4 Email Metrics to Review Every EOFY

More of an audio listener? Listen now to discover the essential email metrics you need to be paying attention to.

Or download the transcript here

Welcome to the ultimate guide to email metrics that you should be measuring every single year—or even more frequently—to truly understand the effectiveness of your email marketing efforts.

In Australia, we’ve just hit the end of the financial year, which means it’s time to crunch those numbers, evaluate what’s working, what’s not, and, of course, deal with everyone’s favourite topic: taxes (no sarcasm here, promise!).

Since we’re diving into finances, I’m focusing on metrics that directly impact your bottom line. We’re not just talking about open rates and click rates, which are important, but more about engagement.

It’s all about the big indicators—the numbers that tell you exactly how much your email marketing is earning, what it’s costing you, and how you can use this data to forecast and budget for the future.

Unlike other marketing strategies, your email database is essentially your leads database. It bridges the gap between your public-facing marketing efforts and actual sales. This makes email marketing a powerful tool for predicting your business’s financial health.

So, let’s move beyond just guessing and hoping for revenue. Instead, we’ll make educated guesses. This approach helps you see precisely how much money you’re earning from your email marketing and how much you could potentially earn. And yes, we’re making this as simple as possible.

For this exercise, I will be looking at the financial year from July 1 to June 30. However, if you prefer, you can use a calendar year or your country’s financial year. For a more detailed analysis, you could even break it down by month to see how your list grows, and revenue fluctuates, giving you a more accurate picture.

Now, you can get as detailed as you want. Whether you break it down by promotion, specific launches, or automation campaigns, choose what’s most meaningful for your business. Remember, while diving deep into numbers can be fun, sometimes it’s best to stick to big-picture metrics to avoid getting lost in the details.

But first, let’s address the elephant in the room: how do you know if you’re doing well?

The best way is to compare your performance to previous years. This comparison will help you understand trends and changes, factoring in external influences like overall cost increases or reduced spending.

If you don’t have historical data, now is a great time to start. Look back at the last five years, if possible, and analyse these key metrics. If you’re new to this, you can also look at industry benchmarks, either through a good Google search or specific tools like Klaviyo’s benchmark tools for ecommerce businesses.

For more detailed guidance and industry benchmarks, check out my free course, “Get Started with Email Marketing.” It’s packed with useful information and numbers to help you get started on the right foot. You can grab it at yaelkeon.com/start.

So, let’s calculate and review the numbers that matter most, and take actionable steps to optimise your email marketing for the next financial year…

 

Metric 1 – Return on Investment (ROI)

The first metric I want you to look at is your return on investment (ROI). This is all about how much your email marketing efforts are earning you.

To calculate this, you take your revenue from email marketing, subtract the cost of your email marketing, and then divide that result by the cost.

Let’s break it down.

Revenue from Email Marketing

First, figure out how much your email marketing is earning. Hopefully, you have good tracking set up. When you set up your email marketing, make sure you turned on UTM tracking, which communicates with your Google Analytics. If you have Google Analytics set up, you should be able to find this information through goals or revenue attribution. Platforms like Shopify also offer robust reporting on revenue sources. Your email marketing software might also provide attribution data but be mindful of the attribution window settings which could affect accuracy.

For those who sell mainly through email, this is straightforward.

For example, I attribute most of my revenue to email marketing since my sales primarily come from there, apart from a few big-ticket clients from my podcast.

However, if you run a service-based business and don’t have direct sales data, you can still track the number of clients who came from your email list.

If you don’t have a tracking system in place, take this as your reminder to set it up!

Make sure every time you book a client, you note where they heard about you. Set up your Google Analytics correctly to gather this data effortlessly next financial year.

Cost of Email Marketing

Next, calculate your costs. This includes your email marketing software, any programs or courses you invested in, support costs like virtual assistants or consultants, special lead page software, and your ad spend (e.g., Facebook ads to grow your email list).

Calculation

Once you have your revenue and costs, subtract the costs from your revenue, and divide that result by the costs. This gives you your ROI. Essentially, it tells you how many dollars you get back for every dollar spent on email marketing.

