Entrepreneurs must understand the key terms and concepts of email marketing to create effective campaigns and achieve their goals. This way, you won’t get lost when working with a full-service email agency once they explain the details of the marketing campaigns.
Email Marketing Terms Explained
Here are 12 email marketing terms and what they mean:
1. Cost Per Thousand (CPM)
CPM refers to the amount spent on sending a thousand emails to subscribers on your mailing list. Understanding CPM can help you make data-driven decisions about what to push for your email campaigns.
For example, if you have a high CPM but a low clickthrough rate (CTR) or conversion rate. Monitoring your CPM and other email marketing metrics is critical for making informed decisions. This will help improve the effectiveness and ROI of your email campaigns.
2. Clickthrough Rate (CTR)
This email marketing metric used in email marketing measures the percentage of email recipients who click on a link in an email campaign.
Entrepreneurs need to know their CTR because it indicates the effectiveness of their email campaigns. A high CTR indicates the email content is engaging and relevant to your subscribers. It also tells you they want to learn more about your product or service.
3. Conversion Rate
The conversion rate measures the percentage of email subscribers who took a specific action. It could be making a purchase or filling out a form. This metric is a critical indicator of the success of your email marketing campaigns.
4. Double Opt-in
Double opt-in is a process where subscribers confirm their email address by clicking on a verification link sent to their email. This process helps ensure that your email list comprises engaged and interested subscribers.
5. Open Rate
This email marketing metric measures the percentage of subscribers who opened your email. This metric is a good indicator of the effectiveness of your email subject lines. The average open rate across industries is 21.33%. If yours is lower than this, it’s time to revisit your strategies.
6. Segmentation
This term refers to dividing your email list into smaller groups based on demographics or interests. This process allows you to send more targeted and personalized email campaigns.
Sending targeted and relevant content to specific subgroups of subscribers increases engagement. It encourages more opens, clicks, and conversions.
Segmentation can also help entrepreneurs analyze and understand their email metrics more effectively. Comparing engagement and conversion rates across different subgroups of subscribers helps identify trends and insights.
7. A/B Testing
A/B testing is a process where you send two variations of an email to a small group of subscribers to see which version performs better. This process allows you to optimize your email campaigns for better engagement and conversion rates.
8. List Management
List management involves maintaining and growing your email list. This process includes removing inactive subscribers and implementing strategies to attract new subscribers.
It’s critical for entrepreneurs in email marketing because it helps you maintain a clean and engaged email list. Eventually, this can improve the effectiveness and ROI of your email campaigns.
Internet Service Providers (ISPs) use engagement metrics like open and clickthrough rates. This will help determine whether or not to deliver your emails to subscribers’ inboxes. Many inactive subscribers can lower your engagement metrics and make your emails more likely to be marked as spam or blocked by ISPs.
Subscribers are more likely to engage with content that is personalized and tailored to their needs. At least 74% of marketers claim personalization is critical for engagement.
It’s also critical for cost management. Maintaining a large email list with a high number of inactive subscribers can be costly. Many email marketing platforms charge based on the size of your list. Cleaning your list and removing inactive subscribers reduce costs and improve your ROI.
9. Drip Emails
Drip emails are a series of automated emails sent to subscribers. Depending on the audience’s activities, it can take over a week or a month. This process allows you to send targeted and relevant content to your subscribers based on their behavior and interests.
10. Merge Tags
Merge tags are placeholders in your email content that allow you to insert personalized information, such as the subscriber’s name or location. This process helps increase the effectiveness of your email campaigns.
11. Dynamic Content
Dynamic content is email content that changes based on the subscriber’s behavior or interests. This process helps increase engagement and conversion rates by sending more targeted and personalized content.
12. Email Deliverability
Email deliverability is the ability of your emails to reach your subscribers’ inboxes. This process involves maintaining a good sender reputation and avoiding spam filters.
Key Takeaways
Email marketing is a powerful tool for entrepreneurs to connect with their target customers and grow their businesses. Remember to:
- Keep your email list engaged with relevant and personalized content
- Test and optimize your email campaigns for better performance
- Maintain a good sender reputation to ensure high email deliverability
