One of the characteristics of EDM is that its effect can be quantitatively evaluated. By testing and analyzing some indicators, it can not only be used to evaluate the effect of marketing activities, but also to discover problems in the marketing process in order to optimize marketing activities.
The main data indicators for measuring the effectiveness of EDM marketing are: email delivery rate, email bounce rate, email opening rate, click-through rate conversion rate, etc.
1. Email delivery rate
The email delivery rate is a basic indicator for evaluating the effectiveness of EDM marketing. Due to the existence of spam, the server has become more and more strict in filtering emails, and some normal emails will also be considered spam and filtered out.
Email delivery rate = (total number of emails delivered – total number of emails sent) x 100%
Suppose a salesperson sends 1,000 emails, of which 180 are filtered out, then the number of emails delivered is 820, and the email delivery rate is 82%.
It should be noted that the email delivery rate is not equal to the email opening rate. Although the email is delivered to the user’s mailbox, it may go directly into the junk folder, or the user may delete it after seeing the title. Therefore, the delivery rate in reality is a number that must be considered, but it is not very meaningful in practice.
2. Email bounce rate
After the subscriber clicks the unsubscribe link in the email, his/her email address will be deleted from the database, and the email marketing background will make a corresponding record.
Email bounce rate = (total number of email bounces + total number of emails sent) x 100%
Suppose a salesperson sends 1,000 emails, of which 180 are filtered out, then the email bounce rate is 18%. Both the email bounce rate and the email delivery rate are evaluation indicators for obtaining and retaining user resources, and their relationship is: email bounce rate + email delivery rate = 100%.
3. Email opening rate
The email opening rate/reading rate is a real indicator to measure the effectiveness of email marketing.
Email open rate = (number of emails read – number of emails delivered) * 100%
The number of emails read is provided by the click statistics system embedded in the email service system. As long as the user clicks on the email
the system will automatically record the click behavior and make statistics. Assuming that a total of 100,000 emails are sent, 50,000 of which have been opened, the open rate is 50%. If the email subscriber is the target user, a good open rate should be obtained; on the contrary, if the open rate is too low, it should be checked whether the email is sent to the wrong person or whether the writing of the email title should be improved.
The factors that affect the email open rate include whether the subject word of the email is attractive, whether there is a suspicion of spam, whether the email is targeted, etc.
The email open rate/read rate is an evaluation indicator of the sender’s understanding and trust. Using the company name or brand name in the email title helps to gain the trust of the recipient.
4. Click-through rate
The ratio of clicks to company marketing sites or marketing pages caused by reading emails embedded in emails is called click-through rate. This is an important indicator for effectively evaluating the contribution of emails to the visits to company marketing sites or marketing pages.
Click-through rate = (number of guided clicks-total number of emails opened) x 100%
Among them, the number of guided clicks is provided by the website traffic statistics system. At the same time, the level of click-through rate is directly affected by the email delivery rate and email opening rate. The three indicators are in a progressive relationship.
5. Conversion rate
The conversion rate refers to the ratio of the number of recipients who are willing to accept or purchase the services or products promoted by the advertiser after reading the advertisement in the email to the total number of emails sent. This indicator shows more specifically whether the advertisement has successfully stimulated the audience and inspired their behavior than the click-through rate.
Conversion rate = (number of users increased due to EDM marketing-total number of emails opened) x 100%.