RETURN ON INVESTMENT (ROI) = (REVENUE – COST) / COST

For example, Campaign Monitor suggests an average ROI of $44 per dollar spent, but this can vary widely. Knowing your specific ROI helps you gauge your email marketing effectiveness. If your ROI isn’t as high as you’d like, consider whether you’re using your email marketing effectively.

Are you regularly engaging with your list, or just sending a monthly email and hoping for the best? Are you actively growing your list?

Also examine where your revenue is coming from—specific promotions, launches, automations, or individual emails—and identify any gaps.

If you need further assistance, I would highly recommend my program, The Email Implementor, where I can work directly with you on your email marketing strategy, including calculating these email metrics.

 

 

Ultimate Guide to Ecommerce Automations

 

Metric 2 – Revenue per Subscriber

The next exciting email metric is revenue per subscriber. This one is straightforward and super insightful!

It’s all about figuring out how much each subscriber on your list is worth.

Here’s how you do it: take the revenue you’ve earned (which we’ve already calculated) and divide it by the number of subscribers you have. Voilà! You now have your RPS, or revenue per subscriber.

REVENUE PER SUBSCRIBER (RPS) = REVENUE / NUMBER OF SUBSCRIBERS

This metric is fantastic for assessing the value of any future list growth. It helps you determine whether investing in ads to grow your list is worth it. For instance, if each subscriber has earned you $5 and it costs $2 to add a new subscriber, you can see a clear profit of $3 per subscriber.

Keep in mind, you’ll also need to consider product costs and other expenses, but this gives you a basic framework to make informed decisions about investing in your email list growth.

And here’s a bonus for you: once you have your RPS, you can start calculating your customer lifetime value (CLV). This involves taking the revenue per subscriber and multiplying it by the average number of years your subscribers stay active.

If you have a bit of historical data, check out the created and unsubscribe dates of your subscribers, do some math in Excel (Excel can handle this for you!), and find the average duration people stay on your list. Then multiply your RPS by this average number of years to get the lifetime value of each subscriber.

So, there you have it—return on investment and revenue per subscriber are two critical dollar-value email metrics you’ll want to keep an eye on.

 

Metric 3 – Conversion Rate

The third metric to calculate is your conversion rate, specifically the conversion rate to sale.

In email marketing, we often talk about conversion rates in terms of how well our lead page is converting or how many people are clicking on a link. Any action someone takes can count as a conversion. Here, we’re focusing specifically on sales.

First, calculate the number of subscribers you have. Then, determine how many unique purchases you’ve had over the year. Divide the number of unique purchases by the number of subscribers and multiply by 100 to get your conversion rate as a percentage.

SALES CONVERSION RATE % = (UNIQUE PURCHASES / NUMBER OF SUBSCRIBERS) X 100

This percentage is incredibly useful. It helps you understand how many of your subscribers are likely to convert to a sale, which is crucial for many calculations.

You can also apply this metric to individual campaigns. For example, if you send an email to a specific number of people and see how many purchase, you can calculate the conversion rate for that email.

You can also do this for a launch, a specific promotion, or across the entire year!

If you’re curious about increasing your conversion rates, check out Easy Email Marketing Podcast Episode 86, where I share some great tips on boosting conversions.

And remember, it’s important to check your industry averages because your conversion rate might be lower than expected. Many people mistakenly think that if they have 100 subscribers and make an offer, 50% will buy, but that’s just not realistic!

 

For more, get my membership, 'The Email Experience'

 

Metric 4 – List Growth Rate

The last of the email metrics is your list growth rate. This is all about tracking how well your email list has grown over time.

First, you need the current number of subscribers. Next, find out the number of subscribers you had at the same time last year (or last month, depending on your timeframe, but let’s stick with the yearly view for now).

Take your current number of subscribers and subtract the past number from it. Then, divide that result by the past number and multiply by 100 to get your percentage.

For example, if you currently have 150 subscribers and had 100 last year, subtract 100 from 150 to get 50. Divide 50 by 100 to get 0.5, and multiply by 100 to get a 50% growth rate. This metric is crucial because it helps you predict how your business will grow in the coming year.

