Email marketing glossary

EMAIL METRICS

Open (view) rate: The number of people who opened the message. Seen as a less reliable figure, as an opened email doesn’t necessarily mean it has been read.

Click-through rate (CTR): The number of people who clicked through to your site. An individual CTR tells you the number of people who clicked on an embedded URL in your email message and were sent through to your site. An overall CTR tells you the number of clicks in relation to the total messages sent.

Conversion rate: Measures the success of your call to action: a purchase or a requested action.

Acquisition rate: The number of recipients of your email who became new paying customers. Can be used to tell you the quality of your list, offer and testing methods.

Bounce rate: How many names on your list bounced back because they were undelivered (hard bounce) or the recipient’s server was too full or too busy (soft bounce). Needs to be monitored to ensure the quality of your list.

Unsubscribe rate: The number of people who received your email but clicked the Unsubscribe link. Tracking this can help you refine your message, frequency and offer.

EMAIL ANALYSIS

ROI: How much your campaign cost against how much you invested in it.

Cost per sale: How much it cost to secure a sale. Divide total cost of campaign by total number of sales.

Cost per response: How much each response cost. Divide total cost of campaign by number of responses.

Cost per message: How much each message cost to create and send. Divide total cost of campaign by number of messages sent.

Total revenue: How much revenue your campaign generated. Multiply the number of customers by the revenue generated per customer.

Recency, frequency and monetary value (RFM): Analysis technique that determines the customers most likely to purchase or frequent your site based on their past ordering history. Determined in part by how recently they ordered, how often they order and how much.