HOW TO PLAN THE NUMBER OF DELIVERIES YOU SHOULD TARGET FOR YOUR EMAIL CAMPAIGNS
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How to Leverage
Email Marketing
For Analytics
OPTIMIZE STRATEGY AND DRIVE BETTER RESULTS
July 18, 2023
In the world of email marketing, data is key. You can't measure the success of your campaigns or make informed decisions if you don't know how your email is performing. This is where customized email metrics reports come into play.
Standard email metrics reports help you track opens, clicks, bounces, and unsubscribes. These analytics are important to help you understand what works well, as well as potential areas for improvement.
Email revenue metrics like email revenue percentage, and email return on investment (ROI), go a step further. They help align marketing efforts with your business goals and give you useful insights that can help you get better results.
Check Which Marketing Channels Are Performing
Comparing the revenue generated from email marketing versus other digital marketing channels is another indispensable part of the analysis. By tracking the revenue attributed specifically to email, businesses can assess the effectiveness of their email efforts in driving sales. This information can guide resource allocation and budgeting decisions.
Let's say we want to know the piece of the total revenue pie our email and SMS marketing efforts generated. We'll call this metric Owned Revenue, and we can get this number by summing the two marketing revenue metrics:
Owned Revenue = Email Revenue + SMS Revenue
By including the Unattributed Revenue (Total Sales – Owned Revenue) in our analysis, we have a clear picture of how our email and SMS are performing over a period of time. Combining the two metrics in a stacked bar chart, we can also see sale trends for the previous period (if we have enough historical data, it can be used to spot seasonal trends).
Standard email metrics reports help you track opens, clicks, bounces, and unsubscribes. These analytics are important to help you understand what works well, as well as potential areas for improvement.
Email revenue metrics like email revenue percentage, and email return on investment (ROI), go a step further. They help align marketing efforts with your business goals and give you useful insights that can help you get better results.
Check Which Marketing Channels Are Performing
Comparing the revenue generated from email marketing versus other digital marketing channels is another indispensable part of the analysis. By tracking the revenue attributed specifically to email, businesses can assess the effectiveness of their email efforts in driving sales. This information can guide resource allocation and budgeting decisions.
Let's say we want to know the piece of the total revenue pie our email and SMS marketing efforts generated. We'll call this metric Owned Revenue, and we can get this number by summing the two marketing revenue metrics:
Owned Revenue = Email Revenue + SMS Revenue
By including the Unattributed Revenue (Total Sales – Owned Revenue) in our analysis, we have a clear picture of how our email and SMS are performing over a period of time. Combining the two metrics in a stacked bar chart, we can also see sale trends for the previous period (if we have enough historical data, it can be used to spot seasonal trends).
Owned vs. Unattributed Revenue
Now that we have all the needed metrics, we can calculate the Owned Revenue Percentage:
Owned Revenue Percentage = Owned Revenue / Total Revenue × 100
Note: In case we don't have SMS Revenue, we can just refer to Email Revenue as Owned in this comparison.
Owned Revenue Percentage = Owned Revenue / Total Revenue × 100
Note: In case we don't have SMS Revenue, we can just refer to Email Revenue as Owned in this comparison.
Owned Revenue Percentage
If the Owned Revenue Percentage is lower than expected, there are a couple of questions to consider:
There isn't a standard benchmark for this metric, as it depends on multiple factors, but the goal is always to keep it consistent or increasing over time. It is also important to note that it should follow the total sales trend – if the overall sales are increasing, they should be accompanied by increased marketing efforts (increased promoting during high sale periods).
- What is our email marketing strategy? Are we consistent in our email deliveries, and email frequency? We can't expect a high percentage if we aren't sending out campaigns to our subscribers.
- Are we in touch with our audience's preferences? Preferences, as well as behaviors evolve over time, so email marketing strategies must adapt in the same way.
- How many marketing channels are we using to promote content? In today's world, with the increasing rise of messaging apps, and social media, emails may face increased competition for user's attention and engagement. Promoting the same content on all channels may have an opposite, disengaging effect on leads and subscribers.
There isn't a standard benchmark for this metric, as it depends on multiple factors, but the goal is always to keep it consistent or increasing over time. It is also important to note that it should follow the total sales trend – if the overall sales are increasing, they should be accompanied by increased marketing efforts (increased promoting during high sale periods).
The Email ROI Formula Unraveled
What is Email Return on Investment? Understanding Email ROI is key to any business to understand and make data-driven decisions.
Email Return on Investment (ROI) is a metric calculated by dividing email marketing generated profit by the total cost of sending those campaigns. The formula is as following:
Email ROI = Net profit generated from marketing campaigns and automations / Total cost invested
For example, if our campaigns and automations generated $30,000 in Email Revenue, while the total costs were $2,000, the Email ROI would be 15x, or 1,500%.
What is Email Return on Investment? Understanding Email ROI is key to any business to understand and make data-driven decisions.
Email Return on Investment (ROI) is a metric calculated by dividing email marketing generated profit by the total cost of sending those campaigns. The formula is as following:
Email ROI = Net profit generated from marketing campaigns and automations / Total cost invested
For example, if our campaigns and automations generated $30,000 in Email Revenue, while the total costs were $2,000, the Email ROI would be 15x, or 1,500%.
