Just as financial ratios provide information and improve one’s understanding of a company’s performance over time, there are metrics that allow you to measure the success of your email accounting campaign. These metrics are also known as KPIs (Key Performance Indicators). Nowadays, there are multiple KPIs that are available thanks to email marketing tools and software. However, if you were to consider all of them, it would take you days to analyze and use the information in your campaign. Hence, we’ve come up with some important email marketing KPIs that you should consider. Each important email marketing KPI is explained in detail below.
1. Bounce Rate
Bounce rate refers to the percentage of the total number of people you sent your accounting emails but they did not receive them. For example, if you send 1000 emails out of which 10 clients do not receive them, then your bounce rate will be 1% (10/1000 *100). There are two types of bounces – hard bounce rate and soft bounce rate.
Hard Bounce Rate
A hard bounce takes place when your email list is not updated. It happens when you send emails to invalid or closed email addresses and they don’t receive them. Thus, you waste your time and money unnecessarily. Moreover, internet service providers use bounce rates as one of the key elements to determine a sender’s reputation. Thus, there is every possibility that your accounting firm will be considered as a spammer. To avoid this problem, remove all the hard bounce addresses and keep your email list updated. Your goal should be to have a minimum or no hard bounce rate for best results.
Soft Bounce Rate
A soft bounce takes places due to a temporary problem with a receiver’s email address. The reasons could be anything from a problem with receiver’s server or a full inbox. In such cases, the receiver’s server will hold your emails temporarily. As soon as the problem is sorted or the receiver deletes a few messages from his inbox, your email will be delivered. You can try to reduce soft bounce rates by re-sending your accounting emails again. Also, another reason could be due to people using disposable email accounts. These accounts are mainly used for commercial emails or for emails that users feel are not important. People opt for such emails when they have to provide their email address for some free subscription or free reports. Do not be worried about soft bounce rates but ensure that you reduce this rate. If your soft bounce rate is anything more than 2-3%, then you need to consider removing some email addresses from your list.
2. Open Rate
Open rate is the percentage of email recipients who have opened your accounting email. If 900 out of 1000 emails have been opened, then your open rate will be 90% (900/1000 *100). At times, people just delete emails without opening them. Hence, open rate indicates whether people read your emails or at least have shown an interest in them. Furthermore, it also tells how compelling your subject line is to influence people to open your emails. However, open rate figures can be misleading in some cases. If a client has opened your email but the embedded image is not loaded, then it will not be counted as an “opened email”. This is because some email users have an image-blocking feature on their email client. As a result, you may not always get an accurate open rate figure. Nonetheless, you can measure short-term results by comparing last month or weekly result with the current month or week. If your open rate figures show an improvement due to some variants in your emails, then open rate metric becomes important. Likewise, you can compare between multiple emails you send and check which one had the best open rate. Use this information to improve your email open rate in the future.
3. Click Through Rate
Click through rate also known as CTR gives you the percentage of email receivers who clicked on links within your email. The link can be anything from directing a receiver to your landing page, subscribing to your newsletter or signing up with your accounting service. If 50 people out 1000 emails sent click your link, then your CTR would be 5% (50/1000*100). CTR gives you an indication of how good your email campaign is as it tells you how many people are engaging with your email. In order to enhance your click through rate, you can make your call to action button or your links larger so that it is easily visible to the readers. Furthermore, ensure your email is mobile-friendly so that your links load fast and can be clicked easily. This is because an increasing number of people use mobiles to check their emails. You certainly would not want to miss out on a prospect just because your email was not mobile optimized. Therefore, if you want to measure the success of your email marketing campaign, then CTR is a KPI that you cannot afford to ignore.
4. Conversion Rate
Conversion rate is the percentage of email recipients who clicked on a link within your accounting email and performed the desired action. The action can be anything from signing up for your accounting services, taking an appointment for a demo consultation, providing their personal information on your landing page and others. If 10 people out of 1000 emails perform any of your desired action, then the conversion rate sums up to 1% (10/1000*100). This rate is the most crucial of all the KPIs in any marketing campaign. The reason for this is because the whole idea of your marketing campaign is to drive clients to perform a favorable action. So conversion rate is a basic metric to measure your campaign effectiveness. Furthermore, it also gives other valuable insights such as the usefulness of your landing page. For example, if your CTR is 10% and your conversion rate is less than 1%, then it means that there is something wrong with your landing page or the information you provided. Thus, in this case, you need to either enhance your conversion rate by optimizing your landing page or provide accurate information so that people do not click through your email without prior knowledge about what your email talks about.
Furthermore, tracking your conversion rate also gives you an indication of how much fund needs to be invested to achieve desired results. If you expect 20 conversions and the estimated conversion rate is 2% with 10% CTR, then you need to get 1000 people to click through your email. As a result, you need to target 10000 people. This is explained as follows:
Target 10000 which will give you 10% CTR that is 1000 people.
Out of these 1000 CTR, 2% conversion rate will give 20 clients.
Thus, if you expect a specific number of conversions, work your way backward to target a specific number of emails. Moreover, it will also help you estimate the cost and the time period of your email campaign.
5. Unsubscribe Rate
At times, clients will not want to receive further emails from you. Thus, they may directly unsubscribe to your emails. However, even people who do not open your email can be termed as unsubscribed since some of them may not be interested in going through the formal process of unsubscribing to your emails. If 100 people unsubscribe out of 1000 emails sent, then the unsubscribe rate will be 10% (100/1000*100). It’s best to keep unsubscribe rate as low as possible. If there is any increase in the number of unsubscribe rate, then it is a matter of concern since readers are not interested in your accounting emails. Thus, you either need to alter your content or focus on your targeting options. Furthermore, keep up with the latest happenings and what keeps your target interested so that you are able to pitch to your prospects better and reduce your unsubscribe rate.
6. Complaint Rate
In some cases, readers may go one step further from unsubscribing and directly label your accounting emails as spam. This is a serious issue and you need to ensure that you have a minimum complaint rate as possible. One of the best ways to reduce complaint rates is by providing a un-subscription link. Often people mark emails as spam because they don’t find it easy to unsubscribe since it is hidden somewhere within the email content. Unsubscribing to your emails is better than getting them labeled as spam.
7. Email Forwarding Rate
The email forwarding rate is also known as email sharing rate. It is the percentage of email recipients who shared your email via “share this” button to either social network or forwarded to someone from their contacts. If 50 people share or forward your accounting email out of 1000 email sent, then your email forwarding rate will be 5% (50/1000*100). This rate may not seem to be significant but it is important to track this rate as it helps you get new contacts for your campaign. Thus, you get more potential leads. Hence, it is important that you add “share this” feature in your emails. Moreover, there is a high possibility that the person to whom your email has been forwarded to is more likely interested in one of your accounting services.
The success of any marketing campaign is measured with the help of analytics. Therefore, use these important email marketing KPIs to analyze and ensure your campaign is successful. Apart from the above-mentioned metrics, list growth rate (increase in the number of email addresses in your database) and overall ROI (revenue generated divided by cost of the campaign) are some other important email marketing KPI that you need to consider. If you need any help in your accounting email marketing campaign, then get in touch with a professional email marketing firm.
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