to your tied goal, and don’t just stop at knowing how many people clicked the EDM and then off.
Email Direct Marketing Campaign Metrics
Delivery Rate: (# of E sent – # of bounce) / # of E sent
Open Rate: # of E opened / # # of E delivered
This metric highly reflects the magic of your designed subject line but not the attractiveness of incentives provided.
Click Rate: # of clicks/ # of E delivered
This metric reflects the relevance of your message to recipients as well as the effectiveness of your EDM. To optimize your EDM campaign, A/B testing can help to learning rather to put a image message or text message for a better click rate.
Combining Multiple Data Source
Make sure all your EDM is tagged with tracking code or ask your email service provider to put on those tracking in order to trace visitors from email to your website.
Bounce Rate: # of E visit with single pageview / # of E visit
This metric reflects rather you are directing your audience to see wanted information, are your landing page delivering on the promise you made in the email? Make sure your landing page is setting right as even 100% email click rate can be totally wasted the effort by having 100% bounce visit.
Goal Completed: # of goal / # of E visit
Goal should be something you designed that its value is important and that’s the ultimate objective of what you want the audience do. Say you want to drive people from email to signup as member or encourage people to download resources/documents from your webpage. All of these can be defined as a goal for a visitor, you can use event tracking, custom variables or set up goal to capture customer behavior that create value to your business.
Overall Conversion Rate: # of objectives converted / # of E sent
Average Revenue: Total revenue / # of E sent
Profitability : (revenue – EDM cost – cost of goods sold) / # of E sent
The three metrics above captured the importance of analytics as one should know the overall effectiveness of EDM as well as how much you can earn or loss by sending one email. This are key indicators on whether your company should continue email marketing or just leave the resources to other more profitable channels. Questions you may have are what if my purpose is not clearly defined as like as Ecommerce Company? How can I measure the total revenue? To solve this problem, you definitely know the value of EDM campaign like it will help in offline sales and awareness. So you can assign monetary value to specific goal on your website.
Email marketing may not serve as the best marketing channel in most companies today. However, you can optimize your effort with analytics to your EDM campaign.
Tips of Making a Good EDM
- Precise and Concise Subject Line
- A Balance Ratio on use of Text and Image
- Make Sure Tracking Code is Placed Correctly
- Provide Alt-Text for People Who Can’t View Image
- A Big and Clear One Unsubscribe Link