Here’s the third installment of the Legal & Best Practice Hub on Metrics and their meaning. What we’re hoping is to gain your feedback and comments. This week we’re looking at Internal Monitoring and more of the metrics that feature in this area:

1. Conversion rate

Definition: Clicks on a particular link within the email divided by the total clicks.

Things to take into consideration: The number of ‘take-ups’ resulting from the e-mail activity e.g. the number of credit cards or personal loans offered as a result of the e-mail. Only includes data that is clearly based on known responses to e-mails.

2. Hard Bounce Rate

Definition: The number of hard bounces divided by the number of e-mails delivered (as a %).

Things to take into consideration: Hard bounces are e-mails which are no longer in use. These need to be removed from any future campaigns. There is no benefit in sending e-mails to an address no longer in use and there is likely to be a negative impact on deliverability.

3. Increase in Web Traffic During Effective Period of Campaign

Definition: Lift in web traffic over the established benchmark.

Things to take into consideration: It is important to monitor the number of direct visits to the website during and just after the campaign is sent to account for the individuals who do not click but enter directly into the site.

4. Link Click-through Rate

Definition: Clicks on a particular link within the email divided by the total clicks.

Things to take into consideration: This can be used to see which links are most popular with the recipients, and can be used to gauge how to further target users when sending future e-mails, and where to concentrate efforts in future campaigns.

5. Opt-out

Definition: When a recipient unsubscribes or opts-out of further communications.

6. Opt-out Rate

Definition: The number of opt-outs/unsubscribes divided by the number of e-mails delivered (as a %).

7. Refer a friend rate

Definition: The number of people who request that the email be forwarded divided by the number of emails delivered.

Things to take into consideration: Refer to DMA best practice on refer a friend. Don’t inappropriately incentivize people to forward it on. Make sure it is a one off email clearly stating why the individual has received it, giving them the option to opt in or engage with you but do not follow up if they don’t.

8. Response Rate

Definition: The number of responses including clicks, email replies, increased web traffic, store visits or call to the call centre divided by the number of emails delivered.

9. Sign-up Rate

Definition: How many people sign up to receive future communications from the company.

Things to take into consideration: It is important to make this an option that users can find easily.

10. Unique Click to Open Rate

Definition: This metric attempts to answer the question, “Of the Unique e-mail Opens, how many individuals took an action?” It is calculated as Unique Click-through over Unique e-mail Opens.

So that’s part 3. We look forward to hearing your thoughts.

Jonathan Burston, CACI & Legal and Best Practice Hub

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