6 Parameters to Follow For A Successful Email Marketing

The Role of Newsletters in Marketing

Email marketing is definitely the most advantageous marketing method since it allows users to track all the steps and behaviors of the persons interacted. With various analytical tools and statistics available on an email marketing platform, determining which parameters are most valuable for re-designing your campaigns can be challenging. You may have heard terms like “open rates,” “click-through,” and “bounce.” What do these mean? How are they calculated? What should you adjust to improve your rates? Let’s explore the key parameters together.

1) Click-through Rate (CTR)

What It Is: The percentage of email recipients who clicked on one or more links in a given email.

How to Calculate It: (Total clicks or unique clicks ÷ Number of delivered emails) * 100

Example: 500 total clicks ÷ 10,000 delivered emails * 100 = 5% click-through rate

CTR is one of the most important parameters for email marketers to track. It gives you insight into how many people on your list are engaging with your content and interested in your brand.

2) Conversion Rate

What It Is: The percentage of email recipients who clicked on a link and completed a desired action, such as filling out a form or purchasing a product.

How to Calculate It: (Number of people who completed the desired action ÷ Number of total emails delivered) * 100

Example: 400 people who completed the action ÷ 10,000 total emails delivered * 100 = 4% conversion rate

Conversion rate is a key parameter for measuring how effectively your email marketing is achieving its goals.

After a recipient has clicked on your email, the next goal is to get them to convert on your offer—whether it’s signing up for a service, downloading a resource, or making a purchase. Your conversion rate reflects how well your emails achieve these goals.

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3) Bounce Rate

What It Is: The percentage of total emails sent that could not be successfully delivered.

How to Calculate It: (Total number of bounced emails ÷ Number of emails sent) * 100

Example: 75 bounced emails ÷ 10,000 total emails sent * 100 = 0.75% bounce rate

Track both soft and hard bounces. Remove hard bounce addresses to maintain a healthy sender reputation.

4) List Growth Rate

What It Is: The rate at which your email list is growing.

How to Calculate It: ([(Number of new subscribers) – (Unsubscribes + complaints)] ÷ Total number of email addresses on your list) * 100

Example: (500 new subscribers – 100 unsubscribes) ÷ 10,000 total email addresses * 100 = 4% list growth rate

List growth is critical for reaching new audiences and ensuring long-term email marketing success.

5) Email Sharing/Forwarding Rate

What It Is: The percentage of recipients who clicked on a “share” or “forward” button to post your email to social media or send it to a friend.

How to Calculate It: (Number of clicks on share/forward ÷ Number of delivered emails) * 100

Example: 100 clicks on a share/forward button ÷ 10,000 delivered emails * 100 = 1% sharing/forwarding rate

This rate measures the virality of your email campaigns and can help you expand your audience.

6) Overall ROI

What It Is: The total revenue generated by your email campaigns compared to the total spend on your campaigns.

How to Calculate It: [(Revenue – campaign cost) ÷ campaign cost] * 100

Example: ($1,000 in additional sales – $100 invested in the campaign) ÷ $100 * 100 = 900% ROI

ROI is a critical metric that shows how effective your email campaigns are in generating revenue relative to the costs involved.

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