Variables include, but are not limited to:
- Sample Size
- Subject Line
- Send Time
- Email Creative
- Product Offering
- Market Positioning
- Sales Cycle
- Promotions/Discount Offered
- List health/hygiene
So, the first strike against using benchmarks to rate your own success is the sheer number of variables that prohibit fair comparison between your results and industry benchmarks. If you are starting a program from scratch and have no baseline metrics to evaluate, then you could look to industry benchmarks to help jumpstart your program analysis. However, if you have any amount of data collected from your marketing program, then it's time to establish your own benchmarks and goals. There are two key steps in creating your own analyzing your metrics:
So how do you get started? What metrics should you look at to start analyzing your data?
- Focus less on others.
- Set goals based on your past performance.
Compile past results using the following metrics and be sure to collect/record them for future mailings.
- Messages Sent
- Messages Delivered
- Total Email Opens & Unique Email Opens
- Total Email Click-Throughs & Unique Email Click-Through
- Email Forwards
- Social Shares
These metrics are great for looking at engagement, but let’s also look at revenue as well:
- Total Conversions & Unique Conversions
- Total Revenue
And last but not least, you will want to focus on your contact loss metrics:
We can then take these raw numbers to come up with some important rates that we'll use to establish our baselines.
- Total Unsubscribes
- Total Complaints
Keep in mind:
- Open Rate = Total Opens / Messages Delivered
Open Rate is a great formula to measure the rate by which emails are being perused. The open itself is recorded by an invisible pixel being fired. Opens, in general, are a somewhat flawed metric because an open will only register when someone either displays images in the email or clicks on a link. Therefore, if someone views a message with images disabled, the open is not recorded. The open rate is still important to evaluate because you can measure how effective your subject line/offer is, whether your preheader text is making a difference and even whether you may be having some deliverability issues.
- Click-Through Rate (CTR) = Total Clicks / Messages Delivered
- Click Rate = Total Clicks / Total Opens
- Conversion Rate = Total Conversions / Messages Delivered
- Adjusted Conversion Rate = Total Conversions / Total Clicks
- Average Order Value (AOV) = Total Revenue / Total Conversions
- Revenue per Email (RPE) = Total Revenue / Messages Delivered
Contact Loss Metrics
- Delivery Rate = Messages Delivered / Messages Sent
- Unsubscribe Rate = Total Unsubscribed / Messages Delivered
- Complaint Rate = Total Complaints / Messages Delivered
For more details behind engagement, revenue and contact loss metrics, take a look at a three-part series by Kristen Morales – "Data: Jump on it!" Part 1, Part 2, Part 3 If this is your first time doing this, start recording your metrics and find the average of your sends to determine your baseline metrics. If you are a seasoned vet, then take the average of your past sends and use this as your new baseline. One thing to note when taking your own averages over the last x months of mailing is to take the overall average by summing all the sent, delivered, opens, clicks and conversions. Then, calculate the average overall rates. DO NOT
do an average calculation of all the rates from the last x months. Once you have your numbers, start to think outside the box, test, take a risk and try something new. You want to improve from your benchmark. And remember: There is always room for improvement! For more on tracking your campaign performance and maximizing your analytics, check out Measuring Matters: Defining, Benchmarking, Evaluating and Improving Your Email Campaigns.]]>