Email marketing may not seem as appealing as its counterparts in digital marketing.
But did you know that it generates an exceptional ROI of $ 38 for every $ 1 spent. The 3,800% return on investment seems huge!
Email marketing is definitely a great way to generate substantial income and build relationships. All you need is a good email marketing strategy to increase your ROI.
So how do you do email marketing?
When you target your audience through email, the information that reaches the subscriber becomes very important. If you provide them with valuable information, they will want to follow your content. And that would help build their confidence in you.
Here are the most common ways to use email marketing:
1. Decide on your goals
First of all, you need to be clear about what you want to achieve through email marketing. You also need to determine the target audience. This way, you will be able to plan an organized marketing campaign and deliver relevant content to your subscribers.
2. Build a mailing list
You need people for the marketing campaigns. It’s obvious, isn’t it? You just need to plan how you will get them. First, identify your audience who would like to read your content. Then give her something valuable back in exchange for her email address. It could be an ebook, webinar, or anything else that might attract potential prospects.
3. Ask users if they want to register
Now that you have an audience, ask for their consent if they want to register. The registration form should be attractive so that people want to know more about you. Its copy must be relevant to the main content.
You could ask for a double confirmation, this would guarantee their interest. Also offer them an opt-out option, in case they want to stop receiving emails.
Email has 3.9 billion daily email users. And by 2023, that number could reach 4.3 billion as predicted in the graph below:
Email marketing can be of great benefit to you, for this you need to know email marketing metrics. These metrics will help you optimize your email for high income.
But before we dive into the email marketing metrics benchmark, there is something more to discuss regarding email marketing.
Different types of email marketing
One of the best ways to educate consumers about your product is to send them informational emails. It would let people know about your latest content and product announcements. Take a look at the following types of email marketing:
To build people’s trust in your business, your content should be user-friendly. Newsletters can promote your product in a way that is attractive to the reader. Product information must be associated with more than one CTA. The design of the newsletter should be visually appealing.
2. Invitation to an event
If you have an upcoming event, emails can be very helpful in promoting your event. Send people a virtual invitation by email. Tell people who would be coming to your event and add a call to action. It would give people a chance to be included in your family!
3. Welcome emails
Whenever people sign up for your newsletter, receive them with a welcome email. This would inform your subscribers about the process that follows after they sign up.
4. Confirmation email
If someone purchases a product or reserves an order, send them a confirmation email to put an end to their concern. Keep them simple and avoid confusion.
To get the most out of email marketing, you need to know the metrics of email marketing.
These metrics would help you measure your email marketing success over time. Here is a list of five essential steps you will need for successful email marketing:
5 critical metrics for successful email marketing
1. Click-through rate
The number of people who clicked on links, images or CTAs in an email defines the click-through rate. It is calculated by dividing the total number of clicks by the number of emails sent, multiplied by 100. The percentage obtained will help you assess the copy, design, and other factors of your email. It can give you a daily debrief of your performance with each individual. It is very useful for providing information related to user engagement.
2. Email bounce rate
The percentage of emails that did not reach the recipient’s inbox. There could be two reasons for this:
- Your recipient’s inbox is full and no further emails could be sent. Or there could be a problem with the server. Failure to send emails in these cases is called “soft” bounces.
- Another reason could be the recipient’s invalid or non-existent email address. These failures are called “hard” rebounds. You need to make sure you check and remove hard bounces regularly to reduce your bounce rate and maintain your reputation.
3. Conversion rate
When a recipient clicks on the link and takes the desired action, such as purchasing a product or filling out a form, it increases the conversion rate. It can be calculated by dividing the number of clicks performing the desired action by the total number of emails sent. Multiplying it by 100 will give you the conversion rate percentage. This metric helps you measure the success of your CTA. Conversion rates will tell you how close you are to reaching your goal.
4. List growth rate
It shows the growth rate of your mailing list. Calculate this by taking the number of new subscribers and subtracting it from the number of unsubscribes. Then divide that number by the total number of email addresses in the list. Multiplying the final result by 100 will give you the percentage of the list growth rate.
You need to pay attention to your list regularly to get more subscribers to your list. Over time, the growth rate may decrease, so you need to keep an eye on working efficiently to get more subscribers to your list.
5. Calculation of return on investment
This would give you the full return on your investment. You can calculate it by dividing total income by total expenses. The calculation of the ROI is very important to know the course of your email marketing campaign.
Evaluate individual email performance and track your campaign’s progress towards its specified goal. Know the health of your email list and make sure you choose the right metrics against your goal.