5 Favourite Email Marketing Metrics
Right from average revenues to spam complaints, there can be many metrics, you would like to for an email campaign. However, here is a list of few, one should certainly look forward to:
Clicks and Click through Rates (CTR)
Most marketers would be interested to share Click through numbers with their management. While tracking the CTRs, it is vital to check the CTR of each and every link within an email and not just the entire email. Tracking the CTR and filtering it down to the individual subscriber level shall also be useful to judge response rate for conversion, creative effectiveness and as a measure of engagement. This data can in turn be used as response indicators for predictive modeling, subscriber segmentation and other statistical analysis.
Time on File
Time on File is used to determine an email address’ (subscriber’s) average lifespan. When combined with engagement measures (such as an index based upon clicks and opens) it can be used to determine when the average subscriber becomes an unsubscriber. It helps in determining the average lifespan by subscriber or by segment for Average Subscriber Value. It can be used to evaluate list sources and acquisition methods providing the longest active subscribers. Time on file can be used for a variety of lead nurturing programs such as re-activation programs, recurring content timing, and other time-based uses. It is the easiest metric to track at the individual subscriber level as it is based off the opt-in time.
List Churn is a value that represents how many subscribers you lose in a specific time period, in other words how many addresses go bad, in a month, a quarter or a year. Tracking how many subscribers are being lost, will tell you how many subscribers you need to acquire to maintain your current list size and to grow beyond that number to reach business goals. When combined with Average Subscriber Value and Lifespan, they tell us about our list’s health, its value and its average life. When combined with Cost per Response, it tells us the marketing costs to maintain and grow a specific list size.
Cost per Response (CPR)
Cost per Response (CPR) is a great way to compare the effectiveness of one marketing campaign or medium vs another. Cost per Response works with both one step and two step conversion processes and is often used as the basis for break-even calculations, and for Return on Investment (ROI) calculations. Cost per Response becomes the cost factor in break-even analysis of all types and will tell you the financial resources need to grow a list to a specific level, maintain a specific list size, your list’s profitability levels or growth and as the basis of other financial measures.
Average Subscriber Value
Average Subscriber Value is a simple method for determining the average Lifetime Value of an email customer, most often using a period of one year (to avoid having to create discount rates to account for changes in the time value of money). It is very useful for determining the most profitable list sources and subscriber acquisition methods when combined with CPR, as well as break-even points – forming the revenue side of the equation. Using average subscriber value and cost per response together gives email marketers a strong case for advocating for funds by showing the value of email.
The best metric to use is the one that most accurately answers your specific business question or guides you to your specific business goal. Often we, as marketers, are hung up on totals – total dollars, total clicks, total ad views (renders) but as it is important to track results to the individual subscriber level – our unique numbers.
(Source: Luke Glasner)