Think outside the box with email marketing metrics
Published May 26, 2010
While batting average may accurately convey how well a baseball player performs at bat, it doesn't necessarily capture the player's value to the team, as it doesn't take into account walks and other events that can also lead to runs scored. Similarly, many of the metrics used to measure the effectiveness of email marketing can be "flawed or misused," according to a report from MediaPost.
In addition to the traditional metrics, digital marketing professionals may want to incorporate some lesser-known measures into their email marketing arsenal, said the report.
For measuring revenue, return on email volume or ROEM can determine which kinds of email programs deliver more revenue than others based on volume sent. Similarly, average revenue per email delivered, or ARED, can determine revenue generation by calculating the total revenue divided by number of emails sent.
Regarding churn, list hurdle rate can show many new subscribers are needed to compensate for churn and to meet campaign goals, while churn to clicks ratio compares the rate of unsubscribes and spam complaints per message to unique clicks.
Marketers may want to pay particular attention to the churn metrics, as the rising volume of digital content has made deliverability a crucial element in email marketing campaigns. A recent report from the Direct Marketing Association found that good list hygiene and bounce back management programs can help ensure that emails do not end up in spam folders.