Calculating a composite index involves several steps:
Selection of Metrics: Choose the key performance indicators (KPIs) that are crucial for your campaign. Common metrics include open rates, click-through rates, and conversion rates. Normalization: Normalize these metrics to ensure they are on the same scale. This often involves converting raw numbers into percentages or z-scores. Weighting: Assign weights to each metric based on their importance. For instance, if conversions are more critical than opens, give them a higher weight. Aggregation: Combine the weighted metrics to form a single composite score.