Email marketing might not sound as enticing as its counterparts in the realm of digital marketing. But did you know that it generates an outstanding ROI of $38 for each $1 spent. 3800% ROI sounds big!
Email Marketing is definitely a great way of generating substantial revenue and relationship building. All you need is a good email marketing strategy to boost up your ROI.
So, How To Do Email Marketing?
When you target your audience through email, the information which reaches the subscriber becomes very important. If you provide them with valuable information, they would want to follow your content. And this would help in building their trust in you.
These are the most common ways to use email marketing:
1. Decide Your Goals:
First, you need to be clear about what you want to achieve through email marketing. You also need to decide the target audience. This way you will be able to plan an organized marketing campaign and deliver relevant content to your subscribers.
2. Build An Email List:
You need people for marketing campaigns. It is a no-brainer, right? You just need to plan how would you get them. Firstly, identify your audience who’d want to read your content. Then give back something valuable in exchange for their email address. It could be an Ebook, webinar, or anything which could attract prospective leads.
3. Ask Users If They Want To Opt-In:
Now that you have an audience, ask for their consent if they want to opt-in. The opt-in form should be enticing so that people would like to hear more from you. Its copy should be relevant to the main content.
You could ask for double confirmation, this would guarantee their interest. Also, provide them with an opt-out option, in case they want to stop receiving emails.
Email has 3.9 billion daily email users. And by 2023, this number might rise up to 4.3 billion as forecasted in the graph below:
Email marketing can benefit you prominently, for that, you must know the email marketing metrics. These metrics will help you in optimizing your email for high revenue.
But before diving 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 inform consumers about your product is by sending them informational emails. This would make people aware of your latest content and product announcements. Take a look at the following types of email marketing:
To strengthen the trust of people in your company, your content should have a friendly feel. Newsletters can promote your product in an appealing way to the reader. The product information must be coupled with multiple CTAs. The design of the newsletter should be visually enticing.
2. Event Invitation
If you have an event coming up, emails could prove to be very useful for promoting your event. Send people a virtual invite through email. Tell people who’d be coming to your event and add a call to action. This would give people a chance to get included in your fam!
3. Welcome Emails
Whenever people sign up for your newsletter, receive them with a welcome email. This would inform your subscribers about the process which follows after they sign-up.
4. Confirmation Email
If someone buys a product or book an order, send them a confirmation email to end their worry. Keep them simple and avoid any confusion.
To make the most of email marketing you need to be aware of email marketing metrics.
These metrics would help you measure your success through email marketing over time. Here is a list of five critical metrics you’ll 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 on an email defines the click-through rate. It is calculated by dividing the total number of clicks by the number of delivered emails, multiplied by 100. The resulting percentage will help you to evaluate the copy, design, and other such factors of your email. It can give you a daily account of your performance with every individual. It is very useful in providing insights related to user engagement.
2. Email Bounce Rate
The percentage of emails that did not make it to the recipient’s box. There could be two reasons for this:
- The inbox of your recipient is full and no further emails could be sent. Or there might be a problem with the server. The failure to send mails in these cases is called ‘soft’ bounces.
- Another reason could be the invalid or non-existent email address of the recipient. These failures are called ‘hard’ bounces. You should make sure to regularly check and remove hard bounces to reduce your bounce rate and maintain your reputation.
3. Conversion Rate
When a recipient clicks on the link and performs the desired action like buying a product or filling out a form, it builds up the conversion rate. It can be calculated by dividing the number of clicks completing the desired action by the total emails delivered. Multiplying it to 100 will give you the percentage of conversion rate. This metric helps you to measure the success of your CTA. Conversion rates will tell you how close you are to achieving your goal.
4. List Growth Rate
It shows the rate of growth of your email list. Calculate this by taking the number of new subscribers and subtracting it from the number of unsubscribes. Then divide this number by the total number of email addresses in the list. Multiplying the end result to 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. With time, the growth rate might reduce and so you need to keep an eye to work efficiently to get more subscribers on your list.
5. Calculating ROI
This would give you the total return on investment. You can calculate this by dividing total revenue by total spending. Calculating ROI is very important to know the journey of your email marketing campaign.
Evaluate individual email performance and track the journey of your campaign towards its specified goal. Know the health of your email list and make sure to choose the right metrics with respect to your goal.