LIST GROWTH RATE % = ((CURRENT NUMBER OF SUBSCRIBERS – PAST NUMBER OF SUBSCRIBERS) / PAST NUMBER) * 100

To get even more insights, look at where these subscribers came from. Has your growth been consistent through regular website visits or lead magnets? Or were there specific boosts from collaborations, podcast appearances, or webinars? Identifying these can help you figure out what strategies to double down on.

If you’re concerned about your list growth or want to accelerate it, check out Easy Email Marketing Podcast Episode 24, “Why Your Email List Isn’t Growing.” I also have several episodes on lead magnets and list growth strategies.

And for a deeper dive, my course, “List Building Boost,” covers how to spot gaps in your growth and offers strategies to enhance it. You can learn more at yaelkeon.com/boost.

 

 

So those are our four key metrics…

Your return on investment, your revenue per subscriber, your conversion rate, and your list growth rate. These numbers will give you a clear picture of your email marketing’s health and how much it contributes to your business. With these metrics in hand, you can start making some great predictions about your future revenue.

To calculate your predicted revenue, you can start with your list growth rate. For example, if your list grew by 50% last year and you expect similar growth, apply that rate to your current list size. Then, multiply your new list size by your revenue per subscriber to estimate your revenue for the next year. This straightforward calculation provides a solid starting point.

But let’s take it a step further. Ask yourself some “what if” questions to explore different scenarios. What if you could increase your list growth rate from 50% to 60%? How would that impact your bottom line? This helps you think strategically about list growth strategies. Or, what if you could boost your conversion rate by a certain percentage? Even a small increase can significantly impact your revenue, especially with stronger calls to action or additional emails.

You can also consider investing in ads to grow your list. Calculate how much you can reasonably spend based on your subscriber value and see how that investment could pay off. Playing with these numbers can help you predict your email marketing revenue and get you excited about the potential.

I know it might sound a bit nerdy, but seeing these predictions can motivate you to take action. It’s easy to feel like you’re just grinding away, writing emails without seeing direct results. Comparing the ROI of email marketing with your other marketing efforts can be eye-opening. For example, look at how many people came to your website from Instagram and made a purchase, and compare that ROI to your email marketing.

Also, consider the time investment. Your time is valuable, and there’s an opportunity cost associated with it. If you see that the ROI of email marketing is significantly higher than other strategies, you might decide to prioritise it more.

If you find your email marketing isn’t performing as well as you’d hoped, ask yourself if you’ve truly been putting in the effort or just coasting with minimal engagement. You only see results if you put in the work!

If you need more support, I have a couple of fantastic options for you:

For those who find this overwhelming or simply don’t have the time, I offer personalised one-on-one support. You can learn more about this tailored approach at yaelkeon.com/work-with-me.

However, my top recommendation is the Email Experience Membership. This membership includes a comprehensive performance review exercise, detailed worksheets, and an in-depth look at how to evaluate your email marketing efforts. Plus, you’ll get access to my Five Email Experiences Framework, which explores all the different ways you can use email marketing to grow your business. This framework will help you identify any gaps and plan your next steps effectively. Discover more about this membership at yaelkeon.com/experience.

 

RELATED POSTS

4 Metrics to Review Every EOFY | Episode 109

4 Metrics to Review Every EOFY | Episode 109

It’s the end of financial year here in Australia and the time we all step back to look at the key numbers in our businesses. And your email marketing numbers should definitely be included in your analysis. No, I’m not talking about your opens, clicks, unsubscribes and...

Ultimate Guide to Ecommerce Automations

Ultimate Guide to Ecommerce Automations

More of an audio listener? Listen now to discover the ultimate ecommerce automation strategy.Or download the transcript hereIf you're an ecommerce business owner looking to unlock the full potential of email marketing, you're in the right place. And don't worry,...

Top Automations in Email Marketing for Service Businesses

Top Automations in Email Marketing for Service Businesses

More of an audio listener? Listen now to discover the secret to streamlined services.Or download the transcript hereWe’re diving deep into the magical world of email marketing for service businesses, specifically focusing on email automation and how it can transform...