3 Key Metrics
It was recently pointed out to me that some of our franchises doing e-mail marketing may not necessarily know how to make heads or tails of the results they’re seeing. Let’s talk about the 3 Key Metrics of e-mail marketing you should care most about:
- Open Rate
- Click Rate
- Unsubscribe Rate
Open rate is simply the number of times your e-mail was opened on a device (be it desktop, tablet, or mobile) divided the number of total recipients you sent to. A good benchmark for open rate in our industry is about 30%.
The best way to impact your open rate is by spending time crafting a great Subject Line. Unless your customer is expecting your e-mail, this is the first glimpse they’ll have at what your e-mail is about and they’ll decide whether or not to open it within 2-3 seconds. To get tips on writing great subject lines, check out my article here.
Your open rate is a great indicator of how interesting your subject line makes your e-mail appear. If your open rate is in the 10-20% range, you have some work to do.
Another great metric to watch is your Click-Through Rate. This is another simple formula of how many clicks your e-mail generated divided by the number of unique opens (meaning, it ignores when someone opens it multiple times and only counts the first time). HOWEVER, sometimes an e-mail service provider will calculate your click rate based on number of recipients rather than opens. I don’t like that method.
It’s not unusual to see a click-through rate of 20% or higher if your e-mail is pretty solid. The key thing to remember here is that CTR indicates action being taken by your customer. You should never mail them without aiming for some sort of activity. Usually that means you’re trying to solicit a phone call, but you could also aim to have them watch a video, fill out a form, or forward to a friend.
Another key is to give your customers a taste of what you’re offering and entice them to click and learn more. That means you don’t spill all the details in your e-mail. Simply allude to how awesome your offer or content is. Something like “During our Winter White sale, we’re offering discounts of up to 60% OFF our cleaning services! Call now for your free estimate.” Admit it. You’d probably call if you got an e-mail with that kind of offer.
Now, the unpleasant one. No business owner likes it when a customer unsubscribes. Your unsubscribe rate on e-mail campaigns is the number of unique recipients who clicked on “Unsubscribe” divided by your total recipients. Usually, your “unsub” rate should be under 2%.
Here are some things to remember:
It’s unavoidable. Every now and then, you’re going to get someone that decides they don’t want to hear from you anymore. It could be because they’ve moved and your e-mails are no longer relevant to them (even though you’re super cool). Just remind yourself that you’re not going to please everyone. You might step over the line every now and then and make someone decide they don’t want an e-mail anymore. That’s okay.
You can avoid a high unsub rate by keeping your content helpful and relevant. If you’re always pushing sales or specials, you’re probably going to see a higher rate. BUT, if you sprinkle in a helpful tip every now and then making no mention of promotions, you may be surprised at how well you do.
There are more metrics that you can pay attention to in e-mail marketing, but I would place less emphasis on them. The big 3 are:
- Open Rate – impacted most by the quality of your subject line.
- Click-Through Rate – every e-mail should be focused on action.
- Unsubscribe Rate – you’ll lose a few here and there. Just make sure you’re being useful and you’ll be fine.
If you’d like help putting together an e-mail campaign or just want to show me what you’ve done, click here to schedule a 30-minute coaching call with me. Otherwise, you can simply reply to this e-mail or call me directly at 435-890-1055.