What Ecommerce Reporting Metrics Really Mean
When building reports inside and outside of Klaviyo, it’s important to first have a solid understanding of what each metric means. These metrics are what let you accurately measure the effectiveness of your campaigns and email flows. This guide will help you make sense of your analytics reports.
1. Open Rates
Open rates are often held up as a primary measure of a campaign’s success, but they are in large part a vanity metric. Across industries, open rates vary greatly by the type of email you’re sending. For example, an above average newsletter email will have an open rate over 20%. An above average welcome email, on the other hand, will have an open rate over 50%.
While high open rates are desirable, some fluctuation is to be expected and is mainly dependent on the health and engagement of the email list you’re sending to.
If you’re seeing an open rate below 10%, this may indicate a deliverability issue. In Klaviyo, you can build a report that breaks down open rates by email client, which will further help you diagnose a potential deliverability issue; you may only have low open rates for Gmail, for example.
If you’re seeing low open rates, you should send only to an engaged list to restore your sending reputation. Typically, an engaged list is made up of people who have opened at least one email in the past 90 days. By sending only to this segment, you can boost open rates and get your emails out of the spam folder.
2. Click Rates
Click rates are a measure of recipient engagement. In Klaviyo, click rates are calculated as such:
This is important to note, since most other ESPs calculate click rates out of the number of opens, not recipients.
Because of this, click rates are typically low — an above average click rate is over 2%. Below average click rates are lower than 1%. If you’re seeing low click rates, this is a good opportunity to A/B test email content. Try experimenting with bolder or fewer CTAs — too many CTAs in an email can confuse your message and have been proven to lower click rates.
3. Bounce Rates
Bounce rates refer to the number of emails that are not able to be delivered. There are two types of bounces: hard and soft. An email that hard bounces is not able to be delivered because of a permanent issue, like an invalid email address. An email that soft bounces, on the other hand, is not able to be delivered because of a temporary issue, like a recipient’s mailbox being full.
The best way to reduce your bounce rate is to regularly clean your email list. You can do this by clearing bounced addresses and sending to an engaged list (i.e. people who have opened at least one of your emails in the past 90 days).
4. Complaint Rates
Complaint rates refer to the number of recipients who mark your email as spam. Your complaint rates should not be above .1% — if they are, you’ll likely experience deliverability issues.
It’s important to keep in mind that even if an email ends up in the spam folder, this doesn’t contribute to the complaint rate — the complaint rate only takes into account the recipients who actively mark an email as spam. If you have complaint rates over .1%, you should look into the list you’re sending to to ensure that all recipients have opted in to hear from you. If they have, you should consider switching to double opt-in or cleaning your email list, since it’s likely outdated.
5. Unsubscribe Rates
Unsubscribe rates refer to the number of people who unsubscribe from a given email, out of the total number of recipients. A higher than average unsubscribe rate is over 1%. While having a high unsubscribe rate may be worrisome, it’s not necessarily something to stress too much about. After all, it’s better for recipients to unsubscribe rather than mark an email as spam.
If you’re seeing a high unsubscribe rate, consider whether you’ve recently made any changes in the tone or content of the emails you’re sending. High unsubscribe rates often indicate that recipients are aware of who you are (since they’re not marking you as spam), but are receiving emails that they didn’t expect to.
You may also see high unsubscribe rates if you start sending to an old list — these recipients may have opted in to hear from you at some point, but forgotten. This is especially common if you’ve been silent for a while and are trying to get back in touch.
6. Number of Placed Orders and Revenue Value
These are the conversion metrics ecommerce marketers most often use to measure a campaign’s overall success. While open and click rates are important, they’re mainly important from the standpoint that they enable recipients to place an order.
Establish a placed order and revenue value benchmark for your campaign and flow emails — this will vary pretty widely based on individual businesses, so you may have to send a few emails before you have an idea of what this might be. Then, you’ll be able to see how the content of each email correlates directly with these metrics. Flag the ones that perform especially well and try to replicate them in future emails to drive sales.
Understanding what each of these metrics means is half the battle when it comes to analyzing reports and planning an email strategy. Once you have this down, you can diagnose potential issues, identify what’s doing well, and see where you have room to improve.