Metrics and indicators: how to deal with so much information?
With as many sources as analysis reports, tools and panels, it is easy to make mistakes in the interpretations of the data that we have at our disposal.
It is essential to measure the performance to improve goals of what we are doing. Otherwise, it becomes unfeasible to establish actions, campaigns, and rules of content attractive to the public, especially on email marketing and social networks.
So, before we start this post, we will clarify two terms that must be understood correctly. They seem trivial, but they are of paramount importance because they are the key to radically changing the way we see the numbers.
Never confuse indicators with metrics
Just as efficiency is the ability to do things right and effectiveness is to know what to do to succeed, there is much confusion in understanding what indicators and metrics are. Measuring by just measure does not bring any conclusion.
Metrics are behavior-related, alone are not the causes. They are like the speed of a car or even the temperature of the day. They are sensor based. Just data. The Key Performance Indicator (KPI) is what will help us identify the factors and causes of good or bad performance by setting parameters and targets for items that we must take into consideration in our business.
Metrics will help you build an indicator.
The indicator will allow you to conclude something about a scenario.
Below is the summary screen of a submission in Mail2Easy with the sample data to analyze:
What indicators should we observe in email marketing?
1) CTR (Click Through)
CTR is the first metric all metrics about e-mail. If the body of the email has good content and the subject attracts, that rate is high. It is a direct indicator of your base engagement.
The Click Through (CTR) is also widely used as a decision factor in A / B tests since the purpose of these tests is often to choose the part with more clicks and visualization.
The CTR metrics are:
– Total clicks or unique clicks
– Number of emails sent
The total of clicks was 824, and 45,461 people received the email.
The click rate is 1.81% of the public
2) Bounce rate
The bounce rate is a reliable indicator of the quality of the subscriber’s list. Bounce rate is the percentage of emails that were sent but did not reach the recipient’s inbox. There are many possible reasons, but in general, they are two types of rejection, soft bounce, and hard bounce.
Types of bounce
The soft bounce occurs when it sends an email to an active email address, but the message it’s not delivered. Often, the problem is temporary – the mail server may be down, or the recipient’s mailbox is full.
A hard bounce happens when you send an email that no longer exists. This error can occur for many reasons such as job swapping. Because about 50% or more of the contact lists originates from customer, business, or prospect contacts, not personal email, this bounce cause is relatively common.
If you want to see details of delivery errors, Mail2Easy presents the total error divided by occurrence.
The metrics for bounce rate:
– Total bounces (you can consider the sum of all, or choose a type)
– Number of emails sent (public)
Calculation of the Bounce Rate:
In our example, 10,319 emails were not delivered (bounces) and the emails sent are 35,142
Rejection = (10,319/35,142) * 100
The rejection rate is 29.36% of the public.
Learn more about the subject and how to avoid and treat the bounces in this post here.
3) Conversion rate
Metrics and Indicators – Conversion represents recipients who clicked on a link within an email and completed the desired action, such as filling out a lead form, downloading an ebook, or made a purchase.
Conversion is closely linked to the call-to-action used in email marketing. The conversion rate is one of the most important indicators to determine if you are reaching your goals! To measure the conversion rate in your emails, you need to integrate your email platform and your web analytics preferably.
Google Analytics is one of the most used features for measurements, but email marketing services like Mail2Easy already come with this built-in feature. Allowing you to verify the conversion, ROI, and configure trigger actions, which is very useful for retrieving sales, because you can know where the customer was on your site after clicking on the campaign.
The metrics for conversion rate:
– Target completed actions.
– Number of emails delivered (that arrived in the email box)
See calculation of conversion rate:
The total shares completed were 42, and the campaign reached 4,510 people
Conversion = (42/4510) * 100
The conversion rate is 0.93% of the public
4) CTOR (Click-to-Open Rate)
The CTOR is the ratio of clicked emails compared to the emails viewed. CTOR is an indicator of content quality since it considers only the opened emails. It tells us how people click on the email – nothing less, nothing more. If people are looking at the body of your email, but do not click, it is a sign that their content is not attractive.
The CTOR metrics are:
– Total Clicks
– Total Views
The total CTOR of the example was 824, and the view hit 3,540 people
CTOR = (824/3,540) * 100
The CTOR is 23.27% of the public
5) Subscribers list growth rate
The importance of this indicator is because the rejection rate is also linked. It is a health indicator of your list. The goal is always to increase the number of subscribers, but we must remember that a huge list it’s useless, if there is no engagement. In other words, if a deficient percentage sees and clicks the emails sent.
There is a natural decrease in email marketing list, estimated at up to 22.5% every year – which means it is more important than ever to pay attention to growing your subscriber list and keeping it in good shape.
But remember: quality is better than quantity.
The growth rate metrics are 3:
– Total of new contacts
– Total of unsubscribers
– Total list contacts
Besides, you can do this by campaign or even for fixed periods, such as once a month, to have a better visualization of this indicator.
If the total number of new contacts in the last quarter is 450, the total number of unsubscribers is 180, and the list size is 6,280 contacts, then:
Growth = [(450-180) / 6,280] * 100
The growth of the quarter was 4.3% of the public.