Measure Your Email Marketing Costs
Calculating the costs of email marketing campaigns is crucial for effectively managing marketing budgets. By understanding the expenses associated with each email campaign, you can make informed decisions about resource allocation and measure the return on investment (ROI).
When calculating your email marketing costs, ensure that you include the following elements:
Email Service Provider (ESP) pricing – all businesses need a good ESP to send and manage email campaigns. Most ESP offers free plans, but as you scale your email marketing, you'll need some advanced features sooner than later.
Content Creation and Design – for creating email templates, as well as individual email design.
Email Agency fees – for outsourcing strategy, consulting, and automation.
Another important consideration is the cost of acquiring and maintaining an email list. You may have expenses related to lead-generation activities such as advertising or content creation.
Calculating the costs of email marketing campaigns is crucial for effectively managing marketing budgets. By understanding the expenses associated with each email campaign, you can make informed decisions about resource allocation and measure the return on investment (ROI).
When calculating your email marketing costs, ensure that you include the following elements:
Email Service Provider (ESP) pricing – all businesses need a good ESP to send and manage email campaigns. Most ESP offers free plans, but as you scale your email marketing, you'll need some advanced features sooner than later.
Content Creation and Design – for creating email templates, as well as individual email design.
Email Agency fees – for outsourcing strategy, consulting, and automation.
Another important consideration is the cost of acquiring and maintaining an email list. You may have expenses related to lead-generation activities such as advertising or content creation.
Tracking and Measuring Email ROI
Using email analytics reports, you are able to track these metrics coming from different platforms. We analyze trends to predict potential outcomes, but also analyze historical data to gain insights, and answer questions like:
• What was the main factor that influenced such performance?
• How can we repeat this performance, to make it a new standard?
• What were the connecting factors?
Using email analytics reports, you are able to track these metrics coming from different platforms. We analyze trends to predict potential outcomes, but also analyze historical data to gain insights, and answer questions like:
• What was the main factor that influenced such performance?
• How can we repeat this performance, to make it a new standard?
• What were the connecting factors?
Email ROI Trend Example
Factors Influencing Email ROI
Email ROI depends on factors that influence its two parts – meaning we can impact ROI performance by making sure our Email Revenue trend is going up, while the Email Costs are staying the same or declining.
That's why using a holistic approach and analyzing all email analytics in one place is an important part in planning and managing email performance.
Email ROI depends on factors that influence its two parts – meaning we can impact ROI performance by making sure our Email Revenue trend is going up, while the Email Costs are staying the same or declining.
That's why using a holistic approach and analyzing all email analytics in one place is an important part in planning and managing email performance.
Seasonality
Seasonality is an important factor to consider when predictable and regular changes occur every calendar year. For example, a business selling ski equipment will likely experience noticeably higher revenue during winter periods.
To calculate seasonality, divide the total sum of store revenue per month (Jan 2020 + Jan 2021 + Jan 2022, etc.) by the overall average store revenue of all time. The higher the resulting index, the stronger the seasonality. For best results, it is recommended to have at least 5 years of historical data available.
Seasonality is an important factor to consider when predictable and regular changes occur every calendar year. For example, a business selling ski equipment will likely experience noticeably higher revenue during winter periods.
To calculate seasonality, divide the total sum of store revenue per month (Jan 2020 + Jan 2021 + Jan 2022, etc.) by the overall average store revenue of all time. The higher the resulting index, the stronger the seasonality. For best results, it is recommended to have at least 5 years of historical data available.
Seasonality Index Over Time
How to Combine Seasonality with Email Marketing
To effectively leverage seasonality in your email marketing strategy, it's essential to align your email strategy with the seasonal trends. Here's a good example of how you can do it:
Anticipate High Sale Periods: During peak seasons when sales are expected to be high, consider increasing your email deliveries. This can help you capitalize on the increased customer interest and engagement.
To effectively leverage seasonality in your email marketing strategy, it's essential to align your email strategy with the seasonal trends. Here's a good example of how you can do it:
Anticipate High Sale Periods: During peak seasons when sales are expected to be high, consider increasing your email deliveries. This can help you capitalize on the increased customer interest and engagement.
Seasonality Index Over Time vs. Email Deliveries
Compare Seasonality with Frequency: Regularly monitor and compare your email campaign frequency with seasonal changes. This will help you gauge whether your strategy is in line with the seasonal demands and whether adjustments are needed.
Seasonality Index Over Time vs. Email Frequency
Plan Ahead: Anticipate upcoming high-impact seasons and plan your monthly email delivery schedule accordingly. Be prepared to adjust your delivery plan to align with your business requires during these crucial periods.
By combining seasonality with your email marketing efforts, you can enhance the relevance and effectiveness of your campaigns while ensuring maximum engagement and conversions from your target audience.
By combining seasonality with your email marketing efforts, you can enhance the relevance and effectiveness of your campaigns while ensuring maximum engagement and conversions from your target audience.
Using email marketing for analytics is crucial for successful marketing campaigns. Customized metrics reports help marketers understand campaign performance, track revenue metrics, calculate email ROI, and understand costs for effective budget management. A holistic approach to email analytics leads to better planning and optimization of email performance for more successful campaigns.
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