Determining Efficiency in Email Marketing

Results and expen­dit­u­re of email mar­ke­ting cam­pai­gns are often not direc­t­ly rela­ted. One of the rea­sons is that com­pa­nies often only focus on coverage and image. Howe­ver, effi­ci­ent email mar­ke­ting requi­res – as every other mar­ke­ting disci­pli­ne – plan­ning and con­trol. Tar­gets must be set and ope­ra­tio­na­li­sed in mea­sura­ble values. Email mar­ke­ting offers a lar­ge num­ber of bench­marks for this pur­po­se. The­se KPI (key per­for­mance indi­ca­tors) are key figu­res, which help to ana­ly­se the suc­cess of indi­vi­du­al mea­su­res. Howe­ver, in prac­tice, a sen­si­ble ana­ly­sis and inter­pre­ta­ti­on of the results is often lacking. No won­der that the tar­get-led repor­ting of email cam­pai­gns is among the top 6 email mar­ke­ting tasks accord­ing to a retail stu­dy car­ri­ed out by artegic AG. A Bri­tish stu­dy by the Direct Mar­ke­ting Asso­cia­ti­on (DMA) even sta­tes that appro­xi­mate­ly 34 % of com­pa­nies are not able to mea­su­re the return on invest­ment (ROI) of their mar­ke­ting cam­pai­gn.

Online CRM con­sul­ting and tech­no­lo­gy pro­vi­der artegic AG has published a free check­list of “The 25 Most Important Performance Figures in Email Marketing”. It is meant to help mar­ke­ters with choo­sing the most important per­for­mance figu­res in email mar­ke­ting and show how the­se figu­re can be deter­mi­ned in order to take fur­ther mea­su­res.

Comprehensive Measurability Is the Strength of Email Marketing

“The com­pre­hen­si­ve mea­sura­bi­li­ty is a major strength email mar­ke­ting has to offer. Each reci­pi­ent respon­se can be mea­su­red and, pro­vi­ded the­re is the appro­pria­te con­sent, it can even be assi­gned to indi­vi­du­al users. Stra­te­gic opt-in manage­ment and per­for­mance figu­re ana­ly­sis enab­le a sustainab­le com­mu­ni­ca­ti­on with the custo­mer or pro­s­pec­tive custo­mer and offer the poten­ti­al for expan­si­on of the mar­ket, impro­ve­ment or opti­mi­sa­ti­on of ser­vices. Howe­ver, in addi­ti­on to mea­sura­ble respon­ses, other per­for­mance figu­res also play a role: Qua­li­ty indi­ca­tors, which spe­ci­fy the activi­ty and loyal­ty of a custo­mer or mone­ta­ry values to deter­mi­ne the finan­ci­al suc­cess and cost”, sta­tes Ste­fan Mies Mar­ke­ting Con­sul­tant at artegic AG.

Transferring Email Marketing to a Hierarchical Target System

Com­pa­ny tar­gets are usual­ly defi­ned by means of a hier­ar­chi­cal­ly divi­ded sys­tem. Ope­ra­tio­na­li­sing the cor­po­ra­te goals requi­res spe­ci­fic dimen­si­ons and values. The­se are pri­ma­ri­ly mone­ta­ry tar­get values, e.g. pro­fit, tur­no­ver, costs or ROI. The supe­ri­or cor­po­ra­te goals defi­ne the tar­gets of each hier­ar­chy level for the com­mu­ni­ca­ti­on mix and for the indi­vi­du­al tools, inclu­ding email mar­ke­ting. Jud­ging the suc­cess or effi­ci­en­cy of a mea­su­re based on an indi­vi­du­al per­for­mance figu­re wit­hout taking into account the over­all view, may lead to the wrong decisi­ons. When the know­ledge about inter­de­pen­den­ci­es and the signi­fi­can­ce of KPIs is incor­po­ra­ted, you can deve­lop a con­trol­ling cock­pit for email mar­ke­ting com­mu­ni­ca­ti­on from this.

Con­struc­ting a High-qua­li­ty Con­tact Base­Crea­ting a high-qua­li­ty mai­ling list is one of the most important tasks in email mar­ke­ting. A high-qua­li­ty con­tact base stands out through strong reci­pi­ent loyal­ty and high activa­ti­on. In order to dis­play the­se, we need new per­for­mance figu­res, such as reten­ti­on rate or seg­ment enga­ge­ment quo­ti­ent. The­se “new” per­for­mance figu­res are only two of many KPIs avail­ab­le to deter­mi­ne suc­cess in email mar­ke­ting. The deve­lop­ment of the indus­try con­ti­nu­al­ly gene­ra­tes new ques­ti­ons, which result in new per­for­mance indi­ca­tors. For examp­le, the mobi­le rate as a per­for­mance figu­re to deter­mi­ne mobi­le activi­ty of your reci­pi­ent group. This can be an indi­ca­tor to deter­mi­ne whe­ther it is worth inves­ting in a mobi­le (respon­si­ve) email design.

Download free Checklist

The check­list “The 25 Most Important Per­for­mance Figu­res in Email Mar­ke­ting” con­tains 25 per­for­mance figu­res from email mar­ke­ting, e.g.: reten­ti­on rate, seg­ment enga­ge­ment quo­ti­ent, return on invest­ment, mobi­le rate or read dura­ti­on and can be down­loa­ded for free at