Email marketing is one of the most effective forms of online marketing. According to a study done by ExactTarget, 77% of consumers prefer receiving permission-based email marketing to other types of online marketing. Another digital marketing study found that about 44% of email recipients make at least one purchase based on the marketing emails they receive. Despite the proven efficacy of email marketing, it’s necessary that you measure how effective your own email marketing campaigns are. In any type of business, the investor would like to know if they are getting a healthy ROI (Return on Investment) on their investment. Businesses use many types of analytical tools to determine the rate of return on their investments and also determine what is working and what is not. Email marketing is not any different. You need to constantly monitor and check the response rate of the marketing emails to determine how effective they are.

Luckily for you, there are several tools that have been developed to help you measure the effectiveness of your emails.

How to Measuring Success of Your Marketing Emails

That said, how do you measure success for your email campaigns? Measuring the success of your email campaigns is quite subjective since different organisations have different objectives when sending emails to people. Some organisations send emails to persuade people to buy something while others do so to communicate certain messages.

Whichever category your organisation falls under, there are a host of performance metrics available that you can use to track your emails. These help you to produce periodic reports that give you a clearer picture of how your emails are doing over time. You will need to tag your email links and set up several tracking processes to monitor their progress, though this is something that an email marketing company can do for you.

Which Are The Important Metrics?

Using a web analytics system is highly advisable since it gives you access to valuable information that you can use to measure your success. Here are the most important metrics in email marketing:

  • Open Rate: The open rate is calculated by finding the percentage of your emails that your recipients actually open. This serves as a great indicator of how well your subject line is working. Your open rate can also offer you useful insights into how people perceive your brand—a high open rate can be an indication that people view your brand favourably and vice-versa. You can increase your open rate by learning a few tricks. For instance, studies have shown that emails with subject lines with less than 10 characters enjoy an open rate of close to 60%.
  • Conversion Rate: The conversion rate is the percentage of your emails that results in actual sales. When markets are more interested in the bigger picture, this is an important metric to use because it gives you concrete numbers of how much sales your emails are driving.
  • Delivery Rate: The delivery rate is a metric that shows how many of your emails are actually landing in your recipient’s inboxes. If a high percentage of your emails are bouncing back as invalid addresses, make sure to delete the addresses to prevent your email service provider from flagging your emails as spam. Studies have shown that only about 50% of addresses on average email list are active; so be sure to remove the inactive addresses.

There are other types of metrics that you can use including sharing rate, subscriber retention rate, revenue per email and list growth rate.

Using Google Analytics

Google Analytics are a set of tools developed by Google to help email marketers measure the effectiveness of their emails. Many email marketing tools are designed to integrate directly with Google Analytics to let you see how many people are clicking on your emails, how many are landing on your website, and how many are actually purchasing your products.

Here are 3 basic steps to follow when using Google Analytics:

1. Set Up Campaign Tracking

Campaign Tracking is a useful Google Analytics feature that tracks traffic from various sources such as Facebook and Twitter and tags the traffic. You can use UTM variables when tracking the sources of your traffic. UTM variables are little parameters that you can add to the ends of your links to help Google Analytics tell you the exact source of your traffic. If you don’t use UTM variables, Google Analytics will simply classify your traffic as ‘‘Direct.’’

You can either tag your links manually or automatically. To tag links manually, use the Google Analytics URL Builder, a free tool by Google that allows you to fill out a few fields and receive a coded link that you can place straight in your emails. Tagging links automatically is a bit more complicated since it requires you to flip a switch on all links that are tagged with UTM variables.

2. Create an Advanced Segment

An advanced segment is a filter that allows you to see various types of data in your reports. To create a separate segment, click on the ‘Add segment’ box on your standard reports. Select your traffic sources and select emails. Once you are through click ‘Save.’ Once you do this, you will be able to see if you will be able to track the people who visited your website from your email campaigns.

3. Review Your Reports

Once you have completed the two steps outlined above, you will now be in a position to view any type of report from Google Analytics. Some useful reports you should use frequently on Google analytics include:

  • Real-Time report
  • Overview Report
  • Campaign Report
  • Behaviour Flow Report

Other Factors to Consider

It’s important to remember that you should consider the above metrics in their proper context. For instance, a promotional email is likely to have a lower open rate than a transactional email. You should also consider external factors that relate to your emails. For instance, you might notice that you have high click-through rates but low conversion rates. This can be an indication that there is something wrong with the landing page where recipients are being directed. Always carefully analyse your results to weed out various external factors that could be impinging on the effectiveness of your emails.