There are countless KPIs you could track, but how do you decide which ones to track? Here, we’ll highlight the most popular KPIs, explain their benefits, and help you determine which ones are best suited to your email marketing goals.
As we said before, a KPI can be a malta phone number library single metric or a mix of metrics, specifically aligned to your goals. They are tools that help you and your team monitor progress towards your goals. Therefore, it is essential to identify in advance which KPIs are the most important for your business or project.
Note that some email providers provide these metrics automatically. If not, consider tracking the ones that are key to your business yourself, as they can have a significant impact on your strategy.
Conversion Rates
One of the essential KPIs 5 reasons to focus on content marketing in italy you can track as a small business owner is your conversion rate. Conversion rate is the percentage of recipients who complete a desired action after receiving your email. This action can vary depending on your specific goals and may include making a purchase, converting a lead into a customer, filling out a form, reading a post, signing up for a webinar, or visiting your site, among other actions.
Formula : Conversion rate = (number of conversions / number of emails delivered or sent) x 100
Conversion tracking typically requires integrating data from two sources: your email marketing platform and your website analytics. To accurately attribute conversions to specific email campaigns, it’s critical to use UTM parameters in your email links. These are tags added to URLs that allow you to track the source, medium, and campaign name in your analytics tool.
Tip: Conversion rate can reveal how effective your email campaigns are at encouraging subscribers to engage and take action with your business. The higher your conversion rate, the better your email campaigns are performing. But what qualifies as a good conversion rate?
Research suggests that the average conversion rate in email marketing is around 3%. Note that to truly evaluate the performance of your email, it is important to track and compare conversion rates over time. Keep in mind that these rates can be affected by factors such as your industry, your content, the timing of your send, and more.
How to improve it: To improve your conversion rate, you need to make sure your email campaigns are relevant, useful, and easy to navigate. Eliminate inactive users from your recipient list, write attention-grabbing subject lines, include visible call-to-action buttons or links, and experiment with sending times.
Cost of acquisition
Subscriber acquisition bfb directory cost is a key KPI to track to make informed decisions about marketing spend. In the context of email marketing, acquisition cost represents the cost of a new subscriber to your list.
Formula : Cost of acquisition = Total cost of acquisition / Number of new subscribers acquired via email
To calculate your acquisition cost, divide the total cost of acquiring a new subscriber by the number of new subscribers you acquired as a result. Your total cost should include all costs, including marketing, design, advertising, sales, and anything else you may have used in the acquisition process.
If your cost of acquisition is high, it could be a sign that your marketing efforts are not cost-effective. Note that cost of acquisition varies significantly across industries, so you should research what the estimate is for your specific industry and analyze the results over a longer period. It is also helpful to keep in mind that a good cost of acquisition is lower than the subscriber lifetime value (which we explain below).
Tip: By tracking your cost of acquisition, you can get a sense of how effective your overall marketing efforts are at acquiring new subscribers, and therefore whether you need to change anything to grow your email list. A lower cost of acquisition means you’re spending less to acquire each new subscriber, which is crucial to profitability.
How to improve it: If you find that you need to lower your cost of acquisition after researching your industry average, focus on improving your ad design and copy, and creating helpful, educational content on your website, social media, and any other platforms you might use to collect leads. Try incentivizing readers to sign up for your email list with a variety of free resources and materials.
Member Lifecycle Value
Subscriber Lifetime Value is another useful KPI that estimates how much revenue a subscriber is expected to generate for you over time as a subscriber to your newsletter.
Formula : Subscriber Lifetime Value = (Average Revenue Per Email Subscriber x Average Subscriber Lifetime) – Subscriber Management Cost
Calculating this KPI may not be easy, as you need specific data. If you can calculate it, it will help you decide how much to invest in your subscriber acquisition and ultimately optimize your marketing spend.