Email Marketing. Many entrepreneurs doubt it still has value for their businesses. And I cannot blame them; Email marketing has been misused for illegal bulk mailing and spamming.
What is email marketing
A type of direct digital marketing that uses electronic mail (email) as the marketing communication delivery method.
Email marketing is used in a number of ways by organizations and marketers for brand and customer loyalty building, acquiring or converting customers, company advertisements, or for communicating promotional offers and much more.
Email marketing can be conducted using plain text messages or HTML rich-text email templates. For sending email people might use their own server, where their website is hosted. This is not a good choice though; You’ll want to do your email blast using a third-party email marketing platform, like GetResponse or MailChimp, or alternatively through an SMTP, by utilizing services like Amazon SMTP service or mandrill.com. These are the safest solutions compared to bulk mailing through your server, which will probably have send limits.
Basic email marketing terms and metrics
Email remains one of the most effective and versatile marketing channels available online.
One of its top strengths is the variety of goals that can be achieved including sales, up-selling or customer service.
Each different campaign may have slightly different Key Process Indicators (KPIs) or metrics, but there are some that are basic. So here they are:
1. Open rate
The most basic measurement of email marketing success, the open rate simply shows the proportion of recipients who opened your email.
Marketers usually benchmark open rates against other their industry peers.
2. Clickthrough rate
Another basic measure of success, showing the percentage of people who clicked on a link within the email body.
3. Conversion rate
The conversion rate tells the entrepreneur or marketer how many people who clicked through the email went on to achieve a certain goal, like submit a web form or buy a product.
This doesn’t necessarily mean sales, it can refer to any action that is relevant for your business, such as a downloading a white paper or even booking a test drive.
By tracking this metric over time you can get a good idea of the type of content and creative that is most effective for your subscribers.
4. Price per email sent
Another important KPI as it tracks the actual ROI of your email marketing. There’s no use bragging about the £5 earned on average from each email sent if you’re spending £6 per email sent.
5. Unsubscribe rate
It’s inevitable that email subscriber lists will decline over time as people grow tired of your marketing messages and decide to opt out forever more.
However the rate at which people opt out is impacted by the frequency, quality and relevance of email marketing, so it’s important to track this metric to ensure your messages aren’t repelling potential customers.
Industry data varies, but in general an unsubscribe rate of around 0.5% or lower is praiseworthy.
6. Bounce rate
The bounce rate refers to the number of emails that failed to deliver due to an invalid or non-existent email address.
This may not seem like a major problem, but in the eyes of internet service providers a high bounce rate is the hallmark of spammers.
Therefore you should carry out regular hygiene checks to remove invalid emails or you may end up being classified as a spammer.
7. Churn rate
Churn rate is a percentage of how many subscribers leave your list in a given period of time.
List churn eats up roughly 25%-30% of your list every year. According to Loren MacDonald, writing for MediaPost, “While transparent churn rates can vary widely, typical annual rates are between 25% and 50%. Opaque churn rates are probably between 10% and 25% annually for most brands”.
Your list churn rate can be calculated using the following formula:
Churn rate = (unsubscribes + hard and soft bounces + spam complaints)
Important factors to consider when planning your email marketing
Here are some vital issues that you have to tackle when you are devising your email marketing strategy or talking with your email marketing consultant:
- Strategy and campaign planning
- Automated campaigns (autoresponders) and marketing automation
- Tools to use
- Sales funnel design
- List segmentation
- Insights from measurement and analytics. KPIs to monitor
- List quality and acquisition
- Delivering relevant communication
- Demand and conversion rate of your product offer.
Email Marketing Experts
If you are looking for:
- Email marketing services
- A reliable email marketing consultant
- Email marketing guidance
- Outsourcing your email marketing
- Increasing you conversion rate
- How to get more targeted leads for your business
- Responsive email marketing
- Increading sales through emails
- Traffic to your business offers,
you are at the right place.
Swift Minds can handle your weekly or monthly blasts, and also devise an email marketing strategy, create content, clean your list and most importantly help you increase your company’s performance in email marketing. Most of the time we use GetResponse (affiliate link), as an email marketing platform of choice, because it’s affordable, reliable, easy to use and user-friendly. We’ve chosen GetResponse after trying virtually all email marketing software available online. GetResponse has advanced autoresponder features, and also a wide variety of email and landing page templates.
We are also willing to help you choose among different email marketing and autoresponder services, like aWeber, MailChimp, Mailerlite as well as hosted solutions like MailWizz. Don’t hesitate to contact us with any questions regarding email marketing tools. We’ll be happy to help you choose the one that is a good fit for your business and budget.
Note that conversion rate is a KPI that is important to all business owners, since it’s a tangible metric of email marketing ROI. You focus on increasing conversion rate by optimizing your sales funnel, email list and web copy.
Contact us now to discuss your individual email marketing needs.