Top 10 Email Marketing KPIs

Consider a retail company that invested heavily in digital marketing but saw minimal returns on their email campaigns. Despite a large subscriber base, their open and click-through rates were dismal. To turn things around, they brought in an email marketing expert who introduced a set of KPIs tailored to optimize their email strategy. Within a few months, the company witnessed a significant increase in engagement and conversions, proving the effectiveness of well-chosen Email Marketing KPIs.

What are Email Marketing KPIs?

Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively a company is achieving its business objectives. In the context of Email Marketing, KPIs track and measure the success of email campaigns, providing insights into engagement, deliverability, and conversions. Unlike classic metrics that may only offer basic data like send volume, KPIs offer deeper insights into how emails are performing. KPIs also differ from OKRs (Objectives and Key Results) in that KPIs are specific performance measures, while OKRs are broader goals with measurable outcomes.

The 10 best Email Marketing KPIs to track

1. Open Rate

Open Rate measures the percentage of email recipients who open your email. It's a fundamental KPI indicating the effectiveness of your subject lines.

Calculate it by dividing the number of opened emails by the number of delivered emails and multiplying by 100. For example, if 1,000 out of 10,000 delivered emails are opened, the open rate is 10%. Tools like Mailchimp and Campaign Monitor help track open rates.

2. Click-Through Rate (CTR)

Click-Through Rate (CTR) measures the percentage of email recipients who clicked on one or more links within your email. It reflects the email's ability to engage recipients.

Calculate it by dividing the number of clicks by the number of delivered emails and multiplying by 100. For instance, if 500 clicks result from 10,000 delivered emails, the CTR is 5%. Tools like HubSpot and Constant Contact are great for tracking CTR.

3. Conversion Rate

Conversion Rate measures the percentage of email recipients who completed the desired action, such as making a purchase or signing up for a webinar. It indicates the email's effectiveness in driving conversions.

Calculate it by dividing the number of conversions by the number of delivered emails and multiplying by 100. For example, if 100 conversions result from 10,000 delivered emails, the conversion rate is 1%. Tools like Google Analytics and Klaviyo are useful for tracking conversions.

4. Bounce Rate

Bounce Rate measures the percentage of emails that were not delivered to the recipient's inbox. A high bounce rate can negatively impact sender reputation.

Calculate it by dividing the number of bounced emails by the number of sent emails and multiplying by 100. For instance, if 200 out of 10,000 emails bounce, the bounce rate is 2%. Tools like SendGrid and Mailgun help monitor bounce rates.

5. Unsubscribe Rate

Unsubscribe Rate measures the percentage of email recipients who unsubscribe from your mailing list after receiving an email. It helps understand the email content's relevance and audience engagement.

Calculate it by dividing the number of unsubscribes by the number of delivered emails and multiplying by 100. For example, if 50 out of 10,000 delivered emails lead to unsubscribes, the rate is 0.5%. Tools like Mailchimp and AWeber provide unsubscribe rate tracking.

6. Email Sharing/Forwarding Rate

Email Sharing/Forwarding Rate measures the percentage of email recipients who shared or forwarded your email. It indicates the content's virality and value.

Calculate it by dividing the number of shares/forwards by the number of delivered emails and multiplying by 100. For instance, if 50 shares/forwards result from 10,000 delivered emails, the rate is 0.5%. Tools like Litmus and GetResponse can help track this metric.

7. List Growth Rate

List Growth Rate measures the rate at which your email list is growing. A healthy list growth rate indicates effective subscriber acquisition strategies.

Calculate it by subtracting the number of unsubscribes and bounces from the number of new subscribers, dividing by the total number of subscribers, and multiplying by 100. For example, if you gain 500 new subscribers, have 50 unsubscribes, and 20 bounces out of a list of 10,000, the growth rate is 4.3%. Tools like OptinMonster and Sumo help track list growth.

8. Email Delivery Rate

Email Delivery Rate measures the percentage of emails that were successfully delivered to recipients' inboxes. It is crucial for maintaining a good sender reputation.

Calculate it by subtracting the number of bounced emails from the total sent emails, dividing by the total sent emails, and multiplying by 100. For instance, if 9,800 out of 10,000 emails are delivered, the delivery rate is 98%. Tools like Mailchimp and Sendinblue are excellent for tracking delivery rates.

9. Revenue per Email

Revenue per Email measures the average revenue generated from each email sent. It helps evaluate the financial effectiveness of email campaigns.

Calculate it by dividing the total revenue generated by the number of emails sent. For example, if a campaign generates $1,000 from 10,000 emails, the revenue per email is $0.10. Tools like Shopify and WooCommerce can integrate with email platforms to track this KPI.

10. Spam Complaint Rate

Spam Complaint Rate measures the percentage of recipients who mark your email as spam. A high spam complaint rate can severely damage your sender reputation.

Calculate it by dividing the number of spam complaints by the number of delivered emails and multiplying by 100. For example, if 20 out of 10,000 delivered emails are marked as spam, the spam complaint rate is 0.2%. Tools like SendGrid and Mailchimp help monitor spam complaint rates.

Best Practices to Track KPIs for Email Marketing

1. Segment Your Audience: Tailor your emails to different audience segments based on behavior, preferences, and demographics to improve engagement.
2. A/B Testing: Regularly test different elements of your emails, such as subject lines, content, and calls-to-action, to see what performs best.
3. Personalization: Use personalized content to increase relevance and engagement.
4. Optimize for Mobile: Ensure your emails are mobile-friendly, as a significant portion of emails are opened on mobile devices.
5. Clean Your Email List: Regularly remove inactive or invalid email addresses to maintain a healthy sender reputation and improve deliverability.
6. Use Clear Call-to-Actions: Make your CTAs prominent and easy to follow to drive desired actions.

FAQ about KPIs for Email Marketing

Q1: Why are KPIs important for Email Marketing?
A1: KPIs are crucial as they provide measurable insights into the performance of email campaigns, helping to optimize strategies and improve engagement, deliverability, and conversions.

Q2: How often should we review our Email Marketing KPIs?
A2: Regular reviews, ideally after each major campaign, allow for timely adjustments and continuous improvement.

Q3: Can KPIs for Email Marketing differ between industries?
A3: Yes, while some KPIs are universal, specific industries may require unique metrics based on their marketing goals and audience behavior.

Q4: What is the difference between Open Rate and Click-Through Rate?
A4: Open Rate measures the percentage of recipients who open your email, while Click-Through Rate measures the percentage who click on links within the email.

Q5: How do we choose the right KPIs for our email marketing strategy?
A5: Select KPIs that align with your business goals, campaign objectives, and areas where you want to drive improvements.

Q6: What tools are best for tracking Email Marketing KPIs?
A6: Tools like Mailchimp, HubSpot, and Campaign Monitor are widely used for comprehensive KPI tracking.

Q7: How can we improve our Email Marketing KPIs?
A7: Regularly test and optimize email elements, personalize content, segment your audience, and maintain a clean email list to improve engagement and performance.

Q8: What are the biggest challenges in tracking Email Marketing KPIs?
A8: Common challenges include data integration from various sources, maintaining data accuracy, and ensuring the chosen KPIs accurately reflect campaign performance.

Q9: How do we align Email Marketing KPIs with overall marketing goals?
A9: Ensure KPIs are directly tied to your marketing strategy and objectives, and collaborate with other marketing channels to create a cohesive approach.

Q10: How can we use KPIs to reduce email unsubscribes?
A10: By closely monitoring KPIs like Open Rate, CTR, and Unsubscribe Rate, you can identify content or frequency