It can be tricky to judge the success of the conversion rate for email marketing, as this can vary by industry, the quality of your emails and how much you spend on your marketing campaign.
Despite changes in customer behaviors in recent years, there’s no denying that email marketing remains one of the most effective techniques. But what are the measures of a “successful” campaign?
Today we’ll take a look at some of the benchmarks for a good conversion rate for email marketing. The statistics we’ve used below come from MailChimp’s annual email marketing survey, and the full list of benchmarks can be found here.
This is the percentage of customers who open your email, and is your first indicator of success, and as mentioned above, this can vary by industry. For example, for those promoting products to do with hobbies, you can expect email open rates of 27%, while beauty products only see an open rate of around 16%.
This is because people are far more engaged in their hobbies than they are other random product promotions. Judge your success on how engaged your user base is. Is there anything you can do to get them more engaged? Try and use the customer’s name in the subject line and optimize the title to get them over the first hurdle and open the email.
This is where you’ll see the percentages fall off dramatically, and you realize just how difficult it is to get people to actually click on offers and engage with your campaign! The average click rate is just 2.62%, so if you’re landing anywhere around here this should be considered good.
To improve the click rate, you might want to think about making your emails short and snappy. People are much more likely to read a short paragraph than reams of text.
Make sure you’re highlighting the value of your offer too, don’t try the hard sell but emphasise what benefits the customer will be getting by signing up to your deal.
Hard bounce rate
This is the percentage of emails that failed to reach the recipient. This usually means your marketing list is out of date and that email address no longer exists. Most people keep the same email address for years, so the hard bounce rate averages just 0.40%.
However, make sure you delete every hard bounce address from your contact list. If email filtering software picks up too many hard bounces from your company, there’s a chance you could get marked out for spam. So keep that list up to date!
This is the percentage of customers who unsubscribed after receiving your marketing communication. The average rate across all industries is 0.26%, so if you start to see your rate increase, it’s likely a sign that you’re doing something wrong.
Review your marketing emails and see what might be annoying customers and forcing them to unsubscribe. You can also segment your market and offer more targeted emails to customers, this way they’ll only get product offers they might be interested in.
Remember, the benchmarks are a little different depending on the industry, so before you start to worry you should compare your results to your industry average. Once you’ve got some accurate benchmarks on the topics we’ve mentioned, you can then take targeted action to improve areas you might be weak in.