So, you've been trying your hand at email marketing. You might have even gotten a few leads. Things seem to be going pretty well.
But, how can you know for sure you're getting the most from your email marketing? Start with your statistics.
Any email marketing tool worth its salt will have statistics for every email you send out.
There's so much information you can get from these systems. Some people get overwhelmed. Don't be that person!
Here are a few terms you will see when looking through your email marketing statistics.
Open rate reflects how many times people opened the email you sent them. If someone re-opens your email, each open will count.
The unique open rate is the number of people who opened the email. Each person is only counted once. This statistic doesn't take into account several opens from a single contact.
So what's a good open rate? The average open rate in the insurance industry is 21.09 percent, according to MailChimp.
But, every agency's email performance is different. Play with the subject lines of your emails to see how your open rates change.
Keep in mind that open rate is not worth much. Yes, it's good to know. But there are more important metrics to focus on...
Click-through rate (CTR) measures how many times people clicked a link in your email. Like open rate, you can have total CTR, which measures the total number of clicks. There is also unique CTR, which measures the unique number of people who clicked.
What's a good click-through rate? The average unique CTR for the insurance industry is 2.15 percent.
Is your CTR below average? You can improve it.
Click-to-open rate (CTOR) is usually not calculated for you, but it's worthwhile to keep an eye on. This metric can tell you how engaging your emails are. It measures, of the recipients who opened the email, how many clicked. Here's how to calculate it: Divide unique clicks by unique opens. Multiply by 100 to express it as a percentage.
A bounced email is one that was not delivered. The recipient email server is bouncing the email back out.
There are two types of bounces: soft and hard bounces.
• Soft bounces from valid email addresses could receive your email on another occasion. For example, your email wasn't delivered because an inbox was full, or the email was too big. Or, the server blocked you because it deemed the email spam.
• Hard bounces are undeliverable. You should not attempt a second send to an email address that hard bounced. For example, your email wasn't delivered because the email address doesn't exist.
The average rate for soft bounces in the insurance industry is 0.77 percent.
These numbers might seem overwhelming. You send out an email to your contacts, and we're telling you not to expect more than 21% of them to open the email. But don't fret.
The average return on investment (ROI) for email marketing is $38 for every dollar spent. That is a better ROI than other marketing tactics, especially advertising and social media.
Take a look at the leads your email campaigns are generating. Calculate your own ROI. Track what you spend and the sales you close from your campaigns.
ROI= sales value-cost of campaign x 100
cost of campaign
Now that you know the ROI for your email campaign, compare it to the average 3800%. Are you meeting or exceeding?
If you're not quite there, analyze your statistics. Are you losing contacts between opening emails and clicking links? Are your contacts not opening your emails at all?
Once you see the symptoms, you can adjust your campaigns and make them more effective in the future.
Do you know the ROI for your email marketing campaigns? Let us know how your campaigns are doing in the comments below.