According to research by HubSpot, Email marketing generates $42 for every $1 that is spent. This is a significant return on investment of 4200%1. In 2020, around 306 billion emails were sent and received each day worldwide. This number is expected to increase to 376 billion by 20252. It is clear that even in 2021, email marketing is still a powerful tool for businesses to achieve their goals.
Internet penetration in Trinidad & Tobago has been steadily increasing and stood at 77% as of 2017, according to the world bank data.
Therefore, a well-rounded digital marketing strategy for Trinidad businesses should include an email marketing component. An important factor to consider when implementing email marketing is performance tracking. Monitoring performance will let you know how your email campaigns are performing, what is working and what can be improved. In order to make the right data driven decisions, you need access to the right data. In this article we explore 5 email marketing metrics that you should track for higher ROI.
Email Marketing KPIs to Track
1. Click through rate (CTR)
CTR is a percentage metric that indicates what portion of your targeted audience is actually clicking on the links included in your emails. This is a day-to-day metric and you should keep a record of your CTR over time. This will allow you to see if there is a positive or negative trend in the CTR. As this metric can be calculated for each email you send, it also gives you insight into what type of content is performing optimally for you.
To calculate CTR: (Total clicks / Number of emails delivered) * 100
2. Conversion rate
The conversion rate, expressed as a percentage, tells you how many people actually took the action you wanted them to take. For example, you want people who receive your email to fill a sign-up form. If you deliver 100 emails and 5 people end up filling the form then you have a conversion rate of 5%. The goal for you digital marketing strategy should be to maximize your conversion rate. It is a metric that can help you increase the quality of your campaigns. If you cannot increase the size of your audience, you can still get more business by increasing the number of people that convert.
To calculate conversion rate: (No. of people that completed the desired action / number of emails delivered) * 100
3. Overall ROI
A good digital marketing agency in Trinidad will tell you that an effective strategy makes use of multiple channels. Your online marketing mix should include SEO, paid advertising, email marketing and content marketing. In order to understand how to allocate resources and funds between these different channels, you need to know what the ROI for each of them is. This is where the overall ROI metric for email marketing can be very useful. If the overall ROI for email is high, you can dedicate more resources and money to it, if the overall ROI is low, you can use the information gathered to support higher ROI strategies.
To calculate overall ROI: [(Money earned in sales via email marketing – money invested in email campaigns) / money invested in email campaigns] * 100
4. Open rate
This metric helps you understand how effective your subject line is. You can run A/B testing to better understand what type of subject lines your audience responds to. Open rate indicates the portion of people that opened your email after receiving it. The goal is to maximize your open rate.
5. Unsubscribe rate:
As the name indicates, this metric tracks how many people are unsubscribing from your marketing list. It is crucial to keep this percentage as low as possible. It should be tracked along with your list growth rate. The unsubscribe rate should be lower than your list growth rate to ensure your audience is growing.
Email marketing can be an effective tool to reach a wider audience in Trinidad and increase your business’s revenue. It is an important part of a holistic digital marketing solution. To learn more about email marketing and other lucrative digital marketing mediums that can help you scale your business and boost revenue growth, contact us at WebFX. We are a digital marketing company in Trinidad with over a decade of experience working with businesses in the Caribbean and helping them accomplish their online marketing goals.
Source:
- Aug 21, K. Kirsch, “The Ultimate List of Email Marketing Stats for 2021”, HubSpot, [available online] available from: https://blog.hubspot.com/marketing/email-marketing-stats
- Mar 21, “Number of e-mail users worldwide from 2017 to 2025”, Statista, [available online] available from: https://www.statista.com/statistics/255080/number-of-e-mail-users-worldwide/
