At the end of the day, it doesn’t matter how optimised your firm’s emails are if you can’t track the results of your efforts.
Before sending an email, accountants should review the purpose of their email marketing and figure out which metrics they will need to track to determine how they’re progressing toward their overall goal.
Since the goals of email marketing campaigns will differ from firm to firm, here are three basic metrics every firm should be paying attention to, regardless of their overall goal:
Click-through rate (CTR)
An email’s click-through rate is the percentage of email recipients who clicked on one or more links contained in an email. To calculate an email’s CTR, firms need to divide an email’s total clicks by the number of emails delivered e.g. 500 total clicks ÷ 10,000 delivered emails = 5 per cent CTR.
CTR lets firms quickly calculate the performance of every individual email they send. CTR is an important metric for all firms engaging in email marketing to track, as it provides a direct insight into how many people on their client list are engaging with the email’s content and are interested in learning more.
An email’s conversion rate is the percentage of email recipients who clicked on a link within an email and completed a desired action, such as downloading a newsletter or purchasing a product.
An email’s conversion rate is tied to the email’s call-to-action, and since the email’s call-to-action is linked to the overall goal of the email campaign, the conversion rate can help determine the extent to which a firm is achieving its objectives.
The bounce rate is the percentage sent emails that could not be successfully delivered to the recipient’s inbox. There are two types of bounce rates firms should track; “hard” bounces and “soft” bounces. Soft bounces happen due to problems with valid email addresses, such as an inbox being full or an issue with a recipient’s server.
Hard bounces happen due to invalid, closed, or non-existent email addresses. It is critical that firms immediately delete hard bounce addresses from their email list as internet service providers (ISPs) use bounce rates to determine an email sender’s reputation. A sender with a high hard bounce rate will look like a spammer in the eyes of an ISP.