How to Use Email Metrics to Boost Your Business With Data-Driven Decisions

Decoding email campaign performance requires a deep understanding of email marketing metrics.

However, if you don’t know what you’re doing, you can track metrics in email campaigns six ways until Sunday and still end up with nothing of value. 

Marketers have long debated the question: "What is the most important metric in email marketing?!" 

This guide will decipher the key metrics like open, click-through, and conversion rates so you can make data-driven decisions to improve your company's engagement and return on investment (ROI).

We'll also go a layer deeper, showing you how to use automation and mass personalization in the age of AI, and giving you ways to measure the results. Strap in! 

Why listen to me?

I’m a data-driven email marketer with five years of experience growing small businesses with email newsletters and targeted email sequences. You can connect with me on LinkedIn here.

TL;DR

The most important metric in email marketing? 

It's the one that brings you the highest ROI. 

But which metric is that? 

The answer isn't one-size-fits-all. Every list and fanbase is different and will yield different results. 

However, some tried and true methods experienced marketers use to measure how well a campaign is doing. 

Today, we’ll break down some classic ones and offer you a few that you probably haven’t considered, like list growth rate and segmentation techniques.

When you’re finished reading the article and chomping at the bit to try out some of these techniques, consider signing up for beehiiv! We’ve put together one of the most robust email analytics platforms on the internet, so you can always make the next right move for your business.

Understanding Email Marketing Metrics

Email marketing metricsare statistics that show you how well your email campaigns are performing, such as how many people open your emails, click on links, and take action. 

Some of the most classically relied-on metrics include open rate, click-through rate (CTR), conversion rate, bounce rate, and unsubscribe rate. These metrics help you understand your audience's behavior and create more effective emails.

The Role of Automation in Tracking Metrics

Email automation is the process of scheduling emails that will either be sent out at a specific time in the future or according to a pre-determined 

As you can imagine, when you schedule a massive volume of emails to be sent out automatically, a giant pile of data is generated. Any modern email software worth its salt will tell you what's working and what's not if you know what to look for.

Automated tools collect data and provide real-time insights without manual work. They can track open rates, CTRs, conversion rates, and more, giving you detailed reports to spot trends and make smart decisions. Automation saves time, reduces errors, and allows you to pivot your campaigns based on performance data at scale. 

Key Components of Email Marketing Metrics

Email marketing metrics may seem complex, but they're not. They consist of several essential components that, once understood, can greatly enhance your email campaigns.

• Open Rates: The percentage of recipients who open your emails. This metric basically shows how compelling your subject lines and preview text are.

• Click-Through Rates (CTR): The percentage of recipients who click links within your email. This metric can help you see how compelling your copy and offer are.

• Conversion Rates: The percentage of recipients who take the desired action after clicking a link within an email. Conversion rates help you see how successful your campaign is overall.

• Bounce Rates: The percentage of emails that couldn't be delivered to your target audience's inbox. High bounce rates can mean it's time to "clean" your email list.

• Unsubscribe Rates: The percentage of recipients who unsubscribe from your list. This metric can help you see if your content meets your audience's expectations of what they expect you to put out. 

Understanding Open Rates and Their Significance

If no one comes to the party, you can't ask them if they want cake. If recipients don't open your emails, they can't engage with your content or taste the delicious offer you've prepared for them.

Open rates measure the percentage of emails opened by recipients. Your emails won't get read if you don't have a compelling subject line!

The marketing community is quite divided on the importance of open rates. Regardless of where you stand, it's important not to give them too much weight! A high open rate with few click-throughs or replies suggests that your email copy or offer isn't very compelling. 

Effective Strategies for Improving Click-Through Rates

There are several ways to improve click-through rates (CTRs):

1. Personalization: Use dynamic tags to insert the recipient's name.

2. Engaging Content: Provide relevant content that resonates with your target audience. Research the pain points of the people you’re writing to. 

3. Compelling Call-to-Actions (CTAs): Write clear, action-oriented CTAs that stand out so your prospects know exactly what to do.

4. A/B Testing: Experiment with different email elements, such as subject lines, CTAs, and images, to see what works best. When you're at your beginning stages, test only one variable at a time.

