Start Here: Understand Where Your Email & SMS Marketing Stands

Before you can scale, you need to know where your email and SMS strategy stands today. This module is about gaining clarity on where your email and SMS . A performance audit allows you to evaluate what’s working, what isn’t, and where your biggest opportunities lie. Without this step, your efforts are like throwing darts in the dark.

How to Perform an Email & SMS Audit

An effective audit examines your metrics from multiple angles to pinpoint areas for improvement. Focus on these key performance indicators (KPIs):

Open Rates:

• Are your subject lines grabbing attention?
• Benchmark: An open rate above 25% is considered solid. Anything lower signals that your audience isn’t engaged—or your emails aren’t reaching their inbox.

Click-Through Rates (CTR):

• Is your content compelling enough to drive clicks?
• Benchmark: Aim for a CTR above 1.5%. Lower CTRs often indicate weak calls-to-action (CTAs) or irrelevant content.

Revenue Attribution:

• Are your campaigns generating measurable sales?
• Your email and SMS marketing should be generating 20-30% of your sales. The higher, the better. 
• Action: Use tools like Klaviyo to attribute revenue directly to your email and SMS campaigns.

Author’s note: Klaviyo, Postscript, Facebook, etc. all have the incentive to over-report how much revenue is attributed to email marketing, ads, etc. However, no matter which way you cut it, strong email and SMS marketing is a necessity for your brand. The question about the ROI should always be “how can we get better” rather than “is it worth the investment”. 

List Growth and Health:

• Is your list growing steadily with engaged subscribers?
• Red Flag: High unsubscribe rates or many inactive subscribers can drag down performance.

Email Marketing Benchmarks

• Open Rates:some text
  • Good: 20–30%
  • Needs Improvement: Below 15%
• Click-Through Rates (CTR):some text
  • Good: 1.5–5%
  • Needs Improvement: Below 1.5%
• Unsubscribe Rates:some text
  • Good: Below 0.5%
  • Red Flag: Above 1%
• Revenue Attribution:some text
  • Good: 20–30% of total sales from email
  • Needs Improvement: Below 10%

SMS Marketing Benchmarks

• Click-Through Rates (CTR):some text
  • Good: 10–36%
• Unsubscribe Rates:some text
  • Good: Below 1%
• Revenue Attribution:some text
  • This varies, but measure against yourself and try to improve over time

Quick Fixes for Underperforming Metrics

If your campaigns aren't meeting these benchmarks, here are some strategies you can use to address any weak metrics:

Low Open Rates

• Problem: Subject lines lack appeal or poor deliverability.
• Solutions:some text
  • A/B Test Subject Lines: Experiment with urgency, curiosity, and personalization.
  • Enhance Deliverability: Remove inactive subscribers and authenticate your domain (SPF, DKIM, DMARC).
  • Resend to Non-Openers: Modify the subject line and resend to those who didn't open initially.

Weak Click-Through Rates (CTR)

• Problem: Content fails to drive action.
• Solutions:some text
  • Simplify CTAs: Ensure calls-to-action are clear and prominent.
  • Invest in Design: Use tools like Figma or Canva for visually appealing emails.
  • Optimize Visual Hierarchy: Utilize headings, whitespace, and images to direct attention.
  • Improve SMS Targeting: Align offers with audience interests to boost engagement.

Low Revenue Attribution

• Problem: Campaigns aren't converting.
• Solutions:some text
  • Refine Product Recommendations: Leverage dynamic content based on user behavior.
  • Add Incentives: Offer limited-time discounts or free shipping.
  • Create Urgency: Use time-sensitive language to encourage immediate action.

High Unsubscribe Rates

• Problem: Content isn't resonating, or frequency is too high.
• Solutions:some text
  • Segment Your Audience: Tailor messages to specific groups.
  • Adjust Sending Frequency: Reduce email volume if unsubscribe rates rise.
  • Survey Unsubscribers: Gather feedback to identify issues.

Deliverability Improvement Hack: Use a “Do Not Send” (DNS) List 

Creating a DNS list is a super easy way to exclude people who might bounce or unsubscribe. DNS = Do Not Send. This segment is going to be full of people we don’t want to send to, so we’ll exclude them from future campaigns. 

Build a segment in Klaviyo that combines these filters. 

• Has bounced at least once over all time
• OR Has unsubscribed from a list at least once over all time
• OR Has dropped email at least once over all time
• OR Has marked email as spam at least once over all time

Once this segment is built, you can exclude this segment from all of your campaigns in the future. You should see your deliverability metrics improve immediately. 

Final Thoughts: Metrics Are a Roadmap, Not a Verdict

Every number in your dashboard tells a story about your audience and your emails. Low metrics aren’t failures that you should take personally...they’re signals pointing you toward areas that need improvement if you want to drive more sales. 

Once you understand your benchmarks and your areas of concern, you can craft a plan to make improvements and drive more sales through email & SMS. 

Start with one or two areas to improve, implement the fixes, and track your progress. With consistent effort, you’ll see your numbers climb—and your revenue along with them.

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