What Is a KPI (Key Performance Indicator)?
Definition
A KPI (Key Performance Indicator) is a measurable value that shows how well a business is achieving its goals. It tracks progress over time, helping teams focus on what matters most.
KPIs are tied to specific targets, whether that’s growing revenue, increasing engagement, or cutting costs. They serve as benchmarks for success, keeping businesses aligned with their objectives.
Example
A retail store might set a KPI to improve customer retention, focusing on the number of repeat purchases each month. If the numbers rise, it means that customers like their products. If the numbers drop, it signals a need for change. By monitoring this KPI, the store gains insight into customer loyalty and satisfaction. KPIs can guide the store's decision-making with clear data.
Key KPIs for Email Marketing
Several KPIs are important for measuring email marketing performance. These include the following:
- Open rate. The percentage of people who opened your email.
- Click-through rate (CTR). The number of recipients clicking on a link.
- Conversion rate. The percentage of recipients taking the desired action.
- Bounce rate. The percentage of emails not delivered.
- Unsubscribe rate. The number of recipients opting out.
- List growth rate. How fast your subscriber list is expanding.
- Forwarding/share rate. How often recipients share or forward your email.
- Revenue per email. The average revenue generated per email sent.
How to Track and Improve KPIs
Tracking KPIs in email marketing is fairly straightforward. Most platforms provide these metrics automatically, which means you can actually monitor your performance in real time.
Reviewing KPIs regularly helps you see what's working and what's not. If a specific metric falls short, it means it is time to take action. And if you are monitoring KPIs at regular intervals, then you can make quick adjustments whenever necessary.
To improve KPIs, tweak the weak points in your campaigns. Let’s say your open rate is low. Testing different subject lines could help you see which one works. Got a weak click-through rate? Maybe you can revise your email design or make the CTA clearer. Every KPI reflects a specific element of your strategy, allowing you to adjust what’s not performing well.
You can also use A/B testing. Test different variables to see what resonates with your audience. Review the data. Make improvements. Repeat this process regularly to drive better results over time. With consistent monitoring and adjustments, you can use KPIs to drive growth and boost your engagement.
Related terms
Related articles
Verify 500 emails for free. For lists over one-million emails, we will beat the price of any competitor, guaranteed.