5. Mobile Optimization: Ensure your emails are easy for users to read and click on on their mobile devices.

The Significance of List Growth Rate

Your list growth rate simply shows how fast your email list is growing! A high list growth rate shows that your marketing efforts are attracting new subscribers and helping retain existing ones.

A low or negative list growth rate means that you’re stagnating. 

The Impact of Segmentation on List Growth

Segmentation can significantly boost your list growth rate. By dividing your audience into smaller, more specific groups based on interests, behavior, or demographics, you can create more relevant and engaging content for each group.

You wouldn’t send a group of Gen Z college students an AARP coupon, would you?

People are 80% more likely to buy from brands that understand them. If you're sending out generic content to your entire list, it's unlikely that you'll meet them all where they're at. 

If people feel like you understand them, they’re more likely to not only buy from you but also to recommend you to their friends! The easiest way to make people feel understood on a wide scale is with segmentation and content relevant to each group. 

Segmentation Techniques for Enhanced Engagement

As the saying goes, there's more than one way to split an email list. Some of the most widely adopted  segmentation techniques are:

1. Demographic Segmentation: Grouping subscribers by age, gender, location, etc.

2. Behavioral Segmentation: Segmenting a list based on past customer behavior, like purchase history or email interactions.

3. Interest-Based Segmentation: Using data from surveys or preferences to tailor content to users.

4. Lifecycle Segmentation: Customizing emails based on where subscribers are in their customer journey. 

Calculating List Growth Rate

To calculate your list growth rate, use this formula:

List Growth Rate = New Subscribers −Unsubscribers / Total Subscribers×100. Your answer will be read as a percentage.

Example: Let’s say you started with 1000 total subscribers. If you gained 200 new subscribers in a month but lost 50, here’s how you’d calculate your list growth rate:

List Growth Rate=(200−50)/1000×100=15%

Step-by-Step Guide to Calculating Your List Growth Rate

1. Count New Subscribers: Determine the number of new subscribers over a while.

2. Determine Total Subscribers: Note the total number of subscribers when your measured time began.

3. Count Unsubscribers: Count how many people unsubscribed during the same period.

4. Calculate Net Growth: Subtract the number of unsubscribers from new subscribers.

5. Apply the Formula: Use the list growth rate formula listed above to find your growth percentage.

Advanced KPIs to Monitor

Advanced KPIs provide deeper insights into your email campaigns than the basics. They include:

• Revenue per Email: Tracks the average revenue generated per email sent. You can calculate this by dividing the total revenue generated by an email campaign by the total number of emails sent.

• List Growth Rate: Measures the rate at which your email list expands. The formula is included above.

• Forwarding/Sharing Rate: Monitors how often your emails are shared or forwarded. Most email marketing software will include this statistic in your dashboard.

• Email Read Time: Tells how long the average person in your audience reads your emails. If you have a high open-rate but the average person looks at your email for a second, you're not doing very well. 

Utilizing A/B Testing to Refine Email Campaigns

A/B testing involves sending out different versions of an email to see which performs better. To A/B test, you should:

1. Identify Variables You Want To Test: Choose elements to test, such as subject lines, images, or call-to-action buttons.

2. Create Variations: Develop different versions of your email with one variation in each one (don't try to A/B test too many things at once).

3. Run the Test: Send each version to a small segment of your audience.

4. Analyze Results: Compare the performance of each version based on the key metrics listed above (open rate, click-through rate, etc.).

A/B testing shows you what resonates most with your audience over time. It’s important to continuously use this process to weed out the worst emails and add higher-performing alternates. 

Benchmarking Against Industry Standards

According to ASQ, benchmarking is: "The process of measuring products, services, and processes against those of organizations known to be leaders in one or more aspects of their operations."

Benchmarking your email marketing performance metrics against industry leaders and averages helps you understand how your campaigns compare to your competitors’ and industry averages. It helps you to identify areas for improvement and set realistic goals for incremental growth!  

Resources like the ANA (Association of National Advertisers) and benchmark reports from platforms like HubSpot, Mailchimp, and Klaviyo can help you gain helpful data.

