Tracking the performance of an email marketing campaign is similar to tracking the performance of a direct mail campaign, except there are more key metrics available to you.
When you send direct mail the only thing that you can track is an increase in sales, and if the campaign included a coupon, how that sale was generated.
However, if you send out an email marketing campaign you can track several different key metrics; delivery rate, open rate, click-through rate, sales (or conversions) along with my least favorite – unsubscribe rate. And tracking the email’s performance is a good real estate marketing idea.
Let’s take a look a closer look at these key metrics;
I know what you are saying…”I sent out 300 emails, there must have been 300 emails delivered”. Sad to say, not every email sent ends up in the intended inbox.
There are many reasons for bouncing emails; invalid email address, full inboxes, spam filters, etc. None of bounced emails get delivered, so they can’t be read or acted upon. Most experts believe that about 20% of the emails sent out get blocked in spam. So, if you sent out 100 emails and 10% bounce, add another 20% to the equation and you can figure that 70 of your emails actually landed in your recipient’s inbox.
This is the percentage of emails that were actually opened, as opposed to the percentage of emails that were ignored or deleted without opening.
According to many experts, the average permission-based email open rate is around 30%. If you are getting less than 30%, ask yourself why…was the subject line enticing enough? And, just because the recipient opened the email doesn’t it was actually read. Still, the open rate and the total number of opens is a good thing to track.
Click-Through Rate (CTR)
The recipient clicking on one of your links constitutes a click-through. This is the easiest part of the process to track. Once you know the number of click-through’s an email campaign has generated, you calculate CTR as clicks versus emails sent, clicks versus delivery rate, clicks versus open rate.
The experts estimate that the average CTR for an email campaign at about 12%, however that varies according to who you are emailing to, and, whether you are doing B2B or B2C mailings.
You send out an email, it gets delivered, it gets opened, the recipient clicks-through, and finally a recipient actually does something at your website (which is the whole point of this real estate marketing idea)… asks for more information, fills out the contact form, etc. This action is considered a ‘conversion’.
Calculate the conversion rate by dividing the total number of conversions by the number of emails successfully delivered. An average conversion rate for permission emails is 4%. Actually, that is amazing considering that my conversion rate with ‘old school’ direct marketing was about 2%.
Return on Investment (ROI)
Simply put, ROI is calculated by dividing the profits (from your sales) generated by the money spent on this marketing campaign. Overall the ROI for an email campaign is generally higher than all other types of marketing…in other words, you get more bang more your buck with this real estate marketing idea.
Unsubscribe Rate – If you have too high a unsubscribe rate or a rate that’s increasing, you have a problem that you need to address. Maybe you are sending out too many emails, or maybe the mailings aren’t targeted enough. Whatever the problem, it is important to pay attention to the unsubscribe rate.
The bottom line when evaluating this real estate marketing idea is to pay attention to the metrics; delivery, open, click-through and conversion rates. Don’t forget to measure the ROI for every campaign, and keep an eye on the unsubscribe rate.
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