7 Essential Email Marketing Metrics for Your Agency

Introduction

Running a successful email marketing agency can be crucial to business success. Key Performance Indicators (KPIs) are essential for tracking the performance of any email marketing strategy. This blog post takes a closer look at some of the key metrics for tracking performance, along with tips for calculating and tracking each.

To measure the impact of email marketing in an agency, there are seven key metrics that should be monitored. These seven metrics are: average monthly revenue per customer, conversion rate, average conversion value, customer lifetime value, customer retention rate, email open rate, and clicks per email. Each of these metrics is equally important for effective email marketing.

Average monthly revenue per customer

Definition

Average monthly revenue per customer (AMRPC) is a metric used to measure the amount of money generated by a customer in a given month. It is calculated by dividing the total revenue generated by a customer in a given period by the number of customers who purchased products or services in that period.

Benefits of Tracking

Tracking your average monthly revenue per customer can provide valuable insight into how your business is performing. It can help identify opportunities to increase customer loyalty and retention, as well as identify opportunities to increase revenue. Additionally, tracking this metric can help you understand the customer lifecycle and customer behavior.

Industry Benchmarks

Average monthly revenue per customer varies widely from job to job, so it’s important to compare your metric to industry benchmarks. Generally, businesses with a higher average monthly revenue per customer are more efficient because they are able to generate more revenue from their customers.

How to calculate

The formula to calculate the average monthly revenue per customer is:

Calculation example

For example, if a business generated 0,000 in total revenue and had 100 customers in a given month, the average monthly revenue per customer would be:

Tips and tricks

• Track average monthly revenue per customer over time to identify trends.
• Compare your average monthly revenue per customer to industry benchmarks to make sure you’re on the right track.
• Identify opportunities to increase customer loyalty and retention by understanding customer behavior.
• Look for ways to increase average monthly revenue per customer by offering additional products or services.

Conversion rate

Definition

Conversion rate is a KPI metric used to measure the success of an email marketing campaign. This is the percentage of recipients who completed an action, such as clicking a link, after receiving an email.

Benefits of Tracking

Tracking conversion rate helps marketers understand how effective their email marketing campaigns are in terms of generating leads and sales. By tracking conversion rate, marketers can also identify which type of content resonates with their target audience, as well as which subject lines and calls to action are most successful.

Industry Benchmarks

The average conversion rate for email marketing campaigns is usually between 2-5%. However, this varies depending on the type of industry and the quality of the email campaigns. It’s important to track your own conversion rate over time to determine what works best for your specific business.

How to calculate

The formula for the conversion rate is:

Calculation example

For example, if you sent 1,000 emails and 100 people clicked on the link in the email, your conversion rate would be 10%.

Tips and tricks to improve the KPI

• Optimize the email subject line and call to action.
• Personalize the email to the target audience.
• Segment your audience to ensure the email content is relevant.
• Test different versions of the email to see which works best.

[right_ad_blog]

Average conversion value

Definition

Average Conversion Value (ACV) is an email marketing metric that measures the total revenue generated from a single email sent to customers divided by the number of conversions. It is used to measure the average value of each conversion.

Benefits of Tracking

• It helps to measure the effectiveness of email campaigns.
• It can be used to identify the most profitable customers.
• It can be used to adjust pricing strategies.

Industry Benchmarks

The average conversion value varies from industry to industry. Generally, the conversion value should be around 10-20% of total revenue.

How to calculate

The average conversion value can be calculated by dividing the total revenue generated from an email campaign by the number of conversions.

Calculation example

For example, if a business generated 0 in revenue from an email campaign and had 10 conversions, the average conversion value would be .

KPI Tips and Tricks

• Track average conversion value over time to identify trends.
• Compare ACV with other KPIs such as click-through rate, open rate, and cost per conversion.
• Adjust pricing strategies to maximize average conversion value.
• Test different email copy and design to improve LCA.

Customer Lifetime Value

Definition

Customer lifetime value (CLV) is a key performance indicator (KPI) used to calculate the total value of a customer over their lifetime. It is usually calculated by multiplying the average monthly revenue per customer by the average customer lifetime minus the cost of customer acquisition. The resulting figure helps email marketers better understand their customer base and the potential value of each customer.

Benefits of Tracking

CLV tracking has several benefits for email marketers. By understanding the value of each customer, marketers can optimize their campaigns to maximize the return on investment (ROI) of their efforts. Additionally, CLV tracking helps marketers identify which customer segments are most profitable and target them most effectively. Finally, CLV tracking helps marketers understand customer behavior, which can be used to create better customer experiences.

Industry Benchmarks

The average CLV for email marketing campaigns is around ,000 per customer. However, this figure varies by industry and customer segment. For example, the CLV for luxury brands is generally higher than for more affordable brands. Also, the CLV of younger customers is usually higher than that of older customers.

How to calculate

CLV can be calculated using the following formula:

Calculation example

For example, if an email manager specialist has an average monthly revenue per customer of 0, an average customer lifetime of 24 months, and a customer acquisition cost of 0, their CLV would be calculated as follows:

Tips and Tricks for KPIs

• Track CLV over time to identify trends in customer behavior.
• Compare your CLV to industry benchmarks to gauge your performance.
• Identify customer segments with the highest CLV and target them more effectively.
• Use CLV to optimize your campaigns for maximum ROI.

Customer retention rate

Definition

Customer retention rate is a metric used in email marketing to measure the percentage of customers who return to make a purchase after their first purchase. This metric shows the success of your current customer base and is a key measure of customer loyalty.

Benefits of Tracking

Tracking your customer retention rate is important because it helps you understand the overall health of your email marketing agency. It allows you to identify customer loyalty trends and patterns and make changes accordingly. This can help you increase customer loyalty and ultimately your revenue.

Industry Benchmarks

The average customer retention rate for an email marketing agency is around 60%. This means that 60% of customers who make a purchase are likely to come back and make another purchase. This may vary depending on the industry and the type of product or service being sold.

How to calculate

Customer retention rate is calculated by dividing the number of customers who make repeat purchases by the total number of customers who have made a purchase. The formula for calculating customer retention rate is:

Calculation example

For example, let’s say an email marketing agency has 100 customers who have made a purchase. Of those 100 customers, 30 of them come back to make another purchase. The customer retention rate would be calculated as follows:

Tips and tricks

• Be sure to track customer retention rate over time to identify trends and patterns.
• Focus on improving customer service and customer experience to increase customer loyalty.
• Encourage repeat customers with special discounts and promotions.
• Analyze customer feedback to identify areas for improvement.

Email open rate

Definition

Email open rate is a key performance indicator (KPI) that measures the percentage of emails opened by subscribers. It is calculated by dividing the number of emails opened by the total number of emails sent.

Benefits of Tracking

Tracking email open rate allows marketers to measure the effectiveness of their campaigns and determine if subscribers are engaging with their content. It also helps marketers identify the types of emails and content that are most successful in driving engagement, as well as identify any issues that may be preventing subscribers from opening their emails.

Industry Benchmarks

The average email open rate for all industries is around 20%, but this can vary widely depending on the industry. For example, the retail industry’s open rate is around 22%, while the travel industry’s open rate is around 28%.

How to calculate

The email open rate is calculated by dividing the number of emails opened by the total number of emails sent. The formula for email open rate is:

Calculation example

For example, if you send 1000 emails and 200 of them are opened, your email open rate is 20%.

Tips and tricks to improve your KPI

• Keep subject lines short and to the point.
• Personalize emails with the recipient’s name.
• Include a clearly visible call to action.
• Schedule emails to be sent during peak hours.
• Test different subject lines and content.
• Segment your subscribers into different lists.
• Include social sharing buttons in your emails.

Email click-through rate

Definition

Email click-through rate (CTR) is a metric that measures the number of people who click on a link in an email out of the total number of people who received the email. It is a key performance indicator (KPI) that helps email marketers track the effectiveness of their campaigns.

Benefits of Tracking

Measuring email click-through rate (CTR) can benefit email marketers in several ways. It helps marketers understand how many people are engaging with their emails and what types of content resonate with their customers. It can also be used to compare the performance of different email campaigns and optimize future campaigns for better results.

Industry Benchmarks

The average email click-through rate (CTR) across all industries is 2.91%. However, the industry benchmark for email CTR varies by industry. For example, the benchmark for the retail industry is 4.38%, while the benchmark for the travel and hospitality industry is 3.78%.

How to calculate

The formula for calculating email click-through rate (CTR) is:

Calculation example

For example, if an email marketer sends 100 emails and receives 10 clicks, the CTR would be:

Tips and tricks to improve the KPI

• Personalize emails to make them more relevant.
• Test different subject lines to find the best performers.
• Include a clear call to action.
• Send emails at the best time of day for your target audience.
• Segment your mailing list for better targeting.
• Optimize for mobile devices.

Conclusion

Effective email marketing is crucial for any business, and being able to track and calculate key performance indicators helps ensure success. The seven key metrics for tracking performance are: average monthly revenue per customer, conversion rate, average conversion value, customer lifetime value, customer retention rate, open rate email and email click-through rate. By understanding these metrics, agencies can measure the success of their campaigns and make improvements that will drive even more success for their clients.

Email marketing is an important tool for businesses of all sizes, and being able to track performance helps agencies ensure they’re doing the best job possible. By staying up-to-date on key performance metrics, email marketing agencies can help their clients get the most out of their campaigns and be successful.