Deep Dive into Email Analytics

Email analytics are like a crystal ball. Analyzing them well is not just about seeing what’s happened; if you read them correctly, they can give you a little peek at the future! 

If you are savvy at reading email analytics, you can reveal valuable insights about customer engagement and behavior patterns. Email analytics can help you identify what content resonates with your audience, giving you the ammunition you need to refine your strategy for better results! 

Tools for In-Depth Email Analytics

To run email campaigns that exponentially improve, you need great data. The tech tools below will help you measure and leverage all the data from your campaigns:

1. Google Analytics offers comprehensive tracking and reporting for most sites. It will show exactly what happens with any user that an email campaign drives to your website!

2. HubSpot: Combines email analytics with a robust CRM for holistic campaign insights.

3. beehiiv: Known for its user-friendly interface and detailed 3D analytics platform, beehiiv provides users with all the data they need to make informed business decisions.

Predictive Analytics in Email Marketing

Predictive analytics uses historical data and machine learning to predict users' future actions and preferences. 

In email marketing, this means anticipating subscriber behavior, personalizing content, and using the data you’ve collected to increase engagement. By predicting which emails are likely to perform best, marketers constantly switch up their strategies and improve ROI. 

Leveraging Email Metrics for Strategic Decisions

Don't make any critical business decisions blindfolded! 

Metrics like open rates, click-through rates, and conversion rates help you understand what works and what needs improvement. But they're only half the battle. 

It is critical not to make key business decisions based on a single metric. Wait until you've sent out a certain volume of emails before scrapping a certain strategy. Ensure you A/B test several email variants that show the same idea before deciding they're "not working." 

Most importantly, always get a second set of eyes on something. Don't get too attached to your "hunch" of why something didn't go as planned. 

Strategies to Improve Email Performance

• Conduct A/B Testing: Compare different versions of your emails to determine what's most effective with your audience.

• Personalize Content: Use dynamic tags and take advantage of your email platform's personalization options.

• Optimize Subject Lines: Experiment with different subject lines to improve open rates.

• Segment Your Audience: Divide your email list into smaller groups based on demographics, behavior, or interests to send more targeted and compelling messages.

• Test Sending Times: Experiment with different days and times to find the best schedule for sending emails when your audience is most engaged.

• Analyze Metrics: Regularly review email performance metrics like open rates, click-through rates, and conversions to identify areas for improvement.

• Maintain a "Clean" List: Regularly update your email list to remove inactive or unengaged subscribers.

• Focus on Mobile Optimization: Ensure your emails are mobile-friendly, as 85% of people read emails on mobile.

• Monitor Deliverability: Use a reliable email service provider to monitor your email deliverability rates and work to reduce bounce rates. 

Applying Metrics to Real-World Email Marketing Challenges

Email metrics can save the day in a million ways. For example:

1. Low Open Rates: Let's say your open rates are declining. After analyzing your open rates, you test new subject lines and sending times.

   After A/B testing various options, you discover that personalized subject lines and emailing people mid-week in the afternoons results in higher open rates. Your adjustment significantly improves recipient engagement, because people now remember to open your email since it hits their inbox at the right time of day!

2. Poor Click-Through Rates (CTR): You're struggling with low CTRs in your promotional emails. After examining your email analytics, you realize that your CTAs are unclear.
   You decide to experiment with different CTA placements, colors, and wording. After A/B testing, you realize that a prominent CTA button with actionable language (think "Shop Now") significantly boosts your CTR.

3. High Unsubscribe Rates: After a period of growth in your company, you start to see a rise in unsubscribe rates. Looking at email metrics, you realize your content isn't segmented! You're sending out irrelevant emails to a wide portion of your list.
   You start segmenting your audience based on purchase history and sending tailored content to each group. Hooray! You've reduced unsubscribe rates and increased overall engagement.

You can only start optimizing your email campaigns if you have great email data. If you’re ready to start applying what you learned in this guide and just grow the crap out of an email list, you need to check out beehiiv. 

With our industry-leading analytics platform, you’ll gather more data than you know what to do with! Don’t worry. As you grow, you’ll need it. 

Email marketing is worth $10 billion+ per year. Let’s send some of that cash your way!