As an email marketer, it is extremely easy to focus exclusively on revenue generated as a measure of success. Although revenue is one important form of return on investment from email marketing efforts, I propose that there are other critical factors that should be considered when gauging the effectiveness of an email campaign.
Today, I will present three factors that lie beyond the realm of dollars and cents. It’s my hope that you will be able to use these factors, along with revenue generated, to measure your campaigns and to plot the direction of upcoming email marketing.
One important measurement is retention rate, or how many individuals decide to remain engaged with your email marketing.
It’s inevitable that subscribers will become disinterested in your email marketing and opt out.
But email marketing is intended to extend the customer relationship and prolong the customer conversation. If you look at email marketing in this light, keeping customers engaged is an important factor of success.
Your email campaign may not be all too successful if you generate above-average revenues but also incur an above-average loss of subscribers.
The key to a successful campaign is to generate above-average revenues while incurring a below-average loss of subscribers.
Use this simple calculation for loss rate as a means of measuring retention. The loss rate accounts for individuals who actively unsubscribe or are lost for other reasons, such as a no-longer-active email account.
The loss rate will help you measure how many individuals who are no longer reachable by email.
Use the loss rate to assess the appeal of your message, your email offer, and the health of your overall email subscriber list.
One of the strengths of email as a marketing medium is the ability to easily forward the message to others. Many email service providers have the ability to measure the number of times that an email message has been forwarded to people who are not on your email list. Some email service providers even have the capability to tally the number of people who post the email message on a social media site, such as Facebook, Twitter, or LinkedIn.
Another way to measure the appeal and effectiveness of your email campaign is to consider the number of times that the email message has been forwarded. You can use this metric to evaluate the relevance and strength of the message in the email marketing. Aside from generating buzz in the online world, a high forward rate may extend the reach of your brand and increase brand recognition – all organically and with minimal cost.
In addition to revenue generated as an aggregate, it’s useful to track the number of repeat purchases, and repeat purchasers.
Repeat purchase measures customer loyalty, as well as your means to generate sales while streamlining costs. The logic behind this lies in the fact that it is less expensive to generate sales from existing customers than to attract new ones.
So if your email campaigns are generating a large number of repeat purchases, you can capitalize on this by initiating special customer loyalty email programs or developing autoresponders to nurture these individuals who are more prone to purchase and purchase again.
Many email service providers have the ability to tie conversions to specific individuals and you can build lists to track customers who made more than one purchase through email in a given period of time.
At the very least, this factor will shed additional light on how your email list responds to your emails, as mostly a one-time purchasers or superfans who buy on a regular basis. You will be able to adjust your message and offer of your email campaigns